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Summary of the "REFORM OF THE COTTON INDUSTRY IN BURKINA FASO" report by J. Kaminski
How did a succession of organisational innovations trigger the cotton boom ? Jonathan Kaminski, PhD student in the Jean-Paul Azam Economy Laboratory at Toulouse 1 University, presents a summary of his research on reform in the cotton industry in Burkina Faso.
Full summary document (pdf, 900 ko)
This summary puts the changes into perspective in various parts of the cotton industry in Burkina Faso and how its structure is being remodelled. It provides an opportunity to learn from the experience and understand the reasons behind its success :
- A change led by those involved : agricultural producers and cotton companies. The reform was not imposed from outside, by the State or international monetary institutions ;
- A new local governance. Re-engineering of the components of the industry began with the creation of groups of producers based on voluntary participation ;
- The groups of producers were structured into regional and national unions, which gave them the means to form themselves into irrefutable partners for the next stages ;
- Gradual reform : privatisation of the industrial facility along with producers participating in company capital and the creation of new companies were not done until the reform was complete.
- Increased coordination among players carried out in new trade organisations : the UNPCB (National Union of Cotton Producers of Burkina Faso) for producers, the APROCOB (Professional Association of Cotton Companies of Burkina Faso) for cotton companies and in the AICB (Cotton Association of Burkina Faso), an inter-trade organization. These organizations provide a safe environment for the players.
Yet, with low prices and the inflation of the CFA franc, the sector is facing new challenges. The institutional innovation has to be followed by a series of technological innovations that increase productivity in the cotton sector and make it possible to regain competitive margins and earn incentivising profits.
