Agricultural markets and economic development in Africa : final report

This report uses the "perfect competition" market model to analyze the constraints imposed on agricultural markets in sub-Saharan Africa. These constraints include: the region"s poor resource base and weather variability; price risk in residual markets; shortages of productivity-boosting technology; inadequate transport and communication infrastructure; low household purchasing power; direct government market intervention; poor macro and sectoral economic management; political instability; and changes in the trading position of Africa in world markets. These constraints, it is argued, cannot be overcome by reform at the market level alone. A more comprehensive, six-step reform process is suggested. (1) Undertake broad appraisals of government macroeconomic policy. (2) Assess the agricultural sector in detail and rank its problems. (3) Develop a working consensus among key political decisionmakers, policy analysts, market participants, and donor representatives on a ranking of problems to be addressed. (4) Conduct rapid market appraisals which consider both the political and economic consequences of market reform. (5) Select a priority market for reform. (6) Establish a collaborative reform agenda which specifies and schedules the actions to be implemented. Recomendations for A.I.D. participation in the reform process are included.