Agro industrial policy reviews – Methodological guidelines

Training Material
[Training materials for agricultural planning]

Industries based on agricultural raw materials played a major part in the early stages
of the industrialization of developed countries, and they are no less important in the
industrialization now under way in developing countries. Such industries are estimated
to account for nearly half of the total manufacturing value added and almost two thirds
of the employment in the manufacturing sector in the developing countries, and their 
share in the developed countries, although smaller, is still substantial. The development
of such industries also has many beneficial feedback effects on agricultural production itself.
Aware of the strategic links and interdependencies between agriculture and agro-
industries, an increasing number of developing countries have been requesting FAO's
assistance in formulating agro-industrial strategies and policies as an integral part of
agricultural policy analysis and planning. The majority of requests have come from
countries which can be regarded - in developmental terms - as being in the transition
phase from an agriculture-based economy to a mixed agricultural-industrial economy.
In some of these countries, agro-industry is already growing quite fast on the basis of
private-sector initiatives, and governments have become acutely aware of the need to
formulate strategies and policies to guide future developments in socially desirable
directions. Important issues are raised concerning the rights and responsibilities of
multinational corporations, protection of small-scale farmers' access to productive
resources, differential regional development, and so forth. At the same time, there are
also situations where governments perceive many areas of the economy which appear
ripe for agro-industrial development, but which have not attracted private capital and
entrepreneurs. Often this is due to various policy, legal or institutional barriers, many
of which may be partly of the government's own making, which deter private
enterprises from entering these areas. There may also be infrastructural, market or
technological problems to be settled. In either case, positive government intervention
may be required to overcome these constraints. It is in this context that governments
are seeking external assistance for agro-industrial policy formulation and analysis.
These Guidelines have been drawn up with these objectives and circumstances in mind.
Their primary purpose is to help policy analysts to design and implement agro-industrial
policy reviews in competitive market economies. The methodology suggested here was
field-tested during an FAO project in Thailand, Policy formulation and planning for
agro-industrial development. The experience gained during the implementation of that
project has been drawn upon to illustrate salient points of the methodology. The
provisional version of the Guidelines was then used as the main resource document for
a training course in Nepal, and feed-back from the participants helped refine some key
elements of the approach.

Date and language
Jan 1998
Physical Location: 
FPMU Documentation Center
Physical Location: 
Other information
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