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Additional info for Agricultural Policies for Poverty Reduction
Nevertheless, there has been renewed optimism that a new generation of so-called "smart" subsidies, by virtue of innovative design features, such as exit strategies, can deliver income benefits while limiting their known shortcomings (Dorward, 2009b). These arguments are considered in (OECD, 2010b). An additional (and sometimes dominant) argument that has been used for input subsidies, and to a lesser extent for price support, is that it acts as a bridge to longer term development, creating a surplus among farmers that can initiate the agricultural transformation described earlier.
This delayed adjustment of labour, followed by a rapid catch-up, is apparent from the historical experiences of transforming and urbanised economies. 5. Evolution of agriculture's share of employment in various countries (1961 to 2007/2008) AGR EMPL (°/0) 2008 AGR EMPL (°/0) 1961 80 IND IDN CNN TUR 70 KOR 60 MEX BRA P 50 RUS ESP 40 FIN ZAF ITA CHL J. 30 URY n 10 AUT FRA ARG 20 ISR NZL DEU CAN AUS NLD BEL LJ GBR USA 0 USD 3 032 Countries ordered by GDP per capita, current USD PPP, 2008 USD 47 210 Note: 2007 or 2008 data are used according to availability for all countries except Argentina, where 2006 data are used.
The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Source: FAO (1999); WDI (2008); IMF (2008); national sources. 1787/888932552380 The sectoral transformation is influenced by the fact that the productivity and skills gap between subsistence agriculture and other manufacturing and service sectors is becoming ever larger. Econometric estimates suggest that "the economic growth process, as manifested in the structural transformation, has become progressively less successful at 32 AGRICULTURAL POLICIES FOR POVERTY REDUCTION © OECD 2012 1.
Agricultural Policies for Poverty Reduction by OECD Publishing