Market Reform and Private Trade in Eastern and Southern Africa

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Periodical article

Title:	Market Reform and Private Trade in Eastern and Southern Africa
Author:	Beynon, Jonathan
Year:	1992
Periodical:	Food Policy
Volume:	17
Issue:	6
Period:	December
Pages:	399-408
Language:	English
Geographic terms:	East Africa Southern Africa
Subjects:	market economy food trade food marketing Economics and Trade Politics and Government
External link:	https://doi.org/10.1016/0306-9192(92)90072-6
Abstract:	The removal of controls over food pricing and marketing is a central feature of the market-oriented economic reforms being undertaken throughout most of eastern and southern Africa. This article reviews the experience of market reform in eastern and southern Africa and highlights some key lessons learned. A distinction is drawn between countries whose policy regime before reform was favourable to food production (Kenya, Malawi, Zimbabwe, Zambia) and those whose policies were unfavourable (Somalia, Ethiopia, Tanzania), and alternative reform paths are described. The two key issues emerging are the role of the public sector after reform, for which there is still no clearly appropriate model, and how the strong short-term response of the private sector to trading opportunities can be transformed into investment. Postreform markets have been competitive, but operate under tight constraints with little evidence of significant capital accumulation. Critical research issues to inform policymaking are identified. Notes, ref., sum.