Organization and Performance of Cotton Sectors in Africa ... - infoDev

farmers, and balanced involvement of the government. The hypothesis isthat firms are motivated to collaborate by both fear of loss and desire for gain,but that fear of loss may be the strongest motivator. 54 If this hypothesis is thecase, concentrated market-based systems, which provide the prospect of lossthrough competition, may provide better incentives for effective regulatoryapproaches. This expectation is conditioned by two factors. First, a history ofcollaborative decision making matters. Second, strong farmer organizationscan impose losses on ginners under local monopolies by boycotting or otherwiseconfronting behavior to which they object. In both situations, countriesin WCA are in a better position to achieve effective collaborative regulationunder local monopoly set-ups than are countries in ESA.INPUT CREDIT AND EXTENSION 85