Mozambique Cashew Reforms Revisited

Cashew policy reforms in Mozambique have been controversial. They are often invoked by critics as an illustration of how agricultural policy reforms supported by international financial institutions may fail to have their intended effects. This pap...

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Bibliographic Details
Main Authors:	Aksoy, M. Ataman, Yagci, Fahrettin
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	AGRICULTURAL PRACTICES AGRICULTURE AVERAGE PRICE AVERAGE PRICES AVERAGE PRODUCTIVITY BACKUP BENCHMARK BRAND BUSINESS ENVIRONMENT BUSINESS MODELS BUYERS CIVIL WAR COMMERCIALIZATION COMMODITIES COMMODITY COMMODITY PRICES COMPETITIVENESS CONFLICT OF INTEREST CONSUMER PRICE CONSUMER PRICE INDEX COST INCREASES COST REDUCTIONS COST STRUCTURES CURRENCY CURRENCY APPRECIATION DEBT DEBT FINANCING DEFLATORS DEPRECIATION OF CURRENCY DEVELOPING COUNTRIES DEVELOPMENT POLICY DEVELOPMENT STRATEGY DOMESTIC INVESTORS DOMESTIC MARKET DOMESTIC PRICES ECONOMIC ACTIVITY ECONOMIC REFORM EQUIPMENT EXCESS PROFITS EXCHANGE RATE EXCHANGE RATES EXPORT CREDIT EXPORT MARKET EXPORT MARKETS EXPORTS FINANCIAL INSTITUTIONS FIXED ASSETS FLASH GDP GLOBALIZATION GOVERNMENT ORGANIZATION HOLDING COMPANY INCOME INCOMES INSTITUTIONAL FRAMEWORK INSURANCE INTERFACE INTERNATIONAL MARKETS INTERNATIONAL TRADE LIBERALIZATION LICENSES LOCAL CURRENCY MARKET SHARE MARKET SHARES MARKETING MISMANAGEMENT MONOPOLY MULTINATIONAL CORPORATION OPEN ACCESS OPPORTUNITY SET OUTPUT OUTPUTS POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM POLITICAL POWER PRICE ELASTICITY PRICE ELASTICITY OF SUPPLY PRICE INCREASE PRICE INCREASES PRICE MOVEMENTS PRICE SERIES PRICE SUPPORT PRIVATE INVESTORS PRIVATE SECTOR PRIVATIZATION PRODUCER PRICE PRODUCER PRICE INCREASES PRODUCER PRICES PRODUCT QUALITY QUALITY MANAGEMENT REAL EXCHANGE RATES REFORM PROGRAM RESULT RESULTS SALE SERVICE PROVIDERS SOCIAL COSTS SUBSISTENCE FARMERS SUBSTITUTE SUBSTITUTES SUPPLIER SUPPLIERS TAX THIRD MARKET TIME PERIOD TRADE LIBERALIZATION TRADE POLICY TURNOVERS UNDERESTIMATES VALUE ADDED VALUE CHAIN VERTICAL INTEGRATION VOLATILITY WEB WELFARE SYSTEM WORKING CAPITAL WORLD MARKET
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120109160233 http://hdl.handle.net/10986/3224

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Summary:	Cashew policy reforms in Mozambique have been controversial. They are often invoked by critics as an illustration of how agricultural policy reforms supported by international financial institutions may fail to have their intended effects. This paper revisits the reforms and their outcomes almost two decades later. While the reforms resulted in higher producer prices and an increase in output, lack of consensus on the specifics of the reforms and associated non-price support arrangements created a situation in which the sector was not able to withstand international price shocks that ultimately led to a collapse of both the processing industry and cashew production. Non-price support by donors improved the efficiency of the processing industry but this was not complemented by an expansion in cashew nut supply as such support did not extend to smallholder cashew producers. For the reforms to have had their intended results, greater investment in -- and support to -- smallholder production was needed to increase yields and overall output. Such a more comprehensive approach to cashew policy reform would have required a greater focus on achieving consensus on the causes of the cashew sector's problems and agreement by all stakeholders on a common institutional framework for pricing and non-price support.

Mozambique Cashew Reforms Revisited

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