Poverty Impacts of the Volume-Based Special Safeguard Mechanism

The volume-based Special Safeguard Mechanism was proposed as essential for small, poor farmers and became the proximate cause of the collapse of the Doha Agenda negotiations in 2008. But is it helpful for these farmers, given that it is likely to b...

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Bibliographic Details
Main Authors:	Ivanic, Maros, Martin, Will
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014
Subjects:	ABSOLUTE POVERTY ADVERSE EFFECT ADVERSE IMPACTS AGRICULTURAL COMMODITIES AGRICULTURAL OUTPUT AGRICULTURAL YIELDS ARBITRAGE AVERAGE PRICE CHANGES IN POVERTY COMMODITY COMMODITY PRICE CONSUMER PRICE CONSUMER PRICES COST OF LIVING CROP YIELDS DEVELOPING COUNTRIES DISTRIBUTION OF INCOME DOMESTIC PRICES DROUGHT ESTIMATES OF POVERTY EXPENDITURE EXPENDITURES FARM HOUSEHOLDS FARM INCOMES FARM OUTPUT FOOD ITEMS FOOD PRICE FOOD PRICES FOOD SECURITY GLOBAL MARKET GLOBAL POVERTY HOUSEHOLD BUDGET HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INDUSTRIAL COUNTRIES INTERNATIONAL LAW LIVELIHOOD SECURITY LIVING STANDARDS MARKET PARTICIPANTS MARKET PRICES MARKETING MIDDLE-INCOME COUNTRIES NATIONAL POVERTY NATURAL RESOURCES OUTPUTS POOR POOR CONSUMERS POOR COUNTRIES POOR FARM HOUSEHOLDS POOR FARMERS POOR FARMING POOR PRODUCERS POVERTY ASSESSMENT POVERTY ESTIMATES POVERTY IMPACT POVERTY INCREASE POVERTY LINE POVERTY RATE POVERTY RATES POVERTY REDUCTION PRICE CHANGE PRICE CHANGES PRICE INCREASES PRICE VOLATILITY REDUCTION IN POVERTY RURAL RURAL AREAS RURAL DEVELOPMENT RURAL WELFARE SAFEGUARDS SALES SEASONAL CONDITIONS SMALL COUNTRIES SMALL FARMERS SOCIAL SAFETY NETS SUBSISTENCE SUBSTITUTES SUBSTITUTION SUPPLIER SURPLUS SUSTAINABLE DEVELOPMENT TRADE TAX TRANSPARENCY VOLATILITY WAGE RATES WELFARE LEVEL WORLD MARKET WORLD TRADE
Online Access:	http://documents.worldbank.org/curated/en/2014/08/20127803/poverty-impacts-volume-based-special-safeguard-mechanism http://hdl.handle.net/10986/20360

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Summary:	The volume-based Special Safeguard Mechanism was proposed as essential for small, poor farmers and became the proximate cause of the collapse of the Doha Agenda negotiations in 2008. But is it helpful for these farmers, given that it is likely to be applied when farm output is depressed and many poor farmers in developing countries need to buy food? Stochastic simulations for 31 countries suggest that use of this safeguard in line with the proposed World Trade Organization rules would raise the world poverty headcount by an average of 24 million. The adverse poverty impact of the duty is larger when the quantity safeguard is triggered than it would be in other years, because lower farm output levels reduce or reverse the benefits to poor farm households from higher prices.

Poverty Impacts of the Volume-Based Special Safeguard Mechanism

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