Agriculture Reference
In-Depth Information
goal would be to move toward cash-based programs, which, given the level of
technology, appear increasingly feasible.
Of the three East Asian case studies in Part III, Indonesia's price policy
was highly successful in the 1970s and 1980s, but has faced troubles in recent
years. The author argues that a practice of interlocking mechanisms between
government or political elites and private sectors and nontransparent govern-
ment decisions in the rice-import process (including closed-door appointments
of rice importers) since the 1990s are among important factors affecting
BULOG's poor performance in the past decade (Chapter 6). Recent reform
efforts, on whose benefits the jury is still out, are described. A postscript by
Peter Timmer updates the situation by providing an assessment of a recent de-
bate over the link between rice policy and food security.
The Philippine case study argues that, despite the resources devoted to the
NFA and despite initial successes, agricultural development has lagged and
food security programs have not substantially improved. A major reason for the
mixed achievement has been inconsistent and, more recently, lagging public
commitment. The author proposes a scheme for stabilizing prices, using a price
band and combining the use of trade policies, buffer stocks, limited procure-
ment, and a safety net for the ultra-poor (Chapter 7).
In Vietnam, where parastatals had absolute control over production and
distribution of agricultural products until 1981, market liberalization has
greatly contributed to increasing production, enhancing technology adoption,
and improving overall social welfare. Rice production grew at a rate of 5.6 per-
cent between 1988 and 1995, transforming Vietnam from a chronic food-deficit
country to a leading exporter of rice in Asia (Chapter 8). The key message of
the chapters on Bangladesh and Vietnam is that reduced intervention can con-
tribute to efficiency gains and market development.
The topic concludes by summarizing the key findings of the first eight chap-
ters and their implications. This final chapter highlights the challenges of effec-
tively making changes to food price policies that promote the continued im-
provement in social and economic welfare of developing countries (Chapter 9).
References
Behrman, J. 1987. Commodity price instability and economic goal attainment in devel-
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World Development
15 (5): 559-573.
Bigman, D., D. Newbery, and D. Zilberman. 1988. New approaches in agricultural pol-
icy research.
American Journal of Agricultural Economics
70 (2): 460-461.
Braverman, A., R. Kanbur, A. Salazar, P. Brandao, J. Hammer, M. R. Lopez, and A. Tan.
1993. How to analyze the Brazilian price band proposal. In
The economics of ru-
ral organization,
K. Hoff, A. Braverman, and J. E. Stiglitz, eds. Oxford: Oxford
University Press for the World Bank, pp. 436-452.
Newbery, D. M., and J. E. Stiglitz. 1981.
The theory of commodity price stabilization. A
study in the economics of risk.
Oxford: Oxford University Press.
