Agricultural price policy for developing countries/ edited by john W. Mellor and Raisuddin Ahmed

In developing countries agricultural prices have enormous human and political implications. The cost of food, of course, is of elemental importance to the poor, but agricultural prices also have profound effects on growth; equity, and stability throughout a developing economy. Too often, governments have intervened with policies that, in striving toward some short-term objective, have grossly distorted prices and created severe backlashes.

In Agricultural Price Policy for Developing Countries, distinguished specialists examine agricultural price policy in the broader context of the technological and institutional changes that "are the essence of development." Among the issues the authors address are the intensely political nature of price policy; its role in allocating resources for short- and long-run objectives not only within agriculture but also between economic sectors and domestic and foreign production; the limited ability of governments to maintain artificial prices without influencing long-term balance in supply and demand; and the complex interplay of micro- and macroeconomic forces in price policy, which often produces conflicting direct and indirect results.

The authors make both theoretical and empirical contributions, but their purpose throughout is to inform practical policymaking. The book recommends pragmatic approaches for managing price fluctuations and exchange rates, relating domestic to international prices, and balancing the needs of producers and consumers in a coherent and consistent strategy of economic development.