Peasants and Governments An Economic Analysis

The first of two companion volumes on trade shocks in controlled economies, the authors here address the relationship between micro and macroeconomics through analysis of an external macro shock--the coffee price boom--on two developing countries whose similarities end at the level of governmental organization and objectives. Using microeconomic analysis and household survey data, they focus on crop prices, access to consumer goods, and provision of public services in Kenya and Tanzania.

This book is the first of two companion volumes by these authors on trade shocks in controlled economies. Both theoretically innovative and drawing on extensive applied work, it addresses a number of issues in the forefront of economics, principally the relationship between macro and micro economics, by analysing the impact of an external macro shock - the coffee price boom - on each of two developing countries which have much in common but whose governmental organizations and objectives differ sharply. The authors focus on three important ways in which governments affect peasants: setting crop prices; controlling access to consumer goods; and provision of public services. They address these three areas using microeconomic analysis and household survey data collected in Kenya and Tanzania. Much of the analysis is relevant for a wide class of developing countries.

Introduction; Part I: The Peasant Economies of Kenya and Tanzania: Peasant farming in Kenya, 1974-1982; Peasant farming in Tanzania, 1969-1983; Part II: Peasants and Price Volatility: Theory and an Application to Kenya: Introduction to Part II; The response to price windfalls: Some theoretical considerations; Responses to price changes in Kenya; A comparison with Tanzania; Part III: Peasant Supply Response to Shortages: Theory and an Application to Tanzania: Introduction to Part III; The theory of peasant supply response under shortages; Time series tests of aggregate supply response; Cross-section tests of household supply response; Conclusion to Part III; Part IV: Peasants and Public Services: Introduction to Part IV; The distribution of public services in Kenya and Tanzania; An analysis of the effects of public service provision; Peasants and governments; Appendix: The rural surveys