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The renewed case for farmers' cooperatives: Diagnostics and implications from Ghana

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  • Francesconi, Gian Nicola
  • Wouterse, Fleur

Abstract

This study presents a stylized but insightful diagnostic of the problems limiting collective action in Ghanaian farmer-based organizations (FBOs). In our analysis, we use a structure-conduct-performance framework, econometrics, and new primary data for 500 FBOs collected through surveys and games. We find that most Ghanaian FBOs are inactive, failing to mobilize their members into any sort of collective action. To understand why this is so, we postulate that in rural Ghana, four typologies can be used to classify FBOs and to distinguish them on the basis of their membership structure and rules of conduct. We then show that FBOs fail to mobilize collective action whenever their structure and conduct are not aligned. In particular, misalignment leads mainly to problems of access to external credit and to a lesser extent to problems of internal cohesion. To maximize collective action, this study recommends the diversification of policy through recognizing the four different types of FBOs, each facing particular and to some extent opposing problems.

Suggested Citation

  • Francesconi, Gian Nicola & Wouterse, Fleur, 2011. "The renewed case for farmers' cooperatives: Diagnostics and implications from Ghana," IFPRI discussion papers 1129, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1129
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    5. Tanguy Bernard & Alemayehu Seyoum Taffesse & Eleni Gabre-Madhin, 2008. "Impact of cooperatives on smallholders' commercialization behavior: evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 147-161, September.
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    Cited by:

    1. Morley, Samuel & Piñeiro, Valeria & Robinson, Sherman, 2011. "External shocks and policy alternatives in small open economies: The case of El Salvador," IFPRI discussion papers 1134, International Food Policy Research Institute (IFPRI).
    2. Takeshima, Hiroyuki & Salau, Sheu, 2011. "How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed?: Insights from Nigeria," IFPRI discussion papers 1133, International Food Policy Research Institute (IFPRI).
    3. Morley, Samuel & Piñeiro, Valeria & Robinson, Sherman, 2011. "A dynamic computable general equilibrium model with working capital for Honduras:," IFPRI discussion papers 1130, International Food Policy Research Institute (IFPRI).
    4. Yu, Bingxin & Nin-Pratt, Alejandro & Funes, José & Gemessa, Sinafikeh Asrat, 2011. "Cereal production and technology adoption in Ethiopia:," IFPRI discussion papers 1131, International Food Policy Research Institute (IFPRI).
    5. Nikulin, Alexander & Sobolev, Alexander & Trotsuk, Irina & Kurakin, Alexander, 2017. "Russian Agricultural Cooperatives: Regional Features, Economic Behavior, Management and Development Models," Working Papers 061714, Russian Presidential Academy of National Economy and Public Administration.
    6. Mira Slavova & Anca Metiu, 2015. "Ritualization and the Process of Knowledge Transfer," Working Papers hal-01184948, HAL.
    7. Slavova, Mira & Metiu , Anca, 2015. "Ritualization and the Process of Knowledge Transfer," ESSEC Working Papers WP1511, ESSEC Research Center, ESSEC Business School.

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    Keywords

    Collective action; Cooperatives; econometrics; games;

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