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

eference are limited to neighboring countries. At a time when the design ofcotton sector reform programs has become extremely complex and potentiallyrisky, stronger and broader analysis, drawing on a broader array of empiricalevidence, and reflecting strategically on potential options, would be very usefulfor policy makers. The lack of such analysis, especially of the reform optionsavailable and of their possible implications, partly explains the reluctance ofmany governments to engage in ambitious restructuring of their cotton sectors.Therefore, the main objective of this study is to provide an in-depth andcomparative analysis of the reforms that have been implemented by SSA cottonsectors since 1990, and, from there, to establish links between reforms andobservable outcomes.The state of implementation of cotton sector reforms varies widely fromcountry to country. Serious structural reform of cotton sectors in East andSouthern Africa (ESA) began in the mid-1990s. Reform in West and CentralAfrica (WCA) has been slower, for a complex set of reasons related to bothdomestic and international concerns; among the latter, the case submitted tothe World Trade Organization (WTO) by the Cotton-4 countries (Benin,Burkina Faso, Chad, and Mali) regarding market distortions caused by subsidiesin Organisation for Economic Co-operation and Development (OECD)countries has given a political dimension to the issues in the sector, and figuresprominently among the reasons for resistance to reform in some countries.Resistance is also due to the perception—genuine or not—that the impactof reforms on sector performance, and especially on small farmers, has been atbest mixed. A number of West African leaders and policy makers strongly feelthat the reforms are likely to create major social problems, and the results incountries that have implemented reforms, particularly in ESA, do not make astrong case for privatization and liberalization of the cotton sectors. Given thecomplexities of reform programs and the uncertainties and fluctuations in theworld cotton market, it is also difficult to establish clear causal links betweenstructural changes, risks faced by cotton companies after liberalization, andoutcomes at the farm and sector levels.Abundant literature has been produced in recent years on cotton policies inAfrica. However, there has been little comparative analysis of the actual outcomesof cotton sector reforms as measured by growth and poverty reduction,and the main lessons to be drawn to inform future reform processes. Also, onlylimited attempts have been made to bring together, compare, and assess reformexperiences from WCA and ESA. Bridging these knowledge gaps in an effort tobetter advise governments on cotton sector reform programs and policies providesthe fundamental rationale for this study.A number of SSA cotton sectors, especially in WCA, are currently facingserious short-term financial difficulties. It is important to clarify that the purposeof this report is not to provide quick solutions to these short-run problems.Rather, it is to step back, build up a reliable broad assessment of cottonsector performance from detailed empirical information, and thereby providexivPREFACE