Title: Technology and globalisation: who gains when commodities are de-commodified?

Authors: Raphael Kaplinsky, Robert Fitter

Addresses: Institute of Development Studies, University of Sussex, Brighton BN1 9RE, UK. ' Institute of Development Studies, University of Sussex, Brighton BN1 9RE, UK

Abstract: Like many primary products, coffee has long been characterised as a commodity with falling terms of trade and volatile prices. Yet, in recent years, there has been growing product differentiation in final markets, with premium prices being earned and high and sustainable incomes being provided. So far, these product rents have been almost entirely appropriated by residents of high-income economies. However, to the extent that growers can learn to improve their product through the systematic application of knowledge throughout the value chain, and consumers are taught to recognise that product variety and quality are determined in the growing rather than the roasting stage of the chain, an alternative outcome is possible. This paper outlines the necessary knowledge flows and concludes with an assessment of who needs to do what if this more favourable outcome for growers is to be realised.

Keywords: coffee; commodities; value chain; income distribution; terms of trade; structural adjustment policies.

DOI: 10.1504/IJTG.2004.004548

International Journal of Technology and Globalisation, 2004 Vol.1 No.1, pp.5 - 28

Published online: 21 May 2004 *

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