Agriculture reform and food crisis in Syria: Impacts on poverty and inequality

Three fundamental policy implications can be drawn by this study. First, the liberalisation of agricultural sector shows a significant growth potential and is likely to determine positive effects on poverty through a generalised increase of incomes as well as public budget savings that could be used for pursuing other policy goals. Second, in the short-run there is a structural trade-off between equity improvements and poverty alleviation: the policy options that will more likely reduce absolute poverty show undesirable distributive biases (both on overall inequality and on rural households vis-à-vis urban households). Third, the reform should include a careful design of the use of budget savings, mainly to address equity goals that are likely to be generated, in the short-run, by liberalisation.