Improving Agricultural Market Performance:
Creation and Development of Market Institutions
48
There are many reasons for the failure of these institutions to stabilize markets but some of
the main ones are:
 Allowing CCC to act as both regulator and market participant, which led to breach of its
fiduciary duty and irresponsible directional bets on prices in an effort to make up for
past losses;
 Liberalization in the period between 1999 and 2012 also failed, because it was
conducted in a disorderly fashion. Rather than preserve an institution with some
power to regulate markets, control quality, and provide some price stability, Cote
d’Ivoire abolished its cocoa and coffee market institutions entirely.
 Abolition of CAISTAB removed the surplus reserve that was used to moderate price
volatility, while also reducing government receipts from coffee and cocoa exports,
proceeds that instead went mainly to multinational enterprises.