The Political Uses of Agricultural Markets in Zambia

Abstract

IT is widely acknowledged that the origins of Africa's hunger crisis lie only partly in weather patterns. A growing number of studies have emphasised the rôle which the state plays in creating a policy environment which either undermines or promotes commercial agriculture.1Much of the fault for the latter's poor performance in many areas of the continent is assigned to short-sighted government policies of excessive intervention in agricultural markets. The cardinal sins are considered to be price controls, food subsidies, and state-run marketing boards. As the external debt of African states grows, foreign lenders and aid donors impose economic reforms deemed necessary to address the long-run structural problems. The austerity packages of the International Monetary Fund, for example, aim to reduce demand in the borrowing country by cutting government spending on subsidies, while the World Bank focuses on stimulating agricultural production through a mixture of targeted investments and advice on how to change the pricing and tax structure so as to improve incentives for farmers.2