Revisiting the "cotton problem": A comparative analysis of cotton reforms in sub-Saharan Africa

Claire Delpeuch, Anneleen Vandeplas and Johan Swinnen

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: The cotton sector has been amongst the most regulated in Africa, and still is to a large extent in West and Central Africa (WCA), despite repeated reform recommendations by international donors. On the other hand, orthodox reforms in East and Southern Africa (ESA) have not always yielded the expected results. This paper uses a stylised contracting model to investigate the link between market structure and equity and efficiency in sub-Saharan cotton sectors; explain the outcomes of reforms in ESA; and analyze the potential consequences of orthodox reforms in WCA. We argue that the level of the world price and of government intervention, the nature of pre-reform institutional organisation, as well as the degree of parastatal inefficiency, all contribute to making reforms less attractive to farmers and governments in WCA today, as compared to ESA in the 1990s.We illustrate our arguments with empirical observations on the performance of cotton sectors across sub-Saharan Africa.

Keywords: Sub-Saharan Africa; cotton reforms; self-enforcing contracts (search for similar items in EconPapers)
JEL-codes: L33 O12 Q12 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-afr and nep-agr
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http://www.econ.kuleuven.be/licos/publications/dp/dp290.pdf

Related works:
Journal Article: Revisiting the “Cotton Problem”—A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa (2013)
Working Paper: Revisiting the "Cotton Problem" - A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa (2011)
Working Paper: Revisiting the "Cotton Problem:" A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa (2010)
Working Paper: Revisiting the “Cotton Problem”: A comparative analysis of cotton reforms in Sub-Saharan Africa (2010)
Working Paper: Revisiting the “cotton problem”: A comparative analysis of cotton reforms in Sub-Saharan Africa (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:lic:licosd:29011

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