From Public Policy to a Sectorial Policy: The Price Stabilization Fund for Kernel, Palm Oil and their Fractions
This paper examines the design and implementation process of the Price Stabilization Fund for Kernel, Palm Oil and their Fractions (FEP, in Spanish), as a policy instrument according to the role of the State in the economy. In this sense, this document seeks to contrast the positive and normative theory of economic analysis with the resulting public policies, using the case study as unit of analysis. In order to improve the position of the producer by reducing the market power of the industry that was generated by having an oligopsonic structure,the FEP design had the purpose of stabilizing prices between the domestic and export markets by distributing price differentials among producers. Although the implementation process encountered several difficulties, mainly due to the complexity of understanding the mechanism in the operation stage, the work done by the Colombian National Federation of Oil Palm Growers (Fedepalma) previous to the design and enactment of the FEP, facilitated communication between producers, Fedepalma and the industry, fostering confidence inthe management of the sector. According to that, the analysis carried out in this work supports the idea that the oil palm sector designed an innovative scheme, without a close referent for that time, which has allowed the development of its activity and favored the growth of the sector.
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| Format: | Digital revista |
| Language: | spa |
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Fedepalma
2018
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| Online Access: | https://publicaciones.fedepalma.org/index.php/palmas/article/view/12403 |
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