Agricultural input and output: Marketing reforms in African countries

AGRICULTURAL INPUT AND OUTPUT:MLARKETINGREFORMSINAFRICAN COUNTRIESFinaiProjectSummaryOusmanc BadiancResearch FellowMarkels aud Slructural Studies DivisionInternational Food Policy Research lnsLitule(IFPRT)1200 17th Strect, N WWashington, DC(202) 862-5600July 1997Research F'unded byrthe Bundesministerium fir Wirschalliche Zusatrimenarbeit (BMZ.)under Projcct No. J4.7860.3-01.100, Contract No. 1-60133513 CONTENTS1. PROJECT SUMMARY2. ANALYTJCAI SUMMARYPROJECT CHARACTTRIZ.ATIONPROJFCT BACKGROUND AND RESEARCH OUTPUTSGENFRAE. CONCLUSIONSVALIDATION OF RFSUI.TS3. SCEENTIFIC SLMMARYTHE NATURE OF POLICY REFORMS AND THE EMERGING PRIVATESECTOR IN THE STUDY COUNTRIESRESPONSE BY PRTVATE TRADERS AND PFRFORMANCE IN THEMARKETING SECTORPRELIMINARY FINDINGS ON THE AD.USTMENT PROCTSS N THFFARMING SECIOR TABLESTable 1.1--Work prngram, status of projcct activities according to thewurk plan, July 1997T'ablc 2.1--Project characleri/alionii I. PROJECT SUMMARYAgricultural Input and Output Markcting Rcforms in African CountriesTicncAfrican Market RefornsObjecriwe of Rexecarchi) lo raisc thc understanding of thc conditions for thc successful reform ofagricullural inpul and output markets in African countries and i) lo identify stralcgics tocompletc the transilion lu compelilivc and cfficicnt output distribution and input deliverysystems. Througl thc survey of thc cxperiences of selected countries, it wax expecled uhclp untlersLand the types, extent, and seriousness ol ohstaclts to markct rcforminplemcntation, Given its short tcm charactcr, tlic projcct did not look in-depth into theirnplications of reforms at the farm honsehold level, but laid the grouind work lir a liurtherinvestigation of thcsc issucs by IFPRI's wider progran on input and output markctreforns.Many African countrics havc initiated programs to reform their agriculturalInarketing systems. Years afler their inception, Lhe prngress aiccomplished by rcformprograms has bcen in mauy cascs much less than anticipated. The privatc sector is veryslow in filling the gap created by the dismantling or dowit-scaling ul'publiu marketingparastatals. This has leff markcting systcms in many rcforming countries in a transitorysiluation charactcrizcd by paralyzed parastatals and a constrained private seclor, with allthc cgative cansequericen fior (he perutipns of lvual markets. Agauins, this background,the presenl projcct sccks i) to raise the understanding of thc conditions for thc successfualreform of agricultural input and oulput markets in African courries and i) Lo idenlilystrategies to cormplele lhe transition to compctitivc and cfficicnt output distribution andinput delivery systems.Mfode of CooperationKnowledge transler tbrough joint collaborativc research and cxchangc of advancedualytical tccluiqucs. 2IARC: ProgramMulti-Country Program I (Input Market Relorins) and Multi-Country IP'rograrn 1I(Output Market Reforms), Markcets and Structural Studies Division, IFPRIJARC Project CoordinatorDr, Ousttane BadiancCrolahrrting stitutiorayBio Goure Sole, Laboratiorc d'Analyse Regionalc ct d'Expcrtise Saciale, Cotonou.BcninEaword O. Asantc, Ghana Institule of Management and Public Adminstraltion,Accra, hanaClauce Roubrianarisoa, Centre National dc la Recherche Appliquce auDcvcloppcmcnt Rurai, Aratananarivo, MadagascarDavies H. Ng'ong'oia, Bunda College of' Agriculturc, Univenity of Malawi.T.ilongwe, MalawiMatar Gave, Institut Sencgalais de Recherches Agricolc, Dakar, SenegalAfathiay won Oppen and Parrick: Kormawa, Institut fiur Agrar- undSozialokonomie in ders Tropen und Subtropen, Uriversitat Hohenhierm, Slutgart,GermanyProfect ScientistsOusmaule Badiane, Research Fellow, IFPRTFrancesuo Gulctti. Reseajch Fellow, IFPRIMylenc Kheraltah, Research Fellow, IF PRIProject DurationJuly 1, 1995 - July 31, 1997Budget SummaryTotal Budget:I'SS552,052Share ol'African Institutions:USS262,080Sharc of University oJ'Hohenlien:Uss 88,195Share of1FPRI:USS201.776 rnJuly 31, 1997 (Final Runort)Tablc 1.1-- Work prigram, slatus of project activities according to the work plan, July1997Wurk plan for currenl reporling periodWrk program: outputs-**IAJan 01 - Dcc 31, 1997activilies*Final country repxirlsa) Documentation of'the reforitl prcess incach study countryFinal prnject reporta) Comparative analysis of reform outcomes inche study countries II. ANALYTICAL SUMMARYPROIFCT CHARACTERIZATIONIn Lerns of iLs rescarch activitiesi and relative lo lhe CGTAR agrced researchagenda, this projoet is to be locatexil undcr the arca of Strategic Policy and Socio-cconomic Research. The natuc of the research undertaken under lhc projcct is 100percent applied. The prusject's research urienlalion, however. is strategic in the sense Lhalit addrcsscs lsnig-teim growth issucs as tlicy relate to the development of local inpul andoulput markcts, The project also included nor-research autivitius, that wcrc strictlydefined, but wlich ars an essential purl of its contribution. These activities relate odissemination.Table 2.1--Prujecl char