Using law as a development tool is not straight forward, and the effects produced are heavily influenced by the context in which rules are used, particularly by factors such as the institutional framework and legal culture. This means that one should be cautious about making general recommendations about the best way to improve legal frameworks. Nevertheless, based on the experiences of a range of countries, it is possible to identify general criteria for evaluating the regulatory environment for food marketing which can be usefully applied in most circumstances (see section 5 below).
The process of reforming legal structures in order to give effect to market liberalisation programmes present particular challenges to policy makers and those drafting laws. Policy makers should beware of over-simplistic models based on the mistaken belief that fewer rules mean more efficient markets. Legal drafters should be aware of the new challenges created by the reduction of the role of the state in controlling agricultural marketing. Liberalising food marketing systems challenges those drafting law to move away from highly prescriptive legislation designed to maximise state control, towards legislation designed to enable efficient private sector involvement. However, the creation of greater economic freedom for the private sector may also increase the potential for market manipulation (e.g. by cartels) and create a need for new and more sophisticated regulatory mechanisms.
