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African cotton markets at crossroads : will the price spike turn into a new kick-start ?

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  • Delpeuch, Claire

Abstract

After years of diplomatic efforts and legal procedures to obtain the elimination of rich countries'cotton subsidies, policy prospects for African cotton producers remain bleak. However, the world price for cotton has doubled in a year and has hit an all-time high. This paper examines these developments and investigates their potential consequences for African smallholder farmers. It emphasizes the importance of price transmission to domestic markets; assesses the impact of the reforms undertaken in Sub-Saharan African cotton sectors on producers'supply responsiveness; and outlines what remains to be done to ensure that farmers can benefit from a favorable global environment. The paper concludes that improving the functioning of domestic markets remains the priority in the short run. The current high price season will reveal the costs and benefits of different types of sector regulation systems and the capacity of policy-makers and sector stakeholders to deliver on promises. It also offers a last-minute opportunity to rich countries to keep their word in the context of the Doha Development Round.

Suggested Citation

  • 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.
    • Handle: RePEc:wbk:wbrwps:5847
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    References listed on IDEAS

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    1. 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.
    2. Kaminski, Jonathan & Headey, Derek & Bernard, Tanguy, 2011. "The Burkinabè Cotton Story 1992-2007: Sustainable Success or Sub-Saharan Mirage?," World Development, Elsevier, vol. 39(8), pages 1460-1475, August.
    3. Delpeuch, Claire & Vandeplas, Anneleen, 2013. "Revisiting the “Cotton Problem”—A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa," World Development, Elsevier, vol. 42(C), pages 209-221.
    4. Kym Anderson & William A. Masters, 2009. "Distortions to Agricultural Incentives in Africa," World Bank Publications - Books, The World Bank Group, number 2607.
    5. Mr. Louis M. Goreux & Mr. Paul R Masson & Mr. Dhaneshwar Ghura & Mr. Ousmane Badiane, 2002. "Cotton Sector Strategies in West and Central Africa," IMF Working Papers 2002/173, International Monetary Fund.
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    8. Nicholas Minot & Lisa Daniels, 2005. "Impact of global cotton markets on rural poverty in Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
    9. Bates, Robert H. & Block, Steven A., 2009. "Political Economy of Agricultural Trade Interventions in Africa," Agricultural Distortions Working Paper Series 50302, World Bank.
    10. Boughton, Duncan & Tschirley, David L. & de Marrule, Higino Francisco & Osorio, Afonso & Zulu, Ballard, 2002. "Cotton Sector Policies and Performance in Sub-Saharan Africa: Lessons Behind the Numbers in Mozambique and Zambia," Food Security Collaborative Policy Briefs 55233, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. Ilhem Baghdadli & Hela Cheikhrouhou & Gael Raballand, 2007. "Strategies for Cotton in West and Central Africa : Enhancing Competitiveness in the "Cotton 4"," World Bank Publications - Books, The World Bank Group, number 6784.
    12. Kaplinsky, Raphael, 2006. "Revisiting the revisited terms of trade: Will China make a difference?," World Development, Elsevier, vol. 34(6), pages 981-995, June.
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    15. David Tschirley & Colin Poulton & Patrick Labaste, 2009. "Organization and Performance of Cotton Sectors in Africa : Learning from Reform Experience," World Bank Publications - Books, The World Bank Group, number 2604.
    16. Catherine ARAUJO BONJEAN & Jean-Louis COMBES & Patrick PLANE, 2003. "Preserving vertical co-ordination in the West African cotton sector," Working Papers 200303, CERDI.
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    1. 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.
    2. 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.
    3. Bartels Lorand, 2013. "Making WTO Dispute Settlement Work for African Countries: An Evaluation of Current Proposals for Reforming the DSU," The Law and Development Review, De Gruyter, vol. 6(2), pages 47-66, August.
    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.

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    Markets and Market Access; Economic Theory&Research; Environmental Economics&Policies; Emerging Markets; Access to Markets;
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