Distortions to Agricultural Incentives in Western Europe
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World Bank, Washington, DC
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Agriculture in Western Europe enjoys a
degree of diversity that reflects a wide variety of soils
and climatic conditions ranging from the arid Mediterranean
regions to the Arctic Circle. Superimposed on this natural
diversity is the complexity of different social, economic
and political conditions in the eighteen countries that are
the subject of this chapter. History has played a major part
in creating this patchwork, particularly the different paths
that countries took from feudalism to independent farming
units and the inheritance laws that influenced the extent to
which land ownership was transmitted from generation to
generation. Average farm size varies considerably in the
countries of Western Europe, in turn reflecting the relative
political and social importance of landowners and small
farmers. By the late nineteenth century, these various
factors had determined a structure of farming in the Western
European region that is still visible today. Productivity
growth in Western Europe's agricultural sector compared
favorably with that in the manufacturing sector in the
immediate post-war period. Over the period 1949 to 1959, by
which time the economy had largely recovered from the
war-time disruptions, output per person in agriculture had
increased by more than that in manufacturing in most of the
countries in Western Europe. The productivity growth was a
combination of output increases as a result of mechanization
and modernization, and the outflow of labor as other sectors
absorbed rural workers.
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ACCESSION NEGOTIATIONS, ADMINISTERED PRICES, AGREED PRICE, AGREEMENT ON AGRICULTURE, AGRICULTURAL DEVELOPMENT, AGRICULTURAL EXPORTS, AGRICULTURAL GOODS, AGRICULTURAL INCENTIVES, AGRICULTURAL MARKET, AGRICULTURAL MARKETS, AGRICULTURAL OUTPUT, AGRICULTURAL POLICIES, AGRICULTURAL POLICY, AGRICULTURAL PRICES, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTS, AGRICULTURAL PROTECTION, AGRICULTURAL REFORM, AGRICULTURAL SECTOR, AGRICULTURAL SECTORS, AGRICULTURAL TRADE, AGRICULTURAL WORKERS, AGRICULTURE, ALLOCATION, ANIMAL FEED, ANIMAL WELFARE, ARBITRAGE, BEEF PRODUCTION, BEET, BLUE BOX, BORDER MEASURES, BORDER PROTECTION, BOVINE SPONGIFORM ENCEPHALOPATHY, BUDGET CONSTRAINTS, BUTTER, CEREAL PRICES, CLIMATE, COMMODITIES, COMMODITY, COMMODITY PRICES, COMMODITY PROGRAMS, COMMON MARKET, COMMON MARKET ORGANIZATION, COMPETITIVE ADVANTAGE, COMPETITIVENESS, CONSUMER GOODS, CONSUMER PRICES, COTTON, CROPS, CROSS-COMPLIANCE, CURRENCY, CUTTING, DAIRY, DAIRY PRODUCTS, DAIRY SECTOR, DEBT, DECISION MAKING, DEFICIENCY PAYMENT, DEFICIENCY PAYMENTS, DEMOCRATIC PROCESSES, DEVALUATION, DIRECT PAYMENT, DIRECT PAYMENTS, DOMESTIC CONSUMERS, DOMESTIC INDUSTRY, DOMESTIC MARKET, DOMESTIC MARKETS, DOMESTIC PRICES, DOMESTIC PRODUCERS, DOMESTIC PRODUCTION, DUMPING, ECONOMIC ACTIVITY, ECONOMIC COSTS, ECONOMIC GROWTH, ECONOMIC IMPACT, ECONOMIC INTEGRATION, ECONOMIC TRENDS, EXCHANGE RATE, EXCHANGE RATES, EXPORT, EXPORT PERFORMANCE, EXPORT REFUNDS, EXPORT SUBSIDIES, EXTERNAL INFLUENCES, EXTERNAL TRADE, FARM, FARM AREA, FARM COMMODITIES, FARM INCOMES, FARM PRICES, FARM PRODUCTIVITY, FARM PRODUCTS, FARM SECTOR, FARM SIZE, FARM STRUCTURE, FARMERS, FARMS, FEED, FINANCIAL MARKETS, FOOD PRICE, FOOD PRICES, FOOD PRODUCTS, FOOD SECURITY, FOREIGN COMPETITION, FOREIGN EXCHANGE, FOREIGN EXCHANGE MARKETS, FREE MOVEMENT, FREE TRADE, GDP, GRAIN, GROSS VALUE, GROWTH HORMONES, GROWTH RATE, GROWTH RATES, HILL FARMING, HOPS, IMPORT PRICES, IMPORT REGIME, IMPORT SUBSTITUTION, IMPORTS, INCENTIVE STRUCTURES, INCOME, INDUSTRIALIZATION, INFLATION, INHERITANCE, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, INTERVENTION PRICE, INTERVENTION PRICES, LEVY, LIVESTOCK, LIVESTOCK PRODUCTS, LIVESTOCK SECTOR, LOWER COSTS, LOWER PRICE, LOWER PRICES, MACROECONOMIC CONDITIONS, MARKET ACCESS, MARKET MANAGEMENT, MARKET PRICE, MARKET PRICE SUPPORT, MARKET PRICES, MARKET RATES, MARKET SUPPORTS, MARKET VALUE, MARKETING, MARKETING BOARDS, MARKETING QUOTAS, MARKETING SYSTEMS, MEAT, MERCHANDISE, MERCHANDISE EXPORTS, MILK, MILK POWDER, MILK PRODUCTION, MILK QUOTAS, MINIMUM PRICES, MONEY MARKETS, MULTILATERAL TRADE, OFFER PRICES, OIL PRICE, OLIVE OIL, PARTICULAR COUNTRIES, PER CAPITA INCOME, POLICY RESPONSE, POLITICAL ECONOMY, PORK, POULTRY, PREFERENTIAL ACCESS, PRICE CHANGES, PRICE DECLINES, PRICE DECREASES, PRICE INCENTIVES, PRICE INCREASES, PRICE LEVEL, PRICE LEVELS, PRICE MOVEMENTS, PRICE POLICY, PRICE STRUCTURE, PRICE SUPPORT, PRICE SUPPORTS, PRODUCER ORGANIZATIONS, PRODUCER PRICES, PRODUCT MARKETS, PRODUCTION COSTS, PRODUCTION INCREASES, PRODUCTION QUOTA, PRODUCTIVITY GROWTH, QUOTA SYSTEM, RAPID ECONOMIC GROWTH, RAPID EXPANSION, RAPID INDUSTRIALIZATION, RAW MATERIALS, REBATE, RELATIVE PRICE, RELATIVE PRICES, RETAIL, RETAIL PRICES, RURAL AREAS, RURAL WORKERS, SALES, SINGLE MARKET, SOYBEAN MEAL, STOCKS, STRUCTURAL CHANGE, SUBSTITUTION, SUGAR, SUGAR BEET, SUGAR CANE, SUPPLIERS, SURPLUS, SURPLUSES, TARGET PRICE, TAXATION, TOTAL OUTPUT, TRADE AGREEMENT, TRADE AGREEMENTS, TRADE ASSOCIATION, TRADE BARRIERS, TRADE FLOWS, TRADE LIBERALIZATION, TRADE POLICY, TRADE RELATIONS, TRADE SYSTEM, TRADITIONAL FARMING, TRANSITIONAL ARRANGEMENTS, URUGUAY ROUND, VALUE ADDED, VALUE OF OUTPUT, VEGETABLE SECTOR, VOLUME, WAGES, WORLD MARKET, WORLD MARKETS, WORLD PRICE, WORLD PRICES, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO