Agriculture price policy: government and the market

Training Material
[Training materials for agricultural planning (31)]

The training programme aims at providing tools to assess the impact of past policies and the
likely effect of proposed policies, notably those of stabilization and adjustment, on the agricultural sector and on food security. The programme consists of a number of training courses of different duration and degrees of specia1ization. This publication on "Agricultural Price Policy: Government and the Market" follows "The Economic Analysis of Agricultural Policies: a basic training manual with special reference to price analysis (ESPT/TMAP. 30)" which contains basic elements for the economic analysis of agricultural policies. These,together with the forthcoming training text on 'Policy Analysis Exercises' and other texts in preparation, are part of the training materials that are and will be used in various training courses. The purpose of this publication is to provide trainers and trainees with the theoretical  knowledge on the functioning of markets and government institutions which is necessary to undertake the analysis of agriculture policies. In the first part, after a review of the theory of market mechanism, there is a presentation of the causes of market failure and the reasons for Government intervention as well as, symmetricaIly, a presentation of the factors behind policy failures and dangers of Government intervention. The second part starts with the presentation of an analytical tool, the Policy Analysis Matrix (PAM) and reviews the most important policy interventions. Finally, the third part deals with the role and efficiency of Government, institutions and organizations in the agricultural sector. The publication is intended to be used as primary supporting text in price policy courses from which the trainer can select the parts to be presented during the training sessions. In fact, the level of analytical details and the number of issues covered by the publication is well in excess of the topics that can reasonably be covered in a single course. The text can usefully be complemented by exercises from the forthcoming ESPT publication on 'Policy Analysis Exercises' and country case studies which will facilitate the link between theory and practice.

Date and language
Jan 1992
Physical Location: 
FPMU Documentation Center
Classification Number: 
Other information
Printed resource

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