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Policy-makers in the developing countries are confronted with a primary dilemma. On the one hand, they want high prices for food to stimulate agricultural production. On the other hand, they want low prices to protect (at least in the short run) the poor buyers of food. However, adequate supply of food is not enough to eliminate malnutrition. Poor people must also have appropriate incomes, access to complementary goods and services, and the distribution of food within the household must meet the nutritional requirements of all its members.
It is often said that a secondary dilemma is that between the role of the agricultural sector as a producer of food and its role as a provider of resources for the rest of the economy. The resources may be savings for industrialization, foreign exchange or tax revenue.
The first dilemma has three origins, each presenting an obstacle to reform.
The ultimate objective of policy-makers can be described as growth with equity. But there are at least five proximate objectives and three constraints of food-price policies which are listed below: 1) Allocational efficiency, i.e., the objective is to raise food production and productivity at the lowest cost. 2) Acceleration of aggregate economic growth through the balanced expansion of agriculture, manufacture and services. 3) National food security in the face of international uncertainties. Price stabilization for both consumers and producers. 4) Social objectives (some of which may be in conflict with one another) including undernutrition elimination, poverty alleviation and income redistribution, reduction in rural- urban income differentials and migration. 5) Political objectives such as the desire for political stability, which is important for investment and economic growth, or the desire of a particular government to stay in power through the support from urban consumer groups.
The constraints are the budget, the balance of payments and the administrative capacity. The budgetary constraint consists in minimizing the burden on the budget and on scarce administrative skills. The balance of payments constraint consists in keeping within foreign exchange resources.
The second origin of the dilemma is historical. Policy-makers find themselves with the heritage of a complex structure of interventions relating not only to explicit and implicit measures for output prices, but also with input subsidies attempting to offset the deterrent effects of low output prices, and the high costs of some inputs due to protection, explicit and implicit taxes on the consumption goods bought by farmers, various direct controls and ''ad hoc'' measures to meet specific pressures.
The political constraints call for analysis of the problem of how to built a political base for the desirable reforms. What is needed is an analysis of the reformist coalitions that would provide the constituency for reform.
So as to resolve the dilemma three things are necessary: first, an awareness of the set of objectives and their conflict or consistency; second, an economic analysis and an empirical estimate of the impact of existing measures and of any proposed reforms; and, third, a political analysis of how interests and support can be mobilized for these reforms.
An integrated nutrition policy must embrace much more than ensuring supply of, demand for, and access to food. It must aim at appropriate health standards, particularly the elimination and prevention of intestinal and parasitic diseases, so that the food is properly absorbed by the body; at adequate education, particularly of women, so that people know what food to eat, how to prepare it and how to keep themselves healthy through hygienic practices; and at equitable household food distribution, so that vulnerable groups, such as pre-school age children or pregnant and lactating mothers, get enough to eat.
The benchmark for producer prices is world prices, for they represent the opportunity costs of domestic resources. In countries where producer prices have been pushed below this benchmark, discrimination against agricultural producers should be removed. However, not current world prices but the trend of future prices should be used as the guideline. Using the trend also eliminates the need to pay attention to temporary price fluctuations, which are a disincentive to agricultural investment and hurt consumers. Around 15-20 per cent should be added to the estimated future price trend as an insurance against world prices rising steeply, developed countries reversing their protectionist policies or food becoming unavailable in the world market.
It is important to ensure that higher prices are not absorbed in marketing margins, either by monopolistic private middlemen or by inefficient or corrupt state marketing boards.
The announcement of these prices has to be timely, i.e., before the planting season, so that farmers can incorporate them in their decisions.
Policy must also ensure that agricultural inputs such as fertilizers, seeds, machinery and transport are available.
For each of these purposes, namely, 1) ensuring demand and access to markets, 2) not discriminating against agricultural production, and 3) ensuring inputs, macroeconomic policies relating to exchange rates are at least as important as microeconomic policies for specific crops. An overvalued exchange rate can harm food production for domestic consumption and foreign exchange earnings for imported agricultural inputs, though adjustments in the exchange rate are frequently insufficient.
I tend to agree with the author's thesis of the need of a multipronged attack in regards to the problem of hunger. He seems to have an historical basis to substantiate his argument that getting the prices right by itself, without complementary action by the public sector (on technology, roads, health, extension services, etc.), can be ineffective or counterproductive.
This book makes an interesting read. I just hope that, in the ten years since its publication, some progress could have been made in the 17 issues that the author identifies as in need of further research (e.g., innovation).
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is definetely not a book for kids between 10 and 15.
Not exactly the greatest story to come along, but I'm not going to forget who Zindel is. Very shocking imagery in this one, a perverse psychopath, and a dark look at life in Beverly Hills. It's a nice way to spend a few hours, but isn't for the weak of stomach or for shiny, happy people holding hands.
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I read this book for my 4th grade teacher, Mrs. Maull (who rocks!) The book was a little bit scary at one point, but it was still really a great book. I loved learning about how women couldn't wear pants or do a lot of jobs other than be a mom or wife! My grandmother read the book and loved it, too. So I recommend this book to all girls of all ages!
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Fans of Colbert, Dinello, or Sedaris (and, by extension fans of the Daily Show) will enjoy this tale, perfectly expressed by its authors. Rich with wit, this story carries with it the feeling of a Daily Show special report, and that's not necessarily a bad thing. Sharply written and never losing its purpose, Wigfield asks many questions, and answers none.
Or does it? Perhaps we were never meant to know.