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This presentation was created and performed for the student population of the Development

Economics module in March 2012 at the University of Westminster in London.

Government Market Intervention

African Governments (AG) intervention

Intervention promotes inefficiency

Food crops and Cash (Export) Crops

Sale Export crops: State-controlled marketing channels

State owned body: Marketing Board (MB)

Stabilization becomes Taxation

Revenue MB of AG’s: Used for Price Stabilization

However committing money to farmers benefits short-lived

Over born ambitions for development

Commitment diversion > non-agricultural sectors

Stabilization becomes Taxation

Intervening continues

AG’s intervene in Food crop market

Price controls

Projects: constant focus on increasing food production

Non-bureaucratic intervention:

-> Domestic currency overvaluation

Development Economics

Rejection of Development Economics Approach to Governmental behavior

Pressure on decision making: Domestic forces

Low in international hierarchy

Governments not just act in public interest

Why?

Low-prices, inefficient policies, etc. Better policies available

E.g.: Offer higher prices for food, invest resources more appropriately

It raises a Question: Why continue? Will for rapid industrialization? Pluralist theory?

Low priced food: Ease relations with urban constituents

Retaining power

Pluralist explanation incomplete

Another approach needed

Organizing Rural constituency

Disorganizing Rural Opposition

Markets: Instruments of Political Organization