3

of the capital cities growing at rates in excess of 5 percent per year. The

build-up of urban population and rising levels of consumer income place

great pressures on the marketing system to expand and undertake an increasingly

complex set of activities which link the rural and urban sectors of the

economy (2). Marketing services become a larger portion of the consumer food

bill and the composition of the market basket shifts from low cost, starchy

foods towards higher cost livestock products, fruits and vegetables. Major

investments are required for transportation equipment, highways and other

physical facilities. Governmental agencies usually assume leadership in

planning and financing much of the market infrastructure and frequently

perform major roles in facilitating and regulating the development of

marketing institutions and in some instances actually organizing and

managing marketing enterprises.

 There are a wide range of viewpoints on the role of agricultural marketing

institutions in economic development and the appropriate function of the

public sector in bringing about desired changes. There are those who hold

the view that marketing is an adaptive set of activities to be given secondary

consideration in development planning strategies with primary consideration

being directed toward the expansion of agricultural and industrial produc-

tion. This view has been challenged by marketing economists who argue that

marketing is a critical and dynamic component of development. Abbott and

others in the FAO marketing group have stressed the incentive role of

effective product marketing systems which can reduce risks and lower costs

for farmers and other market participants (3, 4). The local availability of

reasonably priced agricultural inputs and consumer goods are also seen as

having a stimulating impact on economic activity in both rural and urban areas.