Agricultural Trade And Rural Development In The Middle East And North Africa

February 1997 More robust, dynamic growth could significantly boost sustainable economic growth and rural development in countries in the Middle East and North Africa with a comparative advantage in agriculture. But high levels of protection in many of those countries contribute to overvalued exchange rates and a significant bias against agriculture. The proposed solution: trade liberalization, especially open regionalism. Despite petroleum's prominence in the Middle East and North Africa (MENA), agriculture remains important to most of the region's economies. And more robust and more dynamic agricultural growth could significantly boost sustainable economic growth and rural development in those countries. An appropriate avenue for improving agricultural growth is to expand agricultural exports in MENA countries with appreciable-to-large agricultural sectors and comparative advantage in cereal grains, agricultural raw materials, fruits and vegetables, and many categories of livestock and dairy products. But high levels of protection in many MENA countries, especially for manufactures and some food products, contribute to overvalued exchange rates and a significant bias against agriculture. Trade liberalization and other economic reforms to promote agriculture and improve rural welfare in MENA might be pursued through regional economic cooperation, but should be guided as much as possible by the principles of open regionalism - under which trade concessions negotiated between regional trading partners would be extended unconditionally to all trading partners, including trading partners outside the region. This paper - a product of the International Trade Division, International Economics Department - was presented to the Fourth Annual World Bank Conference on Environmentally Sustainable Development, Rural Well-Being: From Vision to Action, September 25-27, 1996, Washington, DC.

Agricultural trade liberalization has been resisted by many developing-country policymakers, including those in the Middle East and North Africa, for fear it could hurt domestic farmers and exacerbate poverty. The authors of Trade Liberalization and Poverty in the Middle East and North Africa argue, however, that this concern about liberalization might be misplaced. Drawing on case studies from Egypt, Morocco, Syria, and Tunisia, the study uses household survey data and computable general equilibrium models to simulate the effects of various liberalization scenarios on different types of households in these countries, especially poor households. The results indicate that agricultural trade barriers are not an effective means of protecting the poor and that the benefits from many forms of agricultural trade liberalization to the region's consumers outweigh the costs to producers. If complemented with other domestic programs-including agricultural research and extension, information services, disease control, and social safety nets-the reforms have the potential to reduce poverty in these nations. The study findings are a valuable resource for policymakers and development specialists evaluating the role trade liberalization can play in economic development and poverty reduction.

The agriculture sector is key for economic and social development, but the sector’s potential has not received enough attention from policy makers and stakeholders in the Middle East and North Africa (MENA) region. Political transitions, instability, and the resulting refugee crisis have shifted focus away from other pressing development challenges, including slow progress in economic diversification, high unemployment, and persistent high food insecurity and rural poverty. Despite its small contribution to GDP, agriculture is strategic for sustainable development in the MENA countries. Agriculture, for example, is central to achieve food and water security in a region characterized as one of the most food insecure and water scarce in the world. The sector’s role in employment is also central, given the region’s high structural unemployment. However, it will not be possible for MENA countries to develop agriculture without a pathway to structural economic transformation. The region has already started the process of transformation but longstanding challenges remain. This report aims to examine the drivers, constraints, and social implications of agricultural development in MENA and to explore possible cornerstones for new and sustainable development strategies in the context of economic transformation. More specifically, the report provides answers to the following questions: • What development strategies and policies did governments in MENA put in place over the past three decades and how did they affect the performance of agriculture? • How did the structural characteristics of the MENA countries affect agricultural development and the economic transformation process in the region? • What did we learn from the past performance of agriculture? What should be the central elements guiding future agricultural policies? • What are elements of a new and sustainable development strategy in MENA countries? • What is the role of agriculture and agro-industries for development in MENA?

‘Food Insecurity and Revolution in the Middle East and North Africa’ studies the political economy of agrarian transformation in the eponymous regions. Examining Egypt and Tunisia in detail as case studies, it critiques the dominant tropes of food security offered by the international financial institutions and promotes the importance of small-scale family farming in developing sustainable food sovereignty. Egypt and Tunisia are located in the context of the broader Middle East and broader processes of war, environmental transformation and economic reform. The book contributes to uncovering the historical backdrop and contemporary pressures in the Middle East and North Africa for the uprisings of 2010 and 2011. It also explores the continued failure of post-uprising counter-revolutionary governments to directly address issues of rural development that put the position and role of small farmers centre stage.

The ties that bind Central Asia to the Middle East have increased dramatically in recent years, as political emancipation from Soviet rule has spurred the restoration of material culture shared by Turkic and Iranian peoples. Political institutions and farming practices, however, are still based on the Soviet model, with centralised large-scale agricultural production serving Russian rather than local needs. The contributors to this volume examine land reform and agricultural development in Russia, Central Asia, North Africa, and the Middle East. Their studies bring into question the evolutionary view of agricultural development, from small-scale subsistence to large-scale commercialised agricultural systems, and emphasise the need to understand the specific political, historical, and geographic contexts of rural development and land reform. This volume is a must for regional specialists, historians, economists, and those working on rural development issues throughout Eurasia.