CC16 – AEM1

1st Semester, AY 2022-2023

August 8-12, 2022

CHAPTER 1: BASIC CONCEPTS OF PUBLIC POLICY

& DEVELOPMENT

Overview

This module will discuss the concept and definition of policy, public policy
and development. The study of agricultural policy has become an essential part
of every undergraduate course in agricultural economics and extension, and it
is not an exaggeration to say that it is an essential part of every economist and
rural development expert. This is because of the importance of agricultural policy
to economic development of a nation. Policy is defined as the course of action
chosen by government towards an aspect of the economy, including the goals
that the government seeks to achieve, and the choice of methods to pursue those
goals that have to be justified. Agricultural policy is a term which is collectively
used for a bundle of policies related to the agricultural sector.

Learning Outcomes

After studying this lesson, you should be able to:

1. understand the concept of public policy
2. determine the meaning of policy and economic development
3. distinguish between policy and agricultural policy.

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 CC16 – AEM1
1st Semester, AY 2022-2023
August 8-12, 2022

Let Us Explore

A. DEFINITION OF TERMS
1. Policy, Public Policy and Agricultural Policy
Policy
• a set of ideas or a plan of what to do in particular situations that has been
agreed to officially by a group of people, a business organization, a
government, or a political party (Cambridge Dictionary, 2022).
• a definite course or method of action selected from among alternatives and
in light of given conditions to guide and determine present and future
decisions; a high-level overall plan embracing the general goals and
acceptable procedures especially of a governmental body (Merriam
Webster, 2022).

History and Etymology for Policy ((Merriam Webster, 2022)

• Middle English policie, pollecye "art or practice of government, system of
government, commonwealth, organization or conduct of affairs, practical
skill, prudence,"
• borrowed from Anglo-French policie, pollecie "governance, system of
government"
• (Middle French also, "a political organization, the state, conduct,
behavior"), borrowed from Late Latin polītīa "citizenship, political
organization, government"

Public Policy
• the principles, often unwritten, on which social laws are based (Oxford
Languages, 2022).
• Public policy is an institutionalized proposal to solve relevant and real-
world problems, guided by a conception and implemented by programs
as a course of action created and/or enacted, typically by a government
or nonprofit organization, in response to social issues (Wikipedia, 2022).

Agricultural Policy
• Agricultural policy is concerned with the relations between agriculture,
economics, and society (Curtis et al., 2022).
• Agricultural policy describes a set of laws relating to domestic agriculture
and imports of foreign agricultural products. Governments usually

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1st Semester, AY 2022-2023
August 8-12, 2022

implement agricultural policies with the goal of achieving a specific

outcome in the domestic agricultural product markets (Wikipedia, 2022).

2. Development, & Sustainable Economic Development

Development
• refers to a specified state of advancement or growth. It could also be used
to describe a new and advanced idea or product; or an event that
constitutes a new stage under changing circumstances (MDG Monitor,
2016).

Sustainable Economic Development

• Economic sustainability refers to practices that support the long-term
economic development of a company or nation while also protecting
environmental, social, and cultural elements (Bish, 2021).
• Sustainable development is an approach to economic planning that
attempts to foster economic growth while preserving the quality of the
environment for future generations (Campbell-Mohn, 2022).

B. POLICY DEVELOPMENT
• Policy development is the process of deciding what should be achieved,
what should be done to achieve it, how to do it efficiently and economically,
who should do it, etc.
• Institutions develop policies generally to help them run efficiently in
achieving their objectives. They also develop them to comply with the legal
and social environment in which they operate as well as to build goodwill
with both their employees and their customers. In this way, policies help
shape the culture of an organization (Encyclopedia.com, 2022).

C. PROBLEMS ARISING FROM AGRICULTURAL PRODUCTION

1. Role of Agriculture in Economic Development
Agriculture is the main driver of development in most rural areas. Demand
for staple foods, agricultural commodities and - increasingly - processed food is
growing in developing countries. To meet these needs, the agricultural and food
sectors must be modernized.
Sustainable economic development brings social progress through the
creation of jobs and income, as well as the integration of poverty groups, young
people and the unemployed. Markets require public support and regulation. The
economy is organized along value chains, because the point of reference for all
economic activity is the products and the markets on which they are sold.
The aim is to establish economic structures and increase value creation in
the partner countries. This development must be ecologically sustainable and

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 CC16 – AEM1
1st Semester, AY 2022-2023
August 8-12, 2022

socially equitable: Everyone should benefit from growth, resources must be used
sustainably and local ecosystems must be protected.

2. Interrelationship of Agriculture, Development and Environment

Agriculture is the leading source of pollution in many countries. Pesticides,
fertilizers and other toxic farm chemicals can poison fresh water, marine
ecosystems, air and soil. They also can remain in the environment for
generations. Many pesticides are suspected of disrupting the hormonal systems
of people and wildlife. Fertilizer run-off impacts waterways and coral reefs.
While negative impacts are serious, and can include pollution and
degradation of soil, water, and air, agriculture can also positively impact the
environment, for instance by trapping greenhouse gases within crops and soils,
or mitigating flood risks through the adoption of certain farming practices.
Agriculture's environmental impact varies greatly depending on the
practices used by farmers and the scale of practice. Farming communities that
strive to reduce their environmental impact by changing their practices will adopt
sustainable agriculture practices. Agriculture's negative impact is an old issue
that continues to be a source of concern, even as experts devise new ways to
reduce destruction and improve eco-efficiency.
When agricultural operations are managed sustainably, they may protect
watersheds, restore important habitats, and enhance the health of the soil and
the water supply. However, unsustainable behaviors have negative effects on
both the environment and people.
Resource management that is sustainable is becoming more and more
important. As the world's population continues to rise, the demand for
agricultural products is rising quickly. One of the most crucial areas for
conservation worldwide is agriculture because of its intricate linkages to the
global economy, human societies, and biodiversity.

D. Critical Issues that Need to be Addressed

While agricultural development has long been linked to increased food
production and availability, improved farming productivity, and increased
incomes for small farmers, the changing global landscape has resulted in
agriculture playing a larger role in many other areas of human well-being,
including reducing poverty, providing adequate nutrition, improving
environmental sustainability, and promoting equity and equality among genders.

Nutrition
Agricultural Development examines the links between agricultural development
and nutrition, including increases in obesity, which has been seen mostly in
lower- and middle-income countries. While obesity is on the rise undernutrition

This material has been prepared and communicated to you by or on behalf of

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 CC16 – AEM1
1st Semester, AY 2022-2023
August 8-12, 2022

also remains stubbornly high in many developing countries, creating a double

burden of malnutrition for countries, households, and even individuals.

Gender and Development

Access to resources—from land to capital to information—is fundamental to the
success of small farmers. Yet women are often handicapped in ownership and
control of agricultural land and other assets in developing countries. Since
women tend to devote more resources to children’s education, health, and
nutrition, their lack of access to productive resources may lead to
underinvestment in their human capital. Understanding household behaviors
can inform efforts to improve gender equity and investments in child schooling,
nutrition, and health.

Assistance to Farmers
Traditional crop insurance programs are rarely viable for small farmers in
developing countries, in part because of moral hazard (when insured farmers do
not exert optimum efforts to reduce risk or mitigate its impact) and adverse
selection (when only risky farmers purchase insurance) but also because of the
high costs of insuring small producers, the book notes. Although high
expectations for the wide adoption of index insurance have not panned out,
analyses highlight the ways to make insurance programs work in developing
countries.

Environment
Achieving sustainable agricultural development without sacrificing
environmental quality is one of the most important challenges in today’s world,
especially if we are to achieve poverty reduction, food security, and better
nutrition and health. The global environment, however, has been deteriorating,
and climate change is expected to cause a substantial reduction in agricultural
production unless adequate investments are made in productivity-enhancing
technological development. Also worrisome is increasing water scarcity due to
rising demand for water in industrialized and urban areas, dietary changes
toward more water-intensive foods, and frequent droughts associated with
climate change.

E. Development Perspectives
The world has been changing rapidly, and major issues surrounding agriculture
have evolved as well. In fact, over the last several decades major shifts have
occurred in the thinking on and practice of agricultural development.
Accordingly, agricultural development goals have moved far beyond
traditional ones such as food production and availability, agricultural
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 CC16 – AEM1
1st Semester, AY 2022-2023
August 8-12, 2022

productivity, farmers’ incomes (particularly those of smallholders), and

employment.
The set of new goals includes poverty reduction, adequate nutrition,
functioning food value chains (FVCs), environmental sustainability, climate
adaptation and mitigation, and gender equality and equity. Looking forward,
agriculture will face new challenges and will have to be positioned to deliver
broader development outcomes such as those mandated under the Sustainable
Development Goals (SDGs).
Agricultural Development brings together essential analyses to explore the
most critical issues in the field today, making it an indispensable resource for
policymakers, researchers, and students dedicated to improving agriculture for
global well-being.

This material has been prepared and communicated to you by or on behalf of

Palawan State University - CCRD Narra for educational purposes only.
DO NOT REPRODUCE OR COMMUNICATE.

Prepared by Myla G. Santiago PSU – CCRD Narra| 6/7

 CC16 – AEM1
1st Semester, AY 2022-2023
August 8-12, 2022

References

“Policy.” Merriam-Webster.com Dictionary, Merriam-Webster,

https://www.merriam-webster.com/dictionary/policy. Accessed 29
Sep. 2022.
Public Policy. Google dictionary. Oxford Language. Oxford University Press.
https://languages.oup.com/google-dictionary-en/. Accessed 29 Sep.
2022.
Wikipedia contributors. (2022, September 16). Public policy. In Wikipedia,
The Free Encyclopedia. Retrieved 13:32, September 29, 2022, from
https://en.wikipedia.org/w/index.php?title=Public_policy&oldid=111
0532594
Wikipedia contributors. (2022, August 21). Agricultural policy. In Wikipedia,
The Free Encyclopedia. Retrieved 13:36, September 29, 2022, from
https://en.wikipedia.org/w/index.php?title=Agricultural_policy&oldi
d=1105734249
Curtis, S. Evan , Preuschen, . Gerhardt , Campbell, . John R. , Ekstrom, .
George F. , Shaw, . Byron Thomas and Palmer, . Ralph Anthony (2022).
Agricultural sciences. Encyclopedia Britannica.
https://www.britannica.com/science/agricultural-sciences
What is Development – A Definitive Guide. 2016. MDG Monitor.
https://www.mdgmonitor.org/what-is-development-guide/
Campbell-Mohn, C. I. and Cheever, . Federico (2022, September 8).
environmental law. Encyclopedia Britannica.
https://www.britannica.com/topic/environmental-law
Bish, Joseph C. 2021. Economic sustainability examples that inspire
change. Population Media Center.
https://www.populationmedia.org/blog/economic-sustainability-
examples-that-inspire-change
"Policy Development ." Encyclopedia of Business and Finance, 2nd ed.. .
Retrieved September 26, 2022 from Encyclopedia.com:
https://www.encyclopedia.com/finance/finance-and-accounting-
magazines/policy-development

This material has been prepared and communicated to you by or on behalf of

Palawan State University - CCRD Narra for educational purposes only.
DO NOT REPRODUCE OR COMMUNICATE.

Prepared by Myla G. Santiago PSU – CCRD Narra| 7/7