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The Common Agricultural Policy Virtually all governments intervene in their country's agricultural markets in an attempt to alter or regulate the production and trade of products. Governments often view agriculture as a 'special' sector worthy of their intervention. Indeed, interventionists argue that there is a need to stabilize agricultural prices to protect the consumer, create a certain amount of self-sufficiency within a country, and improve efficiency and productivity in the agricultural business. One of the largest examples of intervention in the agricultural sector is the Common Agricultural Policy, which is co-ordinated by the European Commission. The Common Agricultural Policy was proposed in 1960 by the six members of the European Economic Community, but only came into effect in January. It was introduced at a time of great food shortages, which resulted in a large percentage of food being imported. The Common Agricultural Policy had many aims. These included: * Increasing agricultural...

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