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Extra resources for The reform of public expenditures for agriculture, Parts 63-216
Governments can assist the market by strengthening competitive forces and by making information about market conditions widely available. Market-friendly reforms have included removing restrictions on trade, integrating markets, freeing prices, and removing arbitrary regulations governing licenses, trading volumes, number of traders, and administrative boundaries. Divesture should be strongly encouraged, especially in agroprocessing. Governments can work to support the development of a private agroprocessing industry by identifying opportunities, removing price controls, and making information on daily prices, stock movements, and related trade data more easily available.
From this evidence, the paper draws lessons on best practices for the future. The analysis and the data on expenditure reform programs in a large number of countries should make this a useful tool for those concerned with public sector spending policy, both in and outside the World Bank. Given the fiscal stringency and the re-examination of the role of the state that are necessary as part of adjustment and stabilization programs, the timing of this paper seems particularly appropriate. MICHEL PETIT, DIRECTOR AGRICULTURE AND NATURAL RESOURCES DEPARTMENT Page vii Executive Summary Public expenditure policy is a form of direct economic intervention.
2 percent. Capital expenditures for agriculture have declined as current expenditures and subsidies have mounted. The fall in public investment has slowed private investment as well, since the two are often complementary. India is currently addressing the fiscal problems that are creating macroeconomic imbalances and impeding sound development policy. Controlling, reducing, and targeting these subsidies is an important part of that effort. Left unchecked, subsidy costs can become the largest item in an agriculture budget, squeezing out more productive expenditures.