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Explore the impact of farmers' organizations on shaping policy processes, considering market inflexibility, demand for protection, supply dynamics, and future trends in the agricultural sector.
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Effectiveness of Farmers Organisations in Shaping Reform ProcessesCarmen SuarezSenior EconomistNFU
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
Market for protection • Demand Farmers’ organisations (vs. other interest groups) • Supply – politicians and public bureaucrats (both at the EU and national level)
Demand for Protection • Lower costs of demanding protection would lead to higher incentive to lobby (as it makes lobbying more profitable)
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
Supply of Protection • Government Re-election constraints (but not at EU level) Budgetary constraints • Public Administration – link with their ‘clientele’
Future Trends • ‘History does matter’ but up to a point • Social changes • Other ‘clientele’ • Adapting to changes