Structural adjustment and international commodity markets: The case of cocoa

This study identifies the changes that have occurred in the world cocoa market, explains these changes and deduces implications for development policy. Supply of cocoa to the world market has increased and the world price of cocoa is decreasing. Cocoa is an important export commodity for Sub-Saharan African countries, contributing up to fifty percent of export earnings in some countries. This decrease in price has led to decreased export revenues that has worsened the balance of payments position for many developing countries. This concerns many policy makers.