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the World Food Economy
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Westview Special Studies in Agriculture Science
and Policy
The Role of Markets in the World Food Economy
edited by D. Gale Johnson
and G. Edward Schuh
This book extends the discussion of world food problems by giving
explicit recognition to the potential role of markets. The authors highlight
the contribution of prices to the solution of food problems in low-
income countries, for example, by providing adequate incentives to
farmers to expand production, assuring that food supplies can be obtained
through trade when needed and giving appropriate signals to consumers.
They also document the negative effects on food supply and national
welfare of the actual price policies of many Third World governments.
While recognizing the problems involved in defining and measuring
hunger, as well as in improving the food supply, the authors consider
the outlook for future food availability as favorable in terms of continued
modest improvement in per capita food supplies at prices, adjusted for
inflation, that are likely to continue the slow decline of recent decades.
One focus of their comments is the positive roles that governments can
and should play in the world food economy, especially in support of
research, creation of human capital, and provision of appropriate rural
infrastructure.
D. Gale Johnson is professor and chairman of the Department of
Economics at The University of Chicago. G. Edward Schuh is professor
and chairman of the Department of Agriculture and Applied Economics
at the University of Minnesota, St. Paul.
The Role of Markets in
the World Food Economy
edited by D. Gale Johnson
and G. Edward Schuh
First published 1983 by Westview Press
Published 2019 by Routledge
52 Vanderbilt Avenue, New York, NY 10017
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Routledge is an imprint of the Taylor & Francis Group, an informa business
Copyright ©1983 Taylor & Francis
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any
formor by any electronic, mechanical, or other means, now known or hereafter invented,
includingphotocopying and recording, or in any information storage or retrieval system,
withoutpermissionin writing from the publishers.
Notice:
Product or corporate names may be trademarks or registered trademarks, and are used only
foridentification and explanation without intent to infringe.
Library of Congress Cataloging in Publication Data
Main entry under title:
The role of markets in the world food economy.
(Westview special studies in agriculture science and policy)
Includes index.
1. Food supply—Government policy—Addresses, essays, lectures. 2. Agriculture
and state—Addresses, essays, lectures. 3. Food prices—Government policy—Addresses,
essays, lectures. I. Johnson, D. Gale (David Gale), 1916– . II. Schuh, George Edward,
1930– . III. Series.
HD9000.6.R73 1983 338.1'9 83-6518
ISBN 13: 978-0-367-29564-6 (hbk)
Contents
Preface ........................................................ ix
PART 1
The World Food Situation: Recent and Prospective
Developments, D. Gale Johnson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Discussion:
Raymond F. Hopkins .................................... 34
PART 2
2 World Hunger: Extent, Causes, and Cures,
Thomas T. Poleman ....................................... 41
3 Hunger: Defining It, Estimating Its Global Incidence,
and Alleviating It, T. N Srinivasan . . . . . . . . . . . . . . . . . . . . . . . . . 77
Discussion:
Vinod Thomas .......................................... 109
PART 3
4 Price Policies in Developing Countries, Lucio G. Reca ....... 115
Discussion:
Malcolm D. Bale ....................................... 136
Robert E. Evenson ...................................... 143
vii
viii Contents
PART 4
5 Governments and Agricultural Markets in Africa,
Robert H. Bates .......................................... 153
6 Why Do Governments Do What They Do? The Case of
Food Price Policy, Alain de Janvry. . . . . . . . . . . . . . . . . . . . . . . . . 185
Discussion:
Robert Paarlberg ........................................ 213
Bruce Gardner .......................................... 219
PART 5
7 The Role of Trade in Food Security and Agricultural
Development, Robert L. Thompson ......................... 227
Discussion:
Alberto Valdes .......................................... 258
T. K. Warley ........................................... 269
PART 6
8 The Role of Markets and Governments in the
World Food Economy, G. Edward Schuh ................... 277
Discussion:
Emery N. Castle ........................................ 302
Richard J. Sauer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
Abbreviations ................................................. 311
Index ........................................................ 313
Preface
The papers and discussions in this book are revised versions of the
presentations made at a conference held in Minneapolis on October
15-16, 1982. The conference, which bore the same title as this volume,
namely, The Role of Markets in the World Food Economy, was jointly
sponsored by the Department ofEconomics ofThe University of Chicago
and the Department of Agricultural and Applied Economics of The
University of Minnesota.
The invitation that was sent to a selected list of individuals and
organizations by the coeditors of this volume described our objectives
in this way:
This conference-made possible by a grant from Cargill, Incorporated-
is designed to explore the role markets do and can play in the world food
economy. The issue is both important and complex. It has attracted interest
and study from many quarters-academics, public officials and govern-
ments, international public institutions, church and social action groups,
farmers, agribusiness, media and philanthropic organizations.
Typically, however, these different groups have little opportunity to
discuss these issues with each other, to learn from each other and to
develop a broader consensus on and understanding of the world food
economy. The purpose of this conference is to provide that opportunity.
Our goal is not to agree on recommendations but to have a dialogue
among responsible people from these different backgrounds that might
shape future individual involvement, public thought and action.
It is our hope that this volume will serve as the basis for a continuing
dialogue among those who have concerns about the future well-being
of the half of the world's population that lives in the low-income
developing countries of the world. It is clear from the papers and
discussions that the world has the resources to improve the lot, with
respect to all of the material aspects of their lives, of the more than 2
billion people living in the low-income countries. It is, we hope, also
clear that the extent of the improvement that will occur in the rest of
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