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1、TheAustralianJournalofAgriculturalandResourceEconomics,47:1,pp.75–98G.EdwardsDeregulationindairyindustryBlackwellpublishingLtdOxford,UKAJARTheAustralianJournalofAgriculturalandResourceEconomics1364-985X©2003AustralianAgriculturalandResourceEconomicsSoci
2、etyInc.andBlackwellPublishingAsiaPtyLtd.2003471000ORIGINALARTICLEThestoryofderegulationinthedairyindustry†GeoffEdwards*Thederegulationofdairymarketingthatoccurredon1July2000isafascinatingcasestudyinmicroeconomicreform.Theroleofinteractingindustryandinst
3、itutionalfeaturesinthemovementtoderegulationisexplained,withpoliticalrealitiesbeingrecognised.Akeypartofthederegulationbundlewasanunprecedented“struc-turaladjustment”packagevaluedataboutoneandahalfbilliondollars(in1998–1999).Questionsareraisedaboutthera
4、tionaleforthispackage,theprocessofdeterminingitandthemeansoffundingit.1.IntroductionThedairyindustrywaslongoneofthemosthighlyassistedandregulatedindustriesinAustralia.Theeffectiveratesofassistancein1999–2000were19percentformanufacturingmilkandmorethan20
5、0percentformarketmilk,comparedwithanaverageeffectiverateofassistancefortheentireagriculturalsectorof6percent(ProductivityCommission2001a).BecauseoftheregulationAustraliahadsixseparatedairyindustries,oneineachstate,ratherthananationalindustry.Further,wit
6、hineachstatetherewasanartificialseparationofmarketmilkandmanufacturingmilk.Thisfrag-mentationofthenationalmarketwaspreciselywhatthefoundingfathers,whosawfederationremovingbarrierstotradebetweenthecoloniesandestablishingacommonAustralianmarket,soughtacent
7、uryagotoend.Allthischangedon1July2000.July1wasD-day–deregulationday!Thisdaysawtheendofmonopolymarketingfortablemilkbythestategovernmentstatutorymarketingauthorities.Thatmeantnotonlytheintro-ductionofcompetitiontoareaswheremanyelderlyfarmers,governmentof
8、ficialsandcommercially-orientedemployeesinvalue-addingfirmshad†ThehelpfulcommentsoftwoanonymousreviewersandofJonathanPincusareacknowledgedgratefully.*GeoffEdwards,DepartmentofEconomicsandFinance,LaTrobeUniversity,Victoria,Australia
