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Export performance following trade liberalisation: some patterns and policy perspectives
Why trade liberalisation is not working for Africa and how to remedy this
Authors:
S. Gayi; J. Nkurunziza; M. Halle
Publisher:
United Nations [UN] Conference on Trade and Development , 2008
This report from UNCTAD examines Africa’s export performance after trade liberalisation to draw lessons for use in the design of future development strategies. Liberalisation over the last 25 years has removed policy barriers that were seen to inhibit export performance. Despite this the level and composition of exports has not changed. Exports have not diversified and as a whole market share is down from 6 per cent of world exports to 3 per cent.
This report identifies Africa’s weak supply response as the most important impediment to the continents export performance. Future policies should more on ways to increase production for export. Policies need to help Africa re-focus its development priorities on structural transformation in order to increase supply capacity and export response.
Analysis of the performance of agricultural exports in Africa suggests that positives from liberalisation are limited. Complementary policies are required to address structural and institutional constraints. To improve the situation the report recommends:
- increasing volumes of new market-dynamic products
- developing private sector to gain access to global value chains and working in private-public partnerships
- strengthening the capacities of the State to improve Africa’s position in global value chains
- targeting policy to specific socio-economic issues and institutions that have been identified as preventing Africa from reaching it try potential
- implementing policies to improve agricultural productivity and efficiency in agricultural trade
- low levels of productive investment
- the small size of manufacturing firms
- limited access to production factors, particularly credit
