Economics, Politics, and Ethics of Primary Commodity Development: How Can Poor Countries in Africa Benefit the Most?
February 1, 1994
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Summary
The critical role of agricultural commodities in the growth of low-income countries is examined. A combination of factors has resulted in declining agricultural prices, necessitating further increasing volumes by developing countries to maintain export earnings. But low growth in factor productivity in Africa compared to competitors caused declining export shares in African countries. A broad-based smallholder strategy based on producing commodities in which a country enjoys comparative advantage needs to be supported by productivity enhancing innovations in food and export commodities, a stable price environment, availability of infrastructure and access to credit. Such an environment requires partnership between government and private agents.
Subject: Agricultural commodities, Agricultural exports, Agricultural sector, Commodities, Economic sectors, Exports, International trade
Keywords: Africa, Agricultural commodities, Agricultural exports, Agricultural sector, Asia and Pacific, balance of payments, commodity option, commodity price, commodity producer, export commodity, Exports, maize price ratio, price distortion, price stabilization policy, price variability, price variability result, private sector, productivity gain, public goods, terms of trade, variability result, WP
Pages:
36
Volume:
1994
DOI:
Issue:
023
Series:
Working Paper No. 1994/023
Stock No:
WPIEA0231994
ISBN:
9781451921083
ISSN:
1018-5941
