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In many developing countries, structural adjustment and liberalization policies are causing major institutional changes in agriculture. The FAO decided to hold a consultative seminar together with CIRAD, in 1996, to analyse the background theories and current developments related to these institutional changes. The presentations and the debates demonstrate that liberalization leads to a deep reshaping of institutions.
In a lot of cases, liberalization drives the transition process from subsistance and public driven agriculture economy to market economy. The privatization of major agricultural services changes the role of the State. Instead of opposing public choices to market driven choices, complementarity and interaction are necessary.