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Commodity Market Reforms : Lessons of Two Decades

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Author Info

  • Takamasa Akiyama
  • John Baffes
  • Donald Larson
  • Panos Varangis

Abstract

Structural reform of the economies of developing countries has been in the forefront of development interest since the early 1980s. This interest stems from a recognition that the structures and institutions of these countries are critical to any enhancement of economic and social development. One of the key reforms has been that of primary commodity markets, especially agricultural commodity markets, because many developing countries, including the poorest, depend heavily on these for foreign exchange earnings and employment, and hence for poverty reduction. This report focuses on the political economy and institutional aspects of agricultural commodity market reform. In order to explore in detail factors that are critical to the processes, consequences, and substance of reform, the authors have focused the analysis and evaluation on five commodities important in many developing countries, specifically cocoa, coffee, sugar, cotton, and cereal. In doing so, they highlight important lessons on how agricultural sector reform can be launched and implemented. Some of the factors identified in the report as being key to successful reform include the recognition that commodity markets often affect communities and even politics, that the initial conditions of markets are critical, and that government intervention can crowd out private sector initiatives, especially when it comes to building the institutions needed to develop a healthy agricultural sector.

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Bibliographic Info

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This book is provided by The World Bank in its series World Bank Publications with number 13852 and published in 2001-03.

ISBN: 0-8213-4588-5
Handle: RePEc:wbk:wbpubs:13852

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Postal: 1818 H Street, N.W., Washington, DC 20433
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Web page: https://openknowledge.worldbank.org
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Related research

Keywords: Economic Theory and Research Macroeconomics and Economic Growth - Markets and Market Access Environmental Economics and Policies International Economics and Trade - Access to Markets Crops and Crop Management Systems;

References

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  1. Barrett, Christopher B., 1997. "Food marketing liberalization and trader entry: Evidence from Madagascar," World Development, Elsevier, vol. 25(5), pages 763-777, May.
  2. 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.
  3. 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.
  4. Jayne, Thomas S. & Mukumbu, Mulinge & Duncan, John & Staatz, John M. & Howard, Julie A. & Lundberg, Mattias K.A. & Aldridge, Kim & Nakaponda, Bethel & Ferris, John N. & Keita, Francis & Sanankoua, Abd, 1996. "Trends in Real Food Prices in Six Sub-Saharan African Countries," Food Security International Development Working Papers 54695, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  5. Boughton, Duncan & Reardon, Thomas, 1997. "Will promotion of coarse grain processing turn the tide for traditional cereals in the Sahel? Recent empirical evidence from Mali," Food Policy, Elsevier, Elsevier, vol. 22(4), pages 307-316, August.
  6. Tschirley, David L. & Jayne, Thomas S. & Mukumbu, Mulinge & Chisvo, Munhamo & Weber, Michael T. & Zulu, Ballard & Johansson, Robert C. & Santos, Paula Mota & Soroko, David, 1999. "Successes and Challenges of Food Market Reform: Experiences from Kenya, Mozambique, Zambia, and Zimbabwe," Food Security International Development Policy Syntheses 11270, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  7. Byerlee, Derek & Heisey, Paul W., 1996. "Past and potential impacts of maize research in sub-Saharan Africa: a critical assessment," Food Policy, Elsevier, Elsevier, vol. 21(3), pages 255-277, July.
  8. Staatz, John M. & Dione, Josue & Dembele, N. Nango, 1989. "Cereals market liberalization in Mali," World Development, Elsevier, vol. 17(5), pages 703-718, May.
  9. Newbery, David M, 1989. "The Theory of Food Price Stabilisation," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 99(398), pages 1065-82, December.
  10. Santorum, Anita & Tabaijuka, Anna, 1992. "Trading responses to food market liberalization in Tanzania," Food Policy, Elsevier, Elsevier, vol. 17(6), pages 431-442, December.
  11. 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.
  12. Colin Poulton & Andrew Dorward & Jonathan Kydd, 1998. "The revival of smallholder cash crops in Africa: public and private roles in the provision of finance," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(1), pages 85-103.
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