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By Laura T. Raynolds Presented by Jessica Hendrix

Restructuring the Third World Agro-Exports: Changing Production Relations in the Dominican Republic. By Laura T. Raynolds Presented by Jessica Hendrix.

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By Laura T. Raynolds Presented by Jessica Hendrix

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  1. Restructuring the Third World Agro-Exports:Changing Production Relations in the Dominican Republic By Laura T. Raynolds Presented by Jessica Hendrix

  2. The importance of 3rdworld governments’ involvement in restructuring the local economy to accommodate the changing world economic and political conditions

  3. Expansion of Nontraditional Agriculture • 1970s • The active breakdown of traditional colonial based export system • Caused by politics and the strong backing of international institutions

  4. Sanderson • The new division of labor in the 3rd world agriculture export sectors were transformed, not eliminated • Improved transportation, preservation and communication systems • Made geographic separation of production and markets possible • Other reasons • Debt crisis • TNCs • State governments

  5. Dominican Republic • Traditionally very colonial • Produced low value, undifferentiated, agriculture exports • Sugar, coffee, cocoa, tobacco • 1980s severe decrease in these exports

  6. Sugar Decrease • Decreased world demand • Health concerns • Corn substitute • Increased 1st World protection policies to protect domestic producers • Decreased world sugar prices • Excess production • Increased world competition • Unlikely could ever resume production in the DR

  7. DR Nontraditional Agriculture • All agriculture exports except coffee, tobacco, cocoa, and sugar • All agro-industrial commodities • Domestic or foreign markets • Includes bananas, oranges, and yucca

  8. Global and Domestic Forces in the DR • International debt crisis • Increased protectionism • Increased influence of TNCs, bilateral donors, and major trading partners over policies • Decreased US sugar quotas

  9. Policies and Initiatives • Caribbean Basin Initiative • Debt strategies • Export Promotion Law • Agro-Industrial Law

  10. Success • In the DR from 1979-1986 export earnings of nontraditional agriculture exports increased from $58 million to $103 million.

  11. Failure • Stagnated growth after 1986 • Fresh agriculture export decreased from $45 million to $34 million • State unable to guarantee conditions for accumulation in the sector • Economic chaos • Stop paying incentives

  12. Agriculture Export Commodities Systems • Out-growers system • Oriental vegetables • Showed that small growers do not understand and are unable to meet international restrictions • Often concerned with short term profits, not sustainability

  13. Plantation System • Workers hired to work on company managed farms • In the DR companies use state land • Pineapples • Corporations able to have diverse locations so they can move easily • Force countries to negotiate for lowest price

  14. Conclusion • The instability of the firms leads to instability in the sector • The importance of the state should not be overlooked • 3rd world states are responsible for securing a place in the international market • Must have the social and economic conditions to do so

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