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

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  • Kym Anderson

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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. 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.
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    3. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    4. Anderson,Kym (ed.), 2010. "The Political Economy of Agricultural Price Distortions," Cambridge Books, Cambridge University Press, number 9780521763233, December.
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    6. Anderson, Kym & Martin, William J. & Valenzuela, Ernesto, 2007. "Long Run Implications of WTO Accession for Agriculture in China," China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55025, International Agricultural Trade Research Consortium.
    7. Anderson, Kym & Tyers, Rod, 1992. "Japanese rice policy in the interwar period: Some consequences of imperial self sufficiency," Japan and the World Economy, Elsevier, pages 103-127.
    8. 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, The World Bank, number 2597.
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    14. Vousden,Neil, 1990. "The Economics of Trade Protection," Cambridge Books, Cambridge University Press, number 9780521346696, December.
    15. 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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    Keywords

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

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