3.11 General Reactions to the Reforms
Discussion with interested parties reveals that on the producer side there was a lot of anger, annoyance and frustration concerning the reforms. Despite the annoyance, the attitude by the end of 1997 seems to have become one of acceptance and a widespread enthusiasm (by incumbents and new entrants) to take hold of the opportunities. Government and NAMC personnel generally seemed pleased with the progress. Many former board staff displaced by the reforms are unhappy as the result has been very negative for them. The single channel enthusiasts still argue that single channels should have been retained. Interestingly, many people are enthusiastic in talking about marketing initiatives in their sector and much of the anecdotal criticisms within the agricultural sector reveal more angst about government policy with respect to water, land and labour than concern about product marketing.
3.12 Key Lessons from the Reforms
South Africa has in many ways employed a text book approach to dismantling its statutory marketing boards. The goals of the reforms were clearly articulated in a White Paper and in the Act. A period of transition was announced. The policy focussed at the constitutional level rather than the operational level. Individual sectors have had the opportunity to chart their own direction whilst they have all been kept on track by the NAMC. The definition of interested parties has helped to save the process from being captured by particular sectors. The results to date indicate markets do work, but it does take time for relevant information to be found and contractual skills to develop. Further, voluntary ways of cooperation do exist and they are not fatally harmed by free riding. Finally, where government is involved in agricultural markets it is important for it to be transparent about decision processes and criteria. The South African case provides a framework for government oversight which is very significant but does not involve the bureaucracy in commercial decision making.
3.13 Conclusions
South Africa has in the 12 months leading to January 1998 progressively deregulated its agricultural marketing arrangements. A clear legislative programme was put in place along with supporting administrative arrangements. The results have been substantial changes in business practice within the commercial sector. At this stage it is too early to judge the ultimate effectiveness of the reforms but observations to date suggest the reform programme should enhance both efficiency and equity. To date it has required substantial effort from both the bureaucracy and the commercial sector. The reforms have created constructive ferment within South African agriculture. Further research is important within the coming years to monitor both the progress which is made and the obstacles that have to be faced and overcome.
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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