Author: Baffes, John

Source: World Bank Research Observer, Volume 20, Number 1, 2005 , pp. 109-144(36)

Publisher: Oxford University Press

Abstract:

Cotton is an important cash crop in many developing economies, supporting the livelihoods of millions of poor households. In some countries it contributes as much as 40 percent of merchandise exports and more than 5 percent of GDP. The global cotton market, however, has been subject to numerous policy interventions, to the detriment of nonsubsidized producers. This examination of the global cotton market and trade policies reaches four main conclusions. First, rich cotton-producing countries should stop supporting their cotton sectors; as an interim step, transfers to the cotton sector should be fully decoupled from current production decisions. Second, many cotton-producing (and often cotton-dependent) developing economies need to complete their unfinished reform agenda. Third, new technologies, especially genetically modified seed varieties, should be embraced by developing economies; this would entail extensive research to identify varieties appropriate to local growing conditions and the establishment of the proper legislative and regulatory framework. Finally, cotton promotion is needed to reverse or at least arrest cotton’s decline as a share of total fiber consumption.

Document Type: Research article

DOI: http://dx.doi.org/10.1093/wbro/lki004

Publication date: 2005-01-01

More about this publication?

• The World Bank Research Observer seeks to inform nonspecialist readers about research being undertaken within the Bank and outside the Bank in areas of economics relevant for development policy. Requiring only a minimal background in economic analysis, its surveys and overviews of key issues in development economics research are intended for policymakers, project officers, journalists keeping up to date, and teachers and students of development economics and related disciplines. Papers for the Observer are not sent out to referees, but all articles published are assessed and approved by the Editorial Board, which includes three to four distinguished economists from outside the Bank. The Observer has nearly 1,500 subscribers in OECD countries and nearly 10,000 subscribers in developing countries.
  
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