By Steven R. Tabor
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Extra info for Agricultural research in an era of adjustment: policies, institutions, and progress
Were the capital market liberalized first, the distortions in the real side of the economy would send signals that might direct investment into precisely those areas that were scheduled for contraction as part of the longer-term restructuring of the economy. If this were the case, agriculture would suffer further disadvantages in the short run. As Kerr (1987) has pointed out, however, it is unclear how a country would defend the exchange rate in the transition, were it to maintain capital controls.
Operational Funding of Agricultural Research, 1974, 1987, 1991 79 5-5. Senior Research Officer Remuneration, Selected Years, 1983-92 80 5-6. Scientist to Support Staff Ratio at Major Agricultural Research Institutes, 1991 81 6-1. Key Macroeconomic Indicators, Fiscal 1975-92 88 6-2. Agricultural Growth Indicators, Pre- and Post-Adjustment, 1978-91 89 6-3. Routine Budgetary Outlays for Agricultural Research, 1980-92 91 6-4. Budget of the Agency for Agricultural Research and Development, 1981-93 (AARD) 92 6-5.
For example, "balance of payments adjustment" refers to some process or means for achieving an improvement in the external accounts of a country. It is not a goal as such. Similarly, altering relative prices may be a mechanism for changing the pattern of production and consumption. But it is the change in the intersectoral structure of the economy that is the actual target of the policy. This confusion of mechanisms with targets may arise in the context of structural adjustment lending, a matter to which we return in a later section of this chapter.