Strategies and Mechanisms for Urban and Rural Subsidization

The Case of CONASUPO
  • James E. Austin


Almost all governments have explicit or implicit strategies and direct or indirect mechanisms for subsidizing certain groups within their societies. All subsidies effect income either by decreasing the cost of inputs (production supplies or consumption goods) or by increasing the price paid for outputs.


Small Farmer Food Price Nutrition Program Rural Sector Food Subsidy 
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  1. *.
    These historical data are derived from Gustavo Esteva, La Experiencia Regulardora de Los Mercados de Subsistencias en el Período 70–76, undated mimeograph, Mexico City.Google Scholar
  2. *.
    Las 500 empresas mas importantes de Mexico. Expansión, August 30, 1978, p. 74; PEMEX, the Government’s oil enterprise, is number one in sales and assets.Google Scholar
  3. *.
    The use of state land was ceded to individual farmers (ejiditarios) in the agrarian reform for their perpetual use, but the land cannot be sold.Google Scholar
  4. †.
    Seventy-seven percent own animals of some kind.Google Scholar
  5. *.
    Studies by the Banco Agropecuario produced similar figures.Google Scholar
  6. †.
    This price differential was corroborated by direct observation in the field by the author in February 1974.Google Scholar
  7. *.
    The 31 delegates then serving were selected from a list of 2500 candidates.Google Scholar
  8. *.
    A fuller description may be found in J. Austin, CONASUPO and Rural Development: Program Description, Analysis and Recommendations, report submitted to the World Bank, December 1976.Google Scholar
  9. †.
    LICONSA is the only institution with permission to reconstitute milk sold to the public.Google Scholar
  10. *.
    For a fuller discussion of constraints and approaches to nutrition evaluation, see J. Austin, The perilous journey of nutrition evaluation. Am. J. Clin. Nutr. 31 (12):2324–2338, 1978.Google Scholar
  11. †.
    See Chapter 5 in: Consumer Price Subsidies, B. Rogers, C. Overholt, F. Sanchez-Carillo, A. Chavez, C. P. Timmer, and T. Belding. Special Study VI in AID Series Nutrition Intervention in Developing Countries. Oelgeschlager, Gunn, and Hain, Cambridge, Massachusetts, 1981.Google Scholar

Copyright information

© Plenum Press, New York 1982

Authors and Affiliations

  • James E. Austin
    • 1
  1. 1.Harvard University Graduate School of Business AdministrationBostonUSA

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