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The Cotton Sector Of Tanzania Africa Region Working Paper Series No. 127 (2009)
BibTeX
@MISC{09thecotton,
author = {},
title = {The Cotton Sector Of Tanzania Africa Region Working Paper Series No. 127},
year = {2009}
}
OpenURL
Abstract
T his country study is a background paper prepared for the comparative analysis of organization and performance of cotton sectors in Sub-Saharan Africa, a study carried out by the World Bank, with the objective of analyzing the links between sector structure and observed performance outcomes and drawing lessons from reform experience, in order to provide useful guidance to policy-makers, other local stakeholders, and interested donor agencies. It describes and reviews the cotton sector situation in Tanzania, where, after years of uneven growth, production of seed cotton reached record levels in 2004 and 2005. Importantly for wider policy debates, the Tanzanian cotton sector, unlike many others in sub-Saharan Africa, operates in a highly competitive market structure. With high local taxes and transport costs, the sector nevertheless pays reasonably attractive prices to producers. However, the competitive market structure has also presented significant challenges, especially in relation to seed supply, quality control and seasonal credit. Following liberalization in 1994, the state largely withdrew from the cotton sector in Tanzania. However, when production fell sharply in the latter part of the decade, the state, in the form of the Tanzania Cotton Board, renewed its engagement in the affairs of the sector. Cooperation between a group of leading ginners and TCB has been central to the process of devising new institutional arrangements for the sector that facilitate coordination for seed multiplication and input supply (amongst other things) in a context of the highly competitive market for seed cotton. As long as the sector retains this highly competitive structure, there will be a vital role for TCB in ensuring that important strategic decisions are taken to promote sector development. Tanzania thus represents an interesting study in public-private collaboration and sector governance. It also represents an important test case of whether a competitive market model can be made to work for African cotton.
Keyphrases
cotton sector seed cotton sub-saharan africa competitive market structure competitive market model competitive market african cotton seed supply seasonal credit quality control cotton sector situation sector development seed multiplication input supply tanzania cotton board useful guidance significant challenge facilitate coordination reform experience vital role interesting study important test case latter part comparative analysis local stakeholder many others important strategic decision new institutional arrangement observed performance outcome high local tax background paper transport cost sector structure record level world bank interested donor agency public-private collaboration uneven growth tanzanian cotton sector competitive structure attractive price sector governance country study wider policy debate