The Elimination of Madagascar's Vanilla Marketing Board, Ten Years On
Commodity prices are usually very slow to recover from adverse shocks. This is one of the reasons why it has proven so difficult either to smooth their effect or to stabilize them, and why it is sometimes argued that they should behave as if shocks were permanent. There is no reason however why countries should not find ways to protect themselves. This paper develops one practical idea on how this could be done. Our goal is not to stabilize prices, but to smooth the income of the producers. Countries, we assume, should get protection against deviation of commodity prices from a moving average of past prices. This avoids the pitfalls of past stabilization that attempted to stabilize around a single price and yet our scheme gives countries time to adjust to permanent shocks. Over a period of a 50 years time horizon, we simulate that the median cost would be worth about six months of exports.
|Date of creation:||Mar 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
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.:
- L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
- Nicita, Alessandro, 2004. "Who benefited from trade liberalization in Mexico? Measuring the effects on household welfare," Policy Research Working Paper Series 3265, The World Bank.
- Sahn, David E & Sarris, Alexander H, 1991. "Structural Adjustment and the Welfare of Rural Smallholders: A Comparative Analysis from Sub-Saharan Africa," World Bank Economic Review, World Bank Group, vol. 5(2), pages 259-89, May.
- Jaime MELO DE & OLARREAGA & TAKACS, 1996.
"Pricing policy under Double Market Power: Madagascar and the International Vanilla Market,"
- Jaime de Melo & Marcelo Olarreaga & Wendy Takacs, 2015. "Pricing Policy Under Double Market Power: Madagascar and the International Vanilla Market," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 8, pages 199-218 World Scientific Publishing Co. Pte. Ltd..
- de Melo, Jaime & Olarreaga, Marcelo & Takacs, Wendy, 2000. "Pricing Policy under Double Market Power: Madagascar and the International Vanilla Market," Review of Development Economics, Wiley Blackwell, vol. 4(1), pages 1-20, February.
- De Melo, J. & Olarreaga, M. & Takacs, W., 1996. "Pricing Policy Under Double Market Power: Madagascar and the International Vanilla Market," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 96.06, Institut d'Economie et Econométrie, Université de Genève.
- de Melo, Jaime & Olarreaga, Marcelo & Takacs, Wendy E, 1996. "Pricing Policy Under Double Market Power: Madagascar and the International Vanilla Market," CEPR Discussion Papers 1447, C.E.P.R. Discussion Papers.
- Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," World Bank Economic Review, World Bank Group, vol. 2(3), pages 255-71, September.
- Jonathan Isham & Michael Woolcock & Lant Pritchett & Gwen Busby, 2005. "The Varieties of Resource Experience: Natural Resource Export Structures and the Political Economy of Economic Growth," World Bank Economic Review, World Bank Group, vol. 19(2), pages 141-174.
- Margaret McMillan, 2001. "Why Kill The Golden Goose? A Political-Economy Model Of Export Taxation," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 170-184, February.
- Hoekman, Bernard & Michalopoulos, Constantine & Schiff, Maurice & Tarr, David, 2001. "Trade policy reform and poverty alleviation," Policy Research Working Paper Series 2733, The World Bank.
This item is featured on the following reading lists or Wikipedia pages:
- Discussion utilisateur:Olivier Hammam/2009.01-2013.06 in Wikipedia French ne '')
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:5548. See general 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: ()
If references are entirely missing, you can add them using this form.