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24 J. Common Mkt. Stud. 1 (1985-1986)

handle is hein.journals/jcmks24 and id is 1 raw text is: Journal of Common Market Studies Volume XXIV, No. I Sept 1985 0021-9886 $3.00 Costs, Benefits and the Future of the Common Agricultural Policy D. R. HARVEY University of Reading K.J. THOMSON University ofNewcastle upon Tyne In this article, the development of the European Community's Common Agricultural Policy (CAP) is examined from a number of viewpoints. First, some estimates are given of the economic costs and benefits of the CAP as a whole, using a conventional model of the markets in farm products within the countries of the EC. The discussion is then widened to include the important features of the policy as an administrative machine and as a political organism. Against this background, the recent changes in the direction of the CAP resulting from decisions taken in 1984 are examined, and three crucial issues - dairy quotas, budgetary discipline, and cereal supply control - are discussed in more detail with an eye to the future. INTRODUCTION By their very nature public policies affect diverse interest groups and reflect compromises between differing and often conflicting objectives. The prob- lems of achieving an acceptable, if not optimal, balance between these groups, interests and objectives within Member States are onerous enough. In the supra-national context of the European Community's Common Agricultural Policy, where the divergence between interests is great and the effects of policy are widespread, the problems of reaching and maintaining an acceptable compromise are particularly difficult. In this sense, the CAP continues to represent a remarkable achievement. However, in view of its interminable conflicts and crises, is it any longer either necessary or desirable?

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