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     dedicated to the integral production of specialized, differentiated
      products, to meet social demands for more cultural
      diversity and preservation of the identity of peoples. The
      performance of these corporations, in terms of efficiency
      and effectiveness, is very high, because increased trade competition
      requires them to make large investments to mitigate
      the risk of losing markets. 
       
      3.4.1.2.4 Results of interaction among the systems 
      The openness of markets and borders creates a climate for
      investment in agriculture. National and transnational companies
      consolidate their control over production chains
      and the markets they serve. More production units manage
      to operate in this sphere, thereby improving their income.
      Nonfood imports, the monopoly over natural resources,
      and an intensification of the effects of climate change drive
      small farmers out of the circuit. These factors all exacerbate
      income inequality. More resources are invested in education,
      however, which are used to a great extent to retrain a
      large part of the rural population of displaced producers as
      skilled workers for industry. Partly as a result of these policies,
      the proportion of poor in the Latin American population
      is considerably reduced. 
           In this situation of growth, various social groups have
      greater access to education, health, and food security, although
      major differences persist among LAC countries in
      terms of social and economic development. Access to jobs
      is still difficult for less skilled workers. Government intervenes
      to provide food, housing, and transportation for the
      unemployed. In societies in general, the value assigned to
      work changes, due to the development of a market geared
      to recreation and leisure activities. 
           There is a sharp drop in urban food security problems
      in LAC, even in countries with a lower per capita income
      that rely on food imports. There is virtually no urban food
      security problem in LAC, or in other words food is regular,
      accessible, and available in the cities. As for food safety, the
      main sources of contamination are controlled by sophisticated
      health surveillance mechanisms. 
          At the start of this period, the environmental sustainability
      of production systems becomes a priority for societies,
      and especially in the countries most vulnerable to
      environmental disasters related to climate change. In addition
      to threats to sustainability related to poor management
      of agricultural systems, they are also threatened now by the
      consequences of climate change. During this period, the environmental
      sustainability of agriculture is also affected by
      highly intensive competition among markets that demand
      more and more new products derived from exploitation of
      natural resources. The intensive agricultural practices reduce
      the elasticity of the response of many ecosystems, and
      lead to various problems in maintaining the efficiency of
      agricultural production systems over the long run. 
          3.4.2 Order from Strength 
      3.4.2.1 2007-2015 
       
      3.4.2.1.1 Context of AKST systems and agricultural 
      production 
      International trade in agricultural products in the region is 
    regulated by tariff and nontariff barriers. The latter ones are  | 
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     designed to reduce the risk of bioterrorism. The possibility
      of evolving towards a free trade system is remote. 
           The less developed countries have increasingly less capacity
      to invest in agricultural innovation. As a result, they
      are unable to compete on markets for differentiated agricultural
      products, and the best that they can do is to continue
      exporting commodities, in more and more difficult circumstances 
      because of the barriers imposed. 
           Consumers in the more developed countries both within
      and outside the region are increasingly demanding in terms
      of quality, safety, functional properties, and environmentally
      friendly production methods for food and nonfood
      products. It is more and more difficult for less developed
      countries to satisfy these demands, but some of them serve
      special, high-value markets, such as markets for products
      from the jungles of the Amazon, Chaco Paraguayo, or the
      Bolivian salt desert, or from Patagonia—albeit on a limited
      scale. The domestic LAC markets are primarily made up of
      low-income consumers, who demand low-priced food. 
           Despite the massive use of pesticides throughout the
      region, the frequency, severity, and presence of new pests
      and diseases continue, and the situation in some countries is
      worsened by changes in land use patterns, climate changes,
      and the lack of remedial action. 
           The temperature and frequency of extreme climate
      events persist. Most countries in the region do not perceive
      the threat of climate change, and hence the need to direct
      agricultural R&D to that end. Social organizations that
      warn the public of the coming danger are not echoed by
      government authorities. There is also generally a low capacity
      to mitigate or adapt to climate change in most countries,
      because most of these countries give no priority to action in
      this area. 
           At the outset of the period, some LAC countries adopt
      highly diverse measures for technological innovation, social
      development, environmental protection and biosafety. By
      the end of the period, as a result of the relationship with
      developed countries outside the region and their dependence
      on external resources, most of the LAC countries
      adopt more coherent biosecurity policies based on protocols
      imported from more developed countries, the implementation
      of which is completely subsidized by these developed
      countries. However, as a rule, these policies are not seen as
      stable in most countries, and in highly import-dependent
      countries, this stability is very much weakened. 
           Management of these policies is also precarious, but
      due to the developed countries’ concern over bioterrorism,
      from midway through the period onwards, a slow transition
      towards establishing regulations and quality standards and
      enforcing compliance with them begins, to reduce the risk of
      terrorist acts related to the food supply or agricultural products.
      Early in the period governments, and by the end of
      the period transnationals, take responsibility for managing
      health standards and antiterrorist measures. Transnational
      corporations are only capable of exercising this control in
      the major cities. 
           Public education does not lead to good results, especially
      in the less developed countries. Similarly, private education
      often offers defective, poor-quality courses and programs. 
           In more developed countries, there is a major social
      concern that science should provide ways to avoid any bifromCK 
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