In just 12 years, Brazilian agriculture has doubled its production grain, from 58 to 122 million tonnes a year. During this period the successive governments did not make macro-policies to support agricultural development, not invested heavily in infrastructure in roads, ports and storage, not instituted the required crop insurance or increased the amount official rural credit. In addition, privatized toll roads and instituted which increased production costs and distribution of food.
This contradiction, between the success of agriculture and government inaction, complains that outdated "recipes" of support to agriculture and the lush public bureaucracies were entrusted with carrying a long, gigantic waste of resources and a complete failure. While these were in place, instead of stimulating the initiatives of farmers and promote agricultural development, produced an opposite effect. This paradox demands that we make a serious challenge to the supposed efficacy of the conventional approaches to agricultural development, based on the failed state paternalism.
Argentina is not free in this analysis. We have traveled the same path but with thorns that have hurt the fabric of the social fabric of the most dynamic sector of the economy. Our production costs have grown in dollar terms, at a rate higher than inflation. Our transportation costs are extremely high (the public investment was not addressed to improve the freight railways, vastly cheaper than trucking, but of course ... ...
Moyano peoples still suffering from the exodus to the cities, our children leave in search of opportunities, but of course .. the suburbs need votes ...
We have suffered the same process of waste of resources hidden behind the discourse of redistribution of wealth, which has impacted negatively accentuated the gap between the more and the less fortunate . The government diverted genuine private sector resources to public investment (public expenditure and investment) with no other interest than to increase their power clientelistic, whatever the cost, competing with private sector resources (credits), discouraging private investment, and encouraging consumption, thus generating a feeling of being imbued with populism fictitious, distorting relative price distortion that results in a faster increase of the goods, or a runaway inflation.
continue walking down a path with a tailwind, with prices of our raw materials at higher historical levels, and continues to have at the helm of a government blind, deaf and outspoken (and corrupt liar .) Time passes, and we jumped at the opportunity.
The reality is ultimately that should make us question the supposed effectiveness of conventional development proposals based on the failed state paternalism.
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