Adjustment programmes and agricultural incentives in Sudan: A comparative study
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Date
1997-03-04
Authors
Elamin, Nasredin A. Hag
El Mak, Elsheikh M.
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research consortium
Abstract
This study analyses the impact on agricultural price incentives of the main adjustment
programmes implemented by the Sudanese government during the period 1978-1993,
notably the Economic Recovery Programme (ECRP) 1978-1985 and the national economic
Salvation programme (NESP), 1990-93.
The study addresses two basic questions: Did these programmes provide any tangible
incentives to agriculture? And are improved price incentives an efficient and sufficient
condition for increasing aggregate agricultural output?
The effects of the programmes on the level and stability of price incentives were
measured, both at the sectoral (direct) and economywide (indirect) levels. The results
indicate that both programmes failed to improve either the level or the stability of real
farm prices. Poor macroeconomic policies appear to be the main cause.
With regard to the efficacy of price incentives in stimulating aggregate agricultural
output, the findings tend to confirm the predominant view that increases in real farm
prices have positive but limited overall effect on agriculture. Non-price factors appear to
play a greater role in determining aggregate agricultural output. The analysis implies that
without the provision of adequate credit, public investments and improvement in
infrastructure, the aggregate response of agriculture to price incentives would be minimal.