ABSTRACT
This chapter provides coherent and mutually supporting paradigmatic technical and socioeconomic elements which are fundamental in evaluating the impacts and consequences of agricultural policy intervention. The key feature of analysis should be the integration of macroeconomic policy variables into the framework for economic analysis of agricultural policies, including the internalization of environmental externalities into national policy design and evaluation of impacts. The framework for agricultural policy analysis is premised on: making choice of policy instruments to promote national and sectoral objectives through government intervention in the agricultural sector. For the agricultural sector, the public sector policies have considerable influence on resource allocation. An economy has at its disposal potential mobilizable natural resources that can be transformed into tangible useable goods. Development is generally a function of produced capital. The level of development is, therefore, measured by the value of produced capital stock.
