Mobilizing science for global food security. Third External Review of IFPRI (Consultative Group on International Agricultural Research ) (1998): Chapter 2 - IFPRI Research and Outreach Activities: 2.3 Markets and Structural Studies Division (MSSD): 2.3.2 The Direction of MSSD’s Work

Mobilizing science for global food security. Third External Review of IFPRI (Consultative Group on International Agricultural Research ) (1998)

Chapter 2 - IFPRI Research and Outreach Activities

2.3 Markets and Structural Studies Division (MSSD)

		2.3.1 Origin, Mission and Mandate
		2.3.2 The Direction of MSSD’s Work
		2.3.3 Linkages with Other Divisions and Other CG Centres
		2.3.4 Output
		2.3.5 Dissemination of Results
		2.3.6 Assessment

2.3.2 The Direction of MSSD’s Work

The general direction of the Division’s work shows why it is essential to the IFPRI general programme: whereas trade liberalization (both externally, in international markets, and internally, in national or regional markets) has been advocated as the universal remedy for any difficulties in matching supply and demand, the thrust of the Division’s activities is to identify market failures and design institutions likely to avoid them. In so doing, the Division not only helps to create the conditions necessary for markets to function smoothly and efficiently, conditions that are not necessarily met naturally - it also indicates the places where compensations are needed to prevent the losers from being sacrificed to the general interest. Very often, the losers are also the poor, so this exercise falls directly within the mandate of the Institution.

The Division’s method relies primarily on surveys and case studies, a sound approach, the main merit of which is that it provides fresh data and direct grassroot contacts. It produces many outstanding results and some excellent reports. Among the results, one of particular importance is the conclusion that output market reforms have not met expectations in Africa, primarily because not enough care has been devoted to finance and infrastructure. The conclusion that market reform can lead to an over-exploitation and exhaustion of soils may also be important, and addressing it should be given priority in rural areas institutional design, particularly in regions such as the Sahel. Also worth mentioning is the demonstration of the importance of sequencing in setting up reforms: input markets must be created before the liberalization of output markets - an idea that may not be shared everywhere, and is yet of the utmost importance for the very success of liberalization. The likely consequences of diversification are already in the research agenda: diversification does not only affect crop production, but the marketing system as well, by creating economies of scale and new activities.