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Towards an integrated market for seeds and fertilizers in West Africa

John Keyser's picture

Source - World Bank.West African countries have been working for many years to develop and implement harmonized trade rules for crop inputs. While much remains to be done, new regional regulations for seed and fertilizer are already helping to guide quality improvements in some countries. The West Africa Seed Committee is due to be launched next week in Abidjan thereby clearing the way for establishment of a regional variety catalog and seed certification system. Work to operationalize the regional rules for fertilizer also continues.

Despite these positive developments, most West African countries are a long way from having the required capacities and institutional structures needed to implement their own trade rules. The agreed regulations are modeled on advanced international standards, yet most national regulatory systems for crop inputs are greatly overstretched if they exist at all. As a result, it will likely be many more years before true harmonized regional trade can begin.

A new World Bank Group Africa Trade Working Paper looks at these challenges and shows that simple solutions including unilateral and joint action by small groups of countries should not be ruled out as a way to fast-track progress and support long-term harmonization.

ECOWAS, CET, and EPA – let’s take the debate to where the action is

Erik von Uexkull's picture

Road near Zaria, Nigeria. Source - pjotter05The Economic Community of West African States (ECOWAS) is making some real progress in regional integration. After decade-long negotiations, it has just launched its own Common External Tariff (CET), and now a final proposal for an Economic Partnership Agreement (EPA) with the European Union is also on the table.

However, vast differences in opinion remain regarding the likely effects of these reforms. In Nigeria—a key player in the region— debate is currently lively as to whether the country should sign the EPA, with some local stakeholders wary of the proposed reduction in trade protection.

Noting these concerns, the World Bank Group recently shed more light on the anatomy of these trade shocks. By analyzing detailed trade and firm data in a simple short-term framework, we were able to pick up details that are important determinants of how the reforms might play out—even in the longer run. The full reports can be found here, along with a non-technical policy note.

So what did we find?

With a Visit to West Africa, Renewed Commitment to Women Traders

Cecile Fruman's picture

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 World Bank Group.I recently returned from a trip to West Africa during which I crossed the Benin-Nigeria border by car at the Seme border post. While waiting for our passports to go through lengthy controls and stamping, I observed the intense activity of the numerous cars, motorbikes and pedestrians passing through.

Sure enough, most of the women were on foot, and they were the ones who were submitted to the most intense scrutiny. While the men on motorbikes were able to ram their way through by refusing to slow down, the women all had to go through a narrow passage where they were subject to questioning and document requirements. It was quite apparent that women were being asked for bribes that men were able to waive by driving right though! I had been reading about how women are subject to more intense harassment at border crossings – this experience brought this to life very vividly.

It made me thankful for all the work we at the World Bank Group are doing to help women traders on the African continent.

How to De-Enclave the African Resource Sector for More Inclusive Growth and Development

Ken Opalo's picture
Oil drums in Ethiopia. Source - 10b travelling

The recent acceleration in growth rates across much of sub-Saharan Africa may not be purely commodity-driven, but for many of the region’s economies macro-economic stability is still dependent on prudent management of natural resources. For this reason, a strategic shift is required to shield African economies from commodity boom-burst cycles.
For much of the last half century, the dominant political economy model of natural resource management in Africa was this: states received royalties from mostly private mining companies and then were supposed to invest in public goods such as roads, hospitals, and schools. Private mining companies, for their part, would pick up the slack whenever states failed. Most of the time this happened through corporate social responsibility (CSR) initiatives, as a way of buying the social license needed to operate in specific communities.
This model has proven to be a complete failure in nearly all resource-rich African states, for a number of reasons.

How Social Connections and Business Ties Can Boost Trade: An Application of Social Network Analysis

Anasuya Raj's picture

The Nigerien city of Gaya is booming. Sitting on the banks of the Niger River not far from the borders of Benin and Nigeria, Gaya has grown from a quiet village to a hopping new hub. Its population is five times what it was just a few decades ago. So what has Gaya on the go? 

To some extent, it's a trade story. Price differences across its nearby borders, helped by a ban on imports of second-hand clothes in Nigeria, and an avoidance of tax collection by customs officials have all been important factors in explaining the boom of trade in the region. Yet, combining these with an analysis of the development of transnational networks gives a more complete picture.

This is where Social Network Analysis sheds new light on the story of Gaya, by looking at these interactions to help improve our understanding of the dynamics involved.

Beggar Thy Neighbor’s Beggars? Using Trade Policy to Moderate Food-Price Spikes May Hurt the World’s Poor

Will Martin's picture

Wheat. Source - World Bank. countries use trade policy to protect their own consumers from spikes in international food prices. It turns out that this well-intentioned practice can actually do more harm than good. During food price spikes -- such as those in mid-2008, early 2011 and mid-2012 – governments restricted the export of food staples or lowered barriers to importing them. They hoped to keep their domestic prices of rice, wheat, maize, and oilseed low, reasoning that this would help their poor and stop people from falling into poverty. But there is new evidence that, while the practice kept each country’s domestic prices down relative to the world prices at the time, it contributed to the higher international prices that were the source of concern. In a World Bank Policy Research Working Paper, “Food Price Spikes, Price Insulation, and Poverty,” we explore this phenomenon and find that it did not reduce global poverty in 2008. On the contrary, we estimate it may have increased poverty slightly (by 8 million people).