The OECD Development Centre and the Centre for Economic Policy Research share a desire to stimulate economic analysis with policy applications. For developing countries and for Eastern Europe, structural adjustment dominates the policy debate. Nevertheless, key adjustment issues remain poorly understood. This volume arises from the explicit recognition of the need to incorporate an open economy and intersectoral dimension in the formulation of structural adjustment packages.

The book redresses the neglect of intersectoral relations by focusing on agriculture and its interactions with other activities, both domestically and internationally, since agriculture accounts for the major share of employment and income in developing countries.

The study provides a basis for policy perspectives which rest explicitly on the analysis of sectoral, economy-wide and international linkages. It is the outcome of the first collaboration between the CEPR and the OECD. We believe it will enhance understanding of the interdependence of policy reforms, assisting academics and policy makers to face the monumental challenge of transition.