Food grain policy in the Republic of Korea: the economic costs of self-sufficiency.

Analyzes the impact of the change in Korean government policy as rice, barley, and wheat prices were increased significantly after 1970. The results show that in pursuit of self-sufficiency in food grains and in raising farm income, higher prices were successful in the case of rice, but the impact of high barley and wheat prices was offset by high rice prices. In addition, there were costs in terms of consumer surplus, net social losses, and programme costs associated with the measures taken, whereas gains were made by producers and foreign exchange. The implications of the costs measured as a direct result of higher prices for government policy are also addressed. Focuses almost exclusively on analysis of 'quantifiable' economic costs and considerations. However, Korea, like every nation, pursues a mixture of social, political, security, and cultural objectives through their agricultural and trade policies. The results should be viewed in the relatively narrow context in which they are cast. No effort was made to assess the direct effect of Korean self-sufficiency policy on these non-economic objectives. -from Authors