When a basic needs approach began to be emphasized in development economics, Sri Lanka gained much prominence due to its long-standing involvement in broad social welfare policies.1 Long before the advent of the basic needs approach, Sri Lanka had

The principal theme of this chapter is the implications of the Egyptian food subsidies for such macroeconomic measures as nonfarm output, the government's budget, inflation, the exchange rate, and the balance of payments.

Brazilian wheat policy as considered in this chapter consists of two relatively separate components: production policies and consumption policies.

An examination of the experience of the various countries operating food subsidies reveals great diversity in the objectives, instruments, and effects of these programs.

Food subsidy is an important element of public policies in Bangladesh.

The organization of maize marketing in Zambia reflects the main objective of the system—supplying urban areas with cheap food. Maize purchased from farmers is sold only to the major milling companies, all of which are located in urban centers.

The social and economic effects of consumer-oriented food subsidies are wide ranging.

The effectiveness and efficiency of a subsidy program depend heavily on the specifics of implementation.

Most governments implement policies or programs, such as food subsidies, to augment the incomes of disadvantaged groups in the population.

A number of large and poor economies such as India, China, and Bangladesh are not open economies but economies where the state controls trade in food and also many nonfood items.

Some of the most important macroeconomic policy implications derived from the studies and policy experience reported in this book were discussed in chapter 23.

Food subsidies affect various sectors of the Egyptian economy, but their influence on agriculture, which employs a considerable share of the nation's resources, seems particularly strong (von Braun and de Haen, 1983).

On almost any street corner in Cairo one can buy a tamaya orfalafel sandwich for a few cents. This daily fare is a microcosm of the government's involvement in food pricing. The fava beans in the sandwich are subsidized.

Evidence from countries like Sri Lanka and Egypt has shown that the fiscal costs of food price subsidy programs may be high, and once introduced, their termination may be politically difficult (Gavan and Sri Chandrasekera, 1979; Alderman, von Brau

For years economists have tried to go beyond the strictly economic "efficiency" measure of costs and benefits to resolve the problem of how to explicitly incorporate some of the noneconomic benefits and costs into their analytical framework.1 One

Pakistan's ration system was established in 1942 to deal with shortages of basic goods caused by wartime disruption in supply. At that time, the ration shops handled wheat and sugar, tea, matches, kerosene, yarn, and cotton cloth.

This chapter presents a qualitative analysis of the macroeconomic effect of food subsidies. Other chapters in this book give findings arising out of empirical research.

This chapter does not attempt to provide a balanced assessment of the costs and benefits of food subsidy systems. Rather, it focuses on answering three questions: 1.

This book starts with the premise that African food problems must and can be solved in large part by increased national food production.

Policies for food are much more relevant to equity considerations than policies for most other commodities. Not only is food essential for survival, but the poor spend a higher proportion of their income on food than the rich.