Agrarian Reforum, Rapid Urbanization

Running Header: AGRARIAN REFORM, RAPID URBANIZATION

Rural Producers, Migration

Gary Hardy

Strayer University

Accessible, transparent and remunerative markets are necessary to raise incomes and improve livelihoods of the rural poor. In developing countries, agricultural markets rarely meet these needs. Direct state involvement in marketing has seldom brought improvements and proved costly, prompting changes in the marketing systems from parastatals to the private sector.  But the response of the private sector has been slow and the challenge -- to provide stable and remunerative prices to small producers – remains.  Although the consensus still favors a stronger role of the private sector in marketing, the core issues have not been resolved (Andreas 2001).

• The Government policies are at times governed by a need to keep urban prices low. Policies on food aid, imports of subsidized foods or trade further expose small farmers to unfair market competition and undermine local markets to the detriment of the small producers.  This issue of leveling the playing field for the smallholders remains.

• Despite the transition to a greater role of the private sector in marketing, there is no clear consensus on the appropriate role of the government and the private sector in providing remunerative prices to the small farmers.   The real purchasing power of rural producers has fallen due to the removal of subsidies and declines in farm-gate prices of food crops and basic commodities, either through rising technical efficiency of production, or because of uncontrolled competition from subsidized sources in developed countries. The marketing institutions and the framework in most countries have yet to adequately address this issue.

• Poor access to markets. Lack of...