The "Cotton Problem"

Article English OPEN
Baffes, John (2005)
  • Publisher: Oxford University Press on behalf of the World Bank
  • Related identifiers: doi: 10.1093/wbro/lki004
  • Subject: PRICE TRENDS | COTTON GROWING | COTTON PRICE | MARKET INNOVATION | ADVERTISING | PRODUCER GROUPS | MERCHANDISE EXPORTS | WORLD TRADE ORGANIZATION | WORLD MARKET | TEA | GROSS DOMESTIC PRODUCT | TRADE POLICIES | COMMODITY CREDIT CORPORATION | FIBRES TEXTILES | FARM | OLIVE OIL | MARKET SYSTEMS | BRAND | TEXTILE | COTTON MARKETING | FINANCIAL CRISIS | COCOA | PEST POPULATIONS | COTTON INDUSTRY | AGRICULTURAL DEVELOPMENT | EXPORT SUBSIDIES | TEXTILE INDUSTRY | WORLD PRICES | FARM SERVICE AGENCY | COMMODITY | SEED | FIBRES | TRADE LIBERALIZATION | DIRECT PAYMENTS | COMMODITIES | GROWTH RATE | ECONOMIC RELATIONS | PRICE INDICES | MARKET CONDITIONS | FARMING | WHEAT | PRICE SETTING | INNOVATION | BORDER MEASURES | SURPLUS | SYNTHETICS | BASE YEAR | COMPARATIVE ADVANTAGE | PRICE PROSPECTS | PRICE STABILIZATION | FUTURES CONTRACTS | EXPENDITURE | IMPORT TARIFFS | SUPPLIERS | LIQUIDITY | ECONOMIC SYSTEMS | IMPORT QUOTA | SPRING | COTTON SECTOR | AGRICULTURE ORGANIZATION | PRODUCER ORGANIZATIONS | TOBACCO | WEEDS | EXPORT | AGRICULTURAL TRADE | SEEDS | MARKET LIBERALIZATION | TRADE BARRIERS | FARM INCOME | MINIMUM PRICE | SEED VARIETIES | CLOTHING | DEBT | INTERNATIONAL TRADE | AGRICULTURAL PRICING | CROP | PRICE SUPPORT | PRODUCTION SYSTEM | PURCHASING | TEXTILE PRODUCTS | EXPORTS | COMMODITY MARKETING | SYNTHETIC FIBERS | COMPETITIVENESS | AGRICULTURAL RESEARCH | FARMERS | MARKETING COOPERATIVES | JUTE | OLIGOPOLY | STOCKS | AGRICULTURE | CHEMICAL FERTILIZERS | INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE | PRICE VOLATILITY | MULTILATERAL TRADE | AGRICULTURAL POLICY RESEARCH INSTITUTE | AGRICULTURE POLICY | BORDER PRICES | PESTICIDE | DEMAND GROWTH | TARIFF-RATE QUOTAS | TEXTILE MILLS | IMPORT TARIFF | MARKET MECHANISMS | MARKET DISTORTIONS | COFFEE | YIELDS | PER CAPITA INCOME | PLANTING | REGULATORY FRAMEWORK | COMMERCIAL ENTERPRISES | FIBERS | TRADE REPRESENTATIVE | COMMODITY PROGRAMS | FAO | INVENTORIES | MARKET SHARE | TRADE NEGOTIATIONS | INDUSTRIALIZATION | PRODUCER PRICES | FIBER | GDP | AGREEMENT ON AGRICULTURE | WTO | AGRICULTURAL REFORM | EXPENDITURES | ADVERSE EFFECTS | COTTON PRODUCTION | PRICE CHANGES | DAMAGES | EXTENSION SERVICES | QUALITY STANDARD | BANKRUPTCY | SISAL | DEVELOPMENT POLICY | PREMIUM | ECONOMIC OBJECTIVES | COFFEE PRICES | TARIFF RATE | COTTON PRICES | SEED COMPANIES | GENETIC MATERIAL | MARKET REFORM | MARKET REFORMS | GINNERIES | EXPORT CREDIT | HOUSEHOLDS | MAIZE | PRODUCE | MARKETING LOAN | PRICE INDEX | PRICE SUPPORTS | AGRICULTURAL BIOTECHNOLOGY | TARGET PRICE | DRYING | TRANSACTION | AGRICULTURAL MARKETS | AGRICULTURAL POLICY | WORLD MARKETS | CORN | COTTON | AGRICULTURAL POLICIES | WORLD MARKET PRICE | SALES | FARM INPUTS | CLOTHING INDUSTRY | COMMODITY PRICES | COOPERATIVES | POLYESTER | MONOPOLY | FIELD TRIALS | CAPITA CONSUMPTION | MARKET FORCES | TRADE POLICY | IMPORTS | COMMODITY PRICE | FERTILIZERS | ACREAGE | POLITICAL ECONOMY | INCIDENCE OF POVERTY | DEFICIENCY PAYMENTS | WORLD PRICE | PRODUCTION COSTS | MARKET NICHE | SUGAR | TAXATION | SEED TECHNOLOGY | CONSUMER AWARENESS | NATURAL RESOURCES | TEXTILE INDUSTRIES | PRICING POLICY | AGRICULTURAL ECONOMICS | SPOT PRICES | CONSUMERS | DOMESTIC MARKETS | MARKET PRICE | MILLS | BARTER | FERTILIZER | CROP INSURANCE | MERCHANDISE | TRANSITION ECONOMIES | ECONOMICS RESEARCH | CENTRAL PLANNING | POOR HOUSEHOLDS | TARIFF RATES | SMALL GROWERS
    mesheuropmc: health care economics and organizations

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 gross domestic product (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 will 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.
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