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Policy Responses to Changing Perceptions of the Role of Agriculture in Development

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  • Kym Anderson

Abstract

Traditionally, development economists had a dim view of the contribution that farmers made to modern economic growth, compared with manufacturers. Hence agricultural exports and manufacturing imports were often taxed. This view changed over time though, as first economists and then policy makers came to understand the high cost of an anti-agricultural, import-substituting industrialization strategy. This paper outlines how this change came about and the resulting economic policy reforms that occurred in developing countries from the 1980s. It then considers the kinds of distortions that remain within agricultural markets, their cost to the global economy, and alternatives to these price-distorting measures.

Suggested Citation

  • Kym Anderson, 2012. "Policy Responses to Changing Perceptions of the Role of Agriculture in Development," Departmental Working Papers 2012-11, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2012-11
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2012/wp_econ_2012_11.pdf
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    References listed on IDEAS

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    1. Anderson, Kym, 1995. "Lobbying Incentives and the Pattern of Protection in Rich and Poor Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 43(2), pages 401-423, January.
    2. Anderson, Kym & Kurzweil, Marianne & Martin, Will & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Measuring distortions to agricultural incentives, revisited," World Trade Review, Cambridge University Press, vol. 7(4), pages 675-704, October.
    3. Anderson, Kym & Martin, William J. & Valenzuela, Ernesto, 2007. "Long Run Implications of WTO Accession for Agriculture in China," 2007: China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55025, International Agricultural Trade Research Consortium.
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    5. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 11855, December.
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    7. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
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    10. Byerlee, Derek & Jayne, T.S. & Myers, Robert J., 2006. "Managing food price risks and instability in a liberalizing market environment: Overview and policy options," Food Policy, Elsevier, vol. 31(4), pages 275-287, August.
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    12. Shenggen Fan & Peter Hazell, 2001. "Returns to Public Investments in the Less-Favored Areas of India and China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1217-1222.
    13. Anderson,Kym (ed.), 2010. "The Political Economy of Agricultural Price Distortions," Cambridge Books, Cambridge University Press, number 9780521763233.
    14. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications - Books, The World Bank Group, number 2597, December.
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    Keywords

    agricultural development economics; import-substituting industrialization; farm and food price distortions;
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