Broad Issues of Agricultural Policy

3.1 Agricultural Policy and the Macroeconomic

Framework 35

3.1.1 The Price Linkage 35

3.1.2 A Spurious Argument on Prices 36

3.2 Fiscal Expenditures and Subsidies 37

3.2.1 Fiscal Expenditures in Agriculture 37

3.2.2 The Pros and Cons of Subsidies 38

3.2.3 The Issue of Support for Agriculture 42

3.3 Improving the Incomes of the Rural Poor 44

3.4 Gender and Agricultural Development 46

3.5 Selected Issues in Privatization 48

3.6 Principal Aspects of the Legal Framework 51 Discussion Points for Chapter 3 53

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