False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa

Abstract

The literature on the effects of agricultural market reform in Africa is sharply divided and inconsistent. This article attempts to reconcile opposing viewpoints on the effects of food and input market policy reform in eastern and southern Africa. Drawing from studies of Ethiopia, Kenya, Malawi, Zambia, and Zimbabwe, we argue that a major source of the controversy stems from assumptions that countries have actually moved to a liberalized market environment. We find that many of the most fundamental elements of the reform programs either remain unimplemented, were reversed within several years, or were implemented in such a way as to negate private sector investment incentives. A framework is developed for explaining why some countries have been able to liberalize their food and fertilizer markets while others have not. These findings have implications for how donor assistance and policy-oriented research can more constructively contribute to an improved policy environment.