Fertilizer subsidy cost-effectiveness: I agree—fertilizer subsidies could be cost-effective in principle. I guess I see reducing subsidy costs as more of a potential co-benefit of increasing returns from fertilizer. Specifically, growing more food with less fertilizer could alleviate the need for food and fertilizer subsidies (improving the cost-effectiveness and political feasibility of redirecting resources to other government services)
Why subsidies politicized: I guess a large part is the proportion of voters employed in agriculture (in South Asian democracies compared to western democracies). Also, South Asian governments commonly resist foreigners influencing government policies (partially because of colonization). This paper provides a neat introduction to fertilizer subsidies and their politicization in South Asia
Cheers Helene!
Fertilizer subsidy cost-effectiveness: I agree—fertilizer subsidies could be cost-effective in principle. I guess I see reducing subsidy costs as more of a potential co-benefit of increasing returns from fertilizer. Specifically, growing more food with less fertilizer could alleviate the need for food and fertilizer subsidies (improving the cost-effectiveness and political feasibility of redirecting resources to other government services)
Why subsidies politicized: I guess a large part is the proportion of voters employed in agriculture (in South Asian democracies compared to western democracies). Also, South Asian governments commonly resist foreigners influencing government policies (partially because of colonization). This paper provides a neat introduction to fertilizer subsidies and their politicization in South Asia