The new global coffee model shows which producing countries have gained and which have lost from the operation of the International Coffee Agreement -- and what would happen if the Agreement were discontinued.
A careful analysis of the politically regulated world coffee market from the 1960s to the 1980s reveals a fairer market than the current globalized de-regulated affair can ever deliver. The author argues that fair trade and organic coffees alone cannot insure fairness for Third World growers and producers.
The export performance of Sub-Saharan Africa has lagged behind that of developing countries in other regions for the past two decades, and total export proceeds have fallen significantly since 1980. Many factors explain this outcome, including continued concentration in slowly-growing non-fuel primary commodities and domestic economic policies that have discouraged new investment that could promote diversification and increased production of traditional crops. Diversification into new agricultural products and light manufactures could boost export earnings, but only if the region can compete successfully with existing producers elsewhere. In most countries this will require major structural reforms to create a more attractive economic environment.
The collapse in commodity prices since 1980 has been a major cause of the economic crisis in a large part of the Third World. This book demonstrates, using new econometric models, that the producing countries could have prevented this price collapse by appropriate supply management.