Scholars agree that two central questions in political economy are: How do economic markets become politically regulated? And, once regulated, what determines the allocation of resources within them? To date, little research has been directed at these questions. This project will address these questions by examining the case of the international coffee market. The market is regulated by international agreement. One objective of this research is to examine what led to the elaboration of political rules to govern trade in this commodity. Another objective is to characterize the way in which these rules influence the quantities traded and the price levels maintained in international markets. The study of the political regulation of markets lies at the forefront of theoretical concerns in contemporary social science. The research is also important for policy reasons. Coffee represents one of the most valuable exports from the unstable countries of Central and Southern America. Understanding the way in which trade in this commoditiy is governed is thus of great interest, for it may help policy makers to restructure the rules of the agreement so as to bring greater prosperity to these strategically important nations.
