Kiel Working Papers, Kiel Institute for World Economics
No 973:
CAP Reform, the Berlin Summit, and EU Enlargement
Jörg-Volker Schrader
Abstract: The paper discusses the decisions on the CAP in the
context of the Berlin summit. In a rather broad perspective the
agricultural sectoral and related objectives are analyzed for their
consistency and compatability with higher ranking societal objectives. The
policiesÂ’ allocational and distributional consequences are assessed in a
qualitative manner by comparing them with a hypothetical first-best policy.
The analysis focusses on the distortions in land allocation between
agriculture, forestry and environmental purposes as well as on
distributional consequences, taking into account the envisaged eastern
enlargement. Among the consequences are excessive budget outlays and high
economic rents for landowners, who are increasingly no active farmers
themselves. Finally, problems of implementing a liberal CAP reform are
discussed.
Keywords: CAP reform, land allocation, land rents, EU enlargement, rural development.; (follow links to similar papers)
JEL-Codes: Q15; Q18; Q2; R52; (follow links to similar papers)
36 pages, April 2000
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