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Cotton Sector Strategies in West and Central Africa
Cotton production in West and Central Africa (WCA) has contributed to growth and poverty reduction. Recently, the objective of poverty alleviation has been adversely impacted by the downward pressures on world prices (exacerbated by subsidies by major cotton producers outside Africa). Several countries in WCA are undergoing reforms in the cotton sector to stimulate greater market competition and raise the share of the international price going to farmers. While these efforts would help to improve rural income irrespective of the world market situation, they would be more powerful in combination with a reduction in other countries’ subsidies in this sector.
Strategies for Cotton in West and Central Africa
Based on comprehensive empirical studies, the paper identifies key reforms and defines strategies to enhance the competitiveness of cotton sectors in West and Central Africa. The report uses industrial organization principles to compare privatization options and design reforms to best implement sector reforms scheme
Cost-benefit Analysis in Education
This study presents a cost-benefit approach to education that attempts to take into account a number of considerations left aside by previous studies. It concentrates on the income effects of education and provides a framework for an economic evaluation. The data derive from private and social rates of return to investment in education, wage employment alternatives for the future, and rates of return to increasing different kinds of expenditures per pupil. While the data from the study apply to the Kenyan case only, the conceptual framework and analytical methods employed in this exercise have wider applicability; it is on these concepts and methods rather than on the particular situation in...
Commodity Prices
Primary commodities still account for the bulk of exports in many developing countries. However, real commodity prices have been declining almost continuously since the early 1980s and there is evidence of renewed weakness. The appropriate policy response to a terms of trade shock depends importantly on whether the shock is perceived to be temporary or permanent. Our results indicate that the recent weakness in commodity prices is mostly of a secular nature, stressing the need for commodity exporting countries to concentrate on export diversification and other structural policies. There is, however, scope for stabilization funds and the use of hedging strategies since the evidence also suggests commodity prices have become more volatile.
