Agriculture and Economic Reform in African Socialist Economies

Abstract

This chapter examines the experience of macroeconomic and sectoral reforms for agriculture in the AfSEs. The remainder of this section examines the main features contributing to the agrarian crisis which has been typical of the study countries, and sets up a framework to identify the main channels through which adjustment policy measures affect producers, and outlines the chief characteristics and objectives of reform programmes. Section 2 reviews the generally disappointing performance of agricultural production both before and during the period of reform. Section 3 identifies three stages of supply response to reforms, and notes that while the large distortions arising from macroeconomic and pricing policy suggest scope for improving incentives, marketing reform and the strengthening of agricultural institutions are required for these to be realised, while the external price environment, especially for coffee, has been strongly unfavourable over the reform period. Section 4 describes the record of reform implementation and notes that while food marketing reform has been one of the strongest areas of implementation, it has often occurred in a poorly planned way. Export marketing reform has been much slower, while progress with some other major institutional reforms has been very limited. As a result of this, both the impact on incentives of reforms, and the capacity of producers to respond, has been limited. However, reform implementation (and especially food market reform) has had a generally positive effect on the poor in the study countries. The conclusion examines the reasons for weak supply response, and focuses on the political conditions for reform.

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