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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Malawi: The Impact of Pricing Policy on Smallholder Agriculture, 1971-88
Author:Harrigan, JaneISNI
Periodical:Development Policy Review
Geographic term:Malawi
Subjects:price policy
agricultural products
small farms
Economics and Trade
Agriculture, Natural Resources and the Environment
Development and Technology
External link:https://doi.org/10.1111/j.1467-7679.1988.tb00444.x
Abstract:This article assesses the achievements of Malawi's pricing policy over the last 18 years. Two objectives, namely the achievement of food self-sufficiency and the promotion of cash-crop exports, have determined the nature of price policy. During the 1970s price instruments were used to tax smallholder production of non-food crops with the resulting revenues being channelled into the estate sector in order to promote exports from large-scale farm enterprises. At the same time, the smallholder sector was used as a source of domestic food staples. In the 1980s a conflict arose between the food-crop and export-crop objectives, with the World Bank prescribing the use of parity pricing to encourage smallholder exportable cash crops and the government continuing to place priority on smallholder food-crop production. Hence, pricing decisions in the 1980s failed to achieve a diversification of smallholder agriculture, an increase in smallholder contribution to export revenues, and the attainment of food security at the individual level. Bibliogr., notes.