The Developing Economies

Volume 36, Number 2 (June 1998)

■ The Developing Economies Volume 36, Number 2 (June 1998)
■ B5
■ 105pp
■ June 1998

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Satya Paul, "The Performance of the Integrated Rural Development Program in India: An Assessment," pp. 117-31.

This paper assesses the performance of the Integrated Rural Development Program (IRDP) in terms of its impact on poverty and the living standards of the participating families during 1985-87. Important amongst the conclusions that emerge from the analysis of the 7,819 participating families are that: (1) the level of poverty of these families has declined by 22 per cent with 7 per cent of the families crossing the poverty line, another two-thirds showing a substantial decline in their poverty, and one-fourth becoming poorer over the period of two years; (2) there is a wide variation in the performance of the IRDP across regions; and (3) an improvement in the quality of assets and the availability of better infrastructure facilities help IRDP families generate larger income.

Yujiro Hayami, Masao Kikuchi, and Esther B. Marciano, "Structure of Rural-Based Industrialization: Metal Craft Manufacturing on the Outskirts of Greater Manila, the Philippines," pp. 132-54.

For the development of small-scale, labor-intensive industries in rural hinterlands as a major means of alleviating rural poverty and pathological urban growth, it is of critical importance that marketing channels be established which connect small rural producers with large urban and/or foreign demand. This study investigates various forms of production and trade contracts being practiced at the grass-roots level in the metal craft manufacturing industry on the outskirts of Greater Manila in the Philippines. The results show the effectiveness of the subcontracting network in mobilizing rural entrepreneurship in response to sharply rising export demand.

Romeo M. Bautista, "Effects of Domestic Policies and External Factors on Agricultural Prices: Cassaba and Soybeans in Indonesia," pp. 155-77.

This paper analyzes the changes in price competitiveness of two major nonrice crops in Indonesia between subperiods during 1970-92, involving the following components: (1) changes in the foreign price; (2) changes in the real exchange rate; and (3) changes in sectoral protection. To isolate the effects of domestic policies, a model of real exchange rate determination is developed in which the main explanatory variables are the external terms of trade, trade policy, current account balance (assumed dependent on macroeconomic policies), and the nominal exchange rate (a short-run influence). The related issue of price bias induced by sectoral and macroeconomic policies is also addressed by examining the direct, indirect, and total protection rates for the two crops.

Pavlos Karadeloglou, "Agricultural Prices in Bulgaria: Did Transition Create Structural Breaks?" pp. 178-202.

The change in regime in Bulgaria was followed by an effort of the authorities to shift from an administered way of price determination based on cost, to a liberalized one, where prices are market clearing. The purpose of the paper is to investigate the effects of structural change on the process of price determination of agricultural products in Bulgaria. The paper adopts a model where the old and new regimes of price determination coexist and where the transition from cost-based price to an equilibrium price is evaluated using the Kalman filter methodology.

Majed A. Al-Moneef, "Vertical Integration Strategies of the National Oil Companies," pp. 203-22.

The purpose of this paper is to evaluate the market consequences of the separation in the oil industry between the upstream and the downstream sectors. The roles of the nocs as crude oil reserve holders with large production capacities versus the oil mncs with large refining capacities are highlighted. The advantages and disadvantages of reintegrating the nocs through downstream joint venture alliances in the main consuming markets are discussed and the different integration ventures highlighted. The future outlook for such process is also discussed in the context of changing supply and demand patterns as well as environmental concerns.