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Federico Bonaglia () and Kiichiro Fukasaku ()

Development and Comp Systems from University Library of Munich, Germany

Abstract: This paper discusses major policy issues related to commodity dependence and export diversification in low-income countries. Contrary to some widely-held view, it argues that natural resources are not necessarily a ‘curse’ that condemns low-income countries to underdevelopment but can provide a basis for sustained export-led growth. Natural resource-based sectors have potential for export diversification. The OECD ‘mirror’ trade data indeed suggest that many different routes to diversification exist, including resource-based manufacturing and processing of primary products. However, these opportunities are far from being exploited in many low-income countries. This is because export diversification is typically a slow process, and this process needs to be sustained by an appropriate and coherent strategy, characterised by a combination of vision, co-ordination and management of conflicting interests. Moreover, the analysis of trade support services in two African countries points to a mismatch between private sector’s needs and services actually provided and to a limited institutional development of the trade and investment support network. The lessons for trade capacity building are important for Africa but are also relevant for other low-income countries.

Keywords: export diversification; resource curse; Doha development agenda; trade capacity building; trade support services (search for similar items in EconPapers)
JEL-codes: Q33 Q17 F13 F14 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2003-07-02
New Economics Papers: this item is included in nep-dev
Note: Type of Document - Acrobat pdf; prepared on IBM PC; to print on HP; pages: 46 ; figures: included
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Working Paper: Export Diversification in Low-Income Countries: An International Challenge After Doha (2003) Downloads
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