Agricultural diversification and export promotion in sub-Saharan Africa
1995
Delgado, C.L.
Declines in world commodity prices have emphasized the need in Africa for diversification away from a few agricultural exports. Market reforms are not enough. High transfer costs and imperfect factor markets imply that many consumer goods, frequently including food staples, are non-tradables, raising the possibility of major demand constraints in agriculture. Commodity-specific, zone-specific, and sequenced production and marketing policies are necessary to speed supply response of agricultural exports to market reforms. Then, supply-responsiveness must be increased for non-tradable wage goods, especially in non-export-producing zones, to cope with new domestic demand created by export growth.
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