Trade, exchange rate, and agricultural pricing policies in Zambia

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Book

Title:	Trade, exchange rate, and agricultural pricing policies in Zambia
Author:	Jansen, Doris J.
Year:	1988
Pages:	276
Language:	English
City of publisher:	Washington, DC
Publisher:	The World Bank
ISBN:	0821311565
Geographic term:	Zambia
Subjects:	price policy agricultural products cash crops
Abstract:	Throughout much of the 20th century, the governments of Zambia have controlled domestic agricultural prices, particularly the price of maize, the chief food commodity. Following the collapse of the world copper market in 1974, Zambia became dependent on foreign lenders as it sought to rebuild its shattered economy. At the same time, in an attempt to assure social equity, the government set a policy of paying all maize producers the same price for their crop. This intervention in prices, along with other maize-related policies, placed an implicit tax of more than 20 percent on maize production. Moreover, implicit taxation of the agricultural sector due to economywide policies increased dramatically after 1974. Tobacco and cotton suffered a similar fate. Growth in marketed crop production fell to an average 3 percent annually in the 1975-1984 period. Although Zambia's agricultural potential is great, the government has shown little inclination to strenghten the country's agricultural sector.