In: Economics
briefly discuss the domestic agriculture policies which provide food security and stabilize agricultural markets.
Answer :-
Modern analyses of food security list five essential components:
availability of food on farms and in markets, access to that food
by all households (urban and rural), effective utilizing of the
food within the household (a function of food safety, nutritional
status and health), the sustainability of the food system that
delivers these components and its stability.At the global level,
considerable attention is focused on both short?run and long?run
balances between food production and food consumption.
THE ROLE OF GOVERNMENT POLICY
Consider a simple model of food security that focuses on the short
run versus the long run, and on the macro level (of policy?makers)
versus the micro level (of household decision?makers) (Figure 1).
When the global economy is reasonably stable, and when food prices
are well behaved, policy?makers at the national level can
concentrate their political and financial capital on the process of
long?run, inclusive growth. Keeping the poor from falling into
irreversible poverty traps is easier and less costly in a world of
stable food prices, and the poor are able to use their own
resources and entrepreneurial abilities to connect (via the small
horizontal arrow) to long?run, sustainable food security for
themselves.
If the food economy is highly unstable, constantly in crisis, policy?makers spend all of their time and budget resources in the North?West box, trying to stabilize food prices and to provide safety nets for the poor. During food crises, vulnerable households often deplete their human and financial capital just to stay alive. This is the world of poverty traps and enduring food insecurity. We are also trapped in short?run crisis management, both macro and humanitarianTHE THREE FUNDAMENTAL TRANSFORMATION NEEDED TO ENSURE FOOD SECURITY
3.1 Structural Transformation
-a falling share of agriculture in economic output and
employment;
-a rising share of urban economic activity in industry and modern
services;
-migration of rural workers to urban settings; and
-a demographic transition in birth and death rates that always
leads to a spurt in population growth before a new equilibrium
3.2 Agricultural Transformation
The agricultural transformation is driven by changing domestic demand for food, opportunities for international trade, commercialization of decision?making and technical change. Innovations can be commodity specific, such as green revolution varieties of wheat and rice .
3.3 Dietary Transformation
As with the agricultural transformation, no single measure
captures the complexity of dietary changes, and much is specific to
local customs and tastes. In general, two basic regularities have
been observed in food consumption patterns as countries have become
richer.
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