Populism and agricultural trade in developing countries: a case study of Thailand’s rice-pledging scheme

Thanapan Laiprakobsup

International Review of Public Administration, 2014, vol. 19, issue 4, 380-394

Abstract: This paper aims to ascertain the trade impact of a populist program on agriculture. It argues that the scheme has a negative impact on the sector in that it limits the country’s competitiveness in agricultural exports due to the government’s prices, which are set a great deal above the market prices. Examining the effect of a rice pledging scheme on rice exports in Thailand, the paper finds that the effectiveness of a short-term subsidy program has contributed to a decline in rice export volumes. Appealing to rural voters, the government procures paddy rice from farmers at high prices. The paper proposes that the government should not intervene in the agricultural commodity market via a populist program because it does not encourage the development of the sector in the long run. Instead of intervening in the market, the government should implement market-oriented policy in order to expand the country’s agricultural trade.

Date: 2014
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DOI: 10.1080/12294659.2014.967000

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