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

output markets, improving productivity through research and developmentand technology dissemination, and seeking value addition through marketdevelopment and processing of cotton lint and by-products.The pace and trajectory of cotton reform programs have varied widely fromcountry to country. Profound structural reforms were initiated in the early tomid-1990s with the privatization and liberalization of the cooperative-basedsystems in Tanzania and Uganda, and the elimination of single-channel systemsin Zambia and Zimbabwe. The first two have continued to see periodic structuralreforms as they had to deal with the problem of input credit provision tosmallholder farmers in sectors with many ginners; Zambia and Zimbabwe haveseen less radical policy change but have struggled with the problems caused bynew entrants. Reform in WCA has been more recent and slower paced, as thesheer size of the sectors and the greater role of the state has made reforms moredifficult, from both political and practical perspectives. In several countrieswhere the reform process is less advanced, there is a common perceptionamong policy makers and many stakeholders that the experiences of reformselsewhere, especially in ESA, have resulted in unsatisfactory outcomes and/orpatterns of near-term disruption.This study was, therefore, motivated by the perceived need for a broad, empirical,analytically based assessment of reform experience across a range of African countriesthat would yield lessons and guidance to policy makers, other local stakeholders, andinterested donors agencies.The conviction that such an effort was worthwhile emerged from fourobservations:■■■■First, much of the public debate on cotton in recent years has been excessivelyfocused on particular, highly visible, and sensitive issues, such asOrganisation for Economic Co-operation and Development (OECD) andChinese subsidies to their cotton sectors. Although certainly important,such subsidies are not the prime determinants of long-term competitivenessof cotton production and trade in SSA.Second, the policy dialogue on the serious challenges facing African cottonhas often been highly polarized. In the Francophone West Africa, for example,sector stakeholders have typically focused on the need to preserve inputcredit and extension systems, while donors have focused primarily on costefficiency and long-term sustainability. In fact, it is clear that both issues areequally important and need to be considered together.Third, relatively little sustained attention has been paid to the preciseinstitutional structure that postreform sectors could take or why a particularstructure might be preferable. Yet any proposal for change mustaddress such issues if reform is to have a reasonable chance of achievingdesired goals.Finally, very little has been done to comparatively assess the differing experiencesof WCA and ESA and draw lessons across the regions.xxivEXECUTIVE SUMMARY