ABSTRACT
Government has become a major influence in most business activities through its fiscal, monetary and trade policies. It can influence the supply and cost of credit, the level and incidence of taxation, and the strength and fairness of competition. In a democratic system, government’s power arises when individual citizens cede some of their authority and their resources to a person or body to carry out specific functions for the common good. The satisfying of citizens’ current wants becomes a pathway to power for both elected officials and civil servants. The politician can seek election or win re-election by looking after the special interests of constituents. Agriculture has been deeply affected by the long build-up in government involvement and by the eventual unravelling and self-defeating nature of the measures taken. Government has long had a special interest in helping agriculture. Government has found a number of different rationales for paying special attention to agriculture.
