Sierra Leone Produce Marketing Board
Why Nations Fail: The Origins of Power, Prosperity, and PovertyThe Sierra Leone Produce Marketing Board was established in 1949 as a body that would buy cocoa, coffee, and other produce from farmers at prices intended to buffer them from swings in world markets. In practice, it became a powerful instrument for extracting rural income: colonial authorities used it to tax farmers, and postindependence governments retained and intensified the system. Its history shows how a policy presented as protection could sustain political power by channeling commodity revenues away from producers.
Colonial Design and Operation
Under British indirect rule, paramount chiefs collected taxes, administered justice, and maintained order. The colonial administration also required cocoa and coffee farmers to sell their produce through a marketing board. The stated rationale was to absorb fluctuations in world prices: when prices were high, farmers would receive less than the world price, and when prices were low, the board would pay more. This arrangement placed the board between growers and the market, giving it control over the price farmers actually received.
Set up in 1949, the board needed revenue for its administration and overhead. It acquired those funds by paying producers somewhat less than the amount due in both good and bad years. Over time, that gap widened. What had been framed as a buffer against price volatility became a mechanism by which the colonial state heavily taxed farmers.
Continuity After Independence
Independence did not end the marketing-board system. Although many expected colonial practices of excessive taxation to stop, postindependence governments continued to extract farmers’ income through the boards, and the deductions grew more severe. By the mid-1960s, palm-kernel farmers received 56 percent of the world price, cocoa farmers 48 percent, and coffee farmers 49 percent. By the time Siaka Stevens left office in 1985, those shares had fallen to 37, 19, and 27 percent, respectively.
Even these end-of-period figures understated the burden under Stevens: at times farmers received only about 10 percent of the value of their produce, leaving roughly 90 percent to the government. The book describes that revenue as serving not public provision such as roads or education, but Stevens’s enrichment and the purchase of political support. The board thus connected agricultural trade to the political survival of a regime, rather than turning commodity income into broad-based development.
A Mechanism of Extractive Rule
The board’s persistence was part of a broader continuity between colonial and independent Sierra Leone. British authorities had created marketing boards to tax farmers; later governments used the same institution to extract even more. The colonial system of indirect rule and the diamond monopoly likewise endured in altered political hands. The board was therefore not simply an administrative remnant: it was a means of governing rural production and transferring its returns to those in power.
The book places this pattern within a wider argument about the persistence of extractive institutions. When economic arrangements enrich a narrow group, their beneficiaries gain resources to defend political power and preserve the arrangements that sustain it. In Sierra Leone, the marketing board exemplified that link: control over what farmers could earn helped maintain a political system whose revenues did not reliably serve the farmers who produced the crops. Its significance lies in the reversal of its public justification. A device ostensibly designed to protect producers from unstable markets became an enduring channel for their impoverishment.