The the
"second
best"
"traditional"
view
macroeconomic
For
higher
foreign
urban
consumers
Rural
areas
and
very
bridges.
they
to
neutralize
must
be
given
the
to
"new"
specific
say
because
they
just
credit,
the
rate
biased
implication
of
the
to
particular,
While cheap
be
of to
"second all
credit
farmers receive
44
in
pay the
rural
areas.
cheap
credit
is
rejected
because
of
agricultural and
employment
activities,
like
through
tariff
agricultural
credit
Instead
deal
with
reformed. argument tax,
subsidy.
of
the
policies,
the
such,
exercise
protected
directly
best"
as
to
distortion.
be
roads
loans
economic
macroeconomic should
like
cheap
cheap
favor
producers.
and
output
other
to
the
targeting
futile
heavily
form
rural
argument
particular,
Thus,
should
the
a
agricultural
already
agriculture
overemphasized. receive
on
best"
is
tend
policies,
place,
is In
diverted
approach
against
first
another
In
these
the
pol_cies.
creates
distortion.
of
results
which
capital,
incomes
LDCs,
Overvalued
agriculture,
reduce
agriculture,
are
On
"second
In
impact be
overhead
The
credit.
which
exchange
policy
no
can
manufacturing, and
of
have
and
inputs.
food
by
against
policy
controls
primary
In
biased
agriculture
price
taxes
effects
view.
sector,
may
are
farmers,
fungibility
loans
of
the
of
social
production
So,
the
these
and
Food
expense
little
All
discourage
by
the
be
protection
penalize
used
credit.
to
implements
earner.
at
get
tend
taxes
justification
agricultural
industrial
farm
export
exchange
another
usually
for
and
is
cheap
instance,
prices
localcurrency main
for
policies
agriculture. in
argument
cheap
sources
which The
equity
cannot only The
are
those tax
be who is