Commodity market reform in Africa: some recent experience
AbstractSince the early 1980s, dramatic changes in export commodity markets, shocks associated with resulting price declines, and changing views on the role of the state have ushered in widespread reforms to agricultural commodity markets in Africa. The reforms significantly reduced government participation in the marketing and pricing of commodities. Akiyama, Baffes, Larson, and Varangis examine the background, causes, process, and consequences of these reforms and derive lessons for successful reforms from experiences in markets for four commodities important to Africa-cocoa, coffee, cotton, and sugar. The authors'commodity focus highlights the special features associated with these markets that affect the reform process. They complement the current literature on market reforms in Africa, where grain-market studies are more common. The authors suggest that the types of market interventions prior to reform are more easily classified by crop than by country. Consequently, there are significant commodity-specific differences in the initial conditions and in the outcomes of reforms related to these markets. But there are general lessons as well. The authors find that the key consequences of reform have been significant changes in or emergence of marketing institutions and a significant shift of political and economic power from the public to the private sector. In cases where interventions were greatest and reforms most complete, producers have benefited from receiving a larger share of export prices. Additionally, the authors conclude that the adjustment costs of reform can be reduced in most cases by better understanding the detailed and idiosyncratic relationships between the commodity subsector, private markets, and public services. Finally, while there are significant costs to market-dependent reforms, experiences suggest that they are a necessary step toward a dynamic commodity sector based on private initiative. This is particularly true in countries and sectors where
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Economic Systems.
Volume (Year): 27 (2003)
Issue (Month): 1 (March)
Contact details of provider:
Postal: Landshuter Str. 4, 93047 Regensburg
Phone: +49-(0)941-943 54 10
Fax: +49-(0)941-943 54 27
Web page: http://www.elsevier.com/locate/inca/621171
More information through EDIRC
Other versions of this item:
- Akiyama, Takamasa & Baffes, John & Larson, Donald F. & Varangis, Panos, 2003. "Commodity market reform in Africa : some recent experience," Policy Research Working Paper Series 2995, The World Bank.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- C. John McDermott & Paul Cashin & Alasdair Scott, 1999.
"Booms and Slumps in World Commodity Prices,"
IMF Working Papers
99/155, International Monetary Fund.
- Paul Cashin & C John McDermott & Alasdair Scott, 1999. "Booms and slumps in world commodity prices," Reserve Bank of New Zealand Discussion Paper Series G99/8, Reserve Bank of New Zealand.
- Reinhart, Carmen & Wickham, Peter, 1994.
"Commodity Prices: Cyclical Weakness or Secular Decline?,"
8173, University Library of Munich, Germany.
- Carmen M. Reinhart & Peter Wickham, 1994. "Commodity Prices: Cyclical Weakness or Secular Decline?," IMF Staff Papers, Palgrave Macmillan, vol. 41(2), pages 175-213, June.
- Peter Wickham & Carmen Reinhart, 1994. "Commodity Prices - Cyclical Weakness or Secular Decline?," IMF Working Papers 94/7, International Monetary Fund.
- Rukuni, Mandivamba & Blackie, Malcolm J. & Eicher, Carl K., 1998. "Crafting smallholder-driven agricultural research systems in Southern Africa," World Development, Elsevier, vol. 26(6), pages 1073-1087, June.
- Jayne, Thomas S. & Negassa, Asfaw & Myers, Robert J., 1998. "The Effect of Liberalization on Grain Prices and Marketing Margins in Ethiopia," Food Security International Development Working Papers 54681, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Alston, Julian M. & Pardey, Philip G. & Roseboom, Johannes, 1998. "Financing agricultural research: International investment patterns and policy perspectives," World Development, Elsevier, vol. 26(6), pages 1057-1071, June.
- Alwang, Jeffrey & Siegel, Paul B. & Jorgensen, Steen L., 1996. "Seeking guidelines for poverty reduction in rural Zambia," World Development, Elsevier, vol. 24(11), pages 1711-1723, November.
- Reinhart, Carmen & Wickham, Peter, 1994. "Non-oil commodity prices: Cyclical weakness or secular decline?," MPRA Paper 13871, University Library of Munich, Germany.
- Sahn,David E. & Dorosh,Paul A. & Younger,Stephen D., 1999. "Structural Adjustment Reconsidered," Cambridge Books, Cambridge University Press, number 9780521665131, December.
- Gersovitz, Mark, 1989. "Transportation, State Marketing, and the Taxation of the Agricultural Hinterland," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1113-37, October.
- Pramila Krishnan & Stefan Dercon, 1995.
"Income portfolios in rural Ethiopia and Tanzania: choices and constraints,"
CSAE Working Paper Series
1995-12, Centre for the Study of African Economies, University of Oxford.
- Stefan Dercon & Pramila Krishnan, 1995. "Income portfolios in rural Ethiopia and Tanzania: choices and constraints," Economics Series Working Papers WPS/1995-12, University of Oxford, Department of Economics.
- Hiranya Mukhopadhyay, 1999. "Trade liberalization in sub-Saharan Africa: stagnation or growth?," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(6), pages 825-835.
- Jayne, T. S. & Jones, Stephen, 1997. "Food marketing and pricing policy in Eastern and Southern Africa: A survey," World Development, Elsevier, vol. 25(9), pages 1505-1527, September.
- Varangis, Panos & Larson, Donald & Anderson, Jack R., 2002. "Agricultural markets and risks - management of the latter, not the former," Policy Research Working Paper Series 2793, The World Bank.
- Jan Dehn, 2000. "Commodity price uncertainty in developing countries," CSAE Working Paper Series 2000-12, Centre for the Study of African Economies, University of Oxford.
- Louis M. Goreux & Paul R. Masson & Dhaneshwar Ghura & Ousmane Badiane, 2002.
"Cotton Sector Strategies in West and Central Africa,"
IMF Working Papers
02/173, International Monetary Fund.
- Badiane, Ousmane & Ghura, Dhaneshwar & Goreux, Louis & Masson, Paul, 2002. "Cotton sector strategies in West and Central Africa," Policy Research Working Paper Series 2867, The World Bank.
- Kherallah, Mylene & Govindan, Kumaresan, 1999. "The Sequencing of Agricultural Market Reforms in Malawi," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 8(2), pages 125-51, July.
- Cline, William R., 1982. "Can the East Asian model of development be generalized?," World Development, Elsevier, vol. 10(2), pages 81-90, February.
- Kherallah, Mylène & Delgado, Christopher L. & Gabre-Madhin, Eleni Z. & Minot, Nicholas & Johnson, Michael, 2002. "Reforming agricultural markets in Africa," Food policy statements 38, International Food Policy Research Institute (IFPRI).
- Rodrik, Dani, 1998. "Why Is Trade Reform So Difficult in Africa?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(0), pages 43-69, June.
- Jaeger, W.K., 1992. "The Effects of Economic Policies on African Agriculture," World Bank - Discussion Papers 147, World Bank.
- John Baffes, 2005. "Tanzania's coffee sector: constraints and challenges," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(1), pages 21-43.
- Catherine ARAUJO BONJEAN & Jean-François BRUN, 2000.
"Les politiques de stabilisation des prix du coton en Afrique de la Zone Franc sont-elles condamnées ?,"
- Catherine Araujo-Bonjean & Jean-François Brun, 2001. "Les politiques de stabilisation des prix du coton en Afrique de la zone franc sont-elles condamnées?," Économie rurale, Programme National Persée, vol. 266(1), pages 80-90.
- Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-80, November.
- Gilbert, Christopher L., 1987. "International commodity agreements: Design and performance," World Development, Elsevier, vol. 15(5), pages 591-616, May.
- Takamasa Akiyama, 1992. "Is there a case for an optimal export tax on perennial crops?," Policy Research Working Paper Series 854, The World Bank.
- Gilbert, Christopher L., 1996. "International Commodity Agreements: An obituary notice," World Development, Elsevier, vol. 24(1), pages 1-19, January.
- Kanbur, Ravi, 2001.
"Economic Policy, Distribution and Poverty: The Nature of Disagreements,"
Elsevier, vol. 29(6), pages 1083-1094, June.
- Kanbur Ravi, 2001. "Economic Policy, Distribution and Poverty: The Nature of Disagreements," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 7(2), pages 1-26, April.
- Abdulai, Awudu & Huffman, Wallace, 2000.
"Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana,"
Staff General Research Papers
5100, Iowa State University, Department of Economics.
- Abdulai, Awudu & Huffman, Wallace, 2000. "Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 503-20, April.
- Bardsley, Peter, 1994.
"The Collapse of the Australian Wool Reserve Price Scheme,"
Royal Economic Society, vol. 104(426), pages 1087-1105, September.
- Peter Bardsley, 1992. "The Collapse of the Australian Wool Reserve Price Scheme," Working Papers 1992.17, School of Economics, La Trobe University.
- Larson, Donald F. & Borrell, Brent, 2001. "Sugar policy and reform," Policy Research Working Paper Series 2602, The World Bank.
- Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
- Demery, Lionel & Squire, Lyn, 1996. "Macroeconomic Adjustment and Poverty in Africa: An Emerging Picture," World Bank Research Observer, World Bank Group, vol. 11(1), pages 39-59, February.
- C. W. Morgan & A. J. Rayner & C. Vaillant, 1999. "Agricultural futures markets in LDCs: a policy response to price volatility?," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(6), pages 893-910.
- Dehn, Jan, 2000. "Commodity price uncertainty in developing countries," Policy Research Working Paper Series 2426, The World Bank.
- Byerlee, Derek, 1998. "The search for a new paradigm for the development of national agricultural research systems," World Development, Elsevier, vol. 26(6), pages 1049-1055, June.
- Badiane, Ousmane & Shively, Gerald E., 1998. "Spatial integration, transport costs, and the response of local prices to policy changes in Ghana," Journal of Development Economics, Elsevier, vol. 56(2), pages 411-431, August.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.