International Political Economy Series General Editor: Timothy M. Shaw, Professor and Director, Institute of International Relations, The University of the West Indies, Trinidad & Tobago Titles include: Leslie Elliott Armijo (editor) FINANCIAL GLOBALIZATION AND DEMOCRACY IN EMERGING MARKETS Robert Boardman THE POLITICAL ECONOMY OF NATURE Environmental Debates and the Social Sciences Jörn Brömmelhörster and Wolf-Christian Paes (editors) THE MILITARY AS AN ECONOMIC ACTOR Soldiers in Business Gerard Clarke and Michael Jennings (editor) DEVELOPMENT, CIVIL SOCIETY AND FAITH-BASED ORGANIZATIONS Bridging the Sacred and the Secular Gordon Crawford FOREIGN AID AND POLITICAL REFORM A Comparative Analysis of Democracy Assistance and Political Conditionality Fred P. Gale THE TROPICAL TIMBER TRADE REGIME Meric S. Gertler and David A. Wolfe INNOVATION AND SOCIAL LEARNING Institutional Adaptation in an Era of Technological Change Anne Marie Goetz and Rob Jenkins REINVENTING ACCOUNTABILITY Making Democracy Work for the Poor Andrea Goldstein MULTINATIONAL COMPANIES FROM EMERGING ECONOMIES Composition, Conceptualization and Direction in the Global Economy Mary Ann Haley FREEDOM AND FINANCE Democratization and Institutional Investors in Developing Countries Keith M. Henderson and O. P. Dwivedi (editors) BUREAUCRACY AND THE ALTERNATIVES IN WORLD PERSPECTIVES Jomo K.S. and Shyamala Nagaraj (editors) GLOBALIZATION VERSUS DEVELOPMENT Angela W. Little LABOURING TO LEARN Towards a Political Economy of Plantations, People and Education in Sri Lanka José Carlos Marques, and Peter Utting (editors) BUSINESS, POLITICS AND PUBLIC POLICY Implications for Inclusive Development S. Javed Maswood THE SOUTH IN INTERNATIONAL ECONOMIC REGIMES Whose Globalization? John Minns THE POLITICS OF DEVELOPMENTALISM The Midas States of Mexico, South Korea and Taiwan Philip Nel THE POLITICS OF ECONOMIC INEQUALITY IN DEVELOPING COUNTRIES Pia Riggirozzi ADVANCING GOVERNANCE IN THE SOUTH What are the Roles for International Financial Institutions in Developing States? Lars Rudebeck, Olle Törnquist and Virgilio Rojas (editors) DEMOCRATIZATION IN THE THIRD WORLD Concrete Cases in Comparative and Theoretical Perspective Eunice N. Sahle WORLD ORDERS, DEVELOPMENT AND TRANSFORMATION Benu Schneider (editor) THE ROAD TO INTERNATIONAL FINANCIAL STABILITY Are Key Financial Standards the Answer? Adam Sneyd GOVERNING COTTON Globalization and Poverty in Africa Howard Stein (editor) ASIAN INDUSTRIALIZATION AND AFRICA Studies in Policy Alternatives to Structural Adjustment William Vlcek OFFSHORE FINANCE AND SMALL STATES Sovereignty, Size and Money International Political Economy Studies Series Standing Order ISBN 978–0–333–71708–0 hardcover Series Standing Order ISBN 978–0–333–71110–1 paperback You can receive future titles in this series as they are published by placing a standing order. Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and one of the ISBNs quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England Governing Cotton Globalization and Poverty in Africa Adam Sneyd Assistant Professor, Department of Political Science, University of Guelph, Canada © Adam Sneyd 2011 Softcover reprint of the hardcover 1st edition 2011 978-0-230-25278-3 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2011 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number785998, of Houndmills, Basingstoke, HampshireRG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries ISBN 978-1-349-32244-2 ISBN 978-0-230-29945-0 (eBook) DOI 10.1057/9780230299450 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalogue record for this book is available from the Library of Congress. 10 9 8 7 6 5 4 3 2 1 20 19 18 17 16 15 14 13 12 11 Contents Lists of Abbreviations vii Acknowledgements x 1 Introduction: Cotton-Picking Problems Beyond the WTO 1 Research problem and questions 4 Organization of the argument 7 Research methodology 9 2 Historic Relationships Between Cotton and Poverty 13 Cotton, colonialism and poverty 14 After formal political independence 24 Cotton sub-sector reforms and poverty in Tanzania 36 The historic relationships today: A composite sketch 45 3 Global Trade Governance and Cotton Dependence: 48 Beyond Poverty Maintenance Global governance of the agricultural commodity trade 49 and poverty Governing cotton at the WTO? 58 The poverty of the sectoral initiative 70 The end of poverty through the end of the cotton trade? 77 4 Breaking the Historic Relationships in Tanzania 79 Elite perspectives on poverty eradication 82 Domestic governance reform and resource mobilization 84 Donor resources 91 Biotechnology 94 Foreign direct investment 97 Lint exports 99 Views from the farm: Cotton, poverty and beyond 101 5 NGOs, Conventional Production and Poverty 104 Networks, coalitions and the transnational norm for cotton 109 Oxfam cottons on 112 Free trade liberalism, WTO legitimacy and the IDEAS Centre 115 Beyond the cotton coalitions: Lessons from Tanzania 120 Concluding statement 123 6 CSR and the Cotton-Poverty Relationship 125 A brief introduction to corporate social responsibility 126 v vi Contents CSR and cotton: An argument 129 ‘Better’ cotton? 131 Differentiating non-state, market driven governance 135 Conventional cotton buying, social irresponsibility 153 and CSR prospects in Tanzania Concluding remarks 163 7 Conclusions: Global Interventions and Poverty 165 Eradication Findings 170 Moving forward 175 Appendix A: Sources for Cotton Statistics 183 Appendix B: Stabilization, Adjustment and Rural Livelihoods 185 Notes 190 Bibliography 216 Index 238 List of Abbreviations AAA Accra Agenda for Action ACP African, Caribbean and Pacific AfDB African Development Bank AGRA Alliance for a Green Revolution in Africa APROCA Association des Producteurs de Coton Africains BCI Better Cotton Initiative BOFA Busangwa Organic Farming Association BSR Business Social Responsibility C4 Cotton Four CCM Chama Cha Mapinduzi CDA Cotton Development Assistance CDI Cotton Development International CDF Cotton Development Fund CFA Communauté financière d’Afrique cfr cost and freight CHF Swiss francs cif cost, insurance and freight CIGI Centre for International Governance Innovation CMIA Cotton Made in Africa CSDI Centre for Sustainable Development Initiatives CSR Corporate Social Responsibility DSB Dispute Settlement Body EAC East African Community EAOS East African Organic Standard ECA Economic Commission for Africa ECOSOC Economic and Social Council ECOWAS Economic Community of West African States ENDA Diapol Environnement et Développement du Tiers Monde Prospectives Dialogues Politiques EPOPA Export Promotion of Organic Products from Africa ESRF Economic and Social Research Foundation FDI Foreign Direct Investment FLO Fairtrade Labelling Organizations International FNPC Fédération Nationale des Producteurs de Coton du Sénégal fob free on board price vii viii List of Abbreviations GATT General Agreement on Tariffs and Trade GSP Generalized System of Preferences HIPC Heavily Indebted Poor Countries ICAC International Cotton Advisory Committee ICA International Commodity Agreements ICTSD International Centre for Trade and Sustainable Development IFOAM International Federation of Organic Agriculture Movements IFAD International Fund for Agricultural Development IMF International Monetary Fund IMO Institute for Marketecology IPE International Political Economy ITO International Trade Organization MFA Multi Fibre Arrangement MDGs Millennium Development Goals MDRI Multilateral Debt Relief Initiative MKUKUTA National Strategy for Growth and Reduction of Poverty NAM Non-Aligned Movement NAMA Non-Agricultural Market Access NIEO New International Economic Order NTB Non-tariff barrier NSI The North-South Institute NSMD Non-state Market Driven OAU Organization for African Unity ODA Official Development Assistance ODI Overseas Development Institute OECD Organization for Economic Cooperation and Development OECD-DAC Organization for Economic Cooperation and Development – Development Assistance Committee PPA Participatory Poverty Assessment PRGF Poverty Reduction and Growth Facility REPOA Research on Poverty Alleviation SACCOS Savings and Credit Cooperative Societies SIDA Swedish International Development Agency SODEFITEX Société de Développement et des Fibres Textiles TanCert Tanzania Organic Certification Association TACOGA Tanzania Cotton Growers Association TCA Tanzania Cotton Association TCB Tanzania Cotton Board List of Abbreviations ix TIC Tanzania Investment Centre TOAM Tanzania Organic Agriculture Movement TRIMs Trade-Related Investment Measures TRIPS Trade-Related Aspects of Intellectual Property Rights TZS Tanzanian Shilling UEMOA Union Economique et Monétaire Ouest Africaine UNCTAD United Nations Conference on Trade and Development UNDESA United Nations Department of Economic and Social Affairs UNDP United Nations Development Programme UNEP United Nations Environment Programme UNIDO United Nations Industrial Development Organization UNMP United Nations Millennium Project UNU-WIDER United Nations University – World Institute for Development Economics Research URT United Republic of Tanzania USADF United States African Development Fund USDA United States Department of Agriculture USAID United States Agency for International Development US-GPC Union de Secteur des Groupements de Producteurs de Coton de Kédougou USTR United States Trade Representative VAT value added tax WCGA Western Cotton Growing Area WWF World Wildlife Fund WTO World Trade Organization