Malaysia, a country of approximately 16 million people which gained independence in 1957, relied heavily on trade to achieve substantial growth in GNP during the 1960s (6.7 percent per year) and 1970s (10.5 percent per year). In the period 1980-83, however, the rate slipped to 3.1% per year. Malaysia's traditional exports are natural rubber and palm oil, but in the 1970s the country also became an important exporter of crude oil. During the study period (1960-83), government intervention through the taxation of natural rubber and palm oil has made the cultivation of these two products less profitable for farmers while also reducing foreign exchange earnings. In contrast to its policies for natural rubber and palm oil, Malaysia steadily intervened in the price of rice during the study period to improve producer prices. Direct intervention in rice prices has taken the form of a guaranteed minimum price which was raised substantially in the late 1970s. Agricultural pricing policies in Malaysia have been remarkably stable over time. In return, the Malay paddy farmers have faithfully supported the moderate Malay political parties, hence, keeping the pro-development political coalition in power throughout this period.