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been very costly as overproduction has led to at least 60 per cent of the agricultural budget being spent on disposing of surpluses. Temporary bans on production and the giving of surpluses to charities are used from time to time. Mansholt in Agriculture 1980 (published 1968) set out a ten-year plan for restructuring European agriculture, including the retiring of farmers and the concentration of agricultural production into larger and more efficient units. The plan achieved little as it met with national resistance, especially for threatening the existence of small family farms. This policy has reduced European Community imports from the rest of the world and insulated community domestic prices for agricultural produce from world price fluctuations, destabilizing the prices and incomes of the farmers of other countries. Within the European Community, the policy has redistributed income from consumers and taxpayers to producers and discriminated against industry. In countries such as the UK, higher food costs have met with much criticism; in developing countries, many farmers have gone out of business through being excluded by so large a market as the European Community. The URUGUAY ROUND of the GENERAL AGREEMENT ON TARIFFS AND TRADE negotiations attempted to reduce the protectionism of the CAP.
mature economy (NO, 03)<br />A stagnant advanced economy; an economy
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intermediate good (DO)<br />A good used in the production of another, e.g. steel used in electrical goods industries. Intermediate goods can be identified by an INPUT OUTPUT ANALYSIS.<br /><em>See also:</em> final good
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