The role of institutions in formulation of agricultural policy: Their repercussions on the challenges of an agriculture in a turbulent world economy
1985
Schmitt, G.
Farm policy is to be seen as the output of the political decision making process. Political decisions are framed by the prevailing institutional setting transforming, guiding as well as shaping the political preferences of the constituency, at least in parliamentary democracies. According to pure welfare consideration it should be expected that in developed countries the economic preferences of the majority of voters would lead to policy decisions disfavouring agriculture. Just the opposite is true. The reasons for this have to be seen mainly in the ideological commitment of society to agriculture, strengthened and accelerated by interest groups and farm oriented bureaucracy. The economics of ideological founded behaviour of the participants in the decision making process are discussed. Finally the repercussions of the institutional determinants of farm policy in agriculture in a turbulent world are described
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