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...ctive, is unlikely to translate into higher welfare for growers since their products will be sold at the same (worlddetermined) price regardless of whether they are exported or consumed domesticallys(=-=Baffes 2006-=-). In a similar context, You and Chamberlin (2004) simulated the effects ofsthree development strategies: area expansion, productivity increases, and increase in domestic consumption. They concluded, ...

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...ilway and later increased with the completion of the Busoga railway that connected the LakesKyoga region with Kampala and substantially reduced the cost of transporting goods fromsKampala to Mombasa (=-=Carr 1982-=-). 3sCotton production received a further boost followingsthe introduction of a poll tax by the colonial government, which served the dual purpose ofscollecting revenue and supplying raw material to t...

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...rowers began receiving payments promptly while entrepreneurial activity increased enormously following the entrance of many private entities atsall levels of primary processing, marketing, and trade (=-=Baffes 2001-=-).sDespite these achievements there is a sense that the sector lags behind its full potential.sThis is a legitimate concern, especially considering that recent production levels are lesssthan a third ...

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... Agricultural Development (USD $12.5 million).sUnder the program GoU redefined its role, taking on new responsibilities—especially during the transitional phase—while shedding other activities (World =-=Bank 1994-=-).sPrior to the reforms the cooperatives were saddled with debt. Theoretical ginning capacityswas much higher level than actual capacity as dilapidated ginneries required infusions ofsnew capital. Mor...

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...nt that investment lending in the absence of a proper policy environmentswas ineffective. To that end, GoU engaged in full liberalization of the economy that included a complete trade reform package (=-=Collier 1997-=-). The reforms in the cotton sectorswere supported by a USD $26.5 million lending operation, co-financed by IDA (USD $14smillion) and the International Fund for Agricultural Development (USD $12.5 mil...

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...nsistent with world prices and, second, be updated frequently.sIn view of the desirability of indicative prices, there have been discussions in favor of instituting a stabilization fund. For example, =-=Coulter and Laker-Ojok 2005-=- (p. 49) recommended the creation of an industry-managed stabilization fund, to be supported by leviesson cotton sales. However, stabilization funds are likely to face difficulties, especially insview...

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...y‖ (SCOPE 2005, p. 9); ―raising the quality of cotton lint‖s(Coulter and Laker-Ojok 2005, p. 2); ―there has been a decline in Uganda premium, of around US cents 7 per lb., over theslast three years‖ (=-=FOODNET 2002-=-, p. 63); ―Maintenance of quality control program that ensures quality‖ (COMPETEs2001, p. 8).s10sNote that this quality premium applies to comparable types of cotton, representing about half of Uganda...

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...ability analysis carried out for the 1994-97 period concluded that hand-hoe cotton without spray (along withsfour other commodities) were not competitive—arabica coffee was the most competitivescrop (=-=Rosetti 1998-=-, p. 39). More recently Duygan (2006), based on the 1999/2000 NationalsHousehold Survey data, concluded that a 20 percent increase in production of coffee, cotton, fish, and tourism would lead to a 0....

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...luctuations in the world market prices [is a challenge]‖ (Sabunes2005, p. 14); ―The [cotton] industry would benefit from programs aimed at addressing theslow level of domestic consumption of cotton‖ (=-=SCOPE 2005-=-, p. 16); ―The most visiblesway forward is to increase productivity in cotton production, value addition to cotton, andsto increase its consumption in the domestic market‖ (Rudaheranwa 2005).11 As arg...

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...tation Project whose chief objectives were to increase marketing efficiency and assist GoU to implement marketing reforms and formulate sector developmentsstrategies for all major export crops (World =-=Bank 1983-=-). Another lending operation (USDs$13.9 million) that began in 1984, the Ginnery Rehabilitation Project which was cofinanced by IDA and the Africa Development Bank, involved rehabilitation of 12 ginne...

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... established a GinningsTraining School in 1998 with the aim of training ginnery technicians. As a result, ―thesquality of ginning had improved, thus contributing to the high quality of Ugandan lint‖s(=-=Sabune 2005-=-, p. 13).s13sFigure 6:sUganda's Premium over the A Index (percent)sSource: Cotton Outlook (Uganda quotations were not made during the missing months)sAnother recommendation has been the expansion of d...