Agriculture as the Leading Sector: An Industrial Policy Framework
Shuvojit Banarjee and Hermanto Siregar
Abstract
In the current climate of difficulty for industry there has been renewed interest
in considering agriculuture as a growth driver for the economy. This paper discusses firstly that such an approach entails, secondly considers whether it is appropriate, thirdly explains how it could be enacted and fourthly studies the experience of relevant countries. The value of agriculture in terms of its effects on equity, rural-urban linkages and SMEs are highlighted. Suggestions are offered for increasing the effectiveness of agricultural effort through removing supply bottlenecks, improving regulatory and incentive structure, creating the rural enabling environment and integrating with international best practice. Finally, the experience of a number of other countries who have successfully harnessed theri agricultural resources, Malaysia, Thailand, and Chile, are studied in order to obtain pointers to effective policy. .
The
purpose of this paper is to identify the nature of these concerns and
to find mechanisms that the donor community could employ to respond
creatively to the challenges that are likely to emerge in this domain.
