This Review measures the level and composition of support provided to Chilean agriculture, and evaluates the effectiveness of current measures in attaining their objectives. The study finds that Chile provides much lower support and protection to its agricultural sector than most OECD countries, even though government expenditures on the sector have trebled in real terms over the past ten years. About half of that spending is on public goods such as infrastructure and irrigation, while the other half consists mostly of measures that seek to make Chile’s poorer farmers more competitive.
This report suggests ways in which the effectiveness of these policies might be enhanced, including by systematic evaluation of policy performance, by closer co-ordination across government agencies, and by framing policies for smallholders and salaried farm workers in an economy-wide context, so that agricultural policies can focus on potentially competitive farmers and be effectively distinguished from other development and social policies.
Table of contents:
Highlights and Recommendations -Reforms and their Impacts -Agricultural Policy Developments -Strategic Options for More Inclusive Agricultural Development Chapter 1. The Policy Context -Introduction -Agriculture's Role in the Chilean Economy -The Impacts of Economic Reforms -Structural Changes in the Agricultural Sector -Policy Challenges Chapter 2. Policy Evaluation -Introduction -The Agricultural Policy Framework -Agricultural Trade Policies -Domestic Policies -Evaluation of Support to Agriculture -Policy Conclusions Annex 2.A1. Policy Tables Chapter 3. Development Pathways for Agriculture Dependent Households -Introduction -A Typology of Households and Development Pathways -Characteristics of the Agricultural Labour Force and Agriculture Dependent Households -Conclusions Annex 3.A1. Regional Aspects of Agricultural Incomes in Chile Annex 3.A2. Determinants of Incomes of Farm Households and Salaried Agricultural Workers Annex 3.A4. Constraints to Small Farmers' Competitiveness in Maule Region Acronyms and Abbreviations Bibliography