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Revisiting the “Cotton Problem”: A comparative analysis of cotton reforms in Sub-Saharan Africa

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  • Delpeuch, Claire
  • Vandeplas, Anneleen
  • Swinnen, Johan F.M.

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 stylized contracting model to investigate the link between market structure and equity and efficiency in sub-Saharan cotton sectors and analyze the potential consequences of orthodox reforms in WCA. We argue that the level of the world price and of government intervention, the degree of post-reform competition, as well as the degree of parastatal inefficiency, all contribute to making reforms less attractive (but not less pressing) 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.

Suggested Citation

  • Delpeuch, Claire & Vandeplas, Anneleen & Swinnen, Johan F.M., 2010. "Revisiting the “Cotton Problem”: A comparative analysis of cotton reforms in Sub-Saharan Africa," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 62042, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc10:62042
    DOI: 10.22004/ag.econ.62042
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    1. Didier Yélognissè Alia & Anne Floquet & Epiphane Adjovi, 2017. "Heterogeneous Welfare Effect of Cotton Pricing on Households in Benin," African Development Review, African Development Bank, vol. 29(2), pages 107-121, June.
    2. Claire Delpeuch & Antoine Leblois, 2013. "Sub-Saharan African Cotton Policies in Retrospect," Development Policy Review, Overseas Development Institute, vol. 31(5), pages 617-642, September.
    3. Delpeuch, Claire & Leblois, Antoine, 2014. "The Elusive Quest for Supply Response to Cash-Crop Market Reforms in Sub-Saharan Africa: The Case of Cotton," World Development, Elsevier, vol. 64(C), pages 521-537.
    4. Yankou Diasso, 2014. "Dynamique du prix international du coton : aléas, aversion au risque et chaos," Recherches économiques de Louvain, De Boeck Université, vol. 80(4), pages 53-86.
    5. Delpeuch, Claire, 2011. "African cotton markets at crossroads : will the price spike turn into a new kick-start ?," Policy Research Working Paper Series 5847, The World Bank.
    6. Mizuno, Nobuhiro, 2016. "Political structure as a legacy of indirect colonial rule: Bargaining between national governments and rural elites in Africa," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1023-1039.
    7. Theriault, Veronique & Tschirley, David L., 2014. "How Institutions Mediate the Impact of Cash Cropping on Food Crop Intensification: An Application to Cotton in Sub-Saharan Africa," World Development, Elsevier, vol. 64(C), pages 298-310.
    8. Bassett, Thomas J., 2014. "Capturing the Margins: World Market Prices and Cotton Farmer Incomes in West Africa," World Development, Elsevier, vol. 59(C), pages 408-421.

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    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Institutional and Behavioral Economics;
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    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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