1. UOA COURSE OUTLINE UOA Department of Economics Doctoral Program (UA D.Phil econ) Fall Semester 2014-15 COURSE OUTLINE AGRICULTURAL DEVELOPMENT Prof. G.Mergos - Prof. A. Sarris gmergos@econ.uoa.grgmergos@econ.uoa.gr – asarris@econ.uoa.grasarris@econ.uoa.gr 14 Evripidou Str, 5 rd Floor, Monday 15:00-18:00 Offices ! Sofokleous str 5 th floor Mergos office 509. Office hours,Tuesday 13:00-15:00 Sarris office 512. Office hours Tuesday 16:15-18:00 1

2. 2 UOA Dept of Economics Doctoral Program 2013-14 AGRICULTURAL DEVELOPMENT A. Course Outline 2. AGRICULTURE / NON-AGRICULTURE INTERACTIONS IN ECONOMIC DEVELOPMENT (GM) 3. PATTERNS & MODELS OF DEVELOPMENT OF THE AGRICULTURAL SECTOR (AS) 4. PRODUCTION AND UNCERTAINTY (GM) 5. PRODUCTIVITY, TECHNICAL CHANGE AND TECHNOLOGICAL POLICY (GM) 6. LAND ISSUES AND LAND POLICY (AS) 7. RISK AND INSURANCE (AS) 8. AGRICULTURAL MARKETS AND AGRICULTURAL TRADE (AS) 9. FOOD SECURITY ISSUES AND WORLD FOOD CRISES (GM) 10. AGRICULTURAL GROWTH POLICY AND PLANNING (AS) 11.,12 EUROPEAN COMMON AGRICULTURAL POLICY AND DEVELOPMENT (AS, GM)

3. 1. Introduction & Overview (AS & GM) Basic issues and topics Is there a role for agriculture in economic development, and if yes, what is that role? What strategy for agricultural development? Is there a problem of food scarcity in the world? Aspects of food deprivation and food security What is the role of agricultural trade and how market operations affect economic growth Agricultural development models: Unimodal vs bimodal The role of risk and uncertainty and how to deal with it The CAP and world development - EU development policy Greek agricultural policy and development 3

4. 2. Agriculture / Non-Agriculture Interactions in Economic Development (GM) The Lewis model of a dual economy Economic development with unlimited supplies of labour The Fei-Ranis model Structural change and sectoral composition of the economy Factors affecting structural change The contribution of agriculture in the development of industry Transfer of resources from agriculture to non-agriculture Increasing productivity in the economy The post-war world development experience Population growth, employment and food Agriculture, resources and environment: the broader role 4

5. 3. Patterns and Models of Development of the Agricultural Sector (GM) The classical theories: Ricardo, Mill, Rostow The key role of increasing productivity in food production Technical change as a lever for agricultural development: Hayami and Ruttan The role of institutions Hirshman and the sectoral interactions Schultz: Efficiency and the role of incentives Marxist approaches and the dependency theory Rural economy and growth in the macroeconomy Todaro, the urban bias and economic growth 5

6. 4. Production and Uncertainty (GM) Capital accumulation and the choice of production techniques The coexistence of techniques in agriculture and the role of technical change The rate of introduction of technical change Risk, uncertainty and multiproduct production Efficiency in the use of resources The question of efficiency of traditional agriculture Response to economic incentives The organization in product markets and the labour market 6

7. 5. Productivity, Technical Change and Technological Policy (GM) The nature of technical change in agriculture Mechanical, chemical and biological technical change Resource constraints of an economy and their role in introducing technical change in agriculture The production of new technology Hayami and Ruttan and the theory of induced innovation New technology as endogenous in the economic system The production of new techniques and the system of production, diffusion and adoption of new technology Models of technology adoption and diffusion: sigmoid models Dynamic considerations and institutional constraints 7

8. 6. Land Issues and Land Policy (AS) Emergence of land rights Benefits and costs of individual land rights Tenure security Determinants of participation in land markets Land sales markets Land rental markets Clarification and legal definition of land property rights Improving the functioning of land sales and land rental markets Redistributive land reform 8

9. 7. Risk and Insurance (AS) Risk management versus risk coping. Implications for production and income Precautionary savings Income and consumption smoothing Vulnerability Individual insurance strategies Agricultural risk management 9

10. 8. Agricultural Markets and Agricultural Trade (AS) Agricultural protectionism Measures of agricultural policy interventions Evolution of support in agriculture The debate on agricultural protectionism and its impact on food markets Trade and domestic agricultural policies Evolution of agricultural trade negotiations Political economy models of agricultural trade policies Theory and agricultural trade policy The World Bank “Distortions” study Speculation and price transmission 10

11. 9. Food security issues and World Food Crises (AS) Concepts of food security Food and nutrition security indicators Drivers of food security Global food crises. Causes and recurrence The 2006-8 world food crisis Policies to prevent world food crises 11

12. 10. Agricultural Growth, Policy and Planning (GM and AS) Increasing efficiency and productivity: resource, capital, technology and institutional constraints The role of capital accumulation, technical change and institutional reforms Broad based vs. bimodal agricultural development strategies Addressing institutional constraints and introducing reforms Choice of agricultural development projects (technology, infrastructure, institutions) Financing investment and agricultural development Project financing, the IFIs and UNDP Development cooperation USAID, DEVCO, SIDA, CIDA, 12

13. 11. Agricultural Growth, Policy and Planning – Economic Models (AS and GM) Input-output models Input – output, social accounting matrices, and multiplier analysis Computable general equilibrium models Multimarket models Multicommodity partial equilibrium models The FAO model The FAPRI model of World Agriculture The AGMEMOD model of European Agriculture Model use for policy recommendations 13

14. 12. European Common Agricultural Policy and Development (GM, AS) The origins and the objectives of the CAP Original institutions and structure of the CAP Evolution of the CAP and problems encountered Surpluses and policies to deal with them Agricultural protectionism and the critic of the CAP Impact of the CAP on international agricultural markets Impact of the CAP on domestic agricultural markets in developing countries and impact on the poor GATT, the Doha Round of WTO and the new CAP reforms How has the CAP managed the food crisis 14

15. An overview of Greek agricultural development and its role in economic development and growth of Greece Greek economic development: from an agricultural and rural economy in the 1950s to a tertiary-sector based economy in 2010 The Greek economic crisis and the role of agriculture The main issues of Greek agriculture Evolution of Greek agriculture under the CAP The Uruguay Round agreement and Greek agriculture Current agricultural policy issues 13. Greek Agricultural Policy and Development (GM, AS) 15

16. 14. New trends and prospects in world agricultural development (GM and AS) On the causes of world hunger – poverty and deprivation: from food scarcity to poverty alleviation and food security On growth strategy: from emphasis to capital to emphasis on new technology On development strategy: from basic needs to institutional reforms On increasing productivity: from increasing production intensity (use of fertilizers) to ecological and resource sustainability On world trade and development: from protectionist policies to trade and development cooperation 16