Export Diversification in Low-income Countries: An International Challenge after Doha

Federico Bonaglia, Kiichiro Fukasaku
2003 Social Science Research Network  
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 they do not condemn low-income countries to underdevelopment but can provide rather a basis for sustained export-led growth. Natural resource-based sectors have potential for export diversification. The OECD "mirror" trade data suggest that many different routes to
more » ... rent routes to diversification exist, including resource-based manufacturing and processing of primary products. However, these opportunities are not 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 needs and the services available to them as well as to a limited institutional development of the trade and investment support network. Though important to Africa, lessons for trade capacity building are also relevant for other lowincome countries too. DEV/DOC(2003)07 9
doi:10.2139/ssrn.724761 fatcat:kfvic3wxlfhf5c7wmaqs5k6kii