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Focus on the political economy of protection

Effectiveness of Farmers Organisations in Shaping Reform Processes Carmen Suarez Senior Economist NFU. Focus on the political economy of protection Market inflexibility and difficulty in undertaking redistribution  pressure groups opposing liberalisation

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Focus on the political economy of protection

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  1. Effectiveness of Farmers Organisations in Shaping Reform ProcessesCarmen SuarezSenior EconomistNFU

  2. Focus on the political economy of protection • Market inflexibility and difficulty in undertaking redistribution  pressure groups opposing liberalisation • Policies are not set by the median voter preferences (assumed to be free trade) • Existence of a market for protection

  3. Market for protection • Demand Farmers’ organisations (vs. other interest groups) • Supply – politicians and public bureaucrats (both at the EU and national level)

  4. Demand for Protection • Lower costs of demanding protection would lead to higher incentive to lobby (as it makes lobbying more profitable)

  5. Demanding protection in the agricultural sector • How does it compare with other interest groups? • Relatively easy to organise • Low incidence of ‘free riding’ • Engaging other groups in society

  6. Supply of Protection • Government Re-election constraints (but not at EU level) Budgetary constraints • Public Administration – link with their ‘clientele’

  7. Future Trends • ‘History does matter’ but up to a point • Social changes • Other ‘clientele’ • Adapting to changes

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