The Role of Government Policies in Shaping Global Food Value Chains

This chapter examines the pivotal role of government policies in shaping global food value chains (FVCs), highlighting their historical evolution, theoretical underpinnings, and practical implications. It examines how economic, political, social, and environmental factors converge to shape policy design and implementation at local, national, and international levels. The discussion traces the evolution of food policies from early local regulations to modern frameworks that emphasize sustainability, nutrition, and resilience. Key economic and political economy theories, such as comparative advantage, Keynesianism, and behavioral economics, provide insights into the rationale for government intervention in food systems. The chapter further evaluates diverse policy instruments, including subsidies, tariffs, trade agreements, and food safety standards, assessing both their successes and unintended consequences. Case studies such as Brazil’s Zero Hunger Program and India’s National Food Security Act illustrate effective interventions, while problematic policies, including distortionary subsidies, reveal governance challenges. The role of international organizations (e.g., the WTO, FAO, IFPRI) and regional trade agreements is examined in terms of their guidance and constraints on national policymaking. Future trends highlight the growing influence of digital technologies, climate change, and sustainability imperatives. Ultimately, the chapter emphasizes the importance of developing inclusive, forward-looking, and multi-stakeholder policies to construct resilient, equitable, and sustainable global food systems.