By Soumitra Sharma (eds.)
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Additional info for Development Policy
Post-war Development Experience: 1945-88 political decision process seek to maximize their own utilities, given the instruments available to them. They may only be secondarily interested in their shares in the efficiency gains that idealized market correction might promise ... The overall conclusion remains the negative one that politicization of market failures will be highly unlikely to secure the objective of moving the economy toward satisfaction of the idealized efficiency norm so long as the political process itself embodies the expressions of differential interest by citizens'.
From this more comprehensive view of the policy making process in practice, economists might be in a better position to advise on how to correct non-market failure and overcome resistance to policy reform. If development economists are to exercise more influence, they will have to achieve greater understanding of pressing problems that are less tractable to technical analysis, more politicized, involve issues of constitutive rationality, and require institutional change. 3 to the Northeast quadrant, and thereby exercise more influence in the developing world.
Gerald M. Meier 25 In explaining agricultural policies, the NPE models a factional state - that is, a government that caters to certain interests or groups within society (IB). It also emphasizes the role of the bureaucracy in a transfer state (lIB). Many governments in Des display an urban bias that results in the transfer of surpluses from agriculture to the urban-industrial sector. 9 Where low prices are paid to farmers, urban consumers benefit from low food prices. Where state marketing boards that purchase the primary products implicitly tax the rural sector by paying below world prices for their output, the government's revenue from export sales is often used on non-traded services supplied by the urban sector (government employees in bureaucracies, the military, and state-owned enterprises).