Law and markets: Improving the legal environment for agricultural marketing

Aims to improve the effectiveness and efficiency of domestic agricultural marketing by providing policy and law-makers with the necessary theoretical framework, practical tools and guidance. Study is deliberately focussed on domestic agricultural marketing systems, although some of the legal issues that arise in connection with international trade are mentioned where relevant.

This study argues that:

• the nature of the legal framework within which agricultural markets operate has a fundamental effect on the functioning of the agricultural marketing system
• laws must be analysed within their social context in order to understand the use of law as a development tool; and
• by using the methodologies and approaches advocated in this study, it should be possible to analyse the impact of laws on the functioning of agricultural marketing systems and to identify the changes that could be made to the regulatory framework in order to achieve the desired policy goals

Concludes that policy-makers should beware of over-simplistic models based on the mistaken belief that fewer rules mean more efficient markets. Those drafting laws need to find ways of moving away from high ly prescriptive legislation designed to maximize state control, towards legis lation designed to enable efficient private sector involvement. However, the greater degree of freedom for the private sector resulting from legal reforms may also increase the potential for market manipulation and thus create a need for new and more sophisticated regulatory mechanisms [author]