The article begins with defining the social objective of governments within the
developing world. This is to shift their economies which are centered on agriculture
towards the production of manufactured goods and industrialization. This modernization
process stems from liberal ideals.
Bates highlights that governments extract resources from agriculture that they need to
build a modern economy. He also argues that personal motives influence political choices
such as appeasing the urban public and elite interests in order to stay in power. He also
discusses the failure to create a profitable industry, costing the government in loss of
loans and accumulation of debt. This was funded through cash crops.
African countries seek rapid development, best secure by shifting economies based on
agriculture to economies based on industry and manufacturing, therefore they create
policies that divert resources from their traditional economic sectors i.e. production of
cash crops to their modern or developing sectors.
Public agencies which are law sanctioned and monopsonistic meaning they are the sole
buyers. This allowed them to become very wealthy as they buy at a domestic price and
then export at world market pricing, paying the farmer lowest prices, the govs have
intervened in th