Regulatory uncertainty and government objectives for the organization and performance of cereal markets : the case of Senegal

Thus concludes this study, based on surveys conducted from 1983 to 1985, on the organization and performance of the cereal market in Senegal"s Groundnut Basin. The survey, which placed particular emphasis on the relation between regulation on the one hand and private sector activities, costs, and markups on the other, showed that the private sector plays an important role in reaching government objectives by creating commercial outlets for producers, supplying consumers, and limiting the cost of government intervention. However, the private sector"s contribution has most often developed in spite of, rather than as a result of, government regulation. The report cites the following obstacles faced by the private sector: (1) regulatory uncertainty and resultant government corruption; (2) high official prices, which discourage supplies to areas with shortages; and (3) lack of clearly defined private and public sector roles. Appropriate roles of the public and parastatal sectors, cooperatives, and private merchants in the Senegalese cereal market are discussed, followed by recommendations for food and agricultural policy research.