The Future of Perennial Crops.

Journal article

Africa's substantial market share in perennial crops may indicate that the promotion of these crops could make a major contribution to Africa's growth. Alternatively, given Africa's poor economic performance, it may indicate that dependence upon perennials is highly problematic. This paper finds support for both these propositions. It argues that whether perennial crops are an opportunity or a problem depends upon policy. Historically, dependence upon perennial exports has exposed economies to price shocks that have been badly managed. However, such a pattern is not inevitable. Improved macroeconomic management could harness the potential of price booms and reduce the deflationary contraction from price declines. Dependence upon perennials has also exposed societies to an increased risk of large-scale violent civil conflict. Again this is not inevitable: improved global and national governance of the revenues from perennials could potentially remove this risk. As demonstrated by Uganda during the 1990s, the expansion of revenue from perennials can make a major contribution to poverty reduction. In that case revenue expansion was achieved through a simple policy reform: reduced taxation stimulated production. While there is scope for this elsewhere in Africa, substantial volume expansion might be difficult. Perennials are becoming more intensive in knowledge, inputs and quality control, partly due to rising health standards imposed by importers. African producers need a policy environment that facilitates this shift to quasi-industrial techniques. Otherwise they are likely to lose market share to higher-income non-African producers.

Authors: Collier, P

• Journal: African Development Review/Revue Africaine de Developpement
• Volume: 14
• Publication date: 2002-01-01
• Language: English