Figure 1. A Conceptual Model Showing a Series of Interrelated Food System Reforms
 and Expected Effects on Economic Growth and Development


Potential Points of Public Sector Possible Actions to Bring Postulated Effects on Economic
Intervention in Regional or about Desired Changes Growth and Development
National Food System Processes

 Capital and technical assistance (1) Reduce marketing costs in
 to stimulate improvements in urban areas for locally-
 URBAN FOOD efficiency of traditional urban produced food products
 marketers (2) Lower food prices--increase
 DISTRIBUTION Timely introduction of infra- effective income
 COMPONENTS structures as a tool to stimu- (3) Increase effective urban demand
 late improvement in market channel (3) Increase effective urban demand
 performance for food and consumer goods and
 rforance related marketing services

 More effective public
 facilitative and regulatory
 programs


 Appropriate agricultural production (4) Increased food production
 extension efforts and agricultural production
 specialization
 RURAL FOOD Development of appropriate
 packages of inputs (5) Increased rural incomes
 PRODUCTION and market participation on
 Effective market information both the supply and demand
 COMPONENTS and price stabilization programs sides

 Supervised credit programs

 Promote backward vertical (6) Increased rural and urban
 coordination of food market- demand for organization and
 ing coordination services of
 RURAL ASSEMBLY Capital and technical assistance commodity sub-systems
 MARKET COMPONENTS to rural assemblers and (7) Increased rural demand for
 transporters improved physical distribu-

 Improve public storage, roads, acting servities i.e. assembly
 exchange rules, grades

 Improve rural distribution (8) Increased rural demand for:
 services and lower costs (a) farm inputs
 RURAL DISTRIBUTION for: (b) purchased food
 (a) farm inputs (c) rural-and urban-
 COMPONENTS FOR: (b) purchased food produced consumer
 (c) consumer goods goods
 (a) Purchased Food (d) marketing services
 (b) Farm Inputs related to the above
 (c) Consumers Goods three

 Use of appropriate technologies (9) Increased demand and employ-
 in production processes ment in industry and related
 RURAL AND URBAN Develop more appropriate products services sectors
 for local market demand character- (10) Increased income leading to
 INDUSTRIAL AND istics increased demand for food
 Lower costs of mass distribution and consumer goods
 SERVICES COMPONENTS to rural and urban areas


Source: Adapted from Figure 1.1. in (6).