By Laura T. RaynoldsPresented by Jessica Hendrix

Restructuring the Third World Agro-Exports:

Changing Production Relations in the Dominican Republic

The importance of 3rd world governments’ involvement in restructuring the local economy to accommodate the changing world economic and political conditions

1970sThe active breakdown of traditional colonial

based export systemCaused by politics and the strong backing of

international institutions

Expansion of Nontraditional Agriculture

The new division of labor in the 3rd world agriculture export sectors were transformed, not eliminated

Improved transportation, preservation and communication systems

Made geographic separation of production and markets possible

Other reasonsDebt crisisTNCsState governments

Sanderson

Traditionally very colonialProduced low value, undifferentiated,

agriculture exportsSugar, coffee, cocoa, tobacco1980s severe decrease in these exports

Dominican Republic

Decreased world demandHealth concernsCorn substitute

Increased 1st World protection policies to protect domestic

producersDecreased world sugar prices

Excess production Increased world competition

Unlikely could ever resume production in the DR

Sugar Decrease

All agriculture exports except coffee, tobacco, cocoa, and sugar

All agro-industrial commoditiesDomestic or foreign marketsIncludes bananas, oranges, and yucca

DR Nontraditional Agriculture

International debt crisisIncreased protectionismIncreased influence of TNCs, bilateral donors,

and major trading partners over policiesDecreased US sugar quotas

Global and Domestic Forces in the DR

Caribbean Basin InitiativeDebt strategiesExport Promotion LawAgro-Industrial Law

Policies and Initiatives

In the DR from 1979-1986 export earnings of nontraditional agriculture exports increased from

$58 million to $103 million.

Success

Stagnated growth after 1986Fresh agriculture export decreased from $45

million to $34 million State unable to guarantee conditions for

accumulation in the sectorEconomic chaosStop paying incentives

Failure

Out-growers systemOriental vegetables Showed that small growers do not understand

and are unable to meet international restrictions

Often concerned with short term profits, not sustainability

Agriculture Export Commodities Systems

Plantation System Workers hired to

work on company managed farms

In the DR companies use state land

PineapplesCorporations able to

have diverse locations so they can move easily

Force countries to negotiate for lowest price

The instability of the firms leads to instability in the sector

The importance of the state should not be overlooked

3rd world states are responsible for securing a place in the international marketMust have the social and economic conditions

to do so

Conclusion