Chapter 4


 Table 4.18:
 Short-run income effects (direction of change) associated with adjustment measures

 Population groups Direction of likely income change
 RURAL
 Wage labour in large farm sector +
 Small farmers (owners/tenants) producing tradables +
 Small farmers (owners/tenants) producing non-tradables
 Hired labourers, tradables sub-sector +
 Hired labourers, non-tradables sub-sector
 Subsistence producers ?
 Rural landless and unemployed ?
 URBAN
 Informal sector, self-employed and casual labourers
 Formal sector, tradables-subsector +
 Formal sector, non-tradables subsector
 Public sector employees
 Unemployed
 GENERAL
 Female headed households

 Sources: Analysis in previous sections of this chapter and Commander, S. Prices, Markets & Rigidities,
 in S. Commander (ed.), op.cit.

In order to assess the implications of such income effects on food security, see section 4 of
Annex 1.

Variations in the way policies are implemented may make a substantial difference to certain
groups of the population. If it is impossible to protect a particular vulnerable group from the
negative effects of one policy, than it may be possible to intervene with a specific
programme to increase their access to food in another way, for example through a
programme which develops skills and creates income earning opportunities, or to replace a
general subsidy programme before adjustment by targeted subsidies or support to specific
vulnerable groups. Taking the "social dimensions of adjustment" into consideration,
policies along this line have become more and more an essential element of policy reform
packages.

Possible approaches to embody a food security dimension in adjustment programs and to
"adjust" policies to the needs of the poor and vulnerable groups will be the subject of
discussion in following chapters.


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