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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Main Authors: Aksoy, M. Ataman, Yagci, Fahrettin
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
GDP
TAX
WEB
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
id okr-10986-3224
recordtype oai_dc
spelling okr-10986-32242021-04-23T14:02:08Z Mozambique Cashew Reforms Revisited Aksoy, M. Ataman Yagci, Fahrettin 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 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. 2012-03-19T17:28:34Z 2012-03-19T17:28:34Z 2012-01-01 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 English Policy Research working paper ; no. WPS 5939 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Sub-Saharan Africa Southern Africa Mozambique
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic 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
spellingShingle 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
Aksoy, M. Ataman
Yagci, Fahrettin
Mozambique Cashew Reforms Revisited
geographic_facet Africa
Africa
Sub-Saharan Africa
Southern Africa
Mozambique
relation Policy Research working paper ; no. WPS 5939
description 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.
format Publications & Research :: Policy Research Working Paper
author Aksoy, M. Ataman
Yagci, Fahrettin
author_facet Aksoy, M. Ataman
Yagci, Fahrettin
author_sort Aksoy, M. Ataman
title Mozambique Cashew Reforms Revisited
title_short Mozambique Cashew Reforms Revisited
title_full Mozambique Cashew Reforms Revisited
title_fullStr Mozambique Cashew Reforms Revisited
title_full_unstemmed Mozambique Cashew Reforms Revisited
title_sort mozambique cashew reforms revisited
publishDate 2012
url 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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