ABSTRACT

In the design of export policy in agricultural exporting developing countries, a key issue is the relative emphasis given to the continued development of agricultural exports and the promotion of labour-intensive manufactured exports. In many countries it has become fashionable to place overwhelming emphasis on the latter while neglecting or paying inadequate attention to opportunities for continued development and diversification of agricultural (and other primary) exports. This policy choice is born mostly out of the long-standing primary export pessimism-the view that export prospects for agricultural products are determined predominantly by the long-term pattern of world demand leaving little room for supply-side policies to achieve export success.2