THE POLITICAL-ECONOMY OF FOOD PRICING - AN EXTENDED EMPIRICAL-TEST OFTHE INTEREST GROUP-APPROACH

Several recent studies have documented the magnitude and impact of dis tortions in food pricing. However, little attention has been paid to t he nature of the political agendas that determine the levels of direct and indirect protection granted to producers and consumers. This pape r offers evidence that, regardless of the degree of economic developme nt, the level of political pressure wielded by interest groups in food markets, and hence the level of protection they receive, is an invers e function of the relative size of their constituencies. The results r ecommend the application of collective action concepts to the understa nding of agricultural policies in countries which are at different sta ges of development.