The State and Nontraditional Agricultural Exports in Latin America
By Octavio Damiani (09/00, RUR-103, En, Es)
Results and Lessons of Three Case Studies
This reports presents the results of case studies on nontraditional agricultural exports in Petrolina-Juazeiro (northeastern Brazil), Ecuador, and Guatemala, analyzing the role of public policy in developing these products and the effects of nontraditional agriculture on the rural poor. The studies showed that the State played a central role in developing nontraditional export crops. This included an array of economic and sectorial policies in support of market functioning and private sector development, as well as active and strategic intervention aimed at solving specific problems. Some of the most important areas of action include the provision of public goods (infrastructure and research), the availability of long-term credit, and joint activities with the private sector, primarily through producer associations. The study also showed that nontraditional export crops had a variety of effects on the rural poor. The number of small producers that became incorporated depended largely on government action to enable small producers to have access to credit and on the prospects of small producers for engaging in contract agriculture with agroindustrial companies. In addition, there were particularly positive effects on wage-earning workers, including the creation of new jobs, worker training, and improved working conditions. The magnitude of these effects depended on the technology required for the various crops, the characteristics of the labor market, the manner in which consumer concerns about working conditions were addressed, and, above all, the functioning of labor institutions?such as unions, laws and regulations, and government regulatory entities?in the country and region under consideration.
Last updated: 05/08/07
