By Roger D. Norton
Ready below the aegis of the meals and Agriculture association of the United international locations (FAO), this article offers a clean and complete examine agricultural improvement coverage. It offers a transparent, systematic evaluate of vital periods of coverage matters in constructing international locations and discusses the rising foreign consensus on manageable techniques to the problems.
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Additional resources for Agricultural Development Policy: Concepts and Experiences
G. water, soils, forests and ﬁsh stocks. These are precisely the natural resources whose use has proven to be the most difﬁcult to subject to the rule of markets. A completely hands-off approach, or laissez faire policy, for such resources has not proven to be tenable in any country, for it invariably leads to their overexploitation. In addition to being a major employer of the labor force, the sector plays a similarly large role in the balance of payments in many countries, and it is the largest user of a country’s fertile land.
These and many other measures of this type are aimed at improving the functioning of rural markets. In a modern economy, the private sector and government play mutually supporting roles, and the boundary between them is not always clearly deﬁned. As Stiglitz has said: The new agenda. . sees government and markets as complements rather than substitutes. It takes as dogma neither that markets by themselves will ensure desirable outcomes nor that the absence of a market, or some related market failure, requires government to assume responsibility for the activity.
A more fundamental justiﬁcation for an agricultural policy is that transfers of rural labor out of agriculture represent essentially irreversible ﬂows of resources in the economy, and hence neglect of agriculture can give rise to permanent and not necessarily desirable structural changes in the economy. Another consideration is that economic institutions are generally less well developed in rural areas than in cities, and therefore special policy attention is required to strengthen those institutions.