Delpeuch, Claire2012-03-192012-03-192011-10-01https://hdl.handle.net/10986/3614After years of diplomatic efforts and legal procedures to obtain the elimination of rich countries' cotton subsidies, policy prospects for African cotton producers remain bleak. However, the world price for cotton has doubled in a year and has hit an all-time high. This paper examines these developments and investigates their potential consequences for African smallholder farmers. It emphasizes the importance of price transmission to domestic markets; assesses the impact of the reforms undertaken in Sub-Saharan African cotton sectors on producers' supply responsiveness; and outlines what remains to be done to ensure that farmers can benefit from a favorable global environment. The paper concludes that improving the functioning of domestic markets remains the priority in the short run. The current high price season will reveal the costs and benefits of different types of sector regulation systems and the capacity of policy-makers and sector stakeholders to deliver on promises. It also offers a last-minute opportunity to rich countries to keep their word in the context of the Doha Development Round.CC BY 3.0 IGOADVERSE EFFECTSAGRICULTURAL SUBSIDIESAGRICULTUREBASE YEARBIDDINGCERTAIN EXTENTCOMMODITIESCOMMODITYCOMMODITY PRICECOMMODITY PRICESCOMPARATIVE ANALYSISCOMPETITIVE MARKETSCOMPETITIVENESSCONSUMERSCONTRACT ENFORCEMENTCOTTON PRICESDATA AVAILABILITYDEMAND GROWTHDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ASSISTANCEDEVELOPMENT POLICYDOMESTIC MARKETDOMESTIC MARKETSDOMESTIC PRICESECONOMETRICSECONOMICS RESEARCHEFFICIENT REGULATIONELASTICITY OF SUPPLYEMERGING ECONOMIESEXCHANGE RATEEXPORTSFINANCIAL INSTITUTIONSFINANCIAL SUPPORTFIXED PRICESFOOD POLICIESFOREIGN CURRENCYGLOBAL EXPORTGLOBAL MARKETGLOBAL OUTPUTGLOBALIZATIONGOVERNMENT INTERVENTIONINCOMEINCOMESINTELLECTUAL PROPERTYINTERNATIONAL TRADELDCSLIBERALIZATIONSLOCAL CURRENCIESMARKET CONDITIONSMARKET ENTRYMARKET FORCESMARKET POWERMARKET PRICESMARKET REFORMSMARKET REGULATIONMARKET SHAREMARKET SHARESMARKET STRUCTUREMARKETINGMERCHANDISEMONOPOLIESMONOPOLYNEW MARKETNEW MARKET OPPORTUNITIESOUTPUTPOLITICAL ECONOMYPOVERTY ALLEVIATIONPRICE CHANGESPRICE COMPETITIONPRICE FLUCTUATIONSPRICE INCENTIVESPRICE INCREASEPRICE PROSPECTSPRICE SETTINGPRICING SCHEMESPRIVATE CAPITALPRIVATE INVESTORSPRIVATIZATIONSPRODUCER PRICEPRODUCER PRICESPRODUCERSPRODUCTION COSTSRAPID GROWTHSALESALESSETTLEMENT SYSTEMSTOCKSSUPPLY ELASTICITYSUSTAINABLE DEVELOPMENTTAXTAXATIONTECHNICAL ASSISTANCETERMS OF TRADETRADE NEGOTIATIONSTRADE POLICIESTRADE POLICYTRANSPARENCYWORLD MARKETWORLD MARKETSWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-5847