Policies, Prices, and Poverty : The Sugar, Vegetable Oil, and Flour Industries in Senegal
Like many countries in Sub-Saharan Africa, Senegal has struggled to develop its industrial sector in the face of import competition. For basic food products, there is an implicit trade-off between the objectives of maintaining employment and loweri...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/06/24578636/policies-prices-poverty-sugar-vegetable-oil-flour-industries-senegal http://hdl.handle.net/10986/22159 |
| id |
okr-10986-22159 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
HARMONIZATION RETAIL PRICE MARKET STRUCTURE SUBSTITUTION RED TAPE PRICE DISTORTIONS PRICE INCREASES STOCK SALES INCOME INTEREST PRIVATIZATION EXCHANGE PRICING SCHEME CONSUMER GOODS PRICE SETTING DOMESTIC MARKET DEVELOPING COUNTRIES PRODUCER PRICES BLACK MARKET WORLD DEVELOPMENT INDICATORS MARKET SHARES DEVALUATION WORLD MARKETS PRICE MECHANISM PRICING DOMESTIC PRICE SUBSIDY MARKET FAILURE PRICE TAX GOVERNMENT INVOLVEMENT BINDING CONSTRAINTS SAVING BANKRUPTCY FREE TRADE PROVISION OF CREDIT DEVELOPING COUNTRY RETAIL FIXED RATE PUBLIC POLICY INTERNATIONAL COMPETITIVENESS COMMERCE MARKET REFORMS CURRENCY LOCAL BANKS BRANDS ECONOMIC CRISES CONTRACT ENFORCEMENT DEBTS OPPORTUNISTIC BEHAVIOR SURPLUS PRODUCTS ADMINISTERED PRICES COST OF LIVING MONOPOLY MARKET LIBERALIZATION DEBT MARKETING MARKETS TAX BREAKS COMPETITIVE MARKET PRODUCT MARKETING BOARDS INVENTORIES SUBSIDIES LIBERALIZATION MARKET PRICE TAXES FINISHED PRODUCT EXPENDITURE PRICING MECHANISM EQUITY DEREGULATION INVESTORS SURPLUSES SUBSTITUTE TAX RATE GOVERNMENT INTERVENTIONS DOMESTIC MARKETS INTERNATIONAL TRADE MARKETING BOARD VOLATILITY TRANSPARENCY BARRIERS MARKET FAILURES PRICE ADJUSTMENTS FUTURE MARKET PRICES PRICE COMPARISONS VALUE COMPETITIVENESS SHARE OF WORLD OUTPUT PRODUCER PRICE FREE MARKET PURCHASING POWER DEMAND CONSUMER PRICE INCOMES PRICE FLUCTUATIONS TAX RATES SALE SHARES MARKET TRADE DEFICITS RETAIL PRICES SMALL COUNTRY MARKET COMPETITION OUTPUT ENFORCEMENT REGIONAL INTEGRATION ECONOMIC DEVELOPMENT TRADE INTERESTS FOREIGN COMPETITION DOMESTIC PRICES MARKET SHARE BLACK MARKETS STOCKS BUSINESS CLIMATE INVESTMENT PRICE CEILINGS SHARE BANKRUPTCIES INVESTMENT CLIMATE ECONOMIC CRISIS MONOPOLIES SUPPLY PURCHASING COMPETITIVE MARKETS MARKET POWER INVESTMENTS WORLD TRADE CONSUMER PRICES INVISIBLE HAND COMMODITIES PRICE CONTROL PRICE CEILING PRIVATE SECTOR GROWTH PRICE CONTROLS COMMODITY PRICES COMMODITY WORLD MARKET SMALL ECONOMY PRICES MARKET FORCES POVERTY ALLEVIATION GOVERNMENT INTERVENTION COMPETITION |
| spellingShingle |
HARMONIZATION RETAIL PRICE MARKET STRUCTURE SUBSTITUTION RED TAPE PRICE DISTORTIONS PRICE INCREASES STOCK SALES INCOME INTEREST PRIVATIZATION EXCHANGE PRICING SCHEME CONSUMER GOODS PRICE SETTING DOMESTIC MARKET DEVELOPING COUNTRIES PRODUCER PRICES BLACK MARKET WORLD DEVELOPMENT INDICATORS MARKET SHARES DEVALUATION WORLD MARKETS PRICE MECHANISM PRICING DOMESTIC PRICE SUBSIDY MARKET FAILURE PRICE TAX GOVERNMENT INVOLVEMENT BINDING CONSTRAINTS SAVING BANKRUPTCY FREE TRADE PROVISION OF CREDIT DEVELOPING COUNTRY RETAIL FIXED RATE PUBLIC POLICY INTERNATIONAL COMPETITIVENESS COMMERCE MARKET REFORMS CURRENCY LOCAL BANKS BRANDS ECONOMIC CRISES CONTRACT ENFORCEMENT DEBTS OPPORTUNISTIC BEHAVIOR SURPLUS PRODUCTS ADMINISTERED PRICES COST OF LIVING MONOPOLY MARKET LIBERALIZATION DEBT MARKETING MARKETS TAX BREAKS COMPETITIVE MARKET PRODUCT MARKETING BOARDS INVENTORIES SUBSIDIES LIBERALIZATION MARKET PRICE TAXES FINISHED PRODUCT EXPENDITURE PRICING MECHANISM EQUITY DEREGULATION INVESTORS SURPLUSES SUBSTITUTE TAX RATE GOVERNMENT INTERVENTIONS DOMESTIC MARKETS INTERNATIONAL TRADE MARKETING BOARD VOLATILITY TRANSPARENCY BARRIERS MARKET FAILURES PRICE ADJUSTMENTS FUTURE MARKET PRICES PRICE COMPARISONS VALUE COMPETITIVENESS SHARE OF WORLD OUTPUT PRODUCER PRICE FREE MARKET PURCHASING POWER DEMAND CONSUMER PRICE INCOMES PRICE FLUCTUATIONS TAX RATES SALE SHARES MARKET TRADE DEFICITS RETAIL PRICES SMALL COUNTRY MARKET COMPETITION OUTPUT ENFORCEMENT REGIONAL INTEGRATION ECONOMIC DEVELOPMENT TRADE INTERESTS FOREIGN COMPETITION DOMESTIC PRICES MARKET SHARE BLACK MARKETS STOCKS BUSINESS CLIMATE INVESTMENT PRICE CEILINGS SHARE BANKRUPTCIES INVESTMENT CLIMATE ECONOMIC CRISIS MONOPOLIES SUPPLY PURCHASING COMPETITIVE MARKETS MARKET POWER INVESTMENTS WORLD TRADE CONSUMER PRICES INVISIBLE HAND COMMODITIES PRICE CONTROL PRICE CEILING PRIVATE SECTOR GROWTH PRICE CONTROLS COMMODITY PRICES COMMODITY WORLD MARKET SMALL ECONOMY PRICES MARKET FORCES POVERTY ALLEVIATION GOVERNMENT INTERVENTION COMPETITION Mbaye, Ahmadou Aly Golub, Stephen S. English, Philip Policies, Prices, and Poverty : The Sugar, Vegetable Oil, and Flour Industries in Senegal |
| geographic_facet |
Africa Senegal |
| relation |
Policy Research Working Paper;No. 7286 |
| description |
Like many countries in Sub-Saharan
Africa, Senegal has struggled to develop its industrial
sector in the face of import competition. For basic food
products, there is an implicit trade-off between the
objectives of maintaining employment and lowering the cost
of living, both of which figure prominently in current
government policy. Conflicting pressures have led to a
rather inconsistent policy mix of high levels of protection
with price ceilings. The products of the three industries
examined here—sugar, vegetable oil, and flour—account for
roughly 14 percent of the consumption basket of the poor, so
distortions in their prices can have a significant effect on
poverty reduction. This paper compares domestic prices in
Senegal with world prices since 2000, and then explains the
difference by examining the protection enjoyed by these
industries, along with their market structure. The analysis
finds that high protection and market power have resulted in
domestic prices which were often two or three times the
equivalent world price. Tightening of price ceilings and
some liberalization have taken place recently, but consumers
have continued to pay above world prices for sugar and
edible oil in 2014. The paper estimates that if this
differential were eliminated, the purchasing power of
households around the poverty line would increase by 3
percent, 227,000 people would move above the poverty line,
and the national poverty rate would drop by 1.9 percentage
points. The cost to consumers far exceeds the total wage
bill paid by these industries. Further liberalization of
these industries is recommended, along with phasing out
price controls and shifting government policy from
protecting traditional enterprises to the promotion of new
export-oriented ones. |
| format |
Working Paper |
| author |
Mbaye, Ahmadou Aly Golub, Stephen S. English, Philip |
| author_facet |
Mbaye, Ahmadou Aly Golub, Stephen S. English, Philip |
| author_sort |
Mbaye, Ahmadou Aly |
| title |
Policies, Prices, and Poverty : The Sugar, Vegetable Oil, and Flour Industries in Senegal |
| title_short |
Policies, Prices, and Poverty : The Sugar, Vegetable Oil, and Flour Industries in Senegal |
| title_full |
Policies, Prices, and Poverty : The Sugar, Vegetable Oil, and Flour Industries in Senegal |
| title_fullStr |
Policies, Prices, and Poverty : The Sugar, Vegetable Oil, and Flour Industries in Senegal |
| title_full_unstemmed |
Policies, Prices, and Poverty : The Sugar, Vegetable Oil, and Flour Industries in Senegal |
| title_sort |
policies, prices, and poverty : the sugar, vegetable oil, and flour industries in senegal |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/06/24578636/policies-prices-poverty-sugar-vegetable-oil-flour-industries-senegal http://hdl.handle.net/10986/22159 |
| _version_ |
1764450312501854208 |
| spelling |
okr-10986-221592021-04-23T14:04:07Z Policies, Prices, and Poverty : The Sugar, Vegetable Oil, and Flour Industries in Senegal Mbaye, Ahmadou Aly Golub, Stephen S. English, Philip HARMONIZATION RETAIL PRICE MARKET STRUCTURE SUBSTITUTION RED TAPE PRICE DISTORTIONS PRICE INCREASES STOCK SALES INCOME INTEREST PRIVATIZATION EXCHANGE PRICING SCHEME CONSUMER GOODS PRICE SETTING DOMESTIC MARKET DEVELOPING COUNTRIES PRODUCER PRICES BLACK MARKET WORLD DEVELOPMENT INDICATORS MARKET SHARES DEVALUATION WORLD MARKETS PRICE MECHANISM PRICING DOMESTIC PRICE SUBSIDY MARKET FAILURE PRICE TAX GOVERNMENT INVOLVEMENT BINDING CONSTRAINTS SAVING BANKRUPTCY FREE TRADE PROVISION OF CREDIT DEVELOPING COUNTRY RETAIL FIXED RATE PUBLIC POLICY INTERNATIONAL COMPETITIVENESS COMMERCE MARKET REFORMS CURRENCY LOCAL BANKS BRANDS ECONOMIC CRISES CONTRACT ENFORCEMENT DEBTS OPPORTUNISTIC BEHAVIOR SURPLUS PRODUCTS ADMINISTERED PRICES COST OF LIVING MONOPOLY MARKET LIBERALIZATION DEBT MARKETING MARKETS TAX BREAKS COMPETITIVE MARKET PRODUCT MARKETING BOARDS INVENTORIES SUBSIDIES LIBERALIZATION MARKET PRICE TAXES FINISHED PRODUCT EXPENDITURE PRICING MECHANISM EQUITY DEREGULATION INVESTORS SURPLUSES SUBSTITUTE TAX RATE GOVERNMENT INTERVENTIONS DOMESTIC MARKETS INTERNATIONAL TRADE MARKETING BOARD VOLATILITY TRANSPARENCY BARRIERS MARKET FAILURES PRICE ADJUSTMENTS FUTURE MARKET PRICES PRICE COMPARISONS VALUE COMPETITIVENESS SHARE OF WORLD OUTPUT PRODUCER PRICE FREE MARKET PURCHASING POWER DEMAND CONSUMER PRICE INCOMES PRICE FLUCTUATIONS TAX RATES SALE SHARES MARKET TRADE DEFICITS RETAIL PRICES SMALL COUNTRY MARKET COMPETITION OUTPUT ENFORCEMENT REGIONAL INTEGRATION ECONOMIC DEVELOPMENT TRADE INTERESTS FOREIGN COMPETITION DOMESTIC PRICES MARKET SHARE BLACK MARKETS STOCKS BUSINESS CLIMATE INVESTMENT PRICE CEILINGS SHARE BANKRUPTCIES INVESTMENT CLIMATE ECONOMIC CRISIS MONOPOLIES SUPPLY PURCHASING COMPETITIVE MARKETS MARKET POWER INVESTMENTS WORLD TRADE CONSUMER PRICES INVISIBLE HAND COMMODITIES PRICE CONTROL PRICE CEILING PRIVATE SECTOR GROWTH PRICE CONTROLS COMMODITY PRICES COMMODITY WORLD MARKET SMALL ECONOMY PRICES MARKET FORCES POVERTY ALLEVIATION GOVERNMENT INTERVENTION COMPETITION Like many countries in Sub-Saharan Africa, Senegal has struggled to develop its industrial sector in the face of import competition. For basic food products, there is an implicit trade-off between the objectives of maintaining employment and lowering the cost of living, both of which figure prominently in current government policy. Conflicting pressures have led to a rather inconsistent policy mix of high levels of protection with price ceilings. The products of the three industries examined here—sugar, vegetable oil, and flour—account for roughly 14 percent of the consumption basket of the poor, so distortions in their prices can have a significant effect on poverty reduction. This paper compares domestic prices in Senegal with world prices since 2000, and then explains the difference by examining the protection enjoyed by these industries, along with their market structure. The analysis finds that high protection and market power have resulted in domestic prices which were often two or three times the equivalent world price. Tightening of price ceilings and some liberalization have taken place recently, but consumers have continued to pay above world prices for sugar and edible oil in 2014. The paper estimates that if this differential were eliminated, the purchasing power of households around the poverty line would increase by 3 percent, 227,000 people would move above the poverty line, and the national poverty rate would drop by 1.9 percentage points. The cost to consumers far exceeds the total wage bill paid by these industries. Further liberalization of these industries is recommended, along with phasing out price controls and shifting government policy from protecting traditional enterprises to the promotion of new export-oriented ones. 2015-07-14T21:26:22Z 2015-07-14T21:26:22Z 2015-06 Working Paper http://documents.worldbank.org/curated/en/2015/06/24578636/policies-prices-poverty-sugar-vegetable-oil-flour-industries-senegal http://hdl.handle.net/10986/22159 English en_US Policy Research Working Paper;No. 7286 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Senegal |