A welfare analysis of the EC‐ACP sugar protocol

Bibliographic Data

ID20303371
AuthorsRoland Herrmann (0000-0001-7475-3134, Justus-Liebig-Universität Gießen), Dietmar Weiss (Justus-Liebig-Universität Gießen)
Year1995
Volume31
Issue6
Pages918-941
Publication date1995-08-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueThe Journal of Development Studies (JOURNAL)
Journal identifiersISSN: 0022-0388 • E-ISSN: 1743-9140
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00220389508422397
OpenAlexW2043196514
LanguageEN
Citations received2
References cited8

The Sugar Protocol, laid down in the Convention of Lome, has been an established instrument of commodity policy for nearly 20 years. Its basic rule is that the EC imports at guaranteed prices specified quantities of sugar from ACP countries. It is the objective of the article to provide an economic evaluation of the Sugar Protocol. Impacts on prices, trade, export earnings and economic welfare are elaborated. The Sugar Protocol's impacts on the level and instabilty of sugar export earnings are jointly evaluated by computing transfer and risk benefits along the lines of Newbery/Stiglitz. A major conclusion is that the policy has to be evaluated differently from the donor's and the recipient's point of view. The Sugar Protocol induces international income transfers that are untargeted in terms of per capita income. It causes, however, rather strong risk benefits compared with other instruments of international commodity policy and sizeable welfare gains for individual recipient countries

Commodity · Earnings · Economics · International economics · International trade · Market economy · Per capita · Point (geometry) · Protocol (science) · Public economics · Sugar · Welfare · Agricultural Economics and Policy · Finance · Global Trade and Competitiveness · Global trade and economics

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