IB Econ Chap 26 Terms of Trade - Sunny Hills High School

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26 o Terms of trade
Student workpoint 26.4
Be an inquirer
Using the following profile based on information from
The New Agriculturolisf and, doing a little bit of research
on your own, answer the questions that follow.
Focus on Benin
One of Africa's
strongest
democracies,
Benin, a country of
undulating plains
and low mountain
ranges, borders
Nigeria, Niger,
Togo, and Burkina
Faso.
Despite its strong
democratic
example, Benin's
economic situation is less than healthy. Over half of the
population rely on subsistence farming for their
livelihood and the poor have not benefited from the
country's legacies as the once-powerful kingdom of
Dahomey and, more recently, as one of Africa's largest
cotton producers.
Benin is heavily dependent upon trade with its
neighbour Nigeria, leaving it vulnerable to that country's
economic volatility. And, although Benin has privatized
some of its national industry and encouraged foreign
direct investment, it has recently been ranked among
the poorest countries in the world in the United Nations
Human Development lndex.
The agricultural backbone
Cotton is the only cash crop available to small-scale
farmers, making up 400/0 of the country's CDP and over
80o/o of export revenues. A consequence is that the
Over half of Beninese are subsistence farrners
country's fertile land has suffered environmental
degradation as a result of the emphasis on production
of cotton for the export market and because 9Oo/o of all
pesticides are used on cotton. Heavy use of
agrochemicals has prompted widespread concern about
the sustainability of the industry; this was particularly so
between 1999 and 2000 following reintroduction of
the pesticide endosulfan, related to the banned DDT,
which led to many farmers'deaths.
The damage to both human health and the
environment has prompted the widespread introduction
of orSanic farming methods. Organic farming has almost
doubled since 2003. Organizations, such as the
Pesticide Action Netlvork based in the UK together with
local partner OBEPAB (Organisation Beninoise pour la
Promotion de lAgriculture Biologique), have trained
local farmers-particularly women-in integrated pest
management (lPM) and organic cotton farming through
Farmer Field Schools. IPM measures aimed at reducing
chemical pesticide use to a minimum include improving
soil fertilit/, recognizing disease, and encouraging
natural enemies.
Benin's export market has expanded to include other
agricultural products. lhe production of shea nut butter,
though more popular in Chana, is an activity now
strongly associated with women and reported to be, at
times, a more important source of income than cotton.
Shea nuts are a staple in the local diet and their
increasing use in the lucrative cosmetics industry is
promoting interest in the export value of shea butter
However, the process of making shea butter is laborious
and in some seasons may be unprofitable.
Since the mid-l9B0s Benin has increased production of
yams, cassava, maize, peanuts, and pulses to achieve
food security. Rice production, particularly of upland
varieties Srown on dry land, has been boosted by the
introduction of NERICA vadeties by the Africa Rice Center
(VVARDA).'lhe new varieties combine the hardiness of
indigenous rice with the high yielding characteristics of
Asian varieties, and they are said to produce 500/0 more
yield than local varieties without fertilizer use and up to
200 more with fertilizer application.
Although palm oil was a major cash crop in Benin during
the l98os, its cultivation was marginalized by the
popularity of cotton. But now, following the booming
interest in biofuels, palm oil production is increasingwhich
has caused some controversy. 'The World
Rainforest Movement has reported the allocation of
Deilveen JUOUOU and 4UUUOU hectares ot land tor
palm oil produdion in humid southern Benin which,
despite constituting only I Oo/o of national territory
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