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The Common Agricultural Policy: A Review of Its Operation and Effects on Developing Countries


  • Koester, Ulrich
  • Bale, Malcolm D


Policy changes in the European Community (EC)--the world's largest importer and, since 1986, exporter of agricultural commodities--may have significant effects on world markets and developing countries. This article investigates the EC's Common Agricultural Policy (CAP), its history, mode of operation, and the prospects and possibilities for change, to bring out the implications of the policy for developing country exporters and importers. The hypothesis that evolves differs from that of many studies in proposing that an agricultural liberalization in the EC is unlikely to effect any great change in world market prices over the first few years. Developing countries' principal gain from a liberalization of the CAP would derive from increased stability of world market prices, improved access to export markets, and a reduction in the uncertainty currently caused by discretionary measures in the EC. Copyright 1990 by Oxford University Press.

Suggested Citation

  • Koester, Ulrich & Bale, Malcolm D, 1990. "The Common Agricultural Policy: A Review of Its Operation and Effects on Developing Countries," World Bank Research Observer, World Bank Group, vol. 5(1), pages 95-121, January.
  • Handle: RePEc:oup:wbrobs:v:5:y:1990:i:1:p:95-121

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    References listed on IDEAS

    1. Friedman, Ernest H., 1993. "Letter to the editor," Social Science & Medicine, Elsevier, vol. 36(3), pages 383-383, February.
    2. Levin, Henry M., 1991. "The economics of educational choice," Economics of Education Review, Elsevier, vol. 10(2), pages 137-158, June.
    3. Herbert J. Walberg and Joseph L. Bast, 1993. "School Choice: The Essential Reform," Cato Journal, Cato Journal, Cato Institute, vol. 13(1), pages 101-121, Spring/Su.
    4. West, Edwin G., 1991. "Public schools and excess burdens," Economics of Education Review, Elsevier, vol. 10(2), pages 159-169, June.
    5. Friedman, Ernest H., 1993. "Letter to the editor," Social Science & Medicine, Elsevier, vol. 36(4), pages 583-583, February.
    6. Friedman, Ernest H., 1993. "Letter to the editor," Social Science & Medicine, Elsevier, vol. 37(1), pages 127-127, July.
    7. Hettich, Walter, 1969. "Mixed Public and Private Financing of Education: Comment," American Economic Review, American Economic Association, vol. 59(1), pages 210-212, March.
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    Cited by:

    1. Diaz-Bonilla, Eugenio & Robinson, Sherman & Thomas, Marcelle, 2002. "On boxes, contents, and users," TMD discussion papers 82, International Food Policy Research Institute (IFPRI).
    2. Diaz-Bonilla, Eugenio & Reca, Lucio, 2000. "Trade and agroindustrialization in developing countries: trends and policy impacts," Agricultural Economics, Blackwell, vol. 23(3), pages 219-229, September.
    3. Diaz-Bonilla, Eugenio & Tin, Jonathan, 2002. "That was then but this is now," TMD discussion papers 94, International Food Policy Research Institute (IFPRI).
    4. Spencer, Dunstan S.C. & Badiane, Ousmane, 1995. "Agriculture and Economic Recovery in African Countries," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183375, International Association of Agricultural Economists.

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