The political economy of reforming agricultural support policies
In both developed and developing countries, agricultural support policies provide enormous transfers of resources to agriculture—about US$817 billion per year worldwide in the 2019–2021 period (OECD 2022).¹ Some agricultural support policies, such as input subsidies, have boosted global food production, particularly of staple crops, thereby reducing hunger and poverty. Yet, there are serious concerns about their impacts on achieving sustainable, healthy, and inclusive food systems. Redirecting or “repurposing” agricultural subsidies toward investments that support both increased production and greater sustainability—such as agricultural research and development (R&D) and rural infrastructure—has the potential for win-win-win gains for people, planet, and prosperity. This chapter first considers how shifts in agricultural support would affect global efforts to promote healthy, inclusive, and sustainable food system transformation. Since such reforms are contingent on political economy considerations, the chapter subsequently presents a framework for analyzing how interests, institutions, ideas and information, and policy characteristics intersect to facilitate or stymie reform efforts. Case studies of attempted reforms from different regions are presented that highlight the relevance of the framework. The chapter concludes by summarizing some potentially enabling political economy conditions for repurposing agricultural support policies.