Restructuring Uganda's Coffee Industry: Why Going Back to Basics Matters

After experiencing a boom during the mid‐1990s, the performance of Uganda's coffee industry has been disappointing. Most existing analysis sees the sector's problems as quality deterioration, a poor marketing position in the global market, a weak regulatory framework, and poor infrastructure. Recommendations range from setting up a coffee auction to increasing the share of specialty coffees. This article concludes that such advice has been largely inconsistent with the stylised facts of the Uganda coffee industry, and it argues that coffee wilt disease and the effectiveness of the coffee replanting programme are the two key issues on which policymakers and the donor community should focus their activities and allocate their resources.     

Community Ventures and Access to Markets: The Role of Intermediaries in Marketing Rural Tourism Products

Many community‐based tourism ventures face marketing problems similar to those of other rural producers. They depend on intermediaries, such as private companies, membership organisations, public sector institutions and non‐governmental organisations, to facilitate market access. The article analyses the strengths and weaknesses of each type of intermediary, based on different levels of marketing support. Reflecting discussions about marketing assistance in other rural sectors, it argues that intermediary institutions have different areas of expertise and experience different constraints in terms of capacity‐building, marketing know‐how, financial resources and overall livelihood impacts. Instead of pursuing individual support strategies, it is therefore necessary to develop combined approaches of marketing assistance, depending on location, tourism resources and existing organisational structures.     

A taste of trade justice: marketing global social responsibility via Fair Trade coffee

The movement to certify and promote fairly traded coffee is one of many efforts aimed at linking social responsibility and free market capitalism. In the wake of a worldwide crisis in which coffee prices have fallen to levels that do not support small-scale production, non-profit Fair Trade certifying and labeling organizations are working to develop a market situation that is sustainable for workers and the environment. The Fair Trade system promotes living wages for farmers, access to affordable credit, and the adoption and maintenance of environmentally sound practices. Fair Traders' marketing efforts seek to influence cultural and political values in such a way that consumers and corporations will have to respond to them by incorporating the welfare of Southern workers into their purchasing decisions. This article discusses and evaluates current strategies for creating and expanding the market for Fair Trade-certified coffee and their outcomes in the United States and Europe. We argue that, while Fair Traders have achieved some laudable goals, they must now address the limits to supply-driven marketing efforts.     

Demand Constraints on Agricultural Growth in East and Southern Africa: A General Equilibrium Analysis

This article analyses demand constraints on agricultural growth in seven countries of East and Southern Africa using an applied general equilibrium framework. It finds that both traditional and non‐traditional export crops have limited potential to raise incomes because of demand constraints (for traditional exports) or a relatively small base (for non‐traditional exports). The best prospects for agriculture‐led growth remain in the food sector, where domestic demand represents a large and growing market. Improvements in market efficiency and simultaneous growth in the livestock sectors can help spur demand further and avert falls in prices. Achieving rapid gains in farm incomes, however, also requires investment in rural infrastructure to reduce marketing costs, and demand‐ enhancing growth in the non‐agricultural sector to spur demand.     

Growth and Poverty Reduction in Uganda, 1999–2000: Panel Data Evidence

To explore factors underlying growth and poverty reduction in Africa while overcoming some of the limitations of cross‐country analysis, this article uses micro‐level survey and panel‐data evidence from Uganda spanning 1992–2000. The high elasticity of both income growth and poverty reduction with respect to agricultural output (coffee) prices confirms the benefits from Uganda's decisive liberalisation of output markets. It also suggests the importance of product diversification to protect the poor against price shocks and the potential of cotton‐market improvements in tackling persistent poverty in the North. The importance of improving access to basic education and health care emerges more clearly than in cross‐country analysis, but benefits depend on complementary investments in electricity and other infrastructure, and reductions in civil strife.     

ENTRY COORDINATION AND AUCTION DESIGN WITH PRIVATE COSTS OF INFORMATION ACQUISITION

Auction design with endogenous entry is complicated by entry coordination among bidders due to multiple entry equilibria issue. This article studies auction design when information acquisition costs are private information of bidders. We show that this problem can be resolved by sufficient dispersion in these costs. First, we find that a simple second‐price auction with no entry fee and a reserve price equal to the seller's valuation is ex ante efficient, while a revenue‐maximizing auction involves personalized entry fees, which are determined by the hazard rates of their information acquisition cost distribution. Second, we show that sufficient dispersion in the information acquisition costs (more dispersion than a particular uniform distribution by the Bickel‐Lehman dispersive order) can coordinate bidders and implement uniquely the desirable entry. The dispersion in information acquisition costs is also necessary for this “unique implementation” result. (JEL D44, D82)     

The effect of local livestock population changes on auction market viability—a spatial analysis

This paper examines the relationship between auction market closures over the period 1980–2000 and livestock population changes, as recorded in the agricultural and horticultural census. Auction market locations and census data were collated within a Geographical Information System and changes in livestock populations examined by region and by market catchment. Regionally, auction market closures during the 1980s were significantly associated with concurrent reductions in cattle numbers, with market reductions following loss of cattle in eastern lowland areas. No such association with livestock numbers was found during the 1990s. Within these agricultural regions, individual market closures were not associated with changes in local livestock numbers within their catchments. Thus, the historical evidence suggests that whilst a substantial loss of livestock within a region puts pressure on its network of auction markets, the viability of individual markets within the region is decided by other factors. Such factors include the capital costs of modernising market facilities and meeting new regulatory requirements, the effect of unpaid debt on market cashflow, and the market's ability to diversify into other areas of business. The recent outbreak of foot and mouth disease may lead to further market closures, both directly as a result of livestock culls and indirectly as farmers continue to use alternative marketing channels developed when auction markets were closed during the outbreak.     

Economic Partnership Agreements: A ‘Historic Step’ Towards a ‘Partnership of Equals’?

This article argues that the EPAs initialled between the EU and less than half of the ACP countries do not represent a ‘historic step’ in EU‐ACP relations, but are the outcome of asymmetric power relations. Many ACP countries submitted hastily drawn up liberalisation schedules that did not consider whether their commitments were in line with those of their neighbours — with significant implications for regional integration processes. Further, the enforcement of EPAs is unlikely in some cases, given the decreasing attractiveness of the EU market and the Commission's dwindling capacity to sanction non‐compliance by withdrawing preferences. If the EU wants to see EPAs implemented, it is vital that the process and outcome are owned and supported by both sides.     

AUCTIONS WITH RESALE OPPORTUNITIES: AN EXPERIMENTAL STUDY

We study first price asymmetric private value auctions with resale opportunities presented in seller's and buyer's markets. We offer experimental evidence on bidding behavior, prices, and resource allocation. Building upon the Hafalir and Krishna (2008) model, we find that bidders will bid higher in an auction if the resale market is a seller's market than a buyer's market. There is a price/revenue‐efficiency trade‐off established theoretically between these two resale regimes. In equilibrium, however, final efficiency is high irrespective of the resale market structure. Evidence of bid symmetrization and higher final efficiency is found in the buyer‐advantaged resale case. (JEL D44, C92)     

PRIZE‐BASED MECHANISMS FOR FUND‐RAISING: THEORY AND EXPERIMENTS

We study the optimal design of mechanisms for the private provision of public goods in a setting in which donors compete for a prize of commonly known value. We discuss equilibrium bidding in mechanisms that promote both conditional cooperation and competition (i.e., the lottery and the all‐pay auction with the lowest‐bid payment rule) and rank their fund‐raising performance vis‐à‐vis their standard (pay‐your‐own‐bid) counterparts. The theoretically optimal mechanism in this model is the lowest‐price all‐pay auction—an auction in which the highest bidder wins the prize and all bidders pay the lowest bid. The highest amount for the public good is generated in the unique, symmetric, mixed‐strategy equilibrium of this auction. In the laboratory, the theoretically optimal mechanism generates the highest level of donations with three bidders but not with two bidders. (JEL D44, D64)     

HOW TRADING INSTITUTIONS AFFECT FINANCIAL MARKET PERFORMANCE: SOME LABORATORY EVIDENCE

The effects of trading institutions on market efficiency and trading volume are examined. The trading institutions are computerized versions of continuous double auction and "clearinghouse" markets. Traders are experienced, profit-motivated undergraduates. The traded good is a financial asset whose monetary value is state- and trader type-contingent. Traders possess asymmetric private information on asset value. The results show that clearinghouse markets are as informationally efficient as double auction markets and almost as allocationally efficient; the double auction encourages greater trading volume but the clearinghouse provides greater depth; public orderflow information enhances double auction performance but impairs clearinghouse performance.     

A global energy network? The expansion and integration of non‐triad national oil companies

It is widely perceived that the rising influence of state‐owned energy companies from outside the traditional triad (USA, EU, Japan) is transforming the structure of the global energy market and generating a new wave of resource‐nationalism. There is, however, little empirical analysis of how this process has unfolded. Addressing this empirical gap, in this article I employ a longitudinal social network analysis of the changing corporate relations of five major non‐triad state‐owned energy companies in the period 1997–2007. The findings indicate that, in terms of corporate relations, alongside the global expansion of the non‐triad state‐owned energy companies, there was also an increased integration between them and the private energy companies during this decade. This implies that apart from the resurgence of resource‐nationalism – frequently highlighted in academia and politics – this period also witnessed an increasing transnationalization of the global energy market.     

修正上海私车牌照拍卖方式的建议

迄今为止,上海是全国唯一实行私人小汽车牌照拍卖方式来控制中心城区交通流量的城市。随着私人小汽车需求量的急剧增加,限量投放的上海牌照成为稀缺资源,拍卖中标价格大幅上涨。持续上升的中标价格不但增加了这项制度继续有效实施的困难和阻碍,也引发了新的不公平问题,即拍卖中标价格若无限制上涨会限制中低收入者购车用车的权利。因此,有必要在控制机动车数量、缓解城市交通拥堵这个大目标的前提下,进一步完善私车牌照拍卖方式,消除不良副作用,有效配置稀缺资源。     

Competing for Coffee Space: Development‐Induced Displacement in the Central Highlands of Vietnam*

Abstract Vietnam has emerged as the world's second largest producer of coffee. The benefits of this expanding coffee economy are substantial but not universal; their distribution follows ethnic lines despite government commitment to equalize welfare. Focusing on Dak Lak Province in Vietnam's Central Highlands, we investigate this commercial transformation and the “competition for coffee space” that it has occasioned. Combined ethno‐history and household income analyses suggest markedly different benefits between native and non‐native ethnic groups, despite generally larger landholdings among the former. We interpret these finding through the conceptual lens of in‐situ development‐induced displacement.     

EFFECTS AND VALUE OF VERIFIABLE INFORMATION IN A CONTROVERSIAL MARKET: EVIDENCE FROM LAB AUCTIONS OF GENETICALLY MODIFIED FOOD

Food products containing genetically modified (GM) ingredients have entered the market over the past decade. The biotech industry and environmental groups have disseminated conflicting private information about GM foods. This paper develops a unique methodology for valuing independent third-party information in such a setting and applies this method to consumers' willingness to pay for food products that might be GM. Data are collected from real consumers in an auction market setting with randomized information and labeling treatments. The average value of third-party information per lab participant is small, but the public good value across U.S. consumers is shown to be quite large. ( JEL C91, D12, D82)     

Revenue Mobilisation in Sub‐Saharan Africa: Challenges from Globalisation I – Trade Reform

This is the first of two articles evaluating the nature and extent of, and possible responses to, two of the central challenges that globalisation poses for revenue mobilisation in sub‐Saharan Africa: trade liberalisation, and corporate tax competition. Both articles use a new dataset with the features needed to address these issues meaningfully: a disentangling of tariff from commodity tax revenue, and a distinction between resource‐related and other revenues. This first article describes that dataset, and provides a broad picture of revenue developments in the region between 1980 and 2005. Countries’ experiences have varied, but the overall picture is of non‐resource revenues having been essentially stagnant. Within this, however, and with exceptions, reductions in trade tax revenue have been largely offset by increased revenue from domestic sources.     

Does “buyer beware” work in migration? Contracting between brokers and migrants in Vietnam

This article is an attempt to open the lid a little of the “black box of migration” i.e. brokers. Analysing contracts between brokers and labour migrants, we identify four different forms of exploitation of migrants by brokers: expropriation of skill premium, risk shifting, over‐charging, and non‐refund of deposits. Opportunistic behaviour by brokers, as evidenced by such exploitation, is seen as a market failure that is explained by human attributes and transactional characteristics. Given the rigidities in the human attributes of the contracting parties and the nature of migration as a risky multi‐period transaction, proposals are made for non‐market interventions, which can lead to more equitable contracting.     

Factors Constraining Building Effective and Fair Geographical Indications for Coffee: Insights from a Dominican Case Study

The commodity nature of green coffee is the main cause of the ‘coffee paradox’ (falling producer prices and rising consumer prices). Geographical Indications (GIs) may be an effective ‘decommodifier’ of the coffee market, but many constraints have to be overcome. Based on an analysis of how the characteristics of the coffee production system shape the positions of local stakeholders and, thus, the GI building process, this article identifies some constraining factors that can seriously undermine the capacity the GI has to decommodify the market and attain a fairer distribution of the benefits for local producers.     

The Impact of Trade and Exchange‐rate Policy Reforms on North African Manufactured Exports

Three indicators capture the impact of exchange‐rate policy in fostering manufactured exports from North Africa: changes in the real effective exchange rate (REER), its volatility, and its misalignment. The impact of trade policy is examined using a trade liberalisation indicator. Export supply equations are estimated for three manufacturing industries: textiles, chemicals, and food. The results suggest that trade and exchange‐rate policies matter for export performance, as is evidenced by the negative influence exerted independently by real exchange‐rate misalignment and volatility and by the positive influence of trade liberalisation.     

CRITICAL ISSUES IN THE PRACTICE OF MARKET DESIGN

The years since 1994 have witnessed the emergence of market design as a new discipline within economics, in which research and practice exert powerful mutual influences in matching and auction markets. The problem of designing well‐functioning auction markets has led economic designers to revisit such fundamental issues as the definitions of commodities, the ways participants communicate with markets, the trade‐offs between the incentives provided for truthful reporting and other attributes of mechanism performance, and the determinants of the scope of markets, especially whether and how trade in different goods is linked. (JEL D44, C78)