Abstract
AbstractThe current export‐led development strategies of Third World nations rely largely on the capacity of agrarian world markets which, however, are characterized by unfavourable conditions. This situation enhances the pressure on the performance of local institutions related to product marketing. It is shown that coffee marketing within the traditional market system of an Indonesian highland area turns out to be an increasing disadvantage for the rural poor since it involves high transaction costs. New practices will have to be institutionalized in order to facilitate more transparency and to strengthen the peasants' capacity to compete with large plantations as well as with other production areas. Methodologically, the article attempts to demonstrate the value of an analysis which studies the dynamic interrelationships between structures and processes of different spatial dimensions.
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