Policies, Prices, and Poverty : The Sugar, Vegetable Oil, and Flour Industries in Senegal
| Autor: | Mbaye, Ahmadou Aly, Golub, Stephen S., English, Philip |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2015 |
| Předmět: |
TAX RATES
INVESTMENT MARKET POWER MARKET COMPETITION TAX FREE MARKET DEVELOPING COUNTRY SHARE OF WORLD OUTPUT WORLD TRADE COMMODITIES DOMESTIC PRICE COMMODITY BLACK MARKET BINDING CONSTRAINTS CONSUMER PRICES MARKETING BOARD STOCKS DOMESTIC MARKET SUBSTITUTE GOVERNMENT INTERVENTION MARKET LIBERALIZATION INCOME INVESTMENTS SALE ECONOMIC CRISIS SUBSTITUTION RED TAPE STOCK COMPETITIVENESS WORLD DEVELOPMENT INDICATORS INVESTORS SHARES OPPORTUNISTIC BEHAVIOR MARKET REFORMS TRADE DEFICITS FOREIGN COMPETITION PRODUCER PRICES PRICE CEILING GOVERNMENT INTERVENTIONS PRICE CONTROL BLACK MARKETS PRICING SCHEME INTERESTS TRANSPARENCY PRICE INCREASES PRICING MECHANISM FIXED RATE INVENTORIES SUBSIDIES INCOMES WORLD MARKETS MARKETS SURPLUSES MARKET STRUCTURE BANKRUPTCIES PRICES PURCHASING POWER DEREGULATION DOMESTIC MARKETS DEVALUATION WORLD MARKET PURCHASING PRICING PRODUCER PRICE CONSUMER PRICE DEBT MARKET FAILURE PRODUCTS TRADE MARKET PROVISION OF CREDIT ADMINISTERED PRICES SMALL COUNTRY SUPPLY SAVING DEBTS BUSINESS CLIMATE COMPETITIVE MARKETS MARKETING CONTRACT ENFORCEMENT ECONOMIC DEVELOPMENT TAX RATE INTERNATIONAL COMPETITIVENESS FREE TRADE DEMAND ENFORCEMENT PRICE CONTROLS MARKET PRICES RETAIL PRICES INVESTMENT CLIMATE SURPLUS PRODUCT HARMONIZATION INVISIBLE HAND BANKRUPTCY PRICE SETTING RETAIL PRICE EXCHANGE LIBERALIZATION VALUE ECONOMIC CRISES MONOPOLY INTERNATIONAL TRADE PRICE COMPARISONS OUTPUT REGIONAL INTEGRATION TAX BREAKS MARKET FORCES PRIVATE SECTOR GROWTH CURRENCY PRICE COST OF LIVING TAXES EQUITY PRICE FLUCTUATIONS PRICE ADJUSTMENTS MARKET PRICE LOCAL BANKS COMPETITION PRIVATIZATION PUBLIC POLICY COMMERCE BRANDS COMMODITY PRICES PRICE MECHANISM MONOPOLIES DEVELOPING COUNTRIES COMPETITIVE MARKET MARKETING BOARDS FUTURE MARKET SHARE GOVERNMENT INVOLVEMENT MARKET FAILURES SALES SMALL ECONOMY BARRIERS PRICE CEILINGS POVERTY ALLEVIATION INTEREST PRICE DISTORTIONS SUBSIDY MARKET SHARES RETAIL DOMESTIC PRICES CONSUMER GOODS FINISHED PRODUCT SHARE VOLATILITY EXPENDITURE |
| Popis: | Like many countries in Sub-Saharan Africa, Senegal has struggled to develop its industrial sector in the face of import competition. For basic food products, there is an implicit trade-off between the objectives of maintaining employment and lowering the cost of living, both of which figure prominently in current government policy. Conflicting pressures have led to a rather inconsistent policy mix of high levels of protection with price ceilings. The products of the three industries examined here—sugar, vegetable oil, and flour—account for roughly 14 percent of the consumption basket of the poor, so distortions in their prices can have a significant effect on poverty reduction. This paper compares domestic prices in Senegal with world prices since 2000, and then explains the difference by examining the protection enjoyed by these industries, along with their market structure. The analysis finds that high protection and market power have resulted in domestic prices which were often two or three times the equivalent world price. Tightening of price ceilings and some liberalization have taken place recently, but consumers have continued to pay above world prices for sugar and edible oil in 2014. The paper estimates that if this differential were eliminated, the purchasing power of households around the poverty line would increase by 3 percent, 227,000 people would move above the poverty line, and the national poverty rate would drop by 1.9 percentage points. The cost to consumers far exceeds the total wage bill paid by these industries. Further liberalization of these industries is recommended, along with phasing out price controls and shifting government policy from protecting traditional enterprises to the promotion of new export-oriented ones. |
| Databáze: | OpenAIRE |
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