I need help creating a thesis and an outline on Export Restrictions and the Food Crisis. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. This, as a rule, takes the form of eliminating waste and inefficient use in commodity consumption and thus lowering the demand, and allocating more resources for production even at the expense of other production sectors using the same kind of resource, e.g. arable land. None of these two tendencies would show any inclination to appear if the price was not substantially increased. Of course, there are bound to group strongly opposed to any price shift. It is a great mistake of governments to listen to cries of interest groups, no matter if they are small lobbies or vast populations, and to take actual legal measures pertaining to the economy because of them.
Subsidizing biofuel, legal justification of transferring tax money to the hands of fuel consumers and those controlling the fuel and car industries provides a blatant example of governments having yielded to pressures of the above-mentioned kind. Subsidizing agriculture in general is another, older example: the domestic group privileged by it is very broad, i.e. all food consumers, and this is perhaps why this ill neo-mercantilist practice has taken root so early in post-WW2 history, in days much more liberal than ours. Biofuel subsidies alone are a strong incentive for farmers to leave the business of food production in favor of other land uses, while the resulting increase in food prices is merely a reaction to it. thus it can never compensate for its effects, and in absence of other possible factors contributing to development in the opposite direction food prices will tend to remain elevated for reasons of decreased production. Export restriction works independently of biofuel subsidies to push food production still further down, as they prevent farmers from entering the global market, thus making food production less lucrative.
The true nature of interests behind public calls for restrictionary measures is often unknown to policymakers. Note, however, that I do not call for their increased understanding of these interests.
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