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This report addresses the overarching question regarding the role of institutions in enhancing market development following market reforms. It uses the New Institutional Economics framework to empirically analyze the role of a specific market institution, that of brokers acting as intermediaries to match traders in the Ethiopian grain market in reducing the transaction costs of search faced by traders. Brokers play a key role in facilitating exchange in a weak marketing environment where limited public market information, the lack of grain standardization, oral contracts, and weak legal enforcement of contracts increase the risk of contract failure. Relying on primary data, it analyzes traders' microeconomic behavior, social capital, the nature and extent of their transaction costs, and the norms and rules governing the relationship between brokers and traders.The study uses an innovative approach to quantify the costs of search and demonstrates that the brokerage institution is economically efficient both for individual traders and for global economic welfare.
Ethiopia’s food systems are rapidly evolving, being driven by major contextual changes including high population growth, rapid urbanization, infrastructure investments, and income growth. These changes are illustrated by dietary, agricultural, and supply chain transformations. These transformations in Ethiopia’s food systems are expected to continue at a rapid pace given similar even more pronounced changes going forward. We expect to see especially rapid growth in commercial food markets. This will have enormous implications on farming and on the required development of efficient private-led agricultural input supply, logistics, trading, and distribution sectors.
Scenes of starvation have drawn the world's attention to Africa's agricultural and environmental crisis. Some observers question whether this continent can ever hope to feed its growing population. Yet there is an overlooked food resource in sub-Saharan Africa that has vast potential: native food plants. When experts were asked to nominate African food plants for inclusion in a new book, a list of 30 species grew quickly to hundreds. All in all, Africa has more than 2,000 native grains and fruitsâ€""lost" species due for rediscovery and exploitation. This volume focuses on native cereals, including: African rice, reserved until recently as a luxury food for religious rituals. Finger millet, neglected internationally although it is a staple for millions. Fonio (acha), probably the oldest African cereal and sometimes called "hungry rice." Pearl millet, a widely used grain that still holds great untapped potential. Sorghum, with prospects for making the twenty-first century the "century of sorghum." Tef, in many ways ideal but only now enjoying budding commercial production. Other cultivated and wild grains. This readable and engaging book dispels myths, often based on Western bias, about the nutritional value, flavor, and yield of these African grains. Designed as a tool for economic development, the volume is organized with increasing levels of detail to meet the needs of both lay and professional readers. The authors present the available information on where and how each grain is grown, harvested, and processed, and they list its benefits and limitations as a food source. The authors describe "next steps" for increasing the use of each grain, outline research needs, and address issues in building commercial production. Sidebars cover such interesting points as the potential use of gene mapping and other "high-tech" agricultural techniques on these grains. This fact-filled volume will be of great interest to agricultural experts, entrepreneurs, researchers, and individuals concerned about restoring food production, environmental health, and economic opportunity in sub-Saharan Africa. Selection, Newbridge Garden Book Club