Lawrence Obae Mose : "Who gains, who loses? The impact of market liberalization on rural households in Northwestern Kenya"

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14 Mar 2007 16:00
Unit: Wageningen University
Location: Aula, building 362, Gen. Foulkesweg 1, Wageningen
Organisation: Wageningen University
Promotor: prof.dr. A. Kuyvenhoven (Development Economics)
Co Promotor: C.P.J. Burger

 We provide an account of the impacts of market liberalisation on households in Northwestern Kenya, a maize surplus producing region. A review of the market liberalisation process indicates that commodity markets are partially liberalised with government still actively participating in markets like maize and milk.  There is no evidence of collusion among traders on pricing or limiting market supply despite financial and structural constraints that limit their expansion. Private traders participating in commodity markets appear to play a competitive role, without signs of farmer exploitation.
We also find that on-farm diversification and commercialisation have increased after market liberalisation. Overall, the study shows that market liberalisation could be beneficial to households if constraints traders face could be eliminated and that the government has lost revenue because of its reduced role in commodity marketing activities.
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