Effective exchange rates for exports in Pakistan

Effective exchange rates for exports in Pakistan can be calculated which take into account the major export incentive measures in operation and their divergent treatment of specific exports. This quantification of export policies into an overall measure of the implicit (effective) foreign exchange rate structure permits an evaluation of the impact of export promotion measures on foreign exchange earning capacity. The major export incentive schemes were found to provide the highes’ subsidies to those exports with the highest total import components and the lowest relative earnings of net foreign exchange. Thus de velopment policy in some cases failed adequately to encourage these producers with relatively higher levels of domestic value‐added to export their products.     

Institutions,interests, and policy support: Experimental evidence from China

Policy support matters for the success of public policies. It is still unclear how governments can garner support for policies with high costs. Using a conjoint experiment in China, we demonstrate that governments can encourage policy support by offering institutional services and material interests to policy targets. In particular, citizens become more willing to support policies when governments timely disclose policy information and respond to and incorporate their voices in the policy design. Government subsidies in both the short and long runs also increase citizens' policy support. In addition, government transparency and long-run subsidies are complementary to enhancing policy support; the role of institutions is strengthened when citizens are exposed to severe policy problems.     

Egypt's multiproduct agricultural technology and agricultural policy

Based on the hypothesis that Egyptian farmers maximise economic profits, the multiproduct translog profit function is used to estimate input demand and output supply functions for corn, rice, and cotton crops grown in Egypt's Nile delta. Elasticity estimates indicate a generally high degree of price responsiveness. The estimates are used to evaluate Egyptian agricultural policies concerning labour, mechanisation, and output prices. The results show that Egypt's agricultural policies of taxing output and subsidising certain inputs have hada substantial negative impact on agricultural productivity.     

Urban unemployment and optimal tax policy in a small,open dual economy

This paper analyses optimal tax policies in a two‐sector model of an LDC, similar to that of Harris and Todaro [1970]. The analysis assumes a small, open economy with a non‐competitive urban wage which depends on prices of both agricultural and manufactured goods. Optimal policies are considered for cases where an employment subsidy in manufacturing and/or taxes on international trade are the only feasible instruments, and where government revenue has an excess burden. Comparisons are made with results obtained by Harris and Todaro, Hagen, and Bhagwati and Srinivasan, for similar models.     

THE CONCEPT OF ADMINISTRATIVE ELASTICITY

ABSTRACT

The concept of administrative elasticity draws a relation between the development of administrative costs for a particular program and the development of this program's monetary volume. For the administration of agricultural export subsidies in Germany, administrative elasticities of the two offices involved were estimated separately and as a total. It showed that elasticities over a five-year period provided more reliable information than a look on short-term developments. Overall, export subsidies showed an inverse administrative elasticity, i.e., administrative costs soared while the program's monetary volume shrank. Explanations for this phenomenon were given and chances and limits of the concept of administrative elasticities were discussed.     

EUROPEANIZATION AND BUREAUCRATIC AUTONOMY IN THE NEW MEMBER STATES: A CASE STUDY OF THE AGRICULTURAL PAYING AGENCY IN SLOVAKIA

The paper explores the impact of Europeanization on bureaucratic autonomy in the new EU member states using as a case study the Agricultural Paying Agency in Slovakia. The paper shows that Europeanization had limited sustained impact on the personal autonomy of senior officials; however, it requires and sustains the personal autonomy of an extensive cadre of mid‐level and junior civil servants. At the same time, it necessitates and continues to sustain significant change in the way agricultural subsidies are distributed, with a high level of autonomy in implementation and a lower, but still significant, measure of autonomy in policy‐making. These conclusions can also generally be supported by evidence from Lithuania and Poland. In addition, the coercive elements of Europeanization interacted with the temporarily high bureaucratic autonomy in Slovakia to ‘open’ non‐coercive channels of Europeanization of agricultural subsidies and beyond.     

Philanthrocapitalism: rendering the public domain obsolete?

Engaging the lively debates about the next expression of neoliberalism, this study suggests that it is evolving into philanthrocapitalism. After a brief discussion of the trajectories from neoliberalism, the article addresses the core ideology of philanthrocapitalism. The central thesis explores how philanthrocapitalism is moving beyond the requirement of ‘business practices’ for recipients of donor funds, into enforcing ‘business rule’ on to the public domain. Although philanthrocapitalism is most debated in the fields of health care and education, this article uses empirical analysis of international agricultural policies trying to enlist Southern Africa policies. It explores how philanthrocapitalist rule is reducing transparency, participation and deliberation within the public domain, well beyond requesting efficient business practices for greater food security. It concludes with how smallholder farmers are actively organising to resist business rule over their genetic resources and farming practices.     

Trust in Government and Subsidy Reform: Evidence from a Survey of Indian Farmers

What accounts for the persistence of inefficient subsidies? What are the obstacles to their reform? We examine the role of trust in government among farmers in explaining support for reforming India’s energy subsidies. The subsidies under study hold back efforts to provide a reliable supply of agricultural power and contribute to the unsustainable extraction of groundwater. This water-energy nexus in rural India represents both a poverty-perpetuating policy equilibrium and a crisis in environmental governance. Informed by interviews and focus groups, we conduct an original survey of 2010 farmers in Bihar, Gujarat, and Rajasthan and analyze this data on the preferences of “vested interests”—those most affected by potential reform—to demonstrate the crucial role of political trust, especially trust in the national government, in predicting farmers’ political support for reforms. Our findings have practical implications for environmental governance and rural development and contribute to understanding the political economy of social policy reform in a developing democracy.     

Economics of State-Owned Enterprises

State-owned enterprises (SOEs) account for a substantial proportion of gross domestic product, employment, and assets in many countries. Based on a review of the theory and empirical evidence, we develop a novel five-step framework that can guide policymakers and economic advisors in making decisions about maintaining and/or creating SOEs. The framework suggests that the use of SOEs should be limited to circumstances in which a market failure exists, less invasive forms of intervention such as regulation/taxes/subsidies and private-sector contracting are ineffective or not possible, and the welfare loss of the market failure exceeds the costs, distortions, and inefficiencies of SOEs.     

Agriculture and rural out-migration in Central Asia, 1960-91

"This article seeks to analyse agrarian structure and policy in the Soviet period and discuss their effect on migration from rural to urban areas. In the case of [Soviet] Central Asia, neither the various steps to bring down labour intensity in the farm sector, nor the falling standard of living in rural areas, could bring about migration from rural to urban areas. This was because in traditional societies economic mechanisms are not effective unless they are complemented by appropriate social and cultural policies. All policies were oriented towards the state's goal of vertical integration of regions with the central economy. In Central Asia in particular this policy resulted in serious distortions in the social and economic spheres."     

Agricultural Growth Linkages in Guatemala: New Insights from a Value Chain Approach

The agricultural growth linkage debate substantiates that agriculture contributes to economic growth through its linkages to other sectors. This paper contributes to the debate by combining a value chain approach with input-output-analysis. Results for Guatemala show that the sectors linked to agriculture are predominantly informal sectors and that these sectors create less value added, but more employment than formal sectors. It is also demonstrated that forward linkages are more important than backward linkages. In conclusion, agricultural linkages to forward sectors have a high potential to generate employment and value added and therefore should be supported by development policies.     

How Vulnerable are Arab Countries to Global Food Price Shocks?

Abstract

We estimate pass-through effects of international food price movements into domestic food prices for 18 countries in the Middle East and North Africa, using threshold regressions. International price movements transmit to various degrees into domestic prices. Transmission is mostly asymmetric, pushing domestic price levels up as increases in international food prices are typically passed through, but declines are rarely transmitted. This situation is indicative of policy and market distortions, notably the presence of food subsidies in the context of fiscal constraints. Hence, both international prices and their volatility matter for domestic inflation, yet domestic factors also play a role.     

Political Instability and Export Performance in Sub-Saharan Africa

The political landscape of post-independent sub-Saharan Africa (SSA) has been one of rampant coups d'etat. Existing evidence suggests such elite political instability (PI) has been growth-inhibiting even when exports are accounted for. In the light of the increasing interest in the role of export-promotion strategies in fostering economic growth, however, the present paper examines the impact of PI on export performance in these economies. The paper explores the hypothesis that the lack of a stable political environment adversely influences export performance via competitiveness, and that PI may actually play a more crucial role in export than in overall GDP growth. Based on detailed data on the incidence of coups in 30 SSA countries, real export growth over 1967-1986 is regressed on a principal-component of the various forms of coup events - "successful" coups, abortive coups, and coup plots - as well as on export structure, terms of trade, production capacity, and exchange rate misalignment. The results support the above hypothesis of an adverse impact of PI on export growth, and further suggest that PI has been even more deleterious to exports than to overall GDP.     

Why African countries are interested in building agricultural partnerships with China: lessons from Rwanda and Uganda

Ten years ago, China and several African countries began to develop agricultural training centres, and opened the door for a cascade of optimism and pessimism on why China is interested in developing agricultural partnerships in Africa. Seldom has the appeal of such partnerships for African countries been explored, hence limiting our capacity to fully understand the dynamics of Sino–African agricultural relations. This article addresses the issue by examining why some African countries are interested in partnering with China in agricultural development. This article is based on 44 interviews that were conducted in 2015 at the Sino–African agricultural training centres in Rwanda and Uganda. I argue that Rwanda and Uganda seek to partner with China, as China can offer intermediary agricultural technologies that enable these respective countries to implement aspects of their domestic agricultural development plans. The article also provides reason to challenge the existing optimistic and pessimistic conventions about Sino–African agricultural affairs.     

When the Data Source Writes the Conclusion: Evaluating Agricultural Policies

Statistics describe realities, but they also shape them, since they are used to design or support policies. As such accurate statistics are important. Using the agricultural sector in Rwanda as a case study, we demonstrate that dubious statistics can spread quickly. According to data from the Food and Agricultural Organization (FAO), yields have increased by 60 per cent since the implementation of large scale agricultural reforms, while other datasets point towards more modest gains. Yet, estimates in line with those of the FAO dominate the official discourse. We suggest that the discrepancies between datasets may be explained by the difficulties of collecting accurate agricultural statistics combined with an incentive to overestimate yields to show that the reforms have worked.     

Neo-extractivism and the new Latin American developmentalism: the missing piece of rural transformation

What, if anything, is actually new about political and economic transformation in twenty-first century Latin America? Here we explore how ostensibly ‘new’ policies are being built on two ‘old’ foundations that may be mutually exclusive. These are ‘extractivism’ and ‘developmentalism’, concepts that have been used rather loosely to describe current economic policies. The new developmentalism, however, may not only be contradicted by extractivism; it may be more constrained than its predecessor by fortified capitalist class interests and new global conditions. Moreover, it pays little attention to the employment-generating potential of rural areas or to the agricultural sector.     

Comptes Rendus Book Reviews

This article follows the efforts of white settlers to impose cotton as an export crop in Natal and Zululand. Touted as a commodity capable of remaking land and life in the region in the 1850s, the 1860s, and again in the 1910s and 1920s, cotton never achieved more than marginal status in the region's agricultural economy. Its story is one of historical amnesia: although faith in the region's cotton prospects dipped following each spectacular failure, it was routinely resurrected once previous failures had been accounted for, or memories of them had faded.

Two crucial issues are at the centre of this episodic history. First, I explore the logistics of planned expansion, and the reasons for the repeated collapse of cotton-growing schemes. Second, I unravel the side effects of these difficult and disappointing efforts and argue that, despite repeated failure, cotton facilitated important structural changes to the region's agricultural, political and economic landscape.     

Exchange rate variations and export competitiveness in less developed countries under generalized floating

This paper identifies two basic sources of effective exhange rate (EER) changes under the present system of generalized currency floating and formulates some EER‐based measures of relative export competitiveness in developing countries. These measures are presented and analyzed in terms of their monthly movements and trends over the period from March 1973 to December 1979 for twenty‐three developing countries. Export profitability vis‐à‐vis import‐competing production is shown to have been affected by major currency realignments only to a moderate extent. Normal currency depreciation, both small and large, is found not to lead necessarily to a permanent improvement in export competitiveness. The relationship between the type of exchange rate management and ability of the national authorities to adopt monetary and fiscal policies supportive of real exchange rate adjustment is also empirically examined.     

A macroeconomic analysis of agricultural terms of trade in Turkey, 1952–90

A two‐sector model of terms of trade (TOT) determination is developed and tested using time‐series data for Turkey. Empirical results support the structuralist ‘flex‐price agriculture fix‐price industry’ models. TOT is found to be sensitive to changes in nominal demand and the exchange rate. Rising nominal demand turns the TOT in favour of the agricultural sector provided that there are no supply constraints in the industrial sector. If industrial supply is constrained by import bottlenecks, then aggregate demand expansion turns the TOT in favour of the industrial sector. Devaluation turns the TOT against the agricultural sector primarily via the cost‐push factors in the industrial sector.     

Soviet Statistics under Stalinism: Reliability and Distortions in Grain and Population Statistics

Abstract

This essay attempts to understand the history and politics of Soviet grain and demographic statistics, and to show how they were used by the government. It covers the period from Lenin until Stalin’s death. Distortions arose because of over-ambitious planning. Attempts to correct these distortions in 1932 failed because of the cover-up of the famine. Also the results of the census of 1937 were rejected, but the repeat census of 1939 did provide more realistic indicators. For grain, distortions remained to the end of the Stalin period and even increased. The essay argues that the basic statistics available in the archives are reliable and that distortions arose in the reworking of these statistics.