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Political Economy of Agricultural Trade Interventions in Africa

Author

Listed:
  • Bates, Robert H.
  • Block, Steven A.
Abstract
This paper uses new data on agricultural policy interventions to examine the political economy of agricultural trade policies in Sub-Saharan Africa. Historically, African governments have discriminated against agricultural producers in general (relative to producers in non-agricultural sectors), and against producers of export agriculture in particular. While more moderate in recent years, these patterns of discrimination persist. They do so even though farmers comprise a political majority. Rather than claiming the existence of a single best approach to the analysis of policy choice, we explore the impact of three factors: institutions, regional inequality, and tax revenuegeneration. We find that agricultural taxation increases with the rural population share in the absence of electoral party competition; yet, the existence of party competition turns the lobbying disadvantage of the rural majority into political advantage. We also find that privileged cash crop regions are particular targets for redistributive taxation, unless the country's president comes from that region. In addition, governments of resource-rich countries, while continuing to tax export producers, reduce their taxation of food consumers.

Suggested Citation

  • Bates, Robert H. & Block, Steven A., 2009. "Political Economy of Agricultural Trade Interventions in Africa," Agricultural Distortions Working Paper Series 50302, World Bank.
  • Handle: RePEc:ags:wbadwp:50302
    DOI: 10.22004/ag.econ.50302
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    File URL: https://ageconsearch.umn.edu/record/50302/files/Bates_Block_87rev.pdf
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    References listed on IDEAS

    as
    1. Ndulu,Benno J. & O'Connell,Stephen A. & Bates,Robert H. & Collier,Paul & Soludo,Chukwuma C., 2009. "The Political Economy of Economic Growth in Africa, 1960–2000," Cambridge Books, Cambridge University Press, number 9780521127752, September.
    2. Anderson, Kym, 1995. "Lobbying Incentives and the Pattern of Protection in Rich and Poor Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 43(2), pages 401-423, January.
    3. Chenery, Hollis & Taylor, Lance, 1968. "Development Patterns: Among Countries And Over Time," Center for International Affairs (CIA) Archive 294545, Harvard University, Center for International Affairs.
    4. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications - Books, The World Bank Group, number 2611.
    5. Robert Bates & William Rogerson, 1980. "Agriculture in development: A coalitional analysis," Public Choice, Springer, vol. 35(5), pages 513-527, January.
    6. Kym Anderson & William A. Masters, 2009. "Distortions to Agricultural Incentives in Africa," World Bank Publications - Books, The World Bank Group, number 2607.
    7. Anderson, Kym & Kurzweil, Marianne & Martin, Will & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Measuring distortions to agricultural incentives, revisited," World Trade Review, Cambridge University Press, vol. 7(4), pages 675-704, October.
    8. Beck, Thorsten & Clarke, George & Groff, Alberto & Keefer, Philip & Walsh, Patrick, 2000. "New tools and new tests in comparative political economy - the database of political institutions," Policy Research Working Paper Series 2283, The World Bank.
    9. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    10. Valenzuela, Ernesto & Wong, Sara & Sandri, Damiano, 2007. "Distortions to Agricultural Incentives in Ecuador," Agricultural Distortions Working Paper Series 48394, World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Delpeuch, Claire & Vandeplas, Anneleen, 2013. "Revisiting the “Cotton Problem”—A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa," World Development, Elsevier, vol. 42(C), pages 209-221.
    2. repec:lic:licosd:29011 is not listed on IDEAS
    3. Delpeuch, Claire & Leblois, Antoine, 2014. "The Elusive Quest for Supply Response to Cash-Crop Market Reforms in Sub-Saharan Africa: The Case of Cotton," World Development, Elsevier, vol. 64(C), pages 521-537.
    4. Hvid Anna, 2015. "Increasing Natural Resource Rents from Farmland: A Curse or a Blessing for the Rural Poor?," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 21(1), pages 59-78, January.
    5. Kaplan, Lennart, 2021. ""Reversed favoritism" - Resolving the puzzle of discriminatory taxation in African agriculture," University of Göttingen Working Papers in Economics 416, University of Goettingen, Department of Economics.
    6. Schulz, Nicolai, 2020. "The politics of export restrictions: A panel data analysis of African commodity processing industries," World Development, Elsevier, vol. 130(C).
    7. Jan Fałkowski & Alessandro Olper, 2014. "Political competition and policy choices: the evidence from agricultural protection," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 143-158, March.
    8. Colin Poulton, 2014. "Democratisation and the Political Incentives for Agricultural Policy in Africa," Development Policy Review, Overseas Development Institute, vol. 32(s2), pages 101-122, September.
    9. Delpeuch, Claire, 2011. "African cotton markets at crossroads : will the price spike turn into a new kick-start ?," Policy Research Working Paper Series 5847, The World Bank.
    10. Colin Poulton & Karuti Kanyinga, 2014. "The Politics of Revitalising Agriculture in Kenya," Development Policy Review, Overseas Development Institute, vol. 32(s2), pages 151-172, September.
    11. Federico Tadei, 2014. "Extractive Institutions and Gains From Trade: Evidence from Colonial Africa," Working Papers 536, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    12. Hvid, Anna Kirstine & Henningsen, Geraldine Adrienne, 2014. "A new scramble for land or an unprecedented opportunity for the rural poor? Distributional consequences of increasing land rents in developing countries," MPRA Paper 52919, University Library of Munich, Germany.

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    Keywords

    Agricultural and Food Policy; International Relations/Trade;

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