Agricultural markets in Africa - PowerPoint PPT Presentation

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Agricultural markets in Africa

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  1. Governments & Agricultural Markets In Africa Development Economics Article Presentation Leo Burger 137248672

  2. Government Market Intervention • African Governments (AG) intervention • Intervention promotes inefficiency • Food crops & Cash (Export) Crops • Sale Export crops: State-controlled marketing channels • State owned body: Marketing Board (MB)

  3. Stabilization becomes Taxation • Revenue MB of AG’s: Used for Price Stabilization • However committing money to farmers benefits short-lived • Over born ambitions for development • Commitment diversion > non-agricultural sectors • Stabilization becomes Taxation

  4. Interveningcontinues • AG’s intervene in Food crop market • Price controls • Projects: constant focus on increasing food production • Non-bureaucratic intervention: -> Domestic currency overvaluation

  5. DevelopmentEconomics • Rejection of Development Economics Approach to Governmental behavior • Pressure on decision making: Domestic forces • Low in international hierarchy • Governments not just act in public interest

  6. Why? • Low-prices, inefficient policies, etc. • Better policies available • E.g.: Offer higher prices for food, invest resources more appropriately • It raises a Question: Why continue? • Will for rapid industrialization? • Pluralist theory? • Low priced food: Ease relations with urban constituents

  7. Retaining power • Pluralist explanation incomplete • Another approach needed • Organizing Rural constituency • Disorganizing Rural Opposition • Markets: Instruments of Political Organization

  8. The End