COMMON WISDOM #2: In Africa, land, labor, and capital markets remain largely incomplete and imperfect
SCORE: 4 - Fact
- Factor markets, which include labor,
capitaland credit, regularly fail African farmers
- The pattern of market failures
isgeneral and structural, not related to the head-of-household’s gender, or to geographic characteristics such as distance to roads or tolarge population centers
- In some countries, the degree of market failure varies between agro-ecological zones, suggesting that market performance may depend in part on agro-climatic factors outside households’ control
The research supports the current beliefs and discussion on African agricultural and rural development, showing that there is a pressing need to address widespread, systemic market failures that impede productivity growth and poverty reduction.