The Evolution of Rice Price Policies over Four Decades: Thailand, Indonesia and the Philippines

Abstract

Using time series data over the past four decades, the 1960s to 1990s, this paper examines rice pricing policies in Thailand, Indonesia and the Philippines. It analyses the determinants of the paths along which these policies have moved. While it confirms the findings of previous analyses, that price stabilization has been a major policy achievement, it also reveals that stabilization was not necessarily sustained over the entire survey period. It finds that politico-economic factors—such as entry into the GATT, increase in per capita GDP and achievement of rice self-sufficiency—have been among the determinants of rice pricing policy, but the ways in which these factors have affected policy vary among these countries. Such variation, which previous cross-country studies have not analysed, is a reflection of variations in the roles of rice and in the attitudes of policy-makers in these economies. In its conclusion, this study draws policy implications for each country, taking into account differences in the impact.