ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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African Development and the Rising Powers

Agricultural Development and Food Security in Africa: The Impact of Chinese, Indian and Brazilian Investments edited by Fantu Cheru and Renu Modi (London and New York: Zed Books), 2013; pp 280, £21.99.

African Development and ACP-EU Partnership

The African, Caribbean and Pacific-EU Economic Partnership Agreement, under the Cotonou Agreement 2000, was to pave the way for trade liberalisation, stimulate growth and reduce poverty. This was to be achieved by a shift from the former non-reciprocal preferential arrangements under Lome, 1975 to reciprocal ones. The agreement demands opening up and restructuring ACP states and ensuring compatibility with global trading norms, with critical implications for both the external and domestic sector of ACP states. African trade negotiators confront major challenges ahead.

Globalisation, Structural Change and Poverty-Some Conceptual and Policy Issues

Globalisation embodies integration of international markets for goods, services, technology, finance and to some extent labour. It impinges on the process of structural change, underpinned by transformation from an agricultural to an industrial economy, with critical implications for growth, equity and poverty. In this context, structural adjustment or 'liberalisation' policies, symbolising measures to stimulate structural change by reorganising production, focus on shifting emphasis from the state to the market and forging closer interaction between the national (domestic) and the global economy. In this respect, the goals and implications of structural adjustment policies (SAP)/liberalisation have to be redefined and reassessed in the context of globalisation. The thrust of this paper is on analysing the relationship between SAP/liberalisation, globalisation and reduction of poverty.

Development, Environment and Poverty

Some Issues for Discussion Sumit Roy Transforming developing countries from an agricultural to an industrial economy has been a key thrust since the post-war years. In this context it is now essential to confront the implications of environmental degradation. Blind pursuit of growth could damage the environemnt, but an undue emphasis on the latter could also inhibit growth and reduction of poverty.

New Institutional Economics, State and Development-Some Conceptual and Empirical Issues

Resource allocation through the state or the market, or through both, has occupied major interest in economic theory and policy. Hence, the role of the state and the market, the former symbolised by various forms of intervention and the latter by neoclassical economics and pricing, has preoccupied analysts. Debates have raged over 'state failure' and lmarket failure' with the search for new theoretical approaches. In this context, New Institutional Economics (NIE) focuses on analysing the conduct of rational individuals under various forms of market failure. Basically, a social dilemma emerges when radical individualism becomes inconsistent with social welfare such that the choices made by rational individuals yield outcomes that are socially undesirable [i e, net Pareto optimality ] with market failures yielding social dilemmas. NIE professes that institutions provide the mechanisms to enable individuals to escape the tension between individual and social rationality created by the perverse incentives that produce the failure of markets. While NIE sets out to build on. modify and extend neoclassical theory, it functions firmly in the realm of scarcity and competition. An analysis of NIE for development demands a fuller understanding of the interaction between the state and development policies. This paper aims to highlight some of the key conceptual and empirical issues which impinge on NIE New Institutional Economics and Development RESOURCE allocation through the market or the suite, or through some combination of both, has been the focus of interest in economic theory and policy-making. Hence, the use of either the market, based on neoclassical economics, and underpinned by pricing, or the state, symbolised by government intervention, is of major importance in understanding the process of growth and development. However, both allocative mechanisms may deviate from their norms. Thus, the necessary and sufficient conditions for fulfilling 'pareto optimum' through the pricing mechanism may not be met because of imperfect markets, externalities, inability to supply particular goods and services, and information deficiencies. Similarly, state or government interventions may lead to allocative distortions with inefficiencies in production and consumption. Underpinning the role of the slate and/or the market is the access of different classes to state power which is the cornerstone of decision-making over policies.

Aspects of Structural Adjustment in West Africa-and South-East Asia

and South-East Asia Sumit Roy Structural adjustment programmes in the 1980s and early 1990s have focused on using trade, fiscal and monetary policies to restore balance of payments equilibrium and stimulate growth in developing countries. These have taken shape against a background of global recession and severe external debts which started emerging over 1979-81. The policies have been underpinned by a shift in emphasis from state to market forces in organising economic activity. The agricultural sector has been expected to play a major role in this process, in order to boost output and foreign exchange.

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