Development Policies and Policy Processes †MyAssignmenthelp.com

Question: Discuss about the Development Policies and Policy Processes. Answer: Introduction: Agricultural sector has contributed significant amount to a countrys national income by producing and exporting primary products and by generating huge employment opportunities, which in turn can lead the per capita income of the country to increase further. Australian agricultural sector has also possessed a significant position from its economic perspective. The country has gained comparative advantage on wheat, barley, cotton and meat, which has been exported to other countries for earning higher amount of profit (Lyons and Lawrence 2017). Hence, this report has intended to analyze the present growth of Australian agricultural sector to understand its contribution on export market. The policymakers of this concerned country along with farmers may show their interest on this report as it can help them to understand about the present trend of agricultural sector based on some newspaper articles. In addition to this, the report has going to provide some recommendations related to thi s concerned sector to improve the export of agricultural products. According to the Sydney Morning Herald, Australia has experienced unfavorable weather, for instance, dry winter and spring along with severe frosts, which have adversely affected crop production of the country and consequently has forced to reduce the income of farmers and amount of net export in 2018 (Gray 2018). It has been predicted that the concerned country is going to produce wheat around 20 million tons, the lowest amount of production during this decade. This dry weather has affected farmers all over the country while this condition has become worsen for farmers of Queensland and New South Wales due to higher temperature. Based on the report of The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), it can be stated that the gross value of entire farm production is going to decrease by 7% in 2018 compare to the last years record, that is, from $ 63 billion of the last year to $ 59 in present fiscal year. However, for the winter crops like wheat, ba rley and canola, the percentage of production has declined by 41%. Consequently, this situation has adversely affected the export of this country. For instance, exports of canola have decreased by 52% while export of barley and sugar are reduced by 41% and 13 %, respectively (Tradingeconomics.com.2018). However, exports of cotton and wine have increased during this fiscal year. However, this lower level of crop production has not influenced the total value of farm production and it may remain at the higher-level compare to the average value production, worth $55 billion, over the last five years. Based on figure 1, it can be stated that the country is going to export large amount of beef and veal in recent year followed by wheat, wool, cotton and wine production. The production of beef is going to increase in 2018 compare to the previous year while their export prices may remain at a higher position, which in turn can show positive terms of trade for this country. Export earning of Australia has increased by $ 23 billion for livestock while for wine and cotton, this earning has increased by $ 2.64 billion and $ 2.1 billion, respectively (Gray 2018). However, it is forecasted that Australia can receive export value above $48 billion in the fiscal year of 2018. This value may increase due to excess production of dairy products, cotton, wine, beef and wool. Economical analysis: This impact of this specified sector can be described briefly with the help of some macroeconomical concepts, like national income and employment opportunities. Increasing amount of export has influenced national income of Australia positively and this in turn can develop the economical condition of this concerned country (Pauw, Thurlow and Ecker 2018). Moreover, the country can generate huge amount of employment opportunities within this agricultural sectors, if it can experience positive trade condition. Based on figure 3, it can be stated that Australian export has increased significantly since 2009 and has remained at a higher level. This in turn has helped total demand of Australia to increase and consequently total production has also influenced positively (Tradingeconomics.com.2018). Hence, the sector has helped the economic condition of this country to develop further. Figure 4 has represented the contribution of agricultural sector to the countrys national income. From this figure, it can be stated that the sector has contributed noticeable amount in 2017 (Tradingeconomics.com.2018). However, due to dry weather the amount of export has decreased at the beginning of 2018 for which the amount contribution ha also decreased by small amount. The magnitude of employment in agricultural sector of Australia has decreased drastically since 2010 (data.worldbank.org 2018). This can be observed from figure 5, where it has represented the percentage of employment in Australian agricultural sector, since 2006. This decreasing number of employment has occurred due to structural changes in occupational pattern, where people have preferred secondary or tertiary sectors compare to the primary one, where the amount of income is comparatively low (Alvarez?Cuadrado, Van Long and Poschke 2017). Therefore, the amount of contribution to the countrys national income has also decreased. Recommendation: As the weather can influence agricultural production of this country by large extend, the government can provide subsidies to their farmers during unfavorable weather condition to protect their self-interest. In addition to this, through monetary policy, the government can reduce tax on farmers and on agricultural items during this condition for encouraging farmers to produce other agricultural products that can also be exported. Moreover, the government, through its affective trade policy can encourage the production of exporting crops by reducing various restrictions, for instance, the Australian government can make a free-trade agreement with other countries, where those agricultural products are imported by large amount. This agreement can increase the demand for those agricultural products and consequently, the price of those agricultural products may increase in future. Conclusion: Hence, after discussing the some specific condition of Australian agricultural sector, some conclusions can be drawn. It can be stated that the specified sector has huge contribution to the countrys national income. However, the production of some exporting goods, like wheat, has decreased by noticeably due to some unfavorable weather condition. On the other side, the country has produced sufficient amount of livestock for which the total value of export has remained at higher position. References: Alvarez?Cuadrado, F., Van Long, N. and Poschke, M., 2017. Capitallabor substitution, structural change, and growth.Theoretical Economics,12(3), pp.1229-1266. Data.worldbank.org. 2018.Employment in agriculture (% of total employment) (modeled ILO estimate) | Data. [online] Available at: https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?end=2017locations=AUstart=2006 [Accessed 14 Apr. 2018]. Gray, D. 2018.Australian farm production tipped to near $60 billion in 2017-18. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/australian-farm-production-tipped-to-near-60-billion-in-201718-20170620-gwuuez.html [Accessed 14 Apr. 2018]. one of the main article Gray, D. 2018.Dry conditions, then frosts hit farm production and exports. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/the-economy/dry-conditions-then-frosts-hit-farm-production-and-exports-20171212-p4yxms.html [Accessed 14 Apr. 2018]. one of the main article Lyons, K. and Lawrence, G., 2017. Institutionalisation and resistance: organic agriculture in Australia and New Zealand. InFood, Nature and Society(pp. 81-100). Routledge. Pauw, K., Thurlow, J. and Ecker, O., 2018. Micro-econometric and Micro-Macro Linked Models: Modeling Agricultural Growth and Nutrition Linkages: Lessons from Tanzania and Malawi. InDevelopment Policies and Policy Processes in Africa(pp. 97-115). Springer, Cham. Tradingeconomics.com. 2018.Australia Exports | 1971-2018 | Data | Chart | Calendar | Forecast | News. [online] Available at: https://tradingeconomics.com/australia/exports [Accessed 14 Apr. 2018]. Tradingeconomics.com. 2018.Australia GDP From Agriculture | 1974-2018 | Data | Chart | Calendar. [online] Available at: https://tradingeconomics.com/australia/gdp-from-agriculture [Accessed 14 Apr. 2018].