The "Cotton Problem"
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Oxford University Press on behalf of the World Bank
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Cotton is an important cash crop in many
developing economies, supporting the livelihoods of millions
of poor households. In some countries it contributes as much
as 40 percent of merchandise exports and more than 5 percent
of gross domestic product (GDP). The global cotton market,
however, has been subject to numerous policy interventions,
to the detriment of nonsubsidized producers. This
examination of the global cotton market and trade policies
reaches four main conclusions. First, rich cotton-producing
countries should stop supporting their cotton sectors; as an
interim step, transfers to the cotton sector should be fully
decoupled from current production decisions. Second, many
cotton-producing (and often cotton-dependent) developing
economies need to complete their unfinished reform agenda.
Third, new technologies, especially genetically modified
seed varieties, should be embraced by developing economies;
this will entail extensive research to identify varieties
appropriate to local growing conditions and the
establishment of the proper legislative and regulatory
framework. Finally, cotton promotion is needed to reverse or
at least arrest cotton s decline as a share of total fiber consumption.
Palabras clave
ACREAGE, ADVERSE EFFECTS, ADVERTISING, AGREEMENT ON AGRICULTURE, AGRICULTURAL BIOTECHNOLOGY, AGRICULTURAL DEVELOPMENT, AGRICULTURAL ECONOMICS, AGRICULTURAL MARKETS, AGRICULTURAL POLICIES, AGRICULTURAL POLICY, AGRICULTURAL POLICY RESEARCH INSTITUTE, AGRICULTURAL PRICING, AGRICULTURAL REFORM, AGRICULTURAL RESEARCH, AGRICULTURAL TRADE, AGRICULTURE, AGRICULTURE ORGANIZATION, AGRICULTURE POLICY, BANKRUPTCY, BARTER, BASE YEAR, BORDER MEASURES, BORDER PRICES, BRAND, CAPITA CONSUMPTION, CENTRAL PLANNING, CHEMICAL FERTILIZERS, CLOTHING, CLOTHING INDUSTRY, COCOA, COFFEE, COFFEE PRICES, COMMERCIAL ENTERPRISES, COMMODITIES, COMMODITY, COMMODITY CREDIT CORPORATION, COMMODITY MARKETING, COMMODITY PRICE, COMMODITY PRICES, COMMODITY PROGRAMS, COMPARATIVE ADVANTAGE, COMPETITIVENESS, CONSUMER AWARENESS, CONSUMERS, COOPERATIVES, CORN, COTTON, COTTON GROWING, COTTON INDUSTRY, COTTON MARKETING, COTTON PRICE, COTTON PRICES, COTTON PRODUCTION, COTTON SECTOR, CROP, CROP INSURANCE, DAMAGES, DEBT, DEFICIENCY PAYMENTS, DEMAND GROWTH, DEVELOPMENT POLICY, DIRECT PAYMENTS, DOMESTIC MARKETS, DRYING, ECONOMIC OBJECTIVES, ECONOMIC RELATIONS, ECONOMIC SYSTEMS, ECONOMICS RESEARCH, EXPENDITURE, EXPENDITURES, EXPORT, EXPORT CREDIT, EXPORT SUBSIDIES, EXPORTS, EXTENSION SERVICES, FAO, FARM, FARM INCOME, FARM INPUTS, FARM SERVICE AGENCY, FARMERS, FARMING, FERTILIZER, FERTILIZERS, FIBER, FIBERS, FIBRES, FIBRES TEXTILES, FIELD TRIALS, FINANCIAL CRISIS, FUTURES CONTRACTS, GDP, GENETIC MATERIAL, GINNERIES, GROSS DOMESTIC PRODUCT, GROWTH RATE, HOUSEHOLDS, IMPORT QUOTA, IMPORT TARIFF, IMPORT TARIFFS, IMPORTS, INCIDENCE OF POVERTY, INDUSTRIALIZATION, INNOVATION, INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE, INTERNATIONAL TRADE, INVENTORIES, JUTE, LIQUIDITY, MAIZE, MARKET CONDITIONS, MARKET DISTORTIONS, MARKET FORCES, MARKET INNOVATION, MARKET LIBERALIZATION, MARKET MECHANISMS, MARKET NICHE, MARKET PRICE, MARKET REFORM, MARKET REFORMS, MARKET SHARE, MARKET SYSTEMS, MARKETING COOPERATIVES, MARKETING LOAN, MERCHANDISE, MERCHANDISE EXPORTS, MILLS, MINIMUM PRICE, MONOPOLY, MULTILATERAL TRADE, NATURAL RESOURCES, OLIGOPOLY, OLIVE OIL, PER CAPITA INCOME, PEST POPULATIONS, PESTICIDE, PLANTING, POLITICAL ECONOMY, POLYESTER, POOR HOUSEHOLDS, PREMIUM, PRICE CHANGES, PRICE INDEX, PRICE INDICES, PRICE PROSPECTS, PRICE SETTING, PRICE STABILIZATION, PRICE SUPPORT, PRICE SUPPORTS, PRICE TRENDS, PRICE VOLATILITY, PRICING POLICY, PRODUCE, PRODUCER GROUPS, PRODUCER ORGANIZATIONS, PRODUCER PRICES, PRODUCTION COSTS, PRODUCTION SYSTEM, PURCHASING, QUALITY STANDARD, REGULATORY FRAMEWORK, SALES, SEED, SEED COMPANIES, SEED TECHNOLOGY, SEED VARIETIES, SEEDS, SISAL, SMALL GROWERS, SPOT PRICES, SPRING, STOCKS, SUGAR, SUPPLIERS, SURPLUS, SYNTHETIC FIBERS, SYNTHETICS, TARGET PRICE, TARIFF RATE, TARIFF RATES, TARIFF-RATE QUOTAS, TAXATION, TEA, TEXTILE, TEXTILE INDUSTRIES, TEXTILE INDUSTRY, TEXTILE MILLS, TEXTILE PRODUCTS, TOBACCO, TRADE BARRIERS, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADE POLICIES, TRADE POLICY, TRADE REPRESENTATIVE, TRANSACTION, TRANSITION ECONOMIES, WEEDS, WHEAT, WORLD MARKET, WORLD MARKET PRICE, WORLD MARKETS, WORLD PRICE, WORLD PRICES, WORLD TRADE ORGANIZATION, WTO, YIELDS