Food vulnerability in Guatemala: a static general equilibrium
Transcription
Food vulnerability in Guatemala: a static general equilibrium
final report Food vulnerability in Guatemala: a static general equilibrium analysis Universite Laval Renato Vargas Pamela Escobar Maynor Cabrera Javier Cabrera Violeta Hernández Vivian Guzmán March 2016 Food vulnerability in Guatemala: a static general equilibrium analysis Abstract In this study, we used a Computable General Equilibrium model of the Guatemalan economy to conduct simulations for a) an increase in international food prices; b) a reduction in productivity due to climate change; c) the effects of drought in agriculture; d) a reduction of transportation margins; and e) agricultural incentive policies. Of all alternatives, a policy that reduced margins could have great benefits to the Guatemalan economy in terms of an increase in the level of production, exports, consumption of food and exports. This scenario would be beneficial in terms of an increase of GDP (2.9%), consumption (2.9%), exports (2.9% in real terms) and government consumption (3.1% in real terms). Conversely in another scenario, it is relevant that a reduction in productivity due to climate change would mean an important drop in the value added of agriculture for food, agriculture for seed, as well as a slight drop in that of industrial food production and the service industry. Under this scenario we could expect a fall in real GDP of 1.2%. The reduction of productivity could mean a reduced fiscal space, and a reduction in government expenditure because of lower tax revenues. More importantly, due to higher prices and lower income of households, this scenario could mean that consumption of agricultural goods for each type of household would be reduced in a relevant manner with great impacts to the food security aspect of access. JEL: R15, R22, Q12. Keywords: Regional Economics Measurement, Computable General Equilibrium, Spatial Analysis, Natural Resource, Agricultural Employment, Farm Household, Farm Input Markets, Authors Renato Vargas: Economist, independent Guatemala City, Guatemala renovargas [at] gmail [dot] com Pamela Escobar: Systems Engineer, independent Guatemala City, Guatemala pescobarf [at] gmail [dot] com Maynor Cabrera: Economist, Fedes.org Guatemala City, Guatemala maynor.cabrera [at] fedes [dot] org Javier Cabrera: Economics undergraduate student Guatemala City, Guatemala jacava.84 [at] gmail [dot] com Violeta Hernández: Economist, independent Guatemala City, Guatemala violetaehernandezc [at] gmail [dot] com Vivian Guzmán: Economist, independent Guatemala City, Guatemala vvguzman [at] gmail [dot] com Acknowledgements This research work was carried out with financial and scientific support from the Partnership for Economic Policy (PEP) (www.pep-net.org) with funding from the Department for International Development (DFID) of the United Kingdom (or UK Aid), and the Government of Canada through the International Development Research Center (IDRC). The authors are also grateful to Person X and Person Y for technical support and guidance, as well as to Person Z for valuable comments and suggestions. Contents 1 2 3 4 5 Introduction ............................................................................................................................8 1.1 Context of the study ..........................................................................................................8 1.2 Research questions and objectives ..................................................................................10 Literature review ..................................................................................................................10 2.1 CGE models for agricultural sector analysis ...................................................................10 2.2 Regarding food security and agriculture .........................................................................11 2.3 Food risk scenarios on food insecurity and main effects .................................................12 Data ..........................................................................................................................................13 3.1 Sources of Information ....................................................................................................13 3.2 Constructing the national social accounting matrix .........................................................13 3.3 Activities and Commodity aggregations of Supply and Use tables .................................15 3.4 Labor disaggregation.......................................................................................................16 3.5 Household dissagregation ...............................................................................................18 3.5.1 Household income ......................................................................................................18 3.5.2 Household expenditure ...............................................................................................20 Methodology ............................................................................................................................22 4.1 The structure of a PEP 1x1 social accounting matrix ......................................................22 4.2 Model ..............................................................................................................................22 Application and results ...............................................................................................................0 5.1 Guatemala’s economic structure from the SAM ...............................................................0 5.1.1 Main productive sectors ................................................................................................0 5.1.2 Activities focused on the external sector .......................................................................0 5.1.3 Employment structure and earnings ..............................................................................1 5.1.4 Household income ........................................................................................................2 5.1.5 Household consumption ...............................................................................................3 5.1.6 Margins .........................................................................................................................5 5.2 Results from simulations ...................................................................................................6 5.2.1 Increase in international food prices .............................................................................6 5.2.2 Reduction in productivity due to climate change ..........................................................9 5.2.3 Effects of drought on agriculture ................................................................................11 5.2.4 Reduction of margins of transport...............................................................................13 5.2.5 Agricultural incentive policies ....................................................................................15 6 Conclusions and policy implications ........................................................................................17 7 References ..................................................................................................................................0 8 Annex .........................................................................................................................................0 8.1 Household expenditure detail ............................................................................................0 8.2 Micro SAM Accounts detail .............................................................................................7 List of tables Table 1 - Technologies that would have the largest global effect on a price reduction and yield increase in 2050, by crop ...............................................................................................................................13 Table 2 - Macro SAM ......................................................................................................................14 Table 3 – Commodity and Economic Activity Aggregation for the Micro SAM .............................15 Table 4 - Labor income – ENCOVI 2011 variables ........................................................................16 Table 5 - Participation in activities income by skill level (percentage) ............................................17 Table 6 - Activities of the SAM according to the activities included in the survey ..........................18 Table 7 - Share of each group of household (percentage) ................................................................18 Table 8 - Income source – Encovi 2011 variables ............................................................................19 Table 9 - Share of income for each household group .......................................................................20 Table 10 - Household expenditure in good and services according to household groups (percentage) .........................................................................................................................................................21 Table 11 - Basic structure of a sam for pep 1-1 model .....................................................................24 Table 12 - Added value per sector (millions of Quetzales and percentage) ........................................0 Table 13 - Exports and imports by commodity (percentage) ..............................................................1 Table 14 - Factorial composition of value added (percentage) ...........................................................2 Table 15 - Distribution of income for each household group (percentage) .........................................3 Table 16 - Income composition for each household group (Percentage) ............................................3 Table 17 - Consumption composition of each household group (percentage) ....................................5 Table 18 – Margin rates .....................................................................................................................6 Table 19 - Exports and imports by product (% change) .....................................................................7 Table 20 - GDP table (% change) .......................................................................................................8 Table 21 - Agricultural goods: Price and consumption by household type (% change) .....................8 Table 22 - Demand and remunerations of production factors (% change) ..........................................9 Table 23 - GDP table (% change) .....................................................................................................10 Table 24 - Agricultural goods: Price and consumption by household type (% change) ...................11 Table 25 - GDP table (% change) .....................................................................................................12 Table 26 - Exports and imports by product (% change) ...................................................................13 Table 27 - GDP table (% change) .....................................................................................................14 Table 28 - Demand and remunerations of production factors (% change) ........................................15 Table 29 - GDP table (% change) .....................................................................................................15 Table 30 - Demand and remunerations of production factors (% change) ........................................16 Table 31 - Agricultural goods: Price and consumption by household type (% change) ...................17 Table 32 - Household expenditure –Encovi 2011 variables ...............................................................0 Table 33 - Activities: table of equivalences........................................................................................7 Table 34 - Products: table of equivalences .......................................................................................11 List of figures Figure 1 - Total aggregate ouput by industry in scenario of increase in world food prices (% change) ...........................................................................................................................................................6 Figure 2 - Aggregate ouput by industry in scenario of decrease of TFP (% change) ........................10 Figure 3 - Water use by industry (% total) .......................................................................................11 Figure 4 - Change in value added by sector, by simulation scenario ................................................12 Figure 5 - Change in total output by sector ......................................................................................14 Figure 6 - Change in total output by sector ......................................................................................16 1 Introduction 1.1 Context of the study After considerably reducing the size of planning agencies and their importance in the wake of structural reforms during the 1990s, Guatemala has recently resumed long term planning with the participative construction of the National Development Plan K’atun: Our Guatemala 2032 (Conadur/Segeplan, 2014), NDP hereafter. The NDP has four broad components, one of which is related to environmental and food security aspects. Among the policy priorities identified for this component, the plan moves for the creation of incentives for agricultural output with cultural pertinence regarding age, ethnicity, and gender; along with the creation of value chains for that output and the development of infrastructure to improve agricultural trade. According to the Living Standards Measurement Survey –LSMS 2011, in 2011, 33.5% of the employed population of 15 years old and over from Guatemala, were employed in the agricultural sector (43.6% of men and 16.1% of women). Of the total employed in agriculture, 78.5% lived in rural areas and 71.3% were below the poverty line. In addition, more than a third of those employed in this sector (37.1%) were of ages 15 to 24, and 7 out of 10, and had incomplete primary education or less. For that same year, only 6.8% of those employed in agriculture were formally employed (by 2011, over 70% of the employed population were working in the informal sector). It is not altogether clear which new concrete actions will be used to comply with the NDP, but the Secretariat for Planning of the Presidency –SEGEPLAN– has already instructed that existing policies be aligned to it and that new programs created under their umbrella strongly support NDP priorities. One such policy is the forest policy and legal framework, which for a decade and a half has underpinned the widespread National Forest Incentives Program which previously focused on increasing forest cover for commercial purposes and targeted large landowners. Recent modifications to the legal framework (under the name PROBOSQUE) allow for smaller landowners with less certain property regimes to access the program not only for commercial purposes, but for food security, employment, and energy provision (INAB/PFN, 2013). One of the biggest changes is the introduction of new incentive purposes such as mixed agro-forest systems (for the simultaneous production of crops with forests to improve food security) and for energetic uses (fuel wood). Given the wide reach of this program, It could prove useful for policy to assess the changes to land as an agricultural production factor that might be introduced at the national level with PROBOSQUE and changes in crop and forest output that might be brought upon by the changes. Another policy with far reaching actions within the agricultural sector is the National Irrigation Policy (MAGA, 2013), which identifies areas in need of irrigation; introduces micro-irrigation systems at the plot level for small and micro-farmers, develops infrastructure for water provision (regulation, storage, and transport); and promotes integrated systems of irrigated animal and agricultural output. This will put 60,000 ha under irrigation in the period 2013-2017. This is certainly a measure that has both economic and widespread environmental implications. While there might be an improvement in food security with these actions, a shift towards an increase in the share of industry for the entire country might become more difficult in the presence of low price imports, further increasing informality in cities. With these types of incentives, there is the possibility that investments in the agricultural sector prove too big for large owners to diversify into finance or industry (Amsden, 2001). Furthermore, environmental impacts, and their effect on populations, might multiply in an economy already vulnerable to effects of climate change. Even if some incentive programs to agriculture have been studied in the Central American region from an impact evaluation perspective (e.g. Iarna-URL/FAUSAC, 2013), it is believed that those programs are so widespread, with direct and indirect effects in the entire economy and the environment, that an environmentally extended general equilibrium approach is more suitable, in order to overcome endogeneity issues (Khandker, et al., 2010). Nonetheless, applications of macro-micro models for Guatemala have been few. In 2008, Vasquez applied an integrated macro-micro model, called MAMS (Maquette for simulation of the Millennium Development Goals -MDG-, described in detail in Lofgren et al., 2013). 1. In 2010, a Cabrera and colleagues (2010) implemented the Model of Exogenous Shocks and Economic and Social Protection - MACEPES-2 with interesting results. Their findings are explained in the relevant section below. Water resources are facing several stresses in terms of quantity and quality. These pressures are related to human interventions like agriculture and land use change (Llop & Ponce, 2012). According to Llop & Ponce (2012) CGE and water analysis at national scale had studied a broad type of issues like water pricing policy, water allocation, water markets and climate change impacts. Under different approaches and scope of analysis, any shock in water availability would have great implications on agricultural production and on inequality as we will see in the results section. The agricultural sector is key to food security and it is important to understand the linkages between the economy and its various components in a systemic manner. A focus on agricultural and food security aspects of the System of Environmental and Economic Accounts of Guatemala shows key insights into these linkages. For example, it is interesting to learn that maize production in Guatemala depends entirely on rain water for its growth (INE, 2012). This exposes the production of this crop to considerable risk in terms of climate variability, which contrasts with the fact that after sugar cane and bananas, maize is the largest production in terms of volume. A similar argument can be made of beans, which also depend entirely on rain water (INE, 2012). Beans cover a relevant portion of the Guatemalan diet, and it is interesting to see how canned legumes are increasingly used by households. This form of consumption of beans is ever more present in urban kitchens and it might represent a cultural shift that might increase the importance of industrial food processing in the food chain. It is also important to note the sheer amount of land used by maize and beans; the staple crops of Guatemala. Even if there are no land quality considerations in the data (INE, 2012), the low yields of the lands used for these crops, coupled with lower levels of technical development and no irrigation provide an explanation to the considerable amounts of land used for their production. We must recognize the share used by manufacturing industries at the national level. For example, in the case of maize, only 20% of all used volume had a final destination in manufacturing. This is consistent with the 80% (adjusted to extract the negative stock variation) that was consumed by households. It contrasts with the 99% of the supply of unprocessed rice and wheat that were used almost exclusively by the food processing industries (INE, 2012). This does not mean that households didn't consume such products. It only means that they got them in their processed versions, such as This study was developed under the Project “Políticas públicas para el desarrollo humano: ¿Cómo lograr los objetivos de desarrollo del milenio en América latina y el Caribe?” of UNDP, UN/DESA, The World Bank and UN/ECLAC, developed in 18 countries in Latin America. 2 Thi study was developed under the Project “Implicaciones de la Política Macroeconómica, los Choques Externos, y los Sistemas de Protección Social en la Pobreza, la Desigualdad y la Vulnerabilidad en América Latina y el Caribe”, coordinated by ECLAC and UN/DESA. 1 precooked white rice and dehydrated breakfast gruel. For this very reason, the totality of sugar cane was used by the food processing industry (INE, 2012). Aside from these exceptions, households did consume large volumes of cultivated products directly, which is consistent with the traditional market culture still present in most of the country. For example, they used 95% of beans, 88% of potatoes, 97% of other roots and tubers, 99% of fresh culinary herbs, 91% of other vegetables and 67% of all fruits, among others (INE, 2012). These facts frame our simulations appropriately and they allow us to provide an intuition for the increases and decreases of the results. 1.2 Research questions and objectives Because rural population have serious social disadvantages in terms of poverty and malnutrition, one on the main challenges of the economic policy is the creation of jobs in rural areas. With a long history of strong reliance of the Guatemalan economy in the agricultural sector and lack of creation of quality jobs, one policy question to answer is if agricultural incentives could create opportunities to reduce poverty and create inclusive growth. Besides, agricultural incentives could create more stress on use of natural resources like water, land and forest. Evidence of the SEEA of Guatemala (INE et al., 2013) shows that forest coverage had an steep decline in last 20 years. So the extension of agricultural land could have further impacts on the forest cover and water production. Research questions include: What are the impacts of widespread agricultural and forest incentive policies on growth and employment? What can we expect from the share of contribution to GDP of the Agricultural sector given these incentives? Can a reduction of margins via infrastructure, for example, break the monopoly power of trade? Will a reduction of margins for given crops have an effect on water use according to the current baseline? Will subsidies for inputs like fertilizers, irrigation within the farm, have an positive effect on the contribution to GDP of the Agriculture sector.. 2 Literature review 2.1 CGE models for agricultural sector analysis Arguello et al. (2012) applied an integrated top-down macro-micro CGE and microsimulation modeling approach to understand the impacts of a large scale agricultural compensation program (Secure Agricultural Income Program - AIS) for the potential losers of the free trade agreement between Colombia and the U.S. They assessed the effects of the program both at the macro level (prices, quantities produced, employment, and real factor return) as well as at the micro level (rural household income and incidence of poverty) and found that rural poverty would decrease by less than 1 percent, with a similar increase in the poverty gap. They concluded that the present design of the AIS program seems to have limited capacity to achieve the objectives it was designed for, although it does appear to boost agricultural productivity and competitiveness, albeit at the expense of small farmers. Conversely, applications of CGE models for Guatemala have been few. In 2008, Vasquez applied an integrated macro-micro model, called MAMS (Maquette for simulation of the Millennium Development Goals -MDG-, described in detail in Lofgren et al., 2013). 3. In 2010, Cabrera and colleagues (2010) implemented the Model of Exogenous Shocks and Economic and Social Protection - MACEPES-4 with interesting results. with the application of micro-simulations5, estimated the poverty impact of external shocks. The main external shocks identified in this study were, a fall in international prices of major exports and a drop in remittances. In both cases they observed a reduction in economic growth and increased poverty levels. Water resources are facing several stresses in terms of quantity and quality. These pressures are related to human interventions like agriculture and land use change (Ponce et. Al., 2012). According to Ponce, et al (2012) CGE and water analysis at national scale had studied a broad type of issues like water pricing policy, water allocation, water markets and climate change impacts. Under different approach and scope of analysis, any shock in water availability will have great implications for agricultural production. Because rural population have serious social disadvantages in terms of poverty and malnutrition, one on the main challenges of the economic policy is the creation of jobs in rural areas. With a long history of strong reliance of the Guatemalan economy in the agricultural sector and lack of creation of quality jobs, one policy question to answer is if improvements to the agricultural sector could create opportunities to reduce poverty and create inclusive growth. On the other hand, agricultural incentives could create more stress on use of natural resources like water, land and forest. Evidence of the SEEA of Guatemala (INE et al., 2013) shows that forest coverage had a steep decline in last 20 years. So the extension of agricultural land could have further impacts on the forest cover and water production. 2.2 Regarding food security and agriculture Low- and middle-income countries have been under the spotlight due to the prevalence of food insecurity. As a result, there has been a global effort to reduce malnourishment as expressed by the Millennium Development Goals that were set to be achieved in 2015. By the end of that year, the United Nations Organization acknowledged that “the proportion of undernourished people in the developing regions has fallen by almost half since 1990, from 23.3 per cent in 1990–1992 to 12.9 per cent in 2014–2016” (United Nations, 2015). However, the results differ widely by region and country. For instance, Latin America is one of the regions that reached the target of halving the proportion of people who suffer from hunger. Among the region, Nicaragua and Peru showed the greatest improvement, while Guatemala was the only country to show no progress on eradicating hunger (Food and Agriculture Organization, 2015). By 2015, Guatemala still had 15.6 per cent of its population living below minimum dietary levels (in 1991, this rate was 14.9 per cent according to the United Nations, 2016). Therefore, efforts to reduce hunger must continue. This study was developed under the Project “Políticas públicas para el desarrollo humano: ¿Cómo lograr los objetivos de desarrollo del milenio en América latina y el Caribe?” of UNDP, UN/DESA, The World Bank and UN/ECLAC, developed in 18 countries in Latin America. 4 Thi study was developed under the Project “Implicaciones de la Política Macroeconómica, los Choques Externos, y los Sistemas de Protección Social en la Pobreza, la Desigualdad y la Vulnerabilidad en América Latina y el Caribe”, coordinated by ECLAC and UN/DESA. 5 Vos et al. (2010). 3 There are several factors that are making Guatemala fall behind globaly. For example, maize and beans, the staple crops behind the Guatemalan diet have shown low agricultural yields and absolutely no use of artificial irrigation (INE, 2012), influenced not only by the lack of technology among the small-scale farmers, but also because of adverse climate conditions 6. At the same time, the country depends on the import of agricultural goods7 which means that the country has recently experienced rising food import prices and exports that cannot keep up. For those reasons, Yu, You, & Fan (2010) consider it to be a low food-secure country. More recently, it has been argued that the most food-insecure countries “frequently have higher political stability risk and corruption levels, alongside weaker institutions that fail to provide appropriate government regulation and oversight” (E.I.U., 2014). Guatemala is one of the countries that falls into this description and this may undermine the capabilities to reach its food policies’ objectives. 2.3 Food risk scenarios on food insecurity and main effects Conforti (2011) identifies that some of main long term drivers of change in food systems are: Growth of agricultural products demand: according to Alexandratos & Bruinsma (2012), the global demand for agricultural products is expected to grow at an annual rate of 1.1 per cent between 2005/2007 to 2050. This growth is influenced by the growth of the global population, increases in per capita income, and diet changes that include more livestock products. Altogether, these factors are expected to create pressure on natural resources, and according to the IFPRI IMPACT model, prices for maize, rice, and wheat would increase by 104, 79, and 88 per cent, respectively by 2050 (Rosegrant, et al., 2014). A price increase on these vital products will impact countries like Guatemala, as the import shares of these products are high. In fact, from past events, Torero & Robles (2010) have estimated that a 10 per cent rise in food prices would increase the national poverty rate in 0.9 percentual points, mainly affecting urban households. Unequal yield growth and agricultural productivity: a decrease of agriculture yields in developing countries is expected, but developed countries will be better off. Hence, some countries will be in need to import food from other markets to meet their demand (Conforti, 2011). Although, these countries could encourage technological development and adoption to improve the agricultural yields, as it might be the main factor to boost agricultural growth. Climate change: Conforti mentions that climate change will bring not only changes in long term temperature means, but also changes in the “precipitation and even atmospheric carbon content that affect crop growth potential”. Climate is expected to have large implications for Guatemala. For instance, under certain climate conditions forecasted by the Intergovernmental Panel on Climate Change, in 2030, the maize yields could vary between -6.7 and -3.8 per cent, those of the bean could vary from -6.9 to 1.5 per cent, and 6 Guatemala occupies the tenth position in the Global Climate Risk Index 2016, which means that it is one of the countries that has suffered the most from extreme weather events between 1995 and 2014 (Kreft, Eckstein, Dorsch, & Fischer, 2015). 7 In 2010, the supply of wheat, rice and maize came from import flows (99.7%, 69.5% and 21.3% of total offer, respectively). the rice yields could vary between -10.4 and -7.5 percent (Comisión Económica para América Latina y El Caribe, 2013). Technology adoption: At a global level, there is enough food for everyone to be nourished (World Food Programme, 2011), as a result of technological progress. In the following years, the agricultural activity is expected to become more dependent on technology adoption due to the challenges derived from climate change (International Food Policy Research Institute, 2016). There are several technology choices for agriculture. Some of them, in spite of increasing agricultural productivity, might have further implications on the use of water, the quality of land and energy resources (for example, genetic modification, pesticides, and fertilizers). However, Rosegrant, et al. (2014) simulated the results in food and water supply, demand, trade and prices over forty years for eleven selected technologies. The authors conclude that the following technologies would have the strongest price-reduction and yield impacts, considering the future weather conditons. These results could be assesed for each country’s reality. Table 1 - Technologies that would have the largest global effect on a price reduction and yield increase in 2050, by crop Price reduction Maize Rice -Heat tolerant varieties -No-till -Nitrogen-use efficiency -Precision agriculture Wheat -No-till -Heat tolerant varieties -Precision agriculture Adapted from Rosegrant, et al. 2014. From a four-pillar perspective, efforts for fighting hunger should not only focus on increasing food availability, but also on reducing food waste, assuring market competitiveness, and assuring the safety and quality of food. 3 Data 3.1 Sources of Information The SAM was constructed using three sources of information: SAM 2011 (Escobar, 2015), Supply and Use Tables (SUT) from the Central Bank of Guatemala for the year 2011, the relative structure of remunerations of capital and land found on the GTAP model, and the Life Standards Measurement Survey (Encovi) from the year 2011 (INE, 2012). Since the SAM for year 2011 (Escobar, 2011) that we had as a starting point does not conform to the requirements of the PEP 1-1 model and also does not have the necessary degree of disaggregation of activities, commodities and households to analyze impacts of agricultural incentive policies on socioeconomic and environmental variables in Guatemala, the National Accounts’ SUT for the year 2011 were used to disaggregate agricultural activities and commodities, as well as activities with high demand of water. In order to estimate the relative structure of factor remunerations by activity, transfers to households, and consumption by household, the household survey was used to derive standard coefficients. 3.2 Constructing the national social accounting matrix Six steps were taken for the construction of a suitable SAM Guatemala 2011 for this study. First, we compiled a Macro SAM, rearranging information from SAM 2011 into an aggregated format derived from an analytical perspective of the System of Environmental and Economic Accounts for Agriculture, Forestry, and fisheries, which has a strong emphasis on food security issues. Second, we disaggregated the labor factor using information from the Household Survey. Next, we used data from GTAP to split the capital factor between capital and land. Since it was necessary to have a specific remuneration for the land factor, we used the relative structure from GTAP 8. Fourth, we rearranged the SUT information in order to disaggregate activities in SAM. Fifth, using household survey estimates we opened household information. Finally, we opened information for commodities. The first step was to construct a Macro SAM using information from Escobar’s SAM (2011). Also, we identified accounts that could be disaggregated using supply and use tables from the central bank of Guatemala (BANGUAT). We show these cells in light-purple color in the next table. Table 2 - Macro SAM L LAB L K AG AG AG AG AG AG AG J I OTH OTH LAB CAP HH 181,509 GVT ROW 82 TI TM TD TFAC 10,921 A C INV VSTK TOTAL 192,511 K CAP 142,848 50 11,360 - AG HH AG GVT 11,164 2,721 2,000 AG ROW 871 502 38,649 2,200 AG TI AG TM AG TD AG TFAC J A I C OTH INV OTH VSTK 191,640 153,756 192,511 154,259 374,170 20,829 2,524 14,307 10,921 2,261 2,203 14,307 55,814 138,605 154,250 20,829 2,524 20,829 2,524 14,307 10,921 316,528 38,614 37,803 4,643 98,783 13,245 246,512 594,170 95,388 594,170 54,910 1,592 374,170 55,814 154,250 851,517 56,502 1,592 154,259 TOTAL 20,829 2,524 14,307 10,921 594,170 851,517 56,502 1,592 1,592 Source: Own construction. Then we disaggregated the labor factor between skilled (L-SKL) and unskilled (L-UNS)9 labor. Because Escobar’s SAM has four different labor factors (wage skilled, non-wages skilled, wage unskilled, non-wag) we used the relative structure to estimate L-SKL and L-UNS. As a provisional measure, we applied the G-TAP relative structure on remunerations on Capital and Land10. Furthermore, we split gross operating surplus by activity 11. Based on information from a processed SUT12, we proceded to divide remunerations of labor, production, and intermediate consumption by activity. Because we don’t have disaggregation of transfers (non-tax) from activities to government and taxes on activities, we estimated those as a residual. Using the Life Standards Household Survey, we split the accounts to match our household structure. In this exercise we have four types of households: rural poor, rural non-poor, urban poor and urban non-poor. Poverty was determined using the official poverty line of 201113 and, using information from the household survey, we were able to estimate labor income, consumption and most transfers 14 according to type of household. Savings were estimated as a residual from factor income, as well as transfers from government and the rest of the world, minus transfers to Government, and transfers to the rest of the world and consumption. 8 We are performing an alternate estimation of remuneration of land factor, using household survey Encovi. Definition of skilled and unskilled 10 See G-TAP Model. 11 See activities included in SAM in annex. 12 Using an R script we collapsed activites from SUT from Banguat (2014) to create an Ad-hoc SUT. 13 See Life Standards Measurement Survey, INE (2011). 14 Transfers from Government and Rest of the world 9 Finally, using data from the household survey we created a split by commodity accounts. These accounts include consumption by household. Using the processed SUT we included in the SAM all exports by commodity, intermediate consumption, supply, investment, and margins of trade and transport. To close the SAM, we estimated residually the change in inventories from two activities (beverages and other industries). 3.3 Activities and Commodity aggregations of Supply and Use tables In order to improve the analytical potential of the SAM, we turned to the recently drafted manual for the System of Environmental and Economic Accounts for Agriculture, Forestry, and Fisheries (FAO, n/d), which has a strong emphasis on food security issues. The logic behind the aggregation of economic sectors and commodities proposed by the manual implies that there are some crops that are used by some industries mainly for animal feed and other industries as seed. Some manufacturing industries then use agricultural products as inputs in the production of food for humans and animals. Some of these are used by food services, such as hotels, restaurants and bars as their own inputs, and other are consumed directly by households (or final demand in general). Hence, it seemed appropriate to aggregate our industries in categories which reflected that consumption process, because our study seeks to explore food security issues. It might seem unintuitive to group output activities according to their intermediate use of commodities, rather than their object of production, but in this manner the food security implications of policies are easier to track. The table below describes the aggregation, which is detailed for 123 activities and 226 products in the Annex, as well as transactions necessary in order to bring producer’s prices to market prices. This reaggregation allowed for the creation of an ad-hoc supply and use table for this study, which is available upon request. Table 3 – Commodity and Economic Activity Aggregation for the Micro SAM Industries and Transactions Commodities T01A01 Agricultural Industries for seed R01 Coffee T01A02 Agricultural Industries for feed R02 Bananas T01A03 Other agriculture R03 Maize T01A04 Other primary industries R04 Beans T01A05 Food industry R05 Cereals and legumes T01A06 Other manufactures R06 Roots and tubers T01A07 Water distribution R07 Vegetables T01A08 Other services R08 Fruits T02A09 Imports of goods R09 Other crops, live plants, flowers and their seeds T03A09 Imports of services R10 Milk T04A09 CIF/FOB adjustment on imports R11 Eggs T05A09 VAT R12 Other animal products including live animals T06A09 Tariffs exc. VAT on imports R13 Fuel wood T07A09 Taxes on products, exc. VAT and Tariffs R14 Other forestry products T08A09 Subsidies on products R15 Fish and other fisheries products T09A09 Trade margins R16 Minerals T10A09 Transportation margins R17 Meat products T11A09 Electricity, gas, water R18 Prepared or canned fish T12A09 Exports of goods R19 Canned legumes T13A09 Exports of services R20 Animal and vegetal oils and fats T14A09 Household final consumption R21 Mill products T15A09 NFPI final consumption R22 Animal foods T16A09 Individual gov final consumption R23 Bakery products T17A09 Collective gov final consumption R24 Sugars T18A09 Gross capital formation R25 Macaroons and noodles T19A09 Stock variation R26 Dairy products T20A09 Valuable objects R27 Other food products R28 Beverages R29 Other manufactured products R30 Electricity, gas, and water R31 Lodging, food service R32 Other wholesale, retail, and services Source : Author with information from BANGUAT (2011). 3.4 Labor disaggregation Labor disaggregation was developed with information from the Life Standards Measurement Survey (ENCOVI) from the year 2011. The labor factor is disaggregated in two categories, skilled and unskilled employees. Skilled workers are those with 9 years of schooling or more. Labor income was calculated from the sum of the monetary and non-monetary earnings. Monetary income contains the entry of the first and second employment of a salaried worker (government employee, private employee, laborer or pawn and domestic employee) and those from independent workers (employer and self-employed). The following table details each of the relevant variables in the survey included for the calculation of labor income, and the frequency with which the income is received. Table 4 - Labor income – ENCOVI 2011 variables Labor income Monetary labor income Income of employees Income of first job Income of second job Salary (monthly)- p10b08 Extra hours (mensual)- p10b09a p10b09b p10b09c Commissions, tips (monthly)- p10b10b Bonus 14 (annual) - p10b11b Bonus (annual)- p10b12b Deferred (annual)- p10b13b Vacation bonus (annual)- p10b14b Productivity bonus (annual) - p10b15b Work during holiday period (anual) p10b18b Salary (monthly)- p10c05 Extra hours, comissions and tips (monthly) - p10c06b p10c06c Income of independent workers Nonmonetary labor income Income of first job Income of second job Non-monetary income of first job Non-monetary income of second job Deferred, vacation bonus, productivity bonus (anual) - p10c10b Bonus (annual) - p10c09b Monthly gain (agricultural and nonagricultural)- p10b22/ p10b23 Monthly gain (agricultural and nonagricultural) - p10c11/p10c12 Food allowance (monthly)- p10b19 Housing payment (monthly)- p10b20b Transport (monthly) - p10b21b Clothing (annual) - p10b16b Food and footwear (monthly) - p10c07b Housing and transport (monthly) p10c08b Source: author with information from Encovi 2011. Table 5 presents the relative structure of revenues by sector and level of qualifications. The sectors included in the table correspond to the activities of the SAM. In general, it can be seen that 52.8% of revenues correspond to skilled workers. However, by activity the proportions are different. For activities related to agricultural production, both for seed and for food, 90.1% of incomes corresponds to unskilled workers and 9.9% to skilled workers. For this outcome, it is important to note that over 90% of the population engaged in agricultural production, is unskilled. Table 5 - Participation in activities income by skill level (percentage) Activities Total Agricultural production for seed Agricultural production for food Other agricultural production Other primaries Food industry Other manufacturing industries Water distribution Other services Skilled Unskilled 52.8 9.9 9.9 10.3 21.9 58.0 43.2 57.1 63.5 47.2 90.1 90.1 89.7 78.1 42.0 56.8 42.9 36.5 Source: with information from Encovi 2011. For activities related to industry and services, the proportions of earnings for skilled and unskilled employees is different. For the food industry, 58% of income is for skilled employees, while for other industries the proportion of skilled income is less (43.2%). For service activities, is greater the proportion of income that corresponds to skilled labor. Table 6 shows the detail of the sectors included in each of the activities of the SAM needed to estimate what proportion of income corresponds to skilled and unskilled labor. Because the activities in the survey are disaggregated only at two digits according to the ISIC rev 3 (International Standard Industrial Classification of All Economic activities, Rev. 3), it was necessary to include more than once the same activity of agriculture, hunting and related service for the agricultural production for food and seed. Table 6 - Activities of the SAM according to the activities included in the survey Activities Activities in the survey according to the ISIC rev 3. Agricultural production for seed Agriculture, hunting and related service activities Grow Coffee Agricultural production for food Agriculture, hunting and related service activities Grow Coffee Other agricultural production Fishing, operation of fish hatcheries and fish farms; service activities incidental to fishing Agriculture, hunting and related service activities Forestry, logging and related service activities Grow Coffee Other primaries Mining and quarrying Food industry Manufacture of food products and beverages Other manufacturing industries Rest of manufacturing Water distribution Collection, purification and distribution of water Other services Rest of services Source: with information from Encovi 2011 and ISIC rev 3. 3.5 Household dissagregation Since the aim of the study is to measure the impact on poverty, for this exercise we disaggregated into four representative household groups, by poverty level and by urban/rural areas. Households that do not reach to cover the minimum cost necessary to meet the food and non-food needs are considered poor households, according to the official estimation of poverty for Guatemala. For the definition of urban areas the survey uses the same of the latest census of population and housing of 2002. The table below (Table 7) shows the proportion of each group of household. Table 7 - Share of each group of household (percentage) Household group Percentage Urban poor Rural poor Urban non-poor Rural non-poor 16.6 36.5 31.8 15.0 Source: with information from Encovi 2011. 3.5.1 Household income For each representative household group, income is disaggregated according to the source of income and the expenditure for each commodity. For all income components, the annual value is obtained by multiplying by 12 the income received on a monthly basis, and by four income received during the last three months. As already mentioned, the labor income includes labor income by skilled and unskilled worker (see detail of the variables in Table 1). Skilled workers are those aged 15 or more, with 9 years of schooling or more. Capital income include rental income of rooms, housing, machinery, land, etc., interest and stock dividends. It does not include imputed rent. Government transfers to households, include income from benefits welfare programs15, the income on account of retirement or pension and the money received for scholarships and/or school transport subsidy. The money received from remittances from people living abroad are the transfers received from the rest of the world. The income from the land was estimated from the sale or lease of land for agricultural use in the past twelve months. The following table shows the survey variables corresponding to each type of income. Table 8 - Income source – Encovi 2011 variables Rents (quaterly) - p11a01b Capital income Income Interest (quaterly) - p11a02b Stock dividends (quaterly) - p11a03b Primer beneficio (monthly estimation) - p03c04 Govermen t transfers Benefits of social assistance programs Segundo beneficio (monthly estimation)- p03c08 Tercer beneficio (monthly estimation)- p03c12 Transfers Transfers from the rest of the world Remittances Land income Sale or lease of land during the past 12 months Becas por estudio (quaterly) - p11a07b Jubilación o pensión (quaterly) p11a04b Remittances (quaterly) - p11a06b Lease of land for agricultural use - p14a06 Sale of land for agricultural use - p14a08 Source: with information from Encovi 2011. Table 9 shows the relative structure of income, according to the source of income, for each household group. It can be seen that the largest share of skilled labor income corresponds to non-poor urban households, just as capital incomes. Importantly, government transfers are aimed primarily at nonpoor urban households, because pensions and retirement income are included. Transfers from the rest of the world are mainly aimed to the non-poor, urban and rural households. The land income, corresponds most to the non-poor rural households. 15 The benefits of social assistance programs include the estimation of how much people would pay if they had to buy the benefit provided by an institution of the Government. Table 9 - Share of income for each household group Percentage Source of income Urban poor Rural poor Labor income Skilled Non-skilled Capital income Government transfers Transfers from the rest of the world Land income 9.9 4.9 15.6 3.4 9.3 6.5 21.4 14.1 2.7 26.9 0.2 24.8 16.5 20.1 Urban nonpoor 61.5 83.4 36.9 95.3 54.3 47.8 18.2 Rural nonpoor 14.4 9.0 20.6 1.2 11.6 29.2 40.4 Source: with information of Encovi 2011. 3.5.2 Household expenditure Household expenditure on goods and services include the spending on food, spending on goods and services performed last week, last month and the last 12 months. Spending on energy sources used by the household and media. Also it’s included the spending on transport and household services. Table 32 in the Annex shows the expenses on good and services and the corresponding variables in the household survey. Depending on the frequency with which the expenditure was incurred, the sum of the annual value is calculated by multiplying the cost of last week by 52, plus the last month by 12, plus the cost of the last 12 months. Detailed expenditure on goods and services by household group is included in Table 10. It can be seen that in general the consumption of urban non-poor households is greater in most goods and services. The consumption of poor rural households is higher in some specific products such as corn, forestry and some baked goods. The consumption of urban poor households is low in most products, in part because they represent a smaller proportion, as well as non-poor rural households Table 10 - Household expenditure in good and services according to household groups (percentage) No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Commodities Urban poor Rural poor Total Banano Café Maiz Frijoles Cereales y legumbres Raíces y tubérculos Verduras Frutas Plantas vivas, flores y capullos cortados; semillas de flores y frutos; semillas de vegetales Otros productos animales Productos de la silvicultura y extracción de madera Pescado y otros productos de la pesca Otros minerales Carne y prodcutos de la carne Pescado preparado o en conserva Legumbres preparadas o en conserva; jugos de frutas y de legumbres y frutas preparadas o en conserva Aceites y grasas animales y vegetales Productos de molineria Preparados utilizados para la alimentación de animales Productos de panaderia Azucar Macarrones, fideos y productos farináceos análogos Productos lacteos Productos alimenticios n.c.p. Bebidas alcohólicas y no alcohólicas Otras Industrias Electricidad y agua Alojamiento; servicios de suministro de comidas y bebidas Otros servicios 10.0 10.5 13.4 14.9 14.4 13.4 12.6 11.5 9.0 3.1 Source: with information from Encovi 2011. 19.2 21.4 26.3 50.5 35.3 25.8 24.9 22.3 15.2 2.0 Urban nonpoor 52.3 49.4 42.8 13.1 31.4 41.8 41.8 46.6 57.2 82.7 Rural nonpoor 18.4 18.7 17.5 21.6 18.9 19.0 20.7 19.5 18.6 12.1 11.6 16.2 19.3 45.4 51.3 16.1 17.8 22.3 6.6 16.5 53.6 23.3 11.7 11.2 6.3 6.7 23.8 17.6 13.4 10.6 47.2 52.7 59.6 61.9 17.3 18.6 20.6 20.7 12.4 22.5 45.9 19.2 11.3 4.8 31.5 20.8 35.1 52.4 22.0 21.9 13.9 14.2 13.3 32.1 32.8 25.1 35.0 33.7 42.3 19.1 19.3 19.2 8.5 10.4 7.9 10.0 16.5 12.3 64.2 53.4 61.9 17.4 19.7 17.9 8.2 10.5 3.4 12.6 12.2 4.6 60.5 61.9 75.3 18.7 15.5 16.7 6.5 6.9 71.0 15.6 4 Methodology 4.1 The structure of a PEP 1x1 social accounting matrix A SAM is a representation of the economy. Each cell in the matrix represents, by convention, a flow of funds from a column account to a row account (Breisinger, Thomas and Thurlow, 2010). The accounting principle of double-entry requires that for each account in the SAM, total revenue or row total equals total expenditure, i.e. column total (Morley, Piñeiro y Flores, 2008). Table 1 shows an aggregate SAM with an explanation instead of numbers with an adapted SAM for PEP 1-1 Model. In the SAM for the PEP 1-1 structure there are six groups of accounts. It includes a set of factors of production: labor and capital. It then features a group of agents that include household, government, enterprises, rest of the world and taxes. Also included are various economic activities, and accordingly, a set of commodities and entries for trade and transportation margins. The remaining accounts in the SAM include investment and saving. The PEP 1-1 model includes a set for “enterprises”, but since we did not have access to information on transfers between enterprises and households, we chose not to include them. Also, the PEP 1-1 SAM has a section on exports. However, since we don’t have information to distinguish between domestic and export production, we decided to include both of these cathegories with commodities. 4.2 Model This version of PEP 1-1 Model has extensions made by Cicowiez and Banerjee (forthcoming) that include specification of closures, number of employees by economic activity, definition of simulations of shocks and policy scenarios and resource water. Closure specification includes option to specify mobile capital or sector specific; clearing variable in government closure could be endogenous government savings, endogenous government consumption, endogenous direct tax on households or endogenous indirect tax on commodities; closure of rest of the world could be by real exchange rate adjustment or foreign savings; and savings-investment closure could be using fixed or flexible investment. To take into consideration different remunerations of labor by economic activity, in this extension was included the numbers of workers, to calculate a factor of wage differences across all industries. Third, in this version was included an excel file to simulate different shocks or policy scenarios, like increase in labor supply, changes in world price of exports and imports, change in capital stock, changes in government consumption, decrease in taxes, subsidies on capital, decrease in margins and changes in total factor productivity. Finally, this extension of the model includes water as an economic factor whose price is zero if supply is greater than demand, but in the opposite scenario, the model estimates a price for this scarce natural resource, simulating the existence of market of water or internalizing the cost of provide water to economic activities. It is important to explain what kind of macroeconomic closures we choose for this analysis. For export demand we assume that Guatemala is always a small country or price taker in international markets, and the external sector closure we suppose that we have limits to international finance and the adjustment hast to be done via real exchange rate. We assume also that capital is mobile. Government will adjust their consumption to maintain a level of savings, to incorporate costs of fiscal revenues reduction, in a scenario where is very difficult to pass a tax reform. Finally, we assume that real investment is fixed and savings has to be adjusted to maintain the same level of real gross fixed capital formation. Elasticities of consumption were estimated using micro-data of Encovi 2011. We use elasticities of production close to those provided by the model and for value added we use those for GTAP (Narayan, Badri, Aguiar and McDougall, 2012). Finally, for Armington and CET elasticities we use estimations for similar economies to Guatemala, like Ecuador, Mexico and Filipinas, that were compiled by Annabi, N., J. Cockburn and B. Decaluwé (2006)16. 16 See annex for detail and sensitivity analysis. Table 11 - Basic structure of a sam for pep 1-1 model Factors Households Enterprises Government Rest of The world Activities Investment Value Added Factors Households Labor income households Enterprises Profit and Rental Income to enterprises to Distributed Profits and Rental income To households Direct household Taxes Government Enterprise Taxes Transfer to households Transfer To Enterprises Govenrnment Transfers to RoW Transfers To Households From RoW Profits of Guatemalan FDI Transfers to Government From RoW Activities Commodities Private Consumption Investment/Savings Household Savings Household Expenditures Factor expenditures Source: adapted from Morley, Piñeiro y Flores (2008) Enterprise savings Enterprise Expenditures Government Consumption Exports Government Savings Government Expenditures Foreign Savings Foreign Exchang InFlow Total Factor Income Household Income Enterprise Income Profits of foreign Enterprises in Guatemala Rest of the world Total Commodities Sales tax, import tariffs Government Income Imports Foreign Exchange Outflow Marketed outputs Activity Income Total Demand Intermediate inputs Invesment, Change in Stocks Savings Activity Expenditures Total Supply Investment 5 Application and results 5.1 Guatemala’s economic structure from the SAM In this first section, we find important to describe the structure of the Guatemalan economy that can be read from the constructed Social Accounting Matrix. This allows us to understand the impacts of the various shocks that we have conducted in light of the real features of the Guatemalan economy. 5.1.1 Main productive sectors The SAM shows that services generate the most value added for the economy, with 65.1% of the total. Industry constitutes 20% of the remaining value added, out of which over 50% is related to the food processing industry. Agricultural activities account for 11.9% of the added value and, of that percentage, the majority is represented by agricultural production for seed, with 8.7%, followed by 2.1% in agricultural food production and the remaining 1.1% in others. Activities under “other primary17” industries represent 3.0% of the total value added. Table 12 - Added value per sector (millions of Quetzales and percentage) Sectors VA % Agricultural production for seed Agricultural production for feed Other agricultural production Other primary 29,906.3 7,268.9 3,831.4 10,505.5 8.7 2.1 1.1 3.0 Food industry Other manufacturing industries 36,714.7 32,190.9 10.6 9.3 Other services Total 224,979.1 345,396.8 65.1 100.0 Source: Social Accounting Matrix for Guatemala, 2011. 5.1.2 Activities focused on the external sector Most of the exports are food products (36.1%), other industries at 15.4%, and other forestry products with 9.9% of the exports. On the agricultural side, coffee and bananas are 9.2% and 3.7% of the exports, followed by vegetables at 3.8% and fruits at 1.8%. The export percentage column in Table 13 below shows that 68% of the coffee is exported, and that number is 40.2% for bananas, 79% for other animal products, 65.8% for prepared or preserved fish, 56% for preparation used in animal feeding, and 55.9% for food products. On the imports side, the “Other Industries” category accounts for 80.2%, and “Other Services” accounts for 6.3%. Agricultural products account for less than 5%, with maize at 1.3%. Most of national consumption of cereals, at 67.8%, is imported. The “Other Industries” category shows 50.5% is 17 Other primary industries include extractive industries like mining and oil extraction. imported, and 43.2% is imported for animal and vegetable oils and fats. Due to the importance of maize in the Guatemalan diet, it’s important to emphasize that 15.2% of the national consumption is imported. Table 13 - Exports and imports by commodity (percentage) Commodities c-coff c-bana c-maiz c-bean c-cerl c-rotu c-vege c-frui c-plan c-milk c-eggs c-oanp c-lena c-otfr c-fish c-otmi c-meat c-fisp c-vegp c-oilp c-molp c-anip c-brea c-suga c-maca c-lact c-oali c-bebi c-inot c-elwa c-reho c-seot Exports 9.2 3.7 0.1 0.0 0.0 0.1 3.8 1.8 1.2 0.0 0.0 3.4 0.6 9.9 0.4 0.3 0.8 2.7 0.3 0.3 0.6 5.5 0.2 0.1 2.1 0.9 36.1 0.2 15.4 0.0 0.0 0.0 % Export production 68.0 40.2 0.2 0.2 0.2 0.7 8.1 16.0 13.7 0.3 0.7 79.0 10.2 42.5 23.1 4.8 3.7 65.8 11.7 4.3 2.8 56.0 0.6 1.0 43.5 6.9 55.9 4.0 6.9 0.0 0.0 0.0 Imports % Imports 0.0 0.0 1.3 0.1 1.2 0.0 0.0 0.3 0.7 0.0 0.0 0.0 0.0 0.2 0.1 0.7 0.7 0.2 0.6 1.9 0.8 0.2 0.5 0.0 0.1 0.8 2.2 0.3 80.2 0.4 0.0 6.3 0.0 0.1 15.2 2.7 67.8 0.5 0.3 6.5 11.9 0.0 1.1 0.0 0.0 1.1 10.9 23.5 5.5 9.5 31.9 43.2 7.1 4.1 2.5 0.1 2.6 11.8 6.6 8.7 50.5 3.9 0.0 2.7 Source: Social Accounting Matrix for Guatemala, 2011. Note: Commodities: coff=coffee, bana=bananas, maiz=maize, bean=beans, cerl=cereals and legums, rotu= roots and tubers, vege=vegetables, frui=fruits, plan=living plants; cut flowers and flower buds; flower seeds and fruit seeds; vegetable seeds, milk=milk, egss=egss, oanp=other animal products, lena=firewood, otfr=other forestry and logging products, fish=fish and fishery products, otmi=other minerals, meat= meat and meat products, fisp=fish prepared or preserved, vegp=prepared and preserved vegetables, fruit juices and vegetable juices prepared and preserved, oilp=Animal and vegetable oils and fats, molp=grain mill products, anip=preparation used in animal feeding, brea=bakery products, suga=sugar, maca=macaroni, noodles and similar farinaceous products, lact= dairy products, oali=food products n.e.c, bebi=alcoholic and non-alcoholic beverages, inot=other industries, elwa=water and electricity, reho=lodging; food and beverage serving services, seot=other services. 5.1.3 Employment structure and earnings Table 14 below shows that 55.5% of the value added is allocated to labor (29.1% skilled and 26.4% unskilled), 41.9% to capital, 2% to land and 0.6% to natural resources. When looking at the details, over 58% of the participation across all agricultural activities is unskilled labor, followed to a much smaller degree by capital and land. For other primaries, the participation of capital represents 48.7% of added value, unskilled labor, 25.2%, natural resources, 19% and skilled labor, less than 10%. On the food industry sector, the majority of the added value is allocated to skilled labor, at 37.4%, with capital following closely at 35.5%, and lastly by unskilled labor at 27%. On other services sector, capital is the largest percentage of the added value at 47%, followed by skilled labor at 33.7% and unskilled labor at 19.4%. Table 14 - Factorial composition of value added (percentage) Sectors Labor Capital Land Natural resources Total 61.7 59.4 58.9 25.2 14.9 16.1 16.2 48.7 16.6 18.0 18.2 0.0 0.0 0.0 0.0 19.0 100 100 100 100 37.4 27.0 35.5 0.0 0.0 100 23.4 33.7 29.1 30.8 19.4 26.4 45.8 47.0 41.9 0.0 0.0 2.0 0.0 0.0 0.6 100 100 100 Skilled Unskilled Agricultural production for seed Agricultural production for food Other agricultural production Other primary 6.8 6.5 6.8 7.1 Food industry Other manufacturing industries Other services Total Source: Social Accounting Matrix for Guatemala, 2011. 5.1.4 Household income Non-poor households in urban areas account for 71.1% of the total income, while non-poor households in rural areas account for 11.6%. The remaining 17.3% of the total income is accounted by poor households, 9.8% in rural areas and 7.5% in urban areas. Table 4 shows the distribution of income for each household group. It’s important to highlight that most of the labor income of skilled workers corresponds to non-poor households in urban areas (83.4%), and very little corresponds to non-poor rural households (9.0%). However, you can see that unskilled labor is distributed across all household groups, especially non-poor urban ones. For the capital income category, 95.3% corresponds to non-poor urban households, 3.4% to poor urban households, and less than 2% to households in rural areas. More than 50% of land income corresponds to non-poor households, 48.3% to rural areas and 2.7% to urban areas, while the remaining 49% is distributed across poor households, in very similar proportion. For natural resources, 72.1% corresponds to non-poor households in urban areas and 13% to non-poor households in rural areas. Almost 15% of the remaining corresponds to poor households. Table 15 - Distribution of income for each household group (percentage) Household group Urban poor Labor Skilled Unskilled Capital Land Natural resources 4.9 15.6 3.4 25.0 8.8 Rural poor Urban non-poor Rural non-poor Total 2.7 83.4 9.0 100.0 26.9 36.9 20.6 100.0 0.2 95.3 1.2 100.0 24.0 2.7 48.3 100.0 6.1 72.1 13.0 100.0 Total Millions Q 95,920.2 85,663.7 133,876.5 6,983.6 1,995.5 Source: Social Accounting Matrix for Guatemala, 2011. Table 16 shows income composition for each household group. For poor households in urban areas, 47.9% of their income corresponds to unskilled labor, followed in similar proportion by skilled labor (16.9%) and capital (16.2%). Transfers from the rest of the world accounted for 8.1% of their income. For poor households in rural areas, unskilled labor income represents the highest proportion of their income (63.4%), followed by transfers from the rest of the world (15.8%) and government transfers (8.2%). For non-poor rural households, labor income accounted for 61% of revenues, 41% for unskilled and 20% for skilled labor. For this group of households, transfers from the rest of the world represent just under a quarter of their income. For non-poor households living in urban areas, capital income represents almost half their income, and in less proportion, labor income accounts for 42.3%, as well as 30.3% for skilled labor and 12% for unskilled workers. Transfers from the rest of the world accounted for 6.3% of their income, and government transfers, for 2.5%. It is important to note that although government transfers and transfers from the rest of the world represent a smaller proportion of the income of non-poor urban households, in absolute terms income is higher in this group of households. Table 16 - Income composition for each household group (Percentage) Household group Labor Skilled Unskilled Urban poor Rural poor Urban non-poor Rural non-poor 16.9 7.0 30.3 20.0 47.9 63.4 12.0 41.0 Capital Land Natural resources Governmen t transfers Transfers RoW 16.2 0.6 48.3 3.7 6.3 4.6 0.1 7.8 0.6 0.3 0.5 0.6 4.0 8.2 2.5 3.2 8.1 15.8 6.3 23.6 Source: Social Accounting Matrix for Guatemala, 2011. 5.1.5 Household consumption Non-poor households from urban areas accounts for 59.5% of national consumption, and non-poor rural households, just under a fifth (18.1%). While consumption of poor households accounts for 22.4% of domestic consumption, 7.8% for households in urban areas and 14.6% in rural areas. The composition of consumption for each household group shows below. It appears that for poor households, food accounts for the largest share of consumption, mainly for poor rural households, food accounts for 62.1% of its consumption. In the table we can see that for these poor rural households, beans and corn account for more than 10% of its consumption. For non-poor households, the proportion of food consumption is lower, specifically for non-poor households in urban areas, where it represents less than a third (31.1%) of total consumption. For this same group, services account for 44.8% of consumption. It is important to note that, although for nonpoor households in urban areas the proportion of consumption in corn and beans is less than for poor rural households, 3% compared to 11.5%, in absolute terms, the consumption of corn and bean in nonpoor households in urban areas is higher than in poor rural households. Table 17 - Consumption composition of each household group (percentage) 0.0 Urban nonpoor 0.0 Rural nonpoor 0.0 1.4 4.3 3.8 0.2 2.4 7.0 1.7 1.5 4.7 6.8 0.3 2.5 7.4 1.7 0.6 2.6 0.4 0.1 1.0 3.0 0.9 0.8 3.3 2.4 0.1 1.5 4.9 1.2 c-plan c-milk c-eggs 0.2 0.1 1.1 0.2 0.0 0.6 0.2 0.3 1.3 0.2 0.1 1.0 c-oanp c-lena c-otfr 0.0 1.3 1.6 0.0 1.2 2.3 0.0 0.8 0.2 0.0 0.9 0.9 c-fish c-otmi c-meat c-fisp c-vegp c-oilp 0.5 0.1 6.0 0.3 0.4 0.8 0.7 0.1 6.5 0.3 0.5 0.7 0.1 0.1 3.2 0.2 0.5 1.0 0.3 0.1 3.8 0.2 0.6 1.1 c-molp c-anip c-brea 5.3 0.2 4.8 5.1 0.3 11.1 2.5 0.1 6.8 3.5 0.2 9.4 c-suga c-maca c-lact 3.1 0.8 4.0 3.8 1.0 4.0 1.0 0.3 1.7 1.8 0.5 2.5 c-oali 2.4 1.5 2.4 2.2 c-bebi 1.5 1.2 1.0 1.2 c-inot c-elwa c-reho c-seot Total 22.5 1.0 8.4 12.8 100.0 18.7 0.8 5.2 9.3 100.0 23.0 1.0 6.5 37.3 100.0 21.9 1.0 5.3 27.3 100.0 Urban poor Rural poor c-coff 0.0 c-bana c-maiz c-bean c-cerl c-rotu c-vege c-frui Source: Social Accounting Matrix for Guatemala, 2011. 5.1.6 Margins Margins of transport, trade and electricity were included in the Social Accounting Matrix. It is important to note that for some agricultural products, like vegetables, cereals, fuel food, maize, roots and tubers, as well as beans, margins are even greater than the basic price for these commodities. Table 18 – Margin rates Margin rates More than 1.6 1.6> margin > 1.15 1.15> margin > 1 1>margin>0.6 0.6>margin>0.4 Margin<0.4 Products Vegetables Cereals, fuel wood, Maize Roots and tubers, Beans Fruits, other animal products, fish Banana, Dairy products Egss, other industries, cofee, bread, milk, beveragest, others Source: PEP 1-1 calculations based on Social Accounting Matrix for Guatemala, 2011. 5.2 Results from simulations In this section we present the results from simulating a) an increase in international food prices; b) a reduction in productivity due to climate change; c) the effects of drought in agriculture; d) a reduction of transportation margins; and e) agricultural incentive policies. 5.2.1 Increase in international food prices An increase in international food prices could have two effects. We could see a positive impact on activities that export these kinds of goods, but a negative effect in the cost of the basic food basket for households, as well as intermediate inputs for industries. We first see an increase in output and value added for agriculture for seed (0.5) and agriculture for food (2.7), but a negative effect on total aggregate output of other industries. These changes in the level of production are determined by the relative importance of exports in production, substitution between local and imported goods, as well as an indirect effect due to appreciation of real exchange rates. For those goods that are oriented to exports, production increases, as well as for those that have high degree of substitution between local and imported goods. We also see that industries that use agricultural products as inputs would end up having a negative impact due to increase in their costs, as is the case for the industrial food processing industries. Figure 1 - Total aggregate ouput by industry in scenario of increase in world food prices (% change) Services 0.5 Other Industries -1.1 Industrial Food -0.5 Other primary activities -6.4 Other Agriculture -10.6 Agriculture for food 2.7 Agriculture for seed 0.5 -12 -10 -8 -6 -4 -2 0 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) 2 4 Additional to the effects mentioned above, we also found indirect effects due to the appreciation of the real exchange rate. In this case, its behavior was affected by an increase in the surplus of the Current Account of the Balance of Payments (foreign savings) in local currency. So, in order to maintain the same level of foreign financing to the Guatemalan economy in dollars, there had to be a balance in the form of an appreciation of the real exchange rate (5.3%). This appreciation had an indirect effect of diminishing the growth of exports and increasing the imports of some goods that became cheaper (see Table 19). In agriculture for seed, we observed a net positive increase of export products, but a decline in production for local markets, explained by international prices. Finally, in other agriculture, we observed negative impacts on exports and production for domestic market. Table 19 - Exports and imports by product (% change) Import Export Coffee 3 0 Bananas 1.9 1.1 Maize 3.3 48.3 Beans 0.8 4.9 Cereals -0.3 61.5 Roots & Tubers 1.8 39.4 Vegetables 1.2 44.6 Fruits 2.3 15.9 Other agriculture products 11 -19.9 Mining 2.9 -7.9 Meat 3.6 -11.8 Industrial foods 3.3 -6.5 Other industrial products 1.6 -3 Services 3.4 -2.8 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) The surplus in the current account in local currency was reduced through depreciation of the exchange rate and a reduction in net exports. The net effect was a reduction in the volume of exports and an increase of imports in real terms, but with a reduction in nominal terms due to depreciation of real exchange rate (See Table 20). Even if investment did not change in real terms, due to depreciation and lower price of imports, it still fell in nominal terms and as percentage of nominal GDP. Absorption increased because private and government consumption rose in nominal and real terms. Moreover, because of higher prices of imports and domestic goods, combined with a higher income of households, and thus and increase in tax revenue, the government could increase its consumption without affecting the level of public savings in real terms. Table 20 - GDP table (% change) Nominal Absorption Private Consumption Real GDP share 0.7 1.2 1.1 1.3 -0.2 0.4 Fixed Investment Stock Change Government Consumption Exports Imports -2.4 0.4 0.2 0.0 1.8 -3.2 -0.5 -0.6 -3.1 -2.6 -2.1 2.0 -4.0 -3.5 GDPMP NetIndTax GDPFC 0.9 -1.1 -1.4 0.0 0.0 -1.9 -2.3 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) However, consumption did not grow for all types of households. As a result of the rise of international food prices, prices of local composite goods (domestic and imported) increased in agricultural foods in more than 8%. The rise in price of local goods was dampened by an appreciation of the real exchange rate. However, the consumption of vulnerable households, like the rural poor were affected negatively by this shock. Consumption agricultural foods, like maize, bean, cereals, fruits, vegetables, banana and coffee, saw a reduction. There was a reduction of consumption of some agricultural goods in non-poor urban households. The pressing conclusion is that an increase of international food prices would represent a threat to food security of the most vulnerable group in Guatemala. Nevertheless, the consumption of processed foods would increase in this scenario, which would offset the consumption of agricultural goods. Table 21 - Agricultural goods: Price and consumption by household type (% change) Price Coffee Bananas Maize Beans Cereals Roots & Tubers Vegetables Fruits Processed food Others 13.7 12.4 8.7 9.1 11.7 8.7 9.0 11.3 -0.4 0.6 Consumption by type of household Urban Poor 1.6 1.8 0.0 1.1 2.4 2.7 3.1 2.5 3.6 6.2 Rural Poor -0.6 -0.5 -0.1 -0.1 -0.7 -0.1 -0.2 -0.5 1.0 2.0 Urban Non Poor Urban Poor -2.7 -2.6 0.0 -0.9 -3.0 -2.3 -2.6 -3.0 -0.4 0.0 1.0 1.3 1.5 1.4 2.2 2.6 2.7 1.8 4.2 5.8 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) In this scenario, the consumption budget and disposable income increased for most households, with the exception of urban non-poor households. This was a result of labor intensity of agriculture for food and agriculture for seed, abundant in unskilled workers, which increased demand for this type of workers in rural areas. However, because of the lower wages in agriculture, the mean wages of the Guatemalan economy would see a reduction after this shock, especially for unskilled workers (see Table 22). As a net effect, we observed a rise in disposable income for the rural poor (4.1%), the urban poor (5.9%) and the rural non-poor (8.1%), with a decrease for non-poor urban households (-1.2%). In order to mantain the same levels of investment, households would have to increase their levels of savings,18 with an increased disposable income and a reduction in the consumption of some goods. This is not exactly the behavior that we expected in recent years, because domestic saving has been down19. Nevertheless, this gives us the idea of the efforts that the country has to undertake in order to recover the levels of investment of 2011. Table 22 - Demand and remunerations of production factors (% change) Agriculture for seed Agriculture for food Other Agriculture Other primary activities Industrial Food Other Industries Services Skilled labor 0.1 2.3 -10.9 -7.1 -0.8 -1.4 0.3 Unskilled labor 0.5 2.7 -10.6 -6.8 -0.4 -1.0 0.7 Capital 0.3 2.5 -10.8 -8.5 -0.4 -1.1 0.6 Land 0.7 2.9 -10.4 Skilled labor Wages -1.0 -1.0 -1.0 -1.0 -1.0 -1.0 -1.0 Unskilled labor Wages -1.6 -1.6 -1.6 -1.6 -1.6 -1.6 -1.6 Rental of Capital -1.4 -1.4 -1.4 -1.4 -1.4 -1.4 -1.4 Rental of Land -2.0 -2.0 -2.0 Demand Remunerations Rental of Natural Resources -13.1 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) 5.2.2 Reduction in productivity due to climate change As we mentioned before, climate change could have negative effects in agriculture productivity. Under this scenario we saw negative results in production, exports, wages and reduction of government spending and revenue. Besides negative effects of food security due to the diminished production and consumption of agricultural goods, our figures show that the effects of climate change could increase inequality, because the wages of unskilled labor would see a reduction as a result of an increase of capital income and skilled labor wages. In this case, we registered an important drop in the value added of agriculture for food, agriculture for seed, as well as a slight drop in that of industrial food production and the service industry. It is important to take into consideration that in this scenario we observed a fall in real GDP (1.2%), as can be seen in Table 23. Those products that are oriented to international markets saw a decrease, because goods like maize, bean, root and tubers have a lower fall rate compared with coffee, bananas and fruits. This could 18 Because investment remained fixed and household savings is endogenous According to estimations of Cabrera, M. (2015), domestic saving saw a reduction from 3.7% of GDP in 2004-2008 to 3.6% of GDP in 2010-2013, see Table No.4, page. 18. 19 be explained with the fact that lower productivity would translate into less competitiveness in international markets. Exports in real terms fell by 2.1%, but also we observed a decrease in imports of 1.5% in real terms. It is important to note that a depreciation of the real exchange rate contributed to the reduction of the negative impacts on external sectors. Another problem that we could see with reduction of productivity is that fiscal space was reduced. As an effect, government expenditure had to be reduced in view of lower tax revenues. There was also less income of households and less consumption. Table 23 - GDP table (% change) Absorption Private Consumption Fixed Investment Stock Change Government Consumption Exports Imports GDPMP NetIndTax GDPFC Nominal -1.3 -1.4 -0.8 0.5 -1.9 -1.0 -0.5 -1.6 -1.5 -1.6 Real -1.1 -1.4 0.0 -0.5 -2.1 -1.5 -1.2 -1.2 GDP share 0.2 0.2 0.8 2.1 -0.3 0.5 1.1 0.0 0.1 0.0 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) Figure 2 - Aggregate ouput by industry in scenario of decrease of TFP (% change) Services -0.9 Other Industries 0.0 Industrial Food -0.8 Other primary activities 4.4 Other Agriculture 12.7 Agriculture for food -7.8 Agriculture for seed -7.1 -10 -5 0 5 10 15 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) Due to higher prices and lower income of households, lower productivity translates into a drop in consumption of agricultural goods for each type of household. The exception was Maize, because its consumption only fell in rural areas. However, this result could affect food security of the most vulnerable population of Guatemala. Beans, which are also important for the Guatemalan diet, showed a decrease in consumption for all types of households. This behavior is not only the result of higher prices, but also of because of a decrease in household incomes for all categories; especially the urban non-poor (1.8%). This could be expected because a drop in productivity could affect wages negatively, and more so for skilled labor. Table 24 - Agricultural goods: Price and consumption by household type (% change) Price Cofee Bananas Maize Beans Cereals Roots & Tubers Vegetables Fruits Processed food Others 3.9 9.2 3.7 5.9 1.6 5.2 3.2 3.8 0.7 -0.1 Consumption by type of household Urban Poor Rural Poor -1.4 -2.0 0.0 -0.8 -1.4 -1.8 -1.8 -1.8 -1.2 -1.3 -1.2 -1.7 -0.9 -1.1 -1.5 -1.8 -1.7 -1.5 -0.8 -1.1 Urban Non -2.1 -3.0 0.0 -1.1 -2.1 -2.7 -2.6 -2.6 -1.6 Poor Urban -0.9 -1.6 -0.7 -0.9 -0.8 -1.5 -1.1 -1.1 -0.2 Poor Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) -1.8 -0.2 We observed a deterioration of the external sector. First, we identified a sharp drop in exports, especially in cereals, maize, fruits, vegetables, coffee and banana. Because local prices were highter, some of them were replaced by imports, like maize and banana. This situation, however, was moderated by a depreciation of the real exchange rate, in order to sustain the same level of deficit in the current account. 5.2.3 Effects of drought on agriculture This version of PEP 1-1 Model contains an extension made by Cicowiez and Banerjee (forthcoming) to analyze effects of shortage of supply of water or drought. We analyze the effects on agricultural industries. In this scenario, agricultural sectors, which use this resource more intensely, were the most affected. Due to the fact that the use of water is concentrated in agriculture for seed and in other agriculture (see next figure), most negative effects are concentrated in these industries. In contrast, other economic activities that did not use water as an important input would not be affected. Another important effect was the climb in food prices, the reduction of wages of unskilled labor, and the reduction of income for rural households. Figure 3 - Water use by industry (% total) 1% 15% 21% 59% Agriculture for seed Agriculture for food Other Agriculture Other primary activities Industrial Food Other Industries Services Households Source: own calculations based SEEA (Ine & Iarna, 2015) Note: includes use of registered and unregistered water. There was a drop in private consumption, both in real as well as nominal terms in this scenario. This was closely linked to the reduction in disposable income of the urban non-poor households; a group responsible for more than 70% of total household consumption. And although labor income saw a reduction in all kinds of households, it fell only 8% for the urban non-poor, in contrast to more than 10% for the other categories. Table 25 - GDP table (% change) Nominal -1.1 -0.5 -5.0 6.9 -0.8 4.2 3.8 -1.6 -2.1 -8.7 Absorption Private Consumption Fixed Investment Stock Change Government Consumption Exports Imports GDPMP NetIndTax GDPFC Real 0.5 -0.3 0.0 7.4 0.2 -0.1 0.6 1.3 GDP share 0.4 1.0 -3.5 8.6 0.8 5.9 5.5 0.0 -0.5 -7.2 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) Compared to previous scenarios, we observed larger effects of drought in agriculture for seed and other agriculture (see next figure). However, although water is an important input for agriculture for seed, due to low intensity of use, drought could have been beneficial to this sector, because production from agriculture for seed could migrate to these activities. Also, value added of other primary activities would have risen, because the use of water of this sector is lower than agriculture for seed. This sector, however, is not important in total value added share and in total employment. Industries and services would not be affected by this shock. Figure 4 - Change in value added by sector, by simulation scenario 40 30.2 30 21.8 20 12.7 8.5 10 0.5 4.4 2.6 3.3 0 0.5 1.9 0 -0.7-0.8 -10 -7.1 -7.8 -0.9 -1.1 -6.5 -10.7 -20 -30 -25.4 Agriculture for Agriculture for Seed Food -22.1 Other Agriculture Other Primary Industrial Other Industries Activities processed food Increase in world food prices Climate change Services Drought Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) In drought scenario we would observe a sharp increase in agricultural for seed products, especially for bananas, roots and tubers, and beans. This situation could happen because a small share of these products are imported and have a low degree of substitution between local and imported goods. In this scenario we observe an important increase in imports, GDP share increases from 37.4 to 39.4%. This is a result of higher prices of domestically produced goods and a sharp depreciation of real exchange rate (7.6%). Depreciation of real exchange rate is the result of an important increase in the current account deficit, due to a displacement of purchases from local to imported goods. In this situation, depreciation helped contain increased demand for imports, and improved the performance of exports for products other than agriculture for seed and other agriculture (processed foods and services). Table 26 - Exports and imports by product (% change) Roots Other Other & agriculture Industri industrial Coffee Bananas Maize Beans Cereals T ubers Vegetables Fruits products Mining Meat al foods products Services Import 28.1 Exports -59.8 63.0 64.0 16.2 9.7 38.5 -53.3 -82.5 -30.3 -79.5 -88.3 7.9 27.3 10.8 3.0 3.5 3.3 1.6 3.5 -81.4 -81.1 -6.2 35.7 -7.0 12.8 14.9 13.2 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) Due to drought effects, wages reported a sharp decline, especially for un-skilled labor (18.1%) and for skilled labor (6.3%). However, the biggest negative impact was on the demand for land, which fell 41%. The intuition behind this is that activities that are intensive in the use of land are also intensive in the use of water. However, the use of other natural resources utilized in other primary activities, like extractive industries, increase. As a result, the net effect was a decline in urban non-poor household income and a rise in that of other households, especially for the rural non-poor. That was because unskilled labor is more representative in agricultural activities. In contrast, the wage rate of skilled increased, as did the demand for capital. This could have affected negatively poverty and inequality. 5.2.4 Reduction of margins of transport We analyzed the impacts of a reduction of transport margins. According to Dumitrescu, Smith, and Osborne (2015), an estimated 26% of logistic costs could be reduced if the country invested in the six main international routes. We applied a reduction in costs to margins in SAM corresponding with those ideas, despite the fact that margins included commerce and electricity as well, but we assumed that the reduction of logistic costs could help to reduce the monopolistic power of those involved in trade. Because agricultural activities are not intensive in the use of electricity, we assumed that only margins of trade and transport were effectively reduced. A policy that reduced margins could have great benefits to the Guatemalan economy in terms of an increase in the level of production, exports, consumption of food and exports. As we can see in the next table, this scenario was beneficial in terms of an increase of GDP (2.9%), consumption (2.9%), exports (2.9% in real terms) and government consumption (3.1% in real terms). The government would increase its expenditure given an increase in net indirect taxes, with unchanged government savings in this scenario. Table 27 - GDP table (% change) Nominal Absorption Private Consumption Fixed Investment Stock Change Government Consumption Exports Imports GDPMP NetIndTax GDPFC Real 2.6 2.9 0.6 2.3 3.4 2.5 2.9 0.0 4.5 3.3 2.9 2.1 0.6 2.9 1.8 2.9 3.1 0.1 GDP share -0.2 0.0 -2.2 -0.6 0.5 1.6 0.5 0.0 -0.7 -2.2 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) Most important increase in economic activity will be in Agriculture for food, in less degree in industries and other primary activities. Services will reduce their level of activity because payments of margins will not go to these activities. It is important to notice the reduction in levels of output of other agriculture, because of a reduction in other forestry products, whose margins and their elasticity of consumption are low. Figure 5 - Change in total output by sector Services -1.0 Other Industries 2.3 Industrial Food 3.1 Other primary activities 2.0 Other Agriculture -2.9 Agriculture for food 8.1 Agriculture for seed 0.1 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) Due to the fact that a reduction of margins would benefit agriculture for feed, demand of production factors woluld go to this activity (see Table). And their intensiveness in unskilled labor would result in an increase in their remuneration. Demand for land and capital would have increased in agriculture for food, and the remuneration of land would increase as a result. The reduction of margins would be beneficial to the disposable income of the rural non-poor (9.4%), the urban poor (7.8%) and the rural poor (6.0%). Even the urban poor would increase their disposable income (0.5%). So, this scenario could be beneficial for the reduction of poverty and inequality. Table 28 - Demand and remunerations of production factors (% change) Agriculture for seed Agriculture for food Other Agriculture Other primary activities Industrial Food Other Industries Services Demand Skilled labor Unskilled labor Capital Land Remunerations Skilled labor Wages 1.0 0.1 1.1 -1.2 9.1 8.2 9.3 6.8 -2.0 -2.9 -1.8 -4.1 2.8 1.9 2.8 3.5 2.6 3.2 2.7 1.8 2.5 -0.7 -1.6 -1.0 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 Unskilled labor Wages Rental of Capital Rental of Land Rental of Natural Resources Household Income 1.2 1.2 1.2 1.2 1.2 1.2 1.2 0.4 3.8 0.4 3.8 0.4 3.8 0.4 0.4 0.4 0.4 Urban Poor Rural Poor Urban Non Poor Urban Poor 4.4 -0.6 -0.2 -1.8 -0.3 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) 5.2.5 Agricultural incentive policies In our last scenario we simulated a subsidy of 25% for capital used in the agricultural sector, and as we can see, this situation didn’t have a significant impact on GDP, but it did have a small positive effect on private consumption and exports, as well as a reduction in government consumption. Table 29 - GDP table (% change) Nominal Absorption Private Consumption Fixed Investment Stock Change Government Consumption Exports Imports GDPMP NetIndTax GDPFC 0.1 0.5 0.1 0.2 -3.9 0.7 0.5 0.1 -6.4 -0.6 Real 0.1 0.5 0.0 -4.0 0.5 0.3 0.1 0.1 GDP share 0.0 0.4 0.0 0.1 -4.0 0.6 0.4 0.0 -6.5 -0.7 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) Most of the benefits in this case went to agriculture for food, and we saw an increase in the level of output of other industries (manufactures). This increase in the output of this sectors is explained by a reduction in prices of intermediate consumption of these activities. This reduction of intermediate costs in addition to a subsidy of capital income gave a boost to agriculture for food. Figure 6 - Change in total output by sector Services -0.2 Other Industries 0.4 Industrial Food 0.7 Other primary activities 0.2 Other Agriculture -0.1 Agriculture for food 3.0 Agriculture for seed 0.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) As a result of more output in agriculture for food, we observed an increase in demand for capital, land, and unskilled labor. Unskilled labor, however, saw its wages reduced, because agriculture for seed and other agriculture reduced their demand for this kind of workers. In contrast, skilled labor increased their remuneration. Table 30 - Demand and remunerations of production factors (% change) Agriculture for seed Agriculture for food Other Agriculture Other primary activities Industrial Food Other Industries Demand Skilled labor -2.1 0.7 -2.3 -0.1 0.8 Unskilled labor -1.5 1.3 -1.7 0.5 1.4 Capital 8.8 11.9 8.5 0.2 0.2 Land -0.5 2.3 -0.8 0.0 0.0 Remunerations Skilled labor Wages 0.2 0.2 0.2 0.2 0.2 Unskilled labor Wages -0.7 -0.7 -0.7 -0.7 -0.7 Household Income Urban Poor 1.1 Rural Poor 0.6 Urban Non Poor 0.3 Rural Non Poor 1.3 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) Services 0.6 1.1 -0.1 0.0 0.0 0.6 -0.6 0.0 0.2 -0.7 0.2 -0.7 Despite subsidies, we didn’t observe lower prices for food. Disposable income of household increased, nevertheless, due to more income from capital, and that resulted in an increase of food consumption for some products, but of less than 1% in most cases. In aggregate terms, this policy only increased private consumption by 0.38% of GDP and it reduced net indirect taxes by almost 0.44% of GDP, with a subsequent drop of 0.4% in government consumption. It is likely that other policies could achieve the same results at a lower cost. Table 31 - Agricultural goods: Price and consumption by household type (% change) Cofee Bananas Maize Beans Cereals Roots & Tubers 0.5 Vegetables Fruits Processed food Price 0.5 0.8 0.4 0.5 0.3 0.4 0.4 Consumption by type of household Urban Poor 0.8 0.8 0.0 0.4 1.0 0.9 1.1 1.0 Rural Poor 0.3 0.3 0.3 0.2 0.5 0.4 0.5 0.4 Urban Non Poor 0.2 0.2 0.0 0.1 0.3 0.2 0.3 0.3 Rural Non Poor 0.5 0.5 0.5 0.4 0.9 0.7 0.8 0.7 Source: own calculations based on PEP 1-1 Model and extensions by Cicowiez and Banerjee (forthcoming) Others -0.7 -0.6 0.5 0.4 0.4 0.9 1.3 0.5 0.4 0.9 6 Conclusions and policy implications In this study, we used a Computable General Equilibrium model of the Guatemalan economy to conduct simulations for a) an increase in international food prices; b) a reduction in productivity due to climate change; c) the effects of drought in agriculture; d) a reduction of transportation margins; and e) agricultural incentive policies. In the case of an increase in international food prices we could see a positive impact on activities that export these kinds of goods, but a negative effect in the cost of the basic food basket for households, as well as intermediate inputs for industries. However, we would see a spike in production for those goods that are oriented to exports, as well as for those that have high degree of substitution between local and imported. Even if investment would not change in real terms, due to depreciation and lower price of imports, it would still fall in nominal terms and as percentage of nominal GDP. Because of the lower wages in agriculture, the mean wages of the Guatemalan economy would see a reduction after this shock, especially for unskilled workers. As for a foreseen reduction in productivity due to climate change, we registered an important drop in the value added of agriculture for food, agriculture for seed, as well as a slight drop in that of industrial food production and the service industry. Under this scenario we could expect a fall in real GDP of 1.2%. The reduction of productivity could mean a reduced fiscal space, and a reduction in government expenditure because of lower tax revenues. Due to higher prices and lower income of households, this scenario could mean that consumption of agricultural goods for each type of household would be reduced in a relevant manner, with the exception of maize, which fell only in rural areas. Beans, which are also important for the Guatemalan diet, would show a decrease in consumption for all types of households. This is bad news in terms of food security of the most vulnerable population of Guatemala. The effects of drought could mean that the most negative effects would on agriculture for seed and in other agriculture (see next figure), due to their higher use of water. This would result in a climb in food prices, the reduction of wages of unskilled labor, and the reduction of income for rural households. As a result disposable income of the urban non-poor households would be reduced; a group responsible for more than 70% of total household consumption. In this scenario we could observe an important increase in imports, with a GDP share that would increase from 37.4 to 39.4%. This would come as a result of higher prices of domestically produced goods and a sharp depreciation of real exchange rate. A policy that reduced margins could have great benefits to the Guatemalan economy in terms of an increase in the level of production, exports, consumption of food and exports. This scenario would be beneficial in terms of an increase of GDP (2.9%), consumption (2.9%), exports (2.9% in real terms) and government consumption (3.1% in real terms). The government would increase its expenditure given an increase in net indirect taxes, with unchanged government savings. Finally, in our last scenario we simulated a subsidy of 25% for capital used in the agricultural sector, and this situation didn’t have a significant impact on GDP, but it did have a small positive effect on private consumption and exports, as well as a reduction in government consumption. In aggregate terms, this policy would only increase private consumption by 0.38% of GDP and it would reduce net indirect taxes by almost 0.44% of GDP, with a subsequent drop of 0.4% in government consumption. It is likely that other policies could achieve the same results at a lower cost. 7 References Alexandratos, N., & Bruinsma, J. (2012). World agriculture towards 2030/2050: the 2012 revision. 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IFPRI Discussion Paper 945. 8 Annex 8.1 Household expenditure detail Table 32 - Household expenditure –Encovi 2011 variables 1 Bananos Bananos Data Base Survey Base alimentos 2 Café Café Base alimentos 101 3 Maiz Maiz Base alimentos 21 4 Frijol Frijol Base alimentos 19 5 Cereals legumbres y 6 Raíces tubérculos y Arroz Tomate Arveja Ejote Güisquil (unidad) Papas (libra) Yuca (unidad) Cebolla (libra) Chiles (libra) Repollo (unidad) Zanahoria (unidad) Lechuga (unidad) Pepino (unidad) Remolacha (unidad) Ajo (cabeza) Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos 20 57 71 74 62 69 70 58 59 60 61 63 64 65 66 7 Verduras Hierbas (berro, perejil, yerbabuena,macuy, bledo, chipilín, etc. (manojo) Base alimentos 67 Hierbas (berro, yerbabuena,macuy, chipilín, etc. (manojo) Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos 68 72 73 75 76 78 79 80 81 82 83 84 85 86 87 Apio (unidad) Brócoli (unidad) Coliflor (unidad) Güicoy (unidad) Plátanos (unidad) Naranjas (unidad) Piñas (unidad) Manzanas (libra) Sandías (unidad) Mangos (unidad) Limones (unidad) Frutas secas (libra) Aguacates (unidad) Papayas (unidad) Melones (unidad) Base alimentos 88 Duraznos/melocotones (unidad) No. 8 Commodities Frutas Apio (unidad) Brócoli (unidad) Coliflor (unidad) Güicoy (unidad) Plátanos (unidad) Naranjas (unidad) Piñas (unidad) Manzanas (libra) Sandías (unidad) Mangos (unidad) Limones (unidad) Frutas secas (libra) Aguacates (unidad) Papayas (unidad) Melones (unidad) Duraznos/melocotones (unidad) Code Description 77 Bananos/guineos (unidad) Café en grano, molido, instantáneo (libra) Maiz (blanco, amarillo, etc.) (libra) Frijol (negro, blanco, colorado, etc.) (libra) Arroz (de1ra. o 2da.) (libra) Tomate (libra) Arveja (libra) Ejotes (libra) Güisquil (unidad) Papas (libra) Yuca (unidad) Cebolla (libra) Chiles (libra) Repollo (unidad) Zanahoria (unidad) Lechuga (unidad) Pepino (unidad) Remolacha (unidad) Ajo (cabeza) perejil, bledo, 9 10 11 12 13 14 15 16 Plantas vivas, flores y capullos cortados; semillas de flores y frutos; semillas de vegetales Otros productos animales Productos de la silvicultura y extracción de madera Pescado y otros productos de la pesca Otros minerales Carne y productos de carne Pescado preparado o en conserva Legumbres preparadas o en conserva; jugos de frutas y de legumbres y frutas preparadas o en conserva Fresas (libra) Mandarinas (unidad) Peras (unidad) Uvas (libra) Base alimentos Base alimentos Base alimentos Base alimentos 89 90 91 92 Fresas (libra) Mandarinas (unidad) Peras (unidad) Uvas (libra) Plantas vivas, flores y capullos cortados; semillas de flores y frutos; semillas de vegetales Gastos de los últimos 12 meses 10 Adornos como floreros, plantas ornamentales y otros adornos Base alimentos Base alimentos Base alimentos 45 46 43 Huevos de gallina (unidad) Otras clases de huevos (unidad) Leche líquida (litro) Otros productos animales Productos de la silvicultura y extracción de madera Base fuentes de energia Pescado y otros productos de la pesca Base alimentos Otros minerales Carne y productos de carne Pescado preparado o en conserva Legumbres preparadas o en conserva; jugos de frutas y de legumbres y frutas preparadas o en conserva Base fuentes de energia Base alimentos Base alimentos Item 7 36 Item 4 95 27 Base alimentos 28 Base alimentos 29 Base alimentos 30 Base alimentos Base alimentos Base alimentos 31 32 33 Base alimentos 35 Base alimentos 40 Base alimentos 37 Base alimentos 38 Base alimentos 39 Base alimentos 97 Base alimentos Base alimentos 98 105 Base alimentos 109 Base alimentos 110 LEÑA Pescado fresco (libra) Carbón Sal (libra) Carne de res sin hueso (libra) Visceras de res (menudos) (libra) Carne de res con hueso (libra) Carne de cerdo sin hueso (posta) (libra) Carne de cerdo con hueso (libra) Carne molida (libra) Carne de pollo o gallina (libra) Visceras de pollo o gallina (menudos) (libra) Embutidos (jamón, salchichas,chorizos,longanizas, etc.) (libra) Pescado seco (libra) Sardinas, atún, etc. (enlatados) (gramos) Mariscos, camarones, cangrejos, etc. (libra) Jugos empacados o enlatados (litro) Frijoles enlatados (gramos) Mermeladas, jaleas (gramos) Otros envasados no incluídos (litro) Compotas (gramos) 17 Aceites grasas animales vegetales 18 Productos de molineria 19 20 y y Preparados utilizados para la alimentación de animales Productos de panaderia Aceites y grasas animales y vegetales Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos 52 53 54 55 8 9 10 11 Base alimentos 12 Base alimentos Base alimentos Gasto del último mes 17 18 Aceites comestibles (litro) Manteca vegetal (libra) Manteca de cerdo (libra) Margarina (gramos) Cereales preparados (gramos) Incaparina (libra) Avenas de toda clase (gramos) Atol de maíz (vaso) Otros atoles (arroz en leche, atol de plátano, atolillo, shuco) (vaso) Harina de maiz (libra) Harina de trigo (libra) 19 Comida para mascotas Productos de molineria Preparados utilizados para la alimentación de animales Productos de panaderia Capitulo agropecuario p14d06b Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos 1 2 3 4 5 6 7 Base alimentos 104 21 Azúcar Azúcar Base alimentos Base alimentos 13 14 22 Macarrones, fideos y productos farináceos análogos Macarrones, fideos y productos farináceos análogos Base alimentos 22 Base alimentos Base alimentos Base alimentos 41 42 43 Base alimentos 44 Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos Base alimentos 47 48 49 50 51 100 Base alimentos 15 Base alimentos 16 Base alimentos 23 Base alimentos 24 Base alimentos 25 23 24 Productos lacteos Productos alimenticios n.c.p. Productos lacteos Productos alimenticios n.c.p. Alimentos para animales Pan dulce (unidad) Pan francés (unidad) Pan de rodaja (gramos) Galletas (gramos) Pastel (porción o pedazo) Tortillas de harina (unidad) Tortillas de maiz (unidad) Golosinas (tortrix, ricitos, etc.) (gramos) Azúcar (libra) Panela (rapadura) (libra) Fideos, tallarines, coditos, pastas de toda clase (libra) Leche en polvo para bebé (libra) Leche en polvo (libra) Leche líquida (litro) Leche evaporada o condensada (gramos) Crema fresca (litro) Queso fresco o duro (libra) Yogures (litro) Mantequilla (libra) Requezón (libra) Helados/granizadas (litro) Mieles, melazas y jarabes (botella) Dulces y confites de toda clase (gramos) Sopas en sobre (malher, maggi, etc.) (gramos) Salsas y pastas de tomate (gramos) Otras Salsas y pastas (gramos) 25 Bebidas alcohólicas y no alcohólicas Base alimentos 26 Base alimentos 56 Base alimentos 93 Base alimentos 94 Base alimentos 102 Base alimentos 106 Base alimentos 111 Base alimentos 112 Base alimentos 113 Base alimentos 114 Base alimentos 115 Base alimentos 116 Base alimentos 103 Base alimentos 107 Bebidas no alcohólicas; aguas minerales embotelladas Base alimentos 96 Sopas instantáneas en vaso (gramos) Mayonesa y aderezos. (gramos) Consomés, sazonadores, ablandadores, sal de ajo, de cebolla etc. (gramos) Tomillo, laurel, orégano y otras especias (gramos) Chocolate (libra) Semillas tostadas (manía, marañon, etc) Té en sobre (gramos) Tamales colorados, negros, de cambray, elote, chuchitos, Paches (unidad) Chicharrones o carnitas de cerdo (libra) Tacos de toda clase (unidad) Tostadas con guacamol, frijol, salsa, etc. (unidad) Cerveza (litro) Licores, rones, whiskys, vinos, etc. (litro) Aguas gaseosas (litro) Base alimentos 99 Agua purificada (litro) Productos del tabaco Base alimentos 108 Bebidas alcohólicas Fibras textiles, productos textiles y prendas de vestir 26 Gasto del último mes Gastos de los últimos 12 meses Gastos de los últimos 12 meses Gastos de los últimos 12 meses Base personas capítulo educación Otras industrias Cuero y productos de cuero; calzado Pasta de papel, papel y productos de papel; impresos y artículos análogos Gastos de los últimos 12 meses Gastos de la semana pasada Gastos de la semana pasada Gasto del último mes Base personas capítulo educación 15 1 2 9 P06A04B P06B13B 3 2 6 16 P06A05B P06B14B Cigarrilos (paquete 20 unidades) Hilos para coser, lanas, botones, elásticos, zippers y similares Prendas de vestir confeccionadas Telas para confeccionar ropa Cortinas, sábanas, toallas, mantas, colchones, manteles, fra Pago por uniformes en preprimaria Pago por uniformes educacion escolar Calzado, zapatos tenis, botas y reparación de calzado Periódicos Papel higiénico, toallas sanitarias, servilletas, toallas de Libros y revistas (No incluya textos escolares Compra de libros, útiles y materiales para preescolar Compra de libros educacion escolar P06B16B p06a08b P06B20B Productos de horno de coque; productos de petróleo refinado; combustibles nucleares Gastos de la semana pasada Base fuentes de energia Base fuentes de energia item 2 Kerosene item 3 Gas Propano Gasto del último mes 1 Gasto del último mes Gasto del último mes Productos químicos 4 4 5 Gasto del último mes 10 Gasto del último mes 13 Gasto del último mes 14 Gasto del último mes Gasto del último mes Base personas capítulo salud Productos métalicos elaborados, y maquinaria y equipo Compra de cuadernos y materiales escolares en educacion escolar Compra de otros materiales preescolar (mensual) Compra de otros materiales y útiles escolares, en educacion escolar (mensual) Combustible para vehiculos de uso particular del hogar Gasto del último mes Gasto del último mes Base fuentes de energia Gastos de los últimos 12 meses Gastos de los últimos 12 meses Gastos de los últimos 12 meses 17 18 P05D12B P05C09C 3 9 Item 2 7 8 31 P05D15B Base personas capítulo salud P05D16B Jabón lavaplatos, jabón de bola, detergentes, suavizante líquido, cloro etc. Jabón para baño, shampu, acondicionador, etc. Pasta dental, cepillo dental, hilo dental, enjuague bucal, e Pintura de uñas, lapiz labial, mascara de pestañas, sombras y otros cosméticos Desinfectantes para piso y baños, desodorantes ambientales e insecticidas Aceite de bebe, hisopos, mamones, pepes, pachas, pañales, baberos etc. Colonias, desodorantes, lociones, talcos, etc. Alka seltzer, sal andrews, aspirinas, alcohol, etc. Pago por medicinas (mensual) ¿Cuánto pagó por medicinas? Annual Linternas o focos, bombillas, etc. Tijeras, limas y corta uñas, pinzas, etc. Baterías (pilas) Secadora de pelo, afeitadora eléctrica y calentador de agua Vajillas, ollas, bandejas, sartenes, cubiertos y otros utens Aparato de teléfono celular Pagó por aparatos o equipos ortopédicos (mensual) Pagó dinero por lentes graduados, audífonos para sordos o placas dentales (mensual) Muebles Gastos de los últimos 12 meses Gastos de la semana pasada Gastos de la semana pasada Gasto del último mes Gasto del último mes Gasto del último mes Otra manufactura 27 28 Electricidad y agua Alojamiento; servicios de suministro de comidas y bebidas Electricidad y agua Alojamiento, servicios de suministro de comidas y bebidas Construcciones Otros servicios Servicio de transporte y almacenamiento Muebles de cocina, comedor, sala, dormitorio 9 Fósforos 10 2 7 8 Gasto del último mes 11 Gasto del último mes 12 Gastos de los últimos 12 meses Gastos de los últimos 12 meses Gastos de los últimos 12 meses Base fuentes de energia Base fuentes de energia Base vivienda/hogares Gastos de la semana pasada Gastos de los últimos 12 meses Base personas capítulo salud Base vivienda/hogares Gastos de la semana pasada 29 5 Gastos de la semana pasada Gasto del último mes Gasto del último mes Gasto del último mes Gastos de los últimos 12 meses Base personas capítulo salud 11 Encendedores Cepillos para ropa, cepillos para calzado, liquido y betún para calzado etc. Cepillos para el cabello, peines peinetas, ganchos, diademas Rasuradoras, repuestos para rasuradoras, hojas de afeitar, c Escobas, cepillos, trapeadores, cera para pisos, bolsas para basura etc. Guantes para lavar y de cocina, esponjas, lazos, ganchos para colgar etc. Articulos de joyería de metales preciosos y fantasía 29 Artículos deportivos 30 Juguetes item 6 item 98 p01d09 y p01d15b 5 15 P05C09E P01C04 1 3 Electricidad Otras fuentes de energía Pago servicio agua y compra de agua a camion cisterna Comidas y bebidas consumidas fuera del hogar Hoteles, pensiones y paquetes turisticos ¿Cuánto pagó por hospedaje y alimentación? Mantenimiento y reparación de vivienda Buses urbanos, microbuses, taxis o mototaxis (no transporte escolar) Teléfono público, telegramas, cartas, fax, internet 25 Peaje (uso de autopista) 28 Pagos por pago de parqueo para vehiculos del hogar 29 Gastos por pasajes extraurbanos 14 P05C09D Pasajes aéreos y terrestres con fines de turismo, descanso, Pago de transporte para hospitalizacion P05D14B Base personas capítulo educación Servicios postales, de mensajería y telecomunicaciones Servicios de intermediación financiera y seguros Servicios inmobiliarios Servicios de alquiler sin operarios y servicios prestados a las empresas Base vivienda/hogares Base vivienda/hogares Base vivienda/hogares Base vivienda/hogares Gastos de los últimos 12 meses Gastos de los últimos 12 meses Gastos de los últimos 12 meses Base vivienda/hogares Gastos de la semana pasada Gasto del último mes Gastos de los últimos 12 meses Gastos de los últimos 12 meses Gastos de los últimos 12 meses Servicios de veterinaria Otros servicios comunitarios, sociales y personales Capítulo agrocecuario Gastos de la semana pasada Gastos de la semana pasada Gasto del último mes Gasto del último mes Gasto del último mes Gasto del último mes Gastos de los últimos 12 meses Gastos de los últimos 12 meses Gastos de los últimos 12 meses P06A07B P06B19B Pago de transporte a centro de salud, mensual. Pago por transporte, educacion preescolar (mensual) Pago por transporte, educacion escolar (mensual) p01d20a Telefono fijo p01d20b Celular p01d20c Internet p01d20d Tv Cable 26 Pago de seguro de vehiculo 27 Pago de seguro de vida 28 P01B03 8 30 16 18 21 P14D06C 6 Seguro privado de salud, enfermedad o accidente ¿Cuánto paga mensualmente de alquiler? Molienda de maíz Gasto por servicios de vigilancia, guardias seguridad Pagos por obtención y trámites de documentos Reparación y mantenimiento de vehículos Servicios profesionales de abogados, contadores, y otros profesionales no en salud Gastos veterinaria Rifas, loterías y bingos 11 Lustre de calzado 20 Lavado, planchado y reparación de prendas de vestir fuera de 21 Recreación, diversión 22 Barbería, salón de belleza 26 12 13 24 Gimnasio, sauna, baño turco, masajes, etc. Fiestas, cumpleaños y celebraciones. Regalos para todo tipo de fiestas o celebraciones Aportes a clubes o asociaciones Gastos de los últimos 12 meses 25 Gasto del último mes 23 Gasto del último mes 24 Servicios domésticos Servicios y contratos funerarios, panteones, cajas mortuorias etc. Servicio de empleada doméstica, lavandera, planchadora, que viven en el hogar Servicio de empleada doméstica, lavandera, planchadora, que NO viven en el hogar Source: with information from Encovi 2011. 8.2 Micro SAM Accounts detail These two tables explain the economic activities and commodities included in the aggregated sectors and products of the SAM. Table 33 - Activities: table of equivalences Agricultural Industries for feed Cría de aves de corral Cría de cerdos Cría de ganado vacuno Cría de otros animales Cría de ovejas, cabras, caballos, asnos, mulas y burdéganos Cría de peces en granjas piscícolas Obtención de productos de animales vivos Producción de pieles finas, cueros de reptiles y plumas de aves como parte de la explotación ganadera Agricultural Industries for seed Cultivo de banano Cultivo de café Cultivo de cardamomo Cultivo de cereales y otros cultivos n.c.p. Cultivo de frutas y nueces, plantas cuyas hojas se utilizan para preparar bebidas, y especias Cultivo de tubérculos, raíces, hortalizas y legumbres, especialidades hortícolas y productos de vivero Otros Cultivos n.c.p. Food industry Beneficiado de café Beneficios de arroz Elaboración de aceites y grasas de origen vegetal y animal Elaboración de alimentos preparados para animales Elaboración de almidones y productos derivados de almidón Elaboración de azúcar Elaboración de cacao y chocolate y de productos de confitería Elaboración de macarrones, fideos y productos farináceos similares Elaboración de otros productos alimenticios n.c.p. Elaboración de otros productos de molinería n.c.p. Elaboración de productos de panadería Elaboración de productos lácteos Elaboración y conservación de frutas, legumbres y hortalizas Elaboración y conservación de pescado y productos de pescado Matanza de aves Matanza de ganado porcino Matanza de ganado vacuno Matanza de otros animales Preparación y conservación de carne y productos cárnicos Non-food industry activities Adqusiciones menos disposiciones de objetos valiosos Ajuste CIF/FOB sobre importaciones Consumo final de las instituciones sin fines de lucro Consumo final de los hogares Consumo final del gobierno colectivo Consumo final del gobierno individual Electricidad gas y agua Exportación de bienes Exportación de servicios Formación bruta de capital fijo Importación de bienes Importación de servicios Impuestos a los productos exc. IVA e impuestos a la importación Impuestos tipo IVA Impuestos y derechos sobre importaciones exc. IVA importaciones. Márgenes de comercio Márgenes de transporte Subvenciones a los productos Suma parcial / descripción Variación de existencias Other agriculture Actividades de servicios agrícolas y ganaderos, excepto las actividades veterinarias Captura de camarones y langostas Captura de crustáceos y moluscos y otros productos acuáticos Captura de peces Caza ordinaria y mediante trampas y repoblación de animales de caza, incluso las actividades de servicios conexas Cultivo de camarones Cultivo de productos agrícolas en combinación con la cría de animales Silvicultura, extracción de madera y actividades de servicios conexas Other manufactures Actividades de edición e impresión de papel y cartón y actividades de reproducción de grabaciones Adobo y teñido de pieles; fabricación de artículos de piel Aserrado y acepilladura de madera Curtido y adobo de cueros; fabricación de maletas, bolsos de mano y artículos de talabartería y guarnicionería, excepto calzado Destilación, rectificación y mezcla de bebidas alcohólicas; producción de alcohol etílico a partir de sustancias fermentadas Elaboración de bebidas malteadas y de malta Elaboración de bebidas no alcohólicas, Elaboración de productos de tabaco Elaboración de vinos Fabricación de abonos y compuestos de nitrógeno y de plaguicidas y otros productos químicos de uso agropecuario. Fabricación de artículos de hormigón, cemento y yeso Fabricación de calzado Fabricación de cemento, cal y yeso Fabricación de coque, productos de la refinación de petróleo y combustible nuclear Fabricación de cubiertas y cámaras de caucho: recauchado y renovación de cubiertas de caucho Fabricación de jabones y detergentes, preparados para limpiar y pulir, perfumes y preparados de tocador Fabricación de maquinaria y equipo, n.c.p. Fabricación de metales comunes Fabricación de muebles Fabricación de otras sustancias y productos químicos y fabricación de fibras textiles manufacturadas. Fabricación de otros productos de caucho Fabricación de otros productos minerales no metálicos Fabricación de otros productos textiles, excepto prendas de vestir. Fabricación de papel y productos de papel Fabricación de pinturas, barnices y productos de revestimiento similares, tintas de imprenta y masillas Fabricación de plásticos en formas primarias y de caucho sintético Fabricación de prendas de vestir, excepto prendas de piel (local) Fabricación de prendas de vestir, excepto prendas de piel (máquila) Fabricación de productos de arcilla y cerámica refractaria y no refractaria para uso estructural y no estructural Fabricación de productos de madera, corcho, paja y materiales trenzables, excepto muebles Fabricación de productos de plástico Fabricación de productos elaborados de metal, excepto maquinaria y equipo Fabricación de productos farmacéuticos, sustancias químicas medicinales y productos botánicos Fabricación de tejidos y artículos de punto y ganchillo Fabricación de vidrio y productos de vidrio Hilatura, tejedura y acabado de productos textiles Otras industrias manufactureras n.c.p. Producción de aguas minerales Other primary industries Extracción de minerales metálicos Extracción de otros minerales no metálicos Extracción de petróleo y gas natural Extracción de piedra, arena y arcilla Other services Actividades Auxiliares de la Intermediación Financiera Actividades de agencias de viajes y organizadores de viajes; actividades de asistencia a turistas n.c.p. Actividades de arquitectura e ingeniería u otras actividades técnicas Actividades de asociaciones que sirven a los hogares Actividades de bibliotecas, archivos y museos y otras actividades culturales Actividades de cinematografía, radio y televisión y otras actividades de entretenimiento; Actividades de agencias de noticias Actividades de hospitales Actividades de investigación y desarrollo, asesoramiento empresarial y en materia de gestión Actividades de médicos y odontólogos Actividades de organizaciones empresariales y de empleadores Actividades de planes de seguridad social de afiliación obligatoria Actividades de servicios sociales con alojamiento y sin alojamiento Actividades de Transporte Complementarias y Auxiliares Actividades deportivas y otras actividades de esparcimiento Actividades jurídicas y de contabilidad, teneduría de libros, auditoría, etc. Actividades veterinarias Administración pública y defensa Alquiler de equipo de construcción o demolición dotado de operarios Alquiler de maquinaria y equipo sin operarios y de efectos personales y enseres domésticos Alquiler de vivienda Comercio al por mayor y al por menor Construcción, excepto alquiler de equipo de construcción ó demolición dotado de operarios Distribución de combustibles gaseosos por tubería, suministro de vapor y agua caliente Eliminación de desperdicios y aguas residuales, saneamiento y actividades similares Enseñanza Financiación de Planes de Seguros y de Pensiones, excepto los Planes de Seguridad Social de Afiliación Obligatoria Generación, captación y distribución de energía eléctrica Hogares privados con servicio doméstico Hoteles; campamentos y otros tipos de hospedaje temporal Informática y actividades conexas Intermediación Financiera, excepto la Financiación de Planes de Seguros y Pensiones Mantenimiento y reparación de vehículos automotores y motocicletas Organizaciones y órganos extraterritoriales Otras actividades de servicios Otras actividades empresariales n.c.p. Otras actividades inmobiliarias, excepto alquiler de vivienda Otras actividades relacionadas con la salud humana Publicidad Reciclamiento Reparación de efectos personales y enseres domésticos Restaurantes, bares y cantinas Servicios postales y de correo SIFMI Telecomunicaciones Transporte por Vía Acuática Transporte por Vía Aérea Transporte por Vía Terrestre; Transporte por Tuberías Water distribution Captación, depuración y distribución de agua Table 34 - Products: table of equivalences Animal and vegetal oils and fats Aceite vegetal Harinas de semillas y frutas oleaginosas y otras grasas de origen vegetal y animal n.c.p. Manteca vegetal Margarina y preparados análogos Animal foods PREPARADOS UTILIZADOS PARA LA ALIMENTACIÓN DE ANIMALES Bakery products Otros productos de panadería y repostería n.c.p. Pan Bananas Banano Beans Frijol Beverages Alcohol etílico; aguardientes, licores y otras bebidas espirituosas y vinos Cerveza de malta Malta Canned legumes Compotas, jaleas de frutas, purés y pastas de frutas o nueces Frutas y nueces, sin cocer o cocidas al vapor o en agua, congeladas Jugos de frutas y de legumbres Legumbres preparadas o en conserva Otras frutas en conserva n.c.p. Cereals and legumes Arroz con cáscara Otras legumbres n.c.p. Otros cereales n.c.p. Sorgo Trigo Coffee Café Consumo de capital fijo no Sociedades Consumo de capital fijo no Sociedades Consumo de capital fijo Sociedades Consumo de capital fijo Sociedades Dairy products Leche en polvo Leche pasteurizada Otros productos lácteos n.c.p. Eggs Huevos Electricity, gas, and water Agua natural Energía eléctrica, gas, vapor y agua caliente Excedente de explotación, bruto Excedente de explotación, bruto Excedente de explotación, neto Excedente de explotación, neto Fish and other fisheries products Atún fresco o refrigerado Camarón vivo, fresco o refrigerado Otros peces vivos frescos o refrigerados Otros productos acuáticos n.c.p. Formación bruta de capital fijo y objetos valiosos Formación bruta de capital fijo y objetos valiosos Fruits Berries Mango Melón Otras frutas n.c.p. y nueces Fuel wood Lana Leña Ingreso mixto, bruto Ingreso mixto, bruto Ingreso mixto, neto Ingreso mixto, neto Lodging, food service Servicios de alojamiento Servicios de suministro de comida y bebidas Macaroons and noodles MACARRONES, FIDEOS Y PRODUCTOS FARINÁCEOS ANÁLOGOS Maize Maíz Meat products Carne y despojos comestibles de aves (frescas, refrigeradas o congeladas) Carne y despojos comestibles de ganado porcino (fresca, regrigerada o congelada) Carne y despojos comestibles de ganado vacuno (fresca, refrigerada o congelada) Otras carnes, embutidos y otros productos de la carne Milk Leche sin elaborar Mill products Arroz sin cáscara Harina de trigo Otras harinas, avenas, y otros productos de la molinería n.c.p. Minerals Minerales metálicos Otros minerales no metálicos n.c.p. PETRÓLEO CRUDO Y GAS NATURAL Piedra de construcción o de talla, yeso, arenas y arcillas Sal común y cloruro de sodio Other animal products including live animals Miel natural Other crops, live plants, flowers and their seeds Ajonjolí Algodón en oro Cacao en grano Caña de azúcar Claveles Especias Otras materias vegetales sin elaborar n.c.p. Otras plantas bebestibles n.c.p. Otras plantas utilizadas en la fabricación de azúcar n.c.p. Otras plantas vivas, flores y semillas n.c.p. Otras semillas y frutos oleaginosos n.c.p. Rosas Semilla de algodón Soya TABACO SIN ELABORAR Té verde Other food products Almidones y sus productos, azúcares y jarabes de azúcar, n.c.p. Cacao, chocololate y artículos de confitería preparados con azúcar Otros productos alimenticios n.c.p. Other forestry products Aves de corral Chicle y chiquibul Ganado bovino Ganado porcino Hule natural o látex Otras gomas, resinas naturales y otros productos de la silvicultura n.c.p. Otros animales vivos n.c.p. Otros productos animales n.c.p. Otros tipos de madera sin elaborar n.c.p. Ovejas, cabras, caballos, asnos, mulas y burdéganos Troncos de madera Other manufactured products Abonos y plaguicidas Aceites y grasas lubricantes Aguas minerales embotelladas Aparatos médicos, instrumentos ópticos y de precisión Artículos de corcho y paja u otros materiales trenzables Artículos de cuero Artículos de deporte Artículos de hormigón, cemento y yeso Artículos textiles (excepto prendas de vestir) Bebidas no alcohólicas Calderas, generadoras de vapor de agua y sus partes y piezas Calzado y partes de calzado Cemento, cal y yeso Cuero, curtido o adobado y cuero artificial o regenerado Depósitos, cisternas y recipientes de hierro, acero o aluminio (con capacidad superior a 300 litros) Desperdicios de la industria de la alimentación y el tabaco Desperdicios o desechos metálicos Desperdicios o desechos no metálicos Envases de papel y cartón Equipo de transporte Equipo y aparatos de radio, televisión y comunicaciones Fuel oil y bunker (combustibles para calderas) Gas oil (diesel) Gases de petróleo y otros hidrocarburos gaseosos Gasolina Hilados e hilos; tejidos de fibras textiles, incluso afelpados Instrumentos musicales Jabón, preparados para limpiar, perfumes y preparados de tocador Joyas y artículos conexos Juegos y juguetes Kerosina Madera aserrada o cortada longitudinalmente, madera con librado continuo, madera sin elaborar Maquinaria de oficina, contabilidad e informática Maquinaria para usos especiales Maquinaria para usos generales Maquinaria y aparatos eléctricos MUEBLES Neumáticos y cámaras de aire Otros artículos manufacturados n.c.p. Otros productos de caucho n.c.p. Otros productos de la refinación de petróleo n.c.p. Otros productos metálicos elaborados n.c.p. Otros productos minerales no metálicos n.c.p. Papel periódico, otros papeles y cartones sin revestir, elaborados y ondulados y otros productos de papel y cartón Pasta de madera u otras materias celulósicas fibrosas Piedra de construcción o de talla y sus manufacturas Pinturas, barnices (incluso esmaltes y lacas), colores para la pintura artística, tinta de imprenta, tintas para escribir y otras tintas Plásticos en formas primarias y caucho sintético Productos básicos de hierro y acero Productos de cerámica no refractaria para uso no estructural Productos de cerámica refractaria y de arcilla y cerámica no refractaria para uso estructural Productos de la edición e impresión Productos de madera, excepto muebles Productos de plástico PRODUCTOS DEL TABACO Productos farmacéuticos Productos metálicos estructurales y sus partes Productos primarios de metales preciosos y metales no ferrosos Productos químicos básicos Productos químicos n.c.p. y fibras textiles manufacturadas Tejidos de punto o ganchillo; prendas de vestir; adobo y teñido de pieles Vidrio y productos de vidrio; fibra de vidrio y sus manufacturas, excepto tejidos; otros artículos de vidrio Other wholesale, retail, and services CIF/FOB SOBRE IMPORTACIONES Compras directas en el exterior por residentes Compras directas en el mercado interno por no residentes Construcciones, excepto servicios generales de construcción Otros servicios comerciales n.c.p. Otros servicios de espacimiento y diversiones, n.c.p. Otros servicios de salud humana Otros servicios de transporte complementarios y auxiliares Otros servicios inmobiliarios Otros servicios n.c.p. Servicios administrativos del gobierno Servicios administrativos para el régimen de seguridad social de afiliación obligatoria Servicios audiovisuales, promoción y presentación relacionados con las artes de interpretación y otros espectáculos en escena; servicios relacionados con actores y otros artistas. Servicios auxiliares de la intermediación financiera Servicios auxiliares de seguros y fondos de pensiones Servicios de agencias de viajes, organización de viajes en grupo y guias de turismo. Servicios de alcantarillado y eliminación de desperdicios; servicios de saneamiento y otros servicios de protección del medio ambiente Servicios de almacenamiento Servicios de alquiler de efectos personales y enseres domésticos Servicios de alquiler de vivienda Servicios de arquitectura e ingenieria y otros servicios técnicos Servicios de arrendamiento o alquiler de maquinaria y equipo sin operarios Servicios de asesoramiento, investigación de mercados e investigación y desarrollo Servicios de asociaciones que sirven a los hogares Servicios de bibliotecas, archivos, museos y otras actividades culturales Servicios de comercio Servicios de contabilidad, auditoria, teneduría de libros Servicios de distribución de agua por tubería por cuenta propia Servicios de distribución de electricidad; y serviciós de distribución de gas por tubería por cuenta propia SERVICIOS DE ENSEÑANZA Servicios de hospital Servicios de informática y servicios conexas Servicios de intermediación financiera, excepto seguros y fondos de pensiones Servicios de lavanderia, limpieza y tinte Servicios de mantenimiento y reparación de otros productos excepto mantenimiento y reparación de vehículos automotores y motocicletas Servicios de mantenimiento y reparación de productos metálicos elaborados, maquinaria y equipo Servicios de mantenimiento y reparación de vehículos automotores y motocicletas Servicios de organizaciones empresariales y de empleadores Servicios de producción a comisión o por contrato Servicios de publicidad Servicios de radio y televisión por satélite Servicios de seguro, reaseguro y fondos de pensiones Servicios de telecomunicaciones Servicios de tranporte de carga por carretera Servicios de tranporte de pasajeros por agua, remolque y alquiler de embarcaciones. Servicios de tranporte de pasajeros por carretera y alquiler de vehículos con conductor Servicios de tranporte por tuberías Servicios de transporte de carga por agua Servicios de transporte de carga por vía aérea Servicios de transporte de pasajeros por vía aérea y alquiler de aeronaves Servicios de transporte por ferrocarril Servicios de tratamientos de belleza y servicios de bienestar físico Servicios de veterinaria SERVICIOS DOMÉSTICOS Servicios generales de construcción Servicios jurídicos Servicios médicos y dentales Servicios para la comunidad en general Servicios postales y de mensajería SERVICIOS PRESTADOS POR ORGANIZACIONES Y ENTIDADES EXTRATERRITORIALES Servicios relacionados con deportes de competición y de esparcimiento; servicios de atletas y auxiliares conexos. Servicios relacionados con la distribución de electricidad, gas y agua a comisión o por contrato SERVICIOS SOCIALES Prepared or canned fish Camarones congelados y empacados Otros productos elaborados de pescado, crustáceos, moluscos, harinas y conservas n.c.p. Pescado preparado o en conserva, exc. moluscos y crustáceos Roots and tubers Otras raíces y tubérculos n.c.p. Papa Sugars Azúcar de caña refinada Azúcar de caña sin refinar Los demás azúcares n.c.p. Melaza Panela Vegetables Arveja china Brócoli Cardamomo Ejote francés Hierbas frescas culinarias, flores y hojas comestibles Otras verduras n.c.p. Repollo