Delivering Sustainable Growth in Africa: African Farmers and by Takahiro Fukunishi (eds.)

By Takahiro Fukunishi (eds.)

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On the other hand, purchase prices within Uganda are maintained on a daily basis, or long, if world price fluctuations are not too severe (Newman, 2009: 554). Upstream actors, such as local traders who supply exporters, rely on spot markets and are therefore exposed to price fluctuations. They have no access to contractual arrangements that can limit their exposure to short-term price movements. Therefore these traders have in turn sought to purchase coffee at low but stable prices so as to maintain their margins, which has resulted in reductions in the farm-gate price of coffee; hence, short-run price changes are not transmitted directly to producers but are manifest in low farm-gate prices (Newman, 2009).

3, pp. 1–17. World Bank (2007) World Development Report 2008: Agriculture for Development, Washington, DC: World Bank. World Bank (2012) World Development Indicators, Washington, DC: World Bank. org/ wbi/governance. 1 Introduction There have been significant structural changes in the way trade, production and marketing are organized in recent decades. There is now wide recognition that global trade increasingly involves spreading the production of a final good over firms in several countries with each one undertaking what is better described as a ‘task’ in the overall process rather than the production of a discrete good or service (WTO–IDE, 2011).

It has also helped better draw attention to variables typically excluded from ‘traditional’ GVC literature, such as access to inputs and the challenges of new actors in entering markets, as opposed to mapping existing ones and actors. In relation to GVC governance structures, the initial distinction within the GCC literature was between industry-specific governance structures, for example, whether or not structures are buyer- or producer-driven (Gereffi and Korzeniewicz, 1994). The differences between these two 34 Global Value Chains types of governance derive from who controls the dominant type of economic rent.

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