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Understanding the impact of Cotton Subsidies on developing countries
Ongoing
Researchers: Ian Gillson and Sheila Page with Colin Poulton and Kevin Balcombe
Models developed to investigate the impact of cotton subsidies tend to
generate results that
support the contention that US subsidies, by virtue of their absolute
magnitude, are particularly
damaging and are responsible for most of the reduction in cotton earning
potential in West and
Central African countries and that the impacts of current EU cotton support
are relatively small.
Research conducted by ODI and Imperial College challenges a number of
critical assumptions
upon which contemporary models are based and in doing so, demonstrates
that EU cotton
subsidies may have a disproportionate and significant impact on developing
country cotton
production, particularly on those of its traditional trading partners,
which include West African
countries
The research addresses two fundamental assumptions:
i. That the structure of the international cotton market is unitary,
in that importers source cotton
purely on the basis of price; and
ii. The elasticity of supply characterising production and consumption
decisions in each trading
country is constant
To access the report, please click on the links below.
An ODI
Briefing Paper
has also been published.
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