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Copyright © and Moral Rights for This Phd Thesis Are Retained by the Author And/Or Other Copyright Owners Schäfer, Florian Tomas (2017) Revisiting the agrarian question : coffee, flowers and Ethiopia’s new capitalists. PhD Thesis. SOAS, University of London. http://eprints.soas.ac.uk/id/eprint/24389 Copyright © and Moral Rights for this PhD Thesis are retained by the author and/or other copyright owners. A copy can be downloaded for personal non‐commercial research or study, without prior permission or charge. This PhD Thesis cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder/s. The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. When referring to this PhD Thesis, full bibliographic details including the author, title, awarding institution and date of the PhD Thesis must be given e.g. AUTHOR (year of submission) "Full PhD Thesis title", name of the School or Department, PhD PhD Thesis, pagination. Revisiting the agrarian question: coffee, flowers and Ethiopia’s new capitalists Florian Tomas Schäfer Thesis submitted for the degree of PhD 2016 Department of Development Studies SOAS, University of London Declaration for SOAS PhD thesis I have read and understood regulation 17.9 of the Regulations for students of the SOAS, University of London concerning plagiarism. I undertake that all the material presented for examination is my own work and has not been written for me, in whole or in part, by any other person. I also undertake that any quotation or paraphrase from the published or unpublished work of another person has been duly acknowledged in the work which I present for examination. Signed: ____________________________ Date:_________________ 2 Abstract This thesis examines the development of agrarian capitalism in the coffee and cut flower sectors of contemporary Ethiopia. Particular emphasis is placed on processes of capital accumulation by large-scale domestic producers, and how their operations interact with the Ethiopian ‘developmental state’, which is striving for a rapid structural transformation of the economy. Chapter One introduces the research question, develops research themes, and presents the main argument. Chapter Two discusses the relevant literature on economic development and agrarian change. It points to the main shortcomings of institutional approaches, and, drawing on different formulations of the agrarian question, develops the theoretical framework used here: historical political economy. Chapter Three presents the methodological operationalisation of this framework in mixed methods fieldwork, describes the fieldwork and discusses data sources and constraints. Chapter Four shows how Ethiopia’s political economy developed across three very different political regimes and illustrates how policies affecting capital accumulation have to be understood in the light of their contribution to the strategic interests of the governing elite. The history of the coffee trade, both in Ethiopia and globally, is examined in Chapter Five. Large-scale private plantations are shown to have important historical antecedents in Ethiopia. Coffee sector regulation is presented in relation to the strategic aims of the government. Chapter Six presents key findings from the mixed method survey in the coffee sector. It discusses the characteristics of large-scale domestic plantation owners, including their patterns of capital accumulation, and their control over, and access to, land and labour. Chapter Seven presents evidence on patterns of capital accumulation in the flower sector. This accumulation is positioned within the context of international flower markets and the industrial policy regime put in place to support the sector in Ethiopia. Chapter Eight compares accumulation patterns in both sectors and summarises the main findings. 3 Acknowledgements This study would not have been possible without the generous financial support provided by the ESRC’s studentship in International Development. I am heavily indebted to the guidance, support and patience provided by my supervisor, Dr Carlos Oya, who always pushed me to go and find out, think critically and read the classics. I would also like to thank Dr Deborah Johnston and Prof Christopher Cramer for their trust and encouragement. I received very helpful feedback on early sketches of some of the ideas presented here from Dr Jan-Frido Wenten, Prof John Sender, Dr Leandro Vergara-Camus and the participants of the Agrarian Change seminar at SOAS. I am especially grateful to my fellow PhD students and fractional staff at SOAS, for teaching me about friendship and solidarity. In Ethiopia, my gratitude goes to my research assistant and translator, Ato Haileyesus Andualem, whose charm and intelligence were a vital support. Further I am grateful to the Ethiopian Development Research Institute for hosting me during my fieldwork, and in particular to Dr Girum Abebe for many stimulating discussions. This study greatly benefitted from the kind assistance offered by the Ethiopian Coffee Growers, Producers and Exporters Association and the Ethiopian Horticulture Producers and Exports Association. Special thanks go to the staff of Technoserve Ethiopia, who taught me so much about coffee and gave me many a lift. I am particularly grateful to my friends in Addis Ababa for providing me with a home while in town, and to all of my interview partners for sharing their knowledge and time. My wonderful friends and family put up with me and tolerated my many absences during the writing process. My parents and brother have provided me with a loving home and family, as well as invaluable support, advice and encouragement throughout. Lastly, I would like to thank my amazing partner Ewa for her endless love, patience and inspiration. 4 Table of contents Declaration 2 Abstract 3 Acknowledgements 4 Table of contents 5 List of figures 8 List of tables 9 Acronyms and abbreviations 10 Chapter One Introduction 13 1.1 Agrarian change and capitalist development 1.2 Research question and themes 1.3 The case study 1.4 Argument and main findings 1.5 Contribution to social science 1.6 Lacunae 1.7 Nomenclature 1.8 The structure of the thesis Chapter Two Framing agrarian change and capitalist development 25 2.1 Introduction 2.2 New institutional economics 2.3 The developmental state approach 2.4 Historical political economy 2.5 The agrarian question 2.6 Capitalism and accumulation in Africa 2.7 Themes in the Literature Chapter Three Research design, methodology and data 71 3.1 Introduction 3.2 Central research question 3.3 Research design 3.4 Structuring the empirical work 3.5 Sampling and representativeness 5 3.6 Sample construction in coffee 3.7 Sample construction in floriculture 3.8 Interviews and interview technique 3.9 Research ethics 3.10 Data analysis 3.11 Weaknesses and limitations 3.12 Conclusion Annex III.1 List of interviews 99 Annex III.2 Maps 102 Chapter Four The political economy of agrarian change in Ethiopia: a 104 historical perspective 4.1 Introduction 4.2 State building, land ownership & agrarian capital in the imperial era 4.3 The Derg, the end of capitalism and civil war 4.4 The EPRDF and state-directed development 4.5 Conclusion Annex IV.1 Ethiopia’s economic performance under the EPRDF 142 Chapter Five The politics of coffee production and the role of the state 147 5.1 Introduction 5.2 The history and structure of the global coffee trade 5.3 The history of regulation & accumulation in the Ethiopian coffee sector 5.4 The contemporary Ethiopian coffee sector 5.5 Current possibilities for private capital accumulation 5.6 Conclusion Annex V.1 Coffee processing and quality differentiation 194 Annex V.2 The Ethiopian Commodity Exchange (ECX) 199 Chapter Six The new coffee capitalists 207 6.1 Introduction 6.2 Sample characteristics 6.3 Capital accumulation 6.4 Land acquisition 6.5 Production, knowledge and technology 6.6 Labour mobilisation and labour control 6.7 Dynamic accumulators 6.8 Conclusion 6 Annex VI Production activities and remuneration methods 276 Chapter Seven Capital and the state in floriculture 278 7.1 Introduction 7.2 The international market for cut flowers 7.3 Floriculture in Ethiopia 7.4 State and capital in the growth of floriculture 7.5 Capital accumulation 7.6 Land and farm size 7.7 Employment, wages and labour agency 7.8 Knowledge, markets and differentiation among capitalists 7.9 State control of foreign exchange 7.10 Conclusion Chapter Eight Concluding remarks: towards a comparison 333 8.1 Comparing accumulation in coffee and flowers 8.2 Differences in industrial policy 8.3 Summarising the main findings 8.4 Avenues for future research Bibliography 349 7 List of figures Figure IV.1 Real GDP and real GDP per capita, 1981-2014 Figure IV.2 Real GDP growth, 1991-2015 Figure IV.3 Nominal FDI stock and flows, 1992-2014 Figure 5.1 Real coffee price composites, 1960-2014 Figure 5.2 Coffee production volumes for selected producers, crop years 1961- 2015 Figure 5.3 Coffee import volumes of main importing countries and regions, 1990-2009 Figure 5.4 Volume of Ethiopia coffee exports, 1990-2011 Figure 5.5 Indices of real value and volume of Ethiopian coffee exports, 2002- 2013 Figure 5.6 Colombian milds (Arabica) NY price index and annual rate of change, 1990-2012 Figure 6.1 Distribution of educational attainment Figure 6.2 Main parental occupation of all sampled farmers Figure 6.3 Size distribution of coffee land holdings in the sample Figure 6.4 Year of farm formation in the quantitative sample Figure 6.5 Frequency distribution
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