Agriculture Reference
In-Depth Information
The process of globalization has a major impact on the development of institutions and
should also be taken into account in research. The globalization process is fuelled by such
forces as the simultaneous opening of financial capital markets and the dismantling of
closed trade in agricultural commodities, which raises questions about the links between
natural resources, government, household and private sector strategies and the economic
welfare of a country. If the globalization process and the creation of the correct institutions
are to be the catalyst for economic growth and development in emerging and developed
markets, then understanding these links is crucial. This calls for a fundamental review of the
whole basis for programming of agricultural investment in the region.
In short, a comprehensive assessment of the managerial, technical and institutional basis
of farm production is called for, to not only identify the obstacles to agricultural and
national economic growth in the region, but also to find out what alternative options are
available and how they can be better delivered for greater effectiveness and development of
sustainable small-holder farming systems in Southern Africa.
It was therefore proposed to undertake a comprehensive institutional analysis of the
agricultural sector of the selected countries such that comparisons of relative performance
could be carried out on the basis of a number of criteria, including size, membership of
regional economic grouping, notably the Southern African Customs Union (SACU)
and the Common Market for Eastern and Southern Africa (COMESA), extent of
democratization, spatial relationship with South Africa, etc. For instance, an enclave entity
like Lesotho that is completely surrounded by South Africa, and the land-locked countries
like Botswana and Swaziland, may experience integration differently from other member
states. Partnership agreements being negotiated between some of the countries and the
European Union may also produce impacts for those and other countries and these should
be examined and understood. Some members of the regional body are also participating
in the US Government's Africa Growth and Opportunity Act (AGOA), which will no
doubt have implications for the nature and content of intra-SADC and intra-SACU trade
and ultimately the economic development of the participating countries. As the SADC
is currently implementing a phased program of integration and many members are faced
with important decisions concerning their subsequent membership of associated groups
and customs unions, a clearer picture of relative costs and benefits of membership of these
alternative regional groupings is needed. Funding constraints and administrative decisions
regarding the outcome of the project made it impossible to pursue some of the foregoing
lines of enquiry, but sufficient insight has no doubt be developed nonetheless and whatever
gaps remain can be filled in follow-up investigations in the future.
But what has emerged puts institutions in a somewhat dominant role in terms of the
programming of interventions for agricultural development. Among several academics
and policy leaders, exasperation with what is described as 'institutional fundamentalism'
Search WWH ::
Custom Search