Political Economy of Agricultural Trade Interventions in Africa

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World Bank, Washington, DC

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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, the authors explore the impact of three factors: institutions, regional inequality, and tax revenue-generation. The authors 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. The authors 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.

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AGRICULTURAL COMMODITIES, AGRICULTURAL OUTPUT, AGRICULTURAL POLICIES, AGRICULTURAL POLICY, AGRICULTURAL PRODUCERS, AGRICULTURAL PRODUCTION, AGRICULTURAL SECTOR, AGRICULTURAL SECTORS, AGRICULTURE, ARABLE LAND, ARID NORTH, CASH CROP, CASH CROPS, CASSAVA, CITIZENS, COCOA, COCOA INDUSTRY, COFFEE INDUSTRY, COMPETITIVENESS, CONFLICT, CROP PRODUCTION, CULTURAL CHANGE, DEMOCRACY, DISCRIMINATION, DOMESTIC PRICES, ECONOMETRICS, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, EXPORTS, FARM HOUSEHOLDS, FARMERS, FOOD CONSUMERS, FOOD CROP, FOOD CROPS, FOOD PRICES, FOOD SECURITY, FOODCROPS, GDP, GDP PER CAPITA, GLOBAL MARKETS, GOVERNMENT POLICIES, GROSS NATIONAL INCOME, INCOME REDISTRIBUTION, LABOR FORCE, LEVEL OF DEVELOPMENT, MAIZE, NATIONAL GOVERNMENT, NATIONAL POPULATION, NATURAL ENDOWMENTS, NATURAL RESOURCES, NUTS, PER CAPITA INCOME, POLICY MAKERS, POLITICAL ECONOMY, POLITICAL LEADERSHIP, POLITICAL POWER, POLITICAL SUPPORT, POOR, POOR COUNTRIES, POOR REGIONS, POPULATION CHANGES, PRODUCTION FUNCTIONS, PRODUCTION OF CASH CROPS, PROGRESS, PROSPEROUS REGIONS, REAL GDP, REDISTRIBUTIVE TAXATION, REGIONAL ALLOCATION, REGIONAL DIFFERENCES, REGIONAL DISTRIBUTION, REGIONAL INCOME, REGIONAL INEQUALITY, REGIONALISM, RESPECT, RICE, RICH REGIONS, RURAL, RURAL AREAS, RURAL CONSUMERS, RURAL DWELLERS, RURAL POPULATION, RURAL POPULATIONS, RURAL SECTOR, SECTORAL POLICIES, SOCIAL WELFARE, STRUCTURAL TRANSFORMATION, SUGAR, TEA, TRADE BARRIERS, TRADE POLICIES, TRADE POLICY, TUBERS, WHEAT, YAMS

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