Zambia - The Relevance of a Rules-Based Maize Marketing Policy : An Experimental Case Study of Zambia
A critical barrier to achieving food security and rural income growth in the mixed food marketing systems characterizing many Eastern and Southern African countries revolves around the way that governments and the private sector interact. In shorta...
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| Format: | Other Agricultural Study |
| Language: | English en_US |
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Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/12/8996495/zambia-relevance-rules-based-maize-marketing-policy-experimental-case-study-zambia http://hdl.handle.net/10986/7647 |
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okr-10986-76472021-04-23T14:02:38Z Zambia - The Relevance of a Rules-Based Maize Marketing Policy : An Experimental Case Study of Zambia World Bank ACUTE FOOD SHORTAGES AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL POLICY AGRICULTURAL PRODUCTIVITY AGRICULTURE ALLOCATION AVERAGE PRICE COMPETITIVENESS CONFIDENCE CONSUMER DEMAND CONSUMER PRICE CONSUMER PRICES CONSUMER WELFARE DEMAND ELASTICITY DEMAND FUNCTION DEMAND FUNCTIONS DEMOCRACY DISCRETION DOMESTIC MARKET ECONOMIC BEHAVIOR ECONOMIC GROWTH ECONOMIC HISTORY ECONOMICS EXPENDITURES EXTERNAL MARKETS FEED FOOD AID FOOD CRISIS FOOD MARKETING FOOD MARKETING SYSTEMS FOOD MARKETS FOOD POLICY FOOD POLICY RESEARCH FOOD PRICES FOOD SECURITY FOOD SECURITY POLICY FOOD SECURITY RESEARCH FOOD SHORTAGE FOOD SHORTAGES FOOD STOCKS FOOD SUPPLIES GAME THEORY GOVERNMENT INTERVENTION GOVERNMENT OFFICIALS GRAIN PRODUCTION IMPORTING MAIZE INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INVESTIGATION MAIZE MAIZE IMPORTS MAIZE MARKET MAIZE MARKET REFORMS MAIZE MARKETING MAIZE MEAL MAIZE POLICY MAIZE PRODUCTION MAIZE REVOLUTION MAIZE SECTOR MAIZE SUPPLY MAIZE TRADING MARKET CONDITIONS MARKET EQUILIBRIUM MARKET INFORMATION MARKET LIBERALIZATION MARKET PERFORMANCE MARKET POWER MARKET PRICE MARKET PRICES MARKET REFORM MARKET REFORMS MARKET RISKS MARKETING MARKETING BOARD MARKETING BOARDS MARKETING POLICY MARKETING SITUATION MARKETING SYSTEM MEAL MILLERS MINISTER MINISTERS NATIONAL FARMERS UNION NATIONAL FOOD SECURITY OPPORTUNITY COST PATRONAGE POLITICAL ECONOMY PRICE STABILITY PRICE STABILIZATION PRICING POLICIES PRIVATE SECTOR PRODUCER PRICE PRODUCER PRICES PRODUCTIVITY PUBLIC GOODS PUBLIC SECTOR PURCHASING REPUBLIC RULING PARTY SALE SALES SMALLHOLDER AGRICULTURE SMALLHOLDER GRAIN SMALLHOLDER GRAIN PRODUCTION STATE INTERVENTION STOCKS SUB-SAHARAN AFRICA SUBSIDIZED GRAIN SUBSTITUTE SUPPLIERS SURPLUSES TRADE POLICY TRANSACTION COSTS TRANSPARENCY WHITE MAIZE A critical barrier to achieving food security and rural income growth in the mixed food marketing systems characterizing many Eastern and Southern African countries revolves around the way that governments and the private sector interact. In shortage years, governments may question the capacity of the private sector to import maize, and thus arrange imports on their own to cover the shortfall. At the same time, traders' import decisions depend on their expectations regarding governments' response to food shortages. Social dilemmas can arise if traders are uncertain about future government behavior or lack trust in official announcements. This paper argues that well-functioning markets depend on transparent and predictable government behavior underpinned by mutual trust and cooperation. The authors report on an economic policy experiment based on a stylized model of the Zambian maize market. The experiment facilitates a comparison between the current government policy of discretionary interventionism and a rules-based policy in which the government precommits itself to a future course of action. A simple precommitment rule can overcome the social dilemma by reducing the risk of food crises and provide appropriate incentives for private traders' participation in the market, thereby enhancing economic efficiency. Exploring mechanisms that can support more predictable and rules-based policy responses to food shortages may therefore be beneficial to the Government of Zambia and to other governments in the region. 2012-06-11T15:16:20Z 2012-06-11T15:16:20Z 2007-12-18 http://documents.worldbank.org/curated/en/2007/12/8996495/zambia-relevance-rules-based-maize-marketing-policy-experimental-case-study-zambia http://hdl.handle.net/10986/7647 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Other Agricultural Study Economic & Sector Work Africa Southern Africa Sub-Saharan Africa Zambia |
| 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 |
ACUTE FOOD SHORTAGES AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL POLICY AGRICULTURAL PRODUCTIVITY AGRICULTURE ALLOCATION AVERAGE PRICE COMPETITIVENESS CONFIDENCE CONSUMER DEMAND CONSUMER PRICE CONSUMER PRICES CONSUMER WELFARE DEMAND ELASTICITY DEMAND FUNCTION DEMAND FUNCTIONS DEMOCRACY DISCRETION DOMESTIC MARKET ECONOMIC BEHAVIOR ECONOMIC GROWTH ECONOMIC HISTORY ECONOMICS EXPENDITURES EXTERNAL MARKETS FEED FOOD AID FOOD CRISIS FOOD MARKETING FOOD MARKETING SYSTEMS FOOD MARKETS FOOD POLICY FOOD POLICY RESEARCH FOOD PRICES FOOD SECURITY FOOD SECURITY POLICY FOOD SECURITY RESEARCH FOOD SHORTAGE FOOD SHORTAGES FOOD STOCKS FOOD SUPPLIES GAME THEORY GOVERNMENT INTERVENTION GOVERNMENT OFFICIALS GRAIN PRODUCTION IMPORTING MAIZE INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INVESTIGATION MAIZE MAIZE IMPORTS MAIZE MARKET MAIZE MARKET REFORMS MAIZE MARKETING MAIZE MEAL MAIZE POLICY MAIZE PRODUCTION MAIZE REVOLUTION MAIZE SECTOR MAIZE SUPPLY MAIZE TRADING MARKET CONDITIONS MARKET EQUILIBRIUM MARKET INFORMATION MARKET LIBERALIZATION MARKET PERFORMANCE MARKET POWER MARKET PRICE MARKET PRICES MARKET REFORM MARKET REFORMS MARKET RISKS MARKETING MARKETING BOARD MARKETING BOARDS MARKETING POLICY MARKETING SITUATION MARKETING SYSTEM MEAL MILLERS MINISTER MINISTERS NATIONAL FARMERS UNION NATIONAL FOOD SECURITY OPPORTUNITY COST PATRONAGE POLITICAL ECONOMY PRICE STABILITY PRICE STABILIZATION PRICING POLICIES PRIVATE SECTOR PRODUCER PRICE PRODUCER PRICES PRODUCTIVITY PUBLIC GOODS PUBLIC SECTOR PURCHASING REPUBLIC RULING PARTY SALE SALES SMALLHOLDER AGRICULTURE SMALLHOLDER GRAIN SMALLHOLDER GRAIN PRODUCTION STATE INTERVENTION STOCKS SUB-SAHARAN AFRICA SUBSIDIZED GRAIN SUBSTITUTE SUPPLIERS SURPLUSES TRADE POLICY TRANSACTION COSTS TRANSPARENCY WHITE MAIZE |
| spellingShingle |
ACUTE FOOD SHORTAGES AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL POLICY AGRICULTURAL PRODUCTIVITY AGRICULTURE ALLOCATION AVERAGE PRICE COMPETITIVENESS CONFIDENCE CONSUMER DEMAND CONSUMER PRICE CONSUMER PRICES CONSUMER WELFARE DEMAND ELASTICITY DEMAND FUNCTION DEMAND FUNCTIONS DEMOCRACY DISCRETION DOMESTIC MARKET ECONOMIC BEHAVIOR ECONOMIC GROWTH ECONOMIC HISTORY ECONOMICS EXPENDITURES EXTERNAL MARKETS FEED FOOD AID FOOD CRISIS FOOD MARKETING FOOD MARKETING SYSTEMS FOOD MARKETS FOOD POLICY FOOD POLICY RESEARCH FOOD PRICES FOOD SECURITY FOOD SECURITY POLICY FOOD SECURITY RESEARCH FOOD SHORTAGE FOOD SHORTAGES FOOD STOCKS FOOD SUPPLIES GAME THEORY GOVERNMENT INTERVENTION GOVERNMENT OFFICIALS GRAIN PRODUCTION IMPORTING MAIZE INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INVESTIGATION MAIZE MAIZE IMPORTS MAIZE MARKET MAIZE MARKET REFORMS MAIZE MARKETING MAIZE MEAL MAIZE POLICY MAIZE PRODUCTION MAIZE REVOLUTION MAIZE SECTOR MAIZE SUPPLY MAIZE TRADING MARKET CONDITIONS MARKET EQUILIBRIUM MARKET INFORMATION MARKET LIBERALIZATION MARKET PERFORMANCE MARKET POWER MARKET PRICE MARKET PRICES MARKET REFORM MARKET REFORMS MARKET RISKS MARKETING MARKETING BOARD MARKETING BOARDS MARKETING POLICY MARKETING SITUATION MARKETING SYSTEM MEAL MILLERS MINISTER MINISTERS NATIONAL FARMERS UNION NATIONAL FOOD SECURITY OPPORTUNITY COST PATRONAGE POLITICAL ECONOMY PRICE STABILITY PRICE STABILIZATION PRICING POLICIES PRIVATE SECTOR PRODUCER PRICE PRODUCER PRICES PRODUCTIVITY PUBLIC GOODS PUBLIC SECTOR PURCHASING REPUBLIC RULING PARTY SALE SALES SMALLHOLDER AGRICULTURE SMALLHOLDER GRAIN SMALLHOLDER GRAIN PRODUCTION STATE INTERVENTION STOCKS SUB-SAHARAN AFRICA SUBSIDIZED GRAIN SUBSTITUTE SUPPLIERS SURPLUSES TRADE POLICY TRANSACTION COSTS TRANSPARENCY WHITE MAIZE World Bank Zambia - The Relevance of a Rules-Based Maize Marketing Policy : An Experimental Case Study of Zambia |
| geographic_facet |
Africa Southern Africa Sub-Saharan Africa Zambia |
| description |
A critical barrier to achieving food
security and rural income growth in the mixed food marketing
systems characterizing many Eastern and Southern African
countries revolves around the way that governments and the
private sector interact. In shortage years, governments may
question the capacity of the private sector to import maize,
and thus arrange imports on their own to cover the
shortfall. At the same time, traders' import decisions
depend on their expectations regarding governments'
response to food shortages. Social dilemmas can arise if
traders are uncertain about future government behavior or
lack trust in official announcements. This paper argues that
well-functioning markets depend on transparent and
predictable government behavior underpinned by mutual trust
and cooperation. The authors report on an economic policy
experiment based on a stylized model of the Zambian maize
market. The experiment facilitates a comparison between the
current government policy of discretionary interventionism
and a rules-based policy in which the government precommits
itself to a future course of action. A simple precommitment
rule can overcome the social dilemma by reducing the risk of
food crises and provide appropriate incentives for private
traders' participation in the market, thereby enhancing
economic efficiency. Exploring mechanisms that can support
more predictable and rules-based policy responses to food
shortages may therefore be beneficial to the Government of
Zambia and to other governments in the region. |
| format |
Economic & Sector Work :: Other Agricultural Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Zambia - The Relevance of a Rules-Based Maize Marketing Policy : An Experimental Case Study of Zambia |
| title_short |
Zambia - The Relevance of a Rules-Based Maize Marketing Policy : An Experimental Case Study of Zambia |
| title_full |
Zambia - The Relevance of a Rules-Based Maize Marketing Policy : An Experimental Case Study of Zambia |
| title_fullStr |
Zambia - The Relevance of a Rules-Based Maize Marketing Policy : An Experimental Case Study of Zambia |
| title_full_unstemmed |
Zambia - The Relevance of a Rules-Based Maize Marketing Policy : An Experimental Case Study of Zambia |
| title_sort |
zambia - the relevance of a rules-based maize marketing policy : an experimental case study of zambia |
| publisher |
Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/12/8996495/zambia-relevance-rules-based-maize-marketing-policy-experimental-case-study-zambia http://hdl.handle.net/10986/7647 |
| _version_ |
1764404388187602944 |