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By Christopher D. Gerrard, Greg D. Posehn, Granville Ansong

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Additional resources for Agricultural pricing policy in Eastern Africa: a macroeconomic simulation for Kenya, Malawi, Tanzania, and Zambia, Part 76

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Economic Policy and Performance in the Four Countries 55 Kenya 55 Malawi 60 Tanzania 62 Zambia 66 6. Summary and Conclusion 71 Bibliography 75 Appendix: A Trainer's Guide 79 Page v Foreword Agricultural Pricing Policies in Eastern Africa is a participatory simulation that provides seminar participants with the opportunity to experience vicariously the process of food and agricultural policymaking in a developing country. It explores the tensions that exist among such policy objectives as efficient economic development, economic stability, equitable distribution of income, food security, and nutritional well-being; and compares how successfully or unsuccessfully four countries in Eastern Africa have succeeded in resolving these tensions.

Other things being equal, the rate of growth of exports declines, including agricultural exports. The impact of import-substitution policies, in general, and a protective tariff, in particular, on agricultural exports is like the impact of rent controls on the supply of apartments. In the short term, the rent controls have virtually no impact on the supply of apartments in a given urban center, only on the revenues of apartment owners. The owners of apartments are unable to re-allocate the capital invested in apartments to alternative uses in the short term.

Without exception, the four countries have maintained and expanded the functions of these marketing boards since independence. However, it is no longer clear that the boards still operate to protect the interests of domestic producers. The institutional arrangements for the marketing of export crops were more diverse, both within and among the four countries. For example, large private estates processed and sold their own produce at local auctions and exported directly to international markets.

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