Prices/pricing private sector local products

One crucial aspect to keep in mind when governments and international organizations operate in the market is the risk of a negative impact on local markets. For example, they can cause the collapse of local agricultural commodity prices, thereby having a disincentive effect on production, or they can have a negative impact on the development of private markets. The latter is the situation in Zambia, where government imports have crowded out private sector imports (del Ninno, Dorosh, and Subbarao 2005, 2007). 

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