4 SOCIAL SCIENTIST an ideology of "socialism" to legitimize the expansion of the state sector in an "indiscriminate" manner. Such a role of the state, coupled with import controls and quotas, severely restricted the economic space for the private business sector. The bourgeoisie as a class was to a great extent alienated from the state which in its view should have served as an instrument to promote and legitimize private accumulation and private property. But it was not only the weak and compradore-dominated bourgeoisie that felt dissatisfied with the performance of the United Front government. The broad masses also felt disappointed due to the economic hardships that kept consistently growing. This popular discontent paved the way for the return of the UNP to power with a landslide victory at the polls. Thus the liberalization policy, stated in very general terms in the manifesto of the UNP, got the "approval" of the electorate. Basic Elements of the "Liberalization55 Package The basic elements of the 1977 strategy may be summed up as follows: 1. Higher growth rate of the economy through incentives to the private sector and minimal state intervention in the domestic commodity and financial markets and in international trade. Import liberalization, uniform exchange rates, decontrol of prices and an increased interest rate were among the first measures taken towards these ends. The government also pledged itself in principle to the privatization of state corporations in keeping with the spirit of the new strategy. 2. Higher . levels of public investment in infrastructure development and rehabilitation to promote private investment in productive ventures. These higher levels of state investment were to be achieved by reducing government consumption in order to increase public savings for investment and with generous foreign aid in the form of grants and loans. 3. Export promotion * through unification (and devaluation) of the exchange rate and special incentives to attract export oriented foreign investments. The incentives indued tax holidays and facilities offered by the Free Trade Zones (Industrial Processing Zones—IPZ). In 1982, the sixth year of the present government, the Ministry of Finance and Planning, reaffirming the government's faith in its 1977 strategy, stated that "this policy package was designed to move the economy away from a long period of rigid government controls to one in which market forces and the private sector would play an increasing role15.1 This paper is concerned with the role of the agricultural sector in the new strategy. What place has been assigned to this sector in an economic strategy which is also labelled 'export oriented9? How have the policies affected agriculture and what are the major issues raised at