Vol. 105: Gibreel, T.M.: Impact of Agricultural Policy on Resource Allocation in the Gum Belt of Sudan

A critical task in developing nations is to transform the underdevelopment mode of production from subsistence agriculture into a commercialized system. The foundation of this book is that broad agriculture sector policies lie at the heart of development and poverty reduction programs in the Sudan. We believe that the faulty agricultural policies in the Sudan are one of the root causes of instability and underdevelopment in general and agriculture in particular. In this book a mathematical programming model was used to investigate the impact of the agricultural policy on farm household decision of resource allocation for market versus subsistence production. This study provides an empirical evidence to support the neoclassical theory that farm households in developing nations behave in rational way by responding to market incentives. However, their responses are restricted by structural and institutional factors, above all the lack of infrastructure, the failure of inputs and capital markets and the low attractiveness of enhanced production technologies. These restrictions are determined or at least influenced by agricultural policy. Therefore, these restrictions are subject of scenario model runs. 

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