Download Current Issues in Development Economics by V. Balasubramanyam, Sanjaya Lall PDF

By V. Balasubramanyam, Sanjaya Lall

This booklet brings jointly dialogue of the main modern matters in improvement economics. The chapters are specifically written via popular foreign authors and supply a succinct survey of contemporary theoretical advancements and the research of coverage prescriptions. The publication is written in a transparent and available kind and should offer scholars with an important advisor to present concerns in improvement economics.

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This evidence points to the conclusion that scope exists for improving the technical efficiency of peasant farmers via agricultural extension and farmer education. A further important aspect of the efficiency of peasant agriculture is the relationship between efficiency and holding size. A priori, traditional agriculture utilising land and labour as principal inputs, might be expected to yield constant returns to increasing farm size, subject to the important proviso that factor prices are common to all farmers regardless of farm size.

Once this constraint has been removed by 'getting prices right', domestic agricultural production and farm incomes will increase, and food imports will decline, to the benefit of the balance of trade. Although there is substance in the case for allowing agricultural prices to rise in order to encourage farmers to produce more for the market, as well as improving their own welfare, placing such a price policy at the centre of agricultural policy reform in LDCs is clearly open to several criticisms.

The 'negative' price policy which is said to be typical in LDCs is thought to be partially deliberate and partially accidental. The deliberate or direct element is said to reflect the urban bias of LDC governments which give way to pressure from urban consumers and industrial employers to keep food prices low (Bates, 1983, Ch. V). , 1988). The reasons for exchange rate inflexibility are partly political - that is, because exchange overvaluation benefits consumers of imported goods and producers of non-tradables, these groups have a vested interest in opposing devaluation, and exert political pressure to that end.

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