01_NIRVANA_v3 - THE LAND OF NIRVANA1 Long ago the country...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
THE LAND OF NIRVANA 1  Long ago, the country of Nirvana underwent a revolution and in the ensuing chaos, a military dictator seized control of the government. The country was poor and the people in its cities were facing starvation from a lack of agricultural output. Fearing the dictator, the aristocrats who had owned the farms fled the country, leaving the farms and the peasants to fend for themselves. One of the dictator’s first actions was to nationalize all the country’s farms. He decreed that all peasants must remain on the farms and that they must work the land for the government. The dictator established a Ministry of Agriculture, headquartered in the capital city, to develop agricultural policies and manage the country’s agricultural system. Annually, the Ministry’s Board of Agriculture (BOA) determined the crop that each farm was to grow and assigned each farm a harvest quota, which the Board would not hesitate to increase from year-to-year in response to any shortage of food in the cities. The BOA provided the financing that enabled farms to purchase agricultural supplies (e.g., seed and fertilizer) and basic subsistence needs for the farm workers (e.g., food, fuel, clothing, health and lodging). This financing generally was in the form of loans secured by the subsequent harvest and due upon the sale of that harvest. The BOA established all agricultural prices, both at the farm-level as well as the wholesale/retail prices charged by food processors, distributors and retailers. The BOA’s stated objective was to keep food prices as low as possible for the citizens in the country’s cities. The Ministry appointed an administrator in charge of each farm.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/30/2011 for the course ACCT 560 taught by Professor Chandler during the Summer '11 term at University of Illinois, Urbana Champaign.

Page1 / 3

01_NIRVANA_v3 - THE LAND OF NIRVANA1 Long ago the country...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online