Rural Development, Privatization and Public Choice: Substance Depends upon Process

James Hite

Journal of Agricultural and Applied Economics, 1993, vol. 25, issue 1, 89-98

Abstract: Whether or not privatization facilitates rural development depends upon what rural development means. In practice, rural development often is the result of a struggle between rent defenders and rent seekers. A positivist concept of rural development is proposed, and the institutions of public choice are examined to determine how they might influence privatization decisions. The conclusion is that whether or not privatization improves efficiency of adjustment in rural economies depends upon the specifics of political deals required to achieve a particular act of privatization.

Date: 1993
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