The Political Economy Of Agricultural Pricing Policy: Malaysia
AbstractSince 1960 Malaysia has become a highly efficient producer of natural rubber, thanks to its agricultural and trade policies. The primary purpose of these policies has been to maintain political and economic balance. Consequently, Malaysia’s leaders have concentrated on modifying agricultural pricing policies in degrees (for example, by adjusting to fluctuating world prices) rather than in kind, and they have endeavored to keep the producer price of rice stable and thus maintain the real purchasing power of the country’s politically powerful paddy farmers; help rubber and palm oil farmers improve productivity; set taxes on rubber and palm oil levels that provide funds for public investment; maintain an economy with fairly low or no tariffs on imported consumer goods and with very low or no tariffs on imported inputs; and contribute significant amounts of the revenues obtained from export of oil to the agricultural sector. The policies used to achieve these goals from 1960 to 1983, and their impact on Malaysian agriculture, are the subjects of this chapter.
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Bibliographic InfoPaper provided by JDI Executive Programs in its series Development Discussion Papers with number 1991-06.
Length: 21 pages
Date of creation: Jun 1991
Date of revision:
Agricultural; Pricing Policy; Malaysia;
Find related papers by JEL classification:
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
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- Glenn Jenkins & Andrew Lai, 1989. "Trade, Exchange Rate And Agricultural Policies In Malaysia," Development Discussion Papers 1989-04, JDI Executive Programs.
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- Hazell, Peter B.R., 2009. "The Asian Green Revolution:," IFPRI discussion papers 911, International Food Policy Research Institute (IFPRI).
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