The paper analyzes the welfare impacts of alternative sequencing scenarios of agricultural market reforms in Malawi using a profit maximization approach. The simulation results show that, contrary to the sequencing path adopted in the 1980's, Malawi's Government should have liberalized the maize sector first, followed by the groundnut export sector, and once a supply response was generated, input subsidies could have been phased out, without generating a negative impact on producers' welfare and food security. ; Non-PR ; IFPRI1 ; MSSD
In response to slow growth in the agricultural sector and as part of a general shift towards a more market-oriented economy, the Government of Egypt started liberalizing the agricultural sector in 1987. Controls over wheat production and marketing were eliminated and wheat producer prices were brought closer to international levels. As a result, there has been remarkable increases in wheat crop area and yields, causing wheat production to triple from 1986 to 1998. This study analyzes the results of a survey of 800 Egyptian wheat farmers in order to address three issues that are of interest to agricultural reform policy in Egypt. First, what are the patterns in wheat production and marketing that have emerged following the economic reforms? Second, why is the government unable to purchase more than a small portion of national wheat production? Third, how does wheat supply and input demand respond to wheat and input prices? The survey indicates that Egyptian wheat production is based on small-scale farms, yet these farms are highly commercialized and the use of inputs such as labor, fertilizer and irrigation, is intensive. The government has problems reaching its wheat procurement target because most of the wheat produced is consumed in the rural areas and farmers prefer to sell to traders because of better prices and location. Econometric analysis of the survey data suggests that wheat farmers respond significantly to crop and input prices. The estimated own-price supply elasticity is 0.3, implying that the use of price policy alone to pursue wheat self-sufficiency would be costly and ill-advised. ; Non-PR ; IFPRI1 ; MSSD; MTID
Many developing countries are in transition from a state-dominated to a more market-oriented economy. Because agriculture is of primary importance in most developing countries,the state is usually heavily involved in both input and output markets and in controlling prices and trade. However, concerns that market liberalization will result in higher consumer food prices and hurt the poor means that many countries, such as Egypt, have, at best, undertaken only partial agricultural sector reforms. It has been argued that such concerns are unwarranted and that further market liberalization is not only needed, but achievable without increasing impoverishment. IFPRI Research Report 115 sheds light on these critical issues through an analysis of wheat policy reform in Egypt. ; PR ; IFPRI1 ; TMD
The long-term reduction of hunger and poverty in Sub-Saharan Africa remains one of the great challenges for the international development community. Eliminating hunger and promoting widespread growth in the region inevitably involves agriculture, given its central role in the region's economies. Over the past 20 years, most African governments have carried out reforms to deregulate agricultural markets and reduce the role of state enterprises. How much has the state actually withdrawn from agricultural markets? Have well-functioning private markets emerged? How successful were these reforms in boosting agricultural production, economic growth, and the incomes of the rural poor? What lessons can we learn from the reform process? The authors of this book address these questions through an analysis based on an extensive review of experiences with reform, focusing on three major agricultural markets: fertilizer, food crops, and export crops. They examine the historical rationales for intervention, the factors contributing to reform, the process of implementation, and the impact of the reforms on farmers and consumers in Sub-Saharan Africa. The authors find that reforms have had many favorable results, but that the impact has been muted by partial implementation and structural constraints. They propose a new agenda for promoting the development of agricultural markets in Sub-Saharan Africa, identifying areas where governments can play a supportive role. They argue that appropriate agricultural marketing policies and investments can improve livelihoods and the economic health of the region. -- From 'About this Book'" ; PR ; IFPRI1 ; MSSD
During the past two decades, most countries in Sub-Saharan Africa undertook extensive economic reforms to reduce the role of the government and increase the role of the market in their economies. Because of the importance of the agricultural sector in the region, agricultural market reforms occupied a central place in these liberalization efforts. Agricultural reforms included the removal of price controls, deregulation of agricultural marketing, closure of state-owned enterprises that monopolized agricultural trade, and changes in the foreign exchange market to provide greater incentives for exports. The expectation was that improving price incentives for farmers and reducing government intervention in the agricultural sector would be enough to generate a supply response and allow well-functioning markets to emerge quickly. Almost two decades later, the general consensus is that the reform programs in Sub-Saharan Africa have not met expectations. At the beginning of the 21st century, Sub-Saharan Africa confronts a number of daunting problems: extensive hunger, malnutrition, poverty, resource degradation, and the spread of AIDS. Because the majority of the region's population remains dependent on agriculture for its livelihood, well-functioning and efficient agricultural markets continue to be key to improving Sub-Saharan Africa's economic health. This report reviews the extensive evidence on agricultural market reforms in Sub-Saharan Africa and summarizes the impact reforms have had on market performance, agricultural production, use of modern inputs,and poverty. The report offers eight recommmendations for completing the reform process and developing a new agenda for agricultural markets in Sub-Saharan Africa. ; Non-PR ; IFPRI1 ; FCND
This article reviews the extensive evidence on agricultural market reforms in Sub-Saharan Africa and summarises the impact reforms have had on market performance, agricultural production, use of modem inputs, and poverty. It offers eight recommendations for completing the reform process and developing a new agenda for agricultural markets in Sub-Saharan Africa. The reform experience in Sub-Saharan Africa has varied widely across countries and crop subsectors. The available evidence shows clear progress in some areas and mixed results in others. Most reforms were only partially implemented and policy reversal was common. Once implemented, however, reforms have increased competition and reduced marketing margins, benefiting both producers and consumers. Reforms have also boosted export crop production. On the other hand, food crop production has stagnated and yields have not improved. Further expansion of private trade is constrained by lack of access to credit, uncertainty about the government's commitment to reform, and high transaction costs. ; IFPRI3 ; MSSD ; Non-PR