The aftermath of colonization and forms of transactions between agriculture and industry - Exchange relations between industrialized and developing countries in the world economy of tobacco

In this paper the long-term interrelationships between types of colonizatio n, the resulting agricultural structures, and the types of connection betwe en local farms and international manufacturers are studied in the tobacco i ndustries of Brazil and Zimbabwe. The argumentation is devoloped in three s teps: It starts with a conception of colonialism as the origin of pathdepen dent processes which mold agricultural structures and limit the choices of supply strategies on the part of the manufacturing industry. In the second section the auction system in Zimbabwe and the system of contract farming i n southern Brazil are analyzed as variants of "market" and "hierarchy", whi ch couple agriculture with industry. The observed intersectoral linking str uctures are then explained in terms of transaction-cost and resource depend ence theory.