Is tobacco a development issue? Report from an email discussion

Major tobacco-exporting countries

A strong theme was the impact of tobacco control on the tobacco-exporting countries. It was pointed out that very few countries are heavily dependent on tobacco production. Malawi and Zimbabwe are the major exceptions. Social and economic indicators show that Malawi is one of the poorest countries in the world: sixty percent of the population lives below the poverty line. Reforms have placed agriculture at the centre of the drive for economic growth, which relies heavily on tobacco exports. An economic analysis by one discussion participant reveals that tobacco provides a livelihood to over 70 percent of the population. Smallholder farmers produce much of the tobacco, selling it directly at auction and receiving payments in US dollars, while associated services make up a key part of the economy. So any fall in demand could be potentially catastrophic for livelihoods in Malawi.

One participant highlighted how tobacco control also affects tobacco farmers in the USA. In contrast to the tobacco companies who buy the crop, farmers do not necessarily earn high incomes. Quota systems introduced to maintain tobacco prices have had negative effects on livelihoods in the region. There are very few viable alternatives to tobacco cultivation in this part of the country, so again falling demand is likely to have far-reaching economic effects.

However, a number of contributors pointed out that Zimbabwe, Malawi and tobacco-growing regions of other countries are not unique. Many other countries have based their economies on one major commodity, e.g. copper in Zambia, coffee and tea in Ghana, gold in South Africa. By diversifying their economies, such 'one-product' countries can reduce their vulnerability to sudden changes in the market on which they depend. Diversification may be voluntary, but is more often forced on them because of a sudden or gradual decline in the market.

In a clear message for policy-makers, participants suggested that it is very unlikely that demand for tobacco will end, or even decrease, in the foreseeable future. Job security for tobacco farmers is assured for at least a generation, giving policy-makers plenty of opportunity to implement an orderly change to other land uses. It is important for governments of tobacco-growing countries, especially in developing regions, to understand this, as unfounded concern about economic impact can be an obstacle to their support for tobacco control. Researchers and other concerned individuals can assist farmers, governments and UN agencies to plan for the future.

In one example posted to the discussion, it was suggested that the gradual reduction in profitability in smallholder tobacco farming in Malawi could be mirrored by increased donor support for irrigated agriculture around Lake Malawi and in the interior to produce crops for home consumption and export. The tobacco infrastructure needs support to change to products with similar characteristics and intermediate tobacco buyers need marketing assistance to switch to other products. This is clearly an area where donor support, in the form of practical projects with tangible field level results, would be vital.