>I think Paul's gotcha.

He doesn't "have me," since (as I said) I wasn't endorsing or condemning 
the Mozambican export tax on cashews (since unlike PK I didn't claim to 
know the details of the case).

And I notice that you provide us with no specific information about either 
Mozambique or cashews. At least I know a little about Mozambique's 
political and meteorological history.

>A strong bias against relatively small-scale rural producers has been one 
>of the worst things about African state-led development over the past 
>generation (see Robert Bates's _Markets and States in Tropical Africa_, or 
>Dumont's _False Start in Africa_). And it does look like this Mozambiquan 
>export tax is a remnant of that bias.

Not being anti-farmer in any way, I also oppose the "urban bias." It's also 
much more than the urban workers that PK scapegoats. Almost the entire 
urban intelligentsia endorsed the urban bias, along with such Nobel-prize 
winning economists as W. Arthur Lewis (who asserted that the marginal 
product of rural labor was zero, so we could increase urban production by 
moving people to the city without hurting agriculture). I have a World Bank 
book of "Guidelines for Project Evaluations" which equates the maximization 
of profits (which accrue to residents of either domestic or foreign cities) 
with development. Of course, many of the most active perpetrators of urban 
bias had some sort of conversion experience and are now pushing the market 
bias of neo-Liberalism, which favors the already-powerful in a process of 
winner-take-all markets, encouraging increasing inequalities. They know 
that they can gain from marketization by capitalizing their gains from 
their powerful positions.

>After all, successful episodes of state-led development involve export 
>promotions much more than export taxes...

I'm no fan of state-led development processes (not being a statist). Just 
like market-led processes, most state-led policies are not held responsible 
to the people in a democratic way.

Jim Devine [EMAIL PROTECTED] &  http://liberalarts.lmu.edu/~jdevine

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