Policy Reform for Philippine Sugar: Is Now the Time?

Gerald C. Nelson


Recent developments in the world sugar market—probably the most distorted of all commodity markets— suggest that domestic policy responses in the Philippines need to be realigned towards a smooth transition to the world market environment. The paper first describes these events in the sugar sector as well as the external changes. It then investigates the nature and magnitude of efficiency losses and transfers resulting from current domestic policies. Various policy options to improve the efficiency of resource use in the sector are also proposed.

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