This document discusses barriers to greater African participation in global trade and recommendations to address them. It finds that while some African countries have increased exports, many have not due to various barriers. Key recommendations include: 1) Deeper regional economic integration in Africa to create larger markets and exploit economies of scale; 2) Addressing high tariffs and non-tariff barriers African exports face in global markets, particularly for agricultural goods; 3) Improving African infrastructure and production capacity to allow greater processing of exports within Africa rather than just raw materials. Overall, reducing trade barriers both within Africa and faced by African exports globally could significantly boost African economic growth and development.
International Trade Theories
This document discusses several theories of international trade. It begins by defining international trade as the exchange of capital, goods, and services across borders. It then explains that the main purposes of trade theories are to explain observed trade patterns, understand the effects of trade on domestic economies, and evaluate policy. The major theories discussed include absolute advantage, comparative advantage, product life cycle theory, and theories related to country size, factor proportions, and country similarity. Limitations and relationships between theories are also examined.
Regional economic integration refers to agreements among countries in a geographic region to reduce and ultimately remove trade barriers. Different levels of integration exist, from free trade areas with no barriers to goods and services, to customs unions with common external trade policies, to economic and monetary unions with synchronized fiscal and monetary policies and a shared currency. While integration increases economic growth and political cooperation, it also risks loss of sovereignty and job losses as domestic industries become uncompetitive. The formation of the European Union sought to foster lasting peace and economic power in Europe following two world wars.
TRENDS IN INTERNATIONAL TRADE Forced dynamism
Co operation among countries
Liberalization of cross border movements
Transfer of technology
Growth in emerging markets
Introduction to international finance and International economyAparrajithaAriyadasa
International economics is a field of study that assesses the implications of international trade, international investment, and international borrowing and lending.
There are two broad sub-fields within the discipline: international trade and international finance
The document discusses the origin and development of the European Monetary System (EMS) and the later introduction of the Euro. It describes how the EMS was established in 1972 to link European currencies and stabilize exchange rates. The Exchange Rate Mechanism formalized central rates for currencies within prescribed margins. The goals were greater stability and economic convergence. However, the EMS collapsed in 1992-1993 due to currency crises forcing rates outside margins. The Maastricht Treaty established the Euro and steps to economic and monetary union, including establishing the European Central Bank and requiring member states to meet fiscal and debt criteria. The Euro was officially launched in 1999 among 11 initial members.
AS Macro Revision: Monetary Policy and Exchange Ratestutor2u
The document provides an overview of monetary policy and interest rates. It discusses:
1. The different interest rates that exist in an economy and how central banks like the Bank of England use policy interest rates to regulate the economy.
2. How changes in interest rates can affect borrowing costs, consumer spending, business investment, and the housing market.
3. The factors considered by the Bank of England when setting policy interest rates, including inflation, GDP growth, and financial stability.
Globalization has impacted standards of living in various ways. While there remain large inequalities between wealthy and poor countries, living standards have generally improved due to factors like global trade and financial integration. However, globalization has also reinforced inequalities through an international trade system and global financial architecture that favor developed nations. Domestic factors like natural resources, education levels, and institutions also contribute to differences in living standards between countries.
International Trade Theories
This document discusses several theories of international trade. It begins by defining international trade as the exchange of capital, goods, and services across borders. It then explains that the main purposes of trade theories are to explain observed trade patterns, understand the effects of trade on domestic economies, and evaluate policy. The major theories discussed include absolute advantage, comparative advantage, product life cycle theory, and theories related to country size, factor proportions, and country similarity. Limitations and relationships between theories are also examined.
Regional economic integration refers to agreements among countries in a geographic region to reduce and ultimately remove trade barriers. Different levels of integration exist, from free trade areas with no barriers to goods and services, to customs unions with common external trade policies, to economic and monetary unions with synchronized fiscal and monetary policies and a shared currency. While integration increases economic growth and political cooperation, it also risks loss of sovereignty and job losses as domestic industries become uncompetitive. The formation of the European Union sought to foster lasting peace and economic power in Europe following two world wars.
TRENDS IN INTERNATIONAL TRADE Forced dynamism
Co operation among countries
Liberalization of cross border movements
Transfer of technology
Growth in emerging markets
Introduction to international finance and International economyAparrajithaAriyadasa
International economics is a field of study that assesses the implications of international trade, international investment, and international borrowing and lending.
There are two broad sub-fields within the discipline: international trade and international finance
The document discusses the origin and development of the European Monetary System (EMS) and the later introduction of the Euro. It describes how the EMS was established in 1972 to link European currencies and stabilize exchange rates. The Exchange Rate Mechanism formalized central rates for currencies within prescribed margins. The goals were greater stability and economic convergence. However, the EMS collapsed in 1992-1993 due to currency crises forcing rates outside margins. The Maastricht Treaty established the Euro and steps to economic and monetary union, including establishing the European Central Bank and requiring member states to meet fiscal and debt criteria. The Euro was officially launched in 1999 among 11 initial members.
AS Macro Revision: Monetary Policy and Exchange Ratestutor2u
The document provides an overview of monetary policy and interest rates. It discusses:
1. The different interest rates that exist in an economy and how central banks like the Bank of England use policy interest rates to regulate the economy.
2. How changes in interest rates can affect borrowing costs, consumer spending, business investment, and the housing market.
3. The factors considered by the Bank of England when setting policy interest rates, including inflation, GDP growth, and financial stability.
Globalization has impacted standards of living in various ways. While there remain large inequalities between wealthy and poor countries, living standards have generally improved due to factors like global trade and financial integration. However, globalization has also reinforced inequalities through an international trade system and global financial architecture that favor developed nations. Domestic factors like natural resources, education levels, and institutions also contribute to differences in living standards between countries.
Under a fixed exchange rate system, governments try to maintain a constant value for their currencies against other currencies. A country's central bank commits to buying and selling its currency at a fixed price in order to maintain this exchange rate. Fixed exchange rates provide stability for international trade and control of inflation. Governments intervene in currency markets by buying and selling their own currency to influence supply and demand and maintain the fixed exchange rate when market forces would otherwise cause the rate to change.
This document discusses the international product life cycle model and provides examples of how it applies to light bulbs and drones. The model describes how an industry evolves across borders over time. In developed nations, innovation and production stages occur as new products are invented and scaled for the domestic market. Products are then exported as markets become saturated. Manufacturing is later transferred to developing nations for lower costs. In developing nations, importation occurs initially due to lack of innovative capabilities. Mass consumption follows as demands increase, then local production of copied goods which are eventually exported to other countries.
Unit -2 lecture-6 (international investment theory)Dr.B.B. Tiwari
The document discusses several theories of international investment:
1. The theory of capital movements explains international investment as the transfer of capital between countries to obtain profits through interest, dividends, or share of profits. It can involve physical or financial capital.
2. Market imperfections theory explains international investment flows that arise due to markets not meeting the standards of perfect competition.
3. Internalization theory explains why firms choose foreign direct investment over licensing to retain control of proprietary knowledge and avoid transaction costs of contracting.
4. Location-specific advantage theory considers location factors like resources, labor costs, or infrastructure that make one location more profitable for investment than others.
5. Dunning's eclectic theory
The document discusses the evolution of international monetary systems from early systems of bimetallism up to the current flexible exchange rate regime. Key points include:
- Under bimetallism before 1875, both gold and silver were used internationally as money with Gresham's Law implying the least valuable metal would circulate.
- The classical gold standard from 1875-1914 established gold as the primary global reserve asset with currencies pegged to gold and exchange rates determined by relative gold contents.
- The interwar period saw the breakdown of the gold standard and widespread currency devaluations.
- The Bretton Woods system from 1945-1972 pegged currencies to the U.S. dollar which was peg
A weaker pound benefits UK exporters by making their goods cheaper overseas, boosting export volumes. It allows UK exports to become more competitive on world markets. However, a weak currency can also drive up costs for UK importers and consumers as imported goods become more expensive. Exchange rates are determined by foreign exchange markets and reflect the relative demand and supply of different currencies. A weaker pound means it takes more pounds to purchase the same amount of foreign currency like dollars or euros. This hurts UK importers by increasing their costs.
Economic integration involves reducing trade barriers between countries through international agreements or regional partnerships. The main approaches are multilateral cooperation under the WTO or smaller regional blocs. Integration provides benefits like increased trade opportunities and employment but can also divert trade away from non-member states. Deeper integration involves moving from preferential trade areas and free trade zones to customs unions and common markets with coordinated economic policies and freedom of movement. The European Union represents the most integrated model as both an economic and political union.
The role of government in a market economyAlicia Ross
The document summarizes key characteristics of a market economy, including private property rights, free enterprise with low barriers to entry, self-interest as the main motivator, competition among buyers and sellers, and supply and demand determining prices. It also discusses the appropriate role of government in a market economy, such as providing legal protections, public goods, addressing market failures, maintaining competition, redistributing income, and stabilizing the economy.
This document provides an overview of fixed and flexible exchange rate systems. It discusses key concepts like the demand and supply of foreign exchange, historical exchange rate regimes like the gold standard and Bretton Woods system, and current regimes including pegged rates, crawling pegs, and target zones. The advantages of fixed exchange rates are outlined as promoting international trade and investment by providing certainty, removing speculative activities, and being suitable for currency areas and developing countries seeking economic stability.
The International Monetary Fund (IMF) is an organization of 186 countries that was created in 1944 at the Bretton Woods Conference. The IMF aims to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and reduce poverty. It provides loans to countries experiencing economic crises or balance of payment issues. The IMF is funded through quotas paid by member countries, and its headquarters are located in Washington D.C.
This document provides an overview of key economic concepts and factors relevant to international business operations. It defines measures like gross national income, gross domestic product, inflation, unemployment, poverty, and productivity. It also profiles different types of economic systems, the dimensions of economic freedom, and means of economic transition.
Modes of Entry in International BusinessAbhinav Singh
Modes of entry into international business can include exporting/importing, foreign direct investment, licensing, franchising, joint ventures, turnkey projects, mergers and acquisitions, and management contracts. Exporting involves selling goods and services internationally, while importing involves purchasing foreign goods and services. Foreign direct investment involves investing in foreign businesses. Licensing and franchising allow firms to use intellectual property and brand names owned by other companies. Joint ventures combine resources and share control between two or more firms.
Countries seek to maximize their limited resources by specializing in goods and services they have a comparative advantage in producing over trading partners. Comparative advantage allows a country to produce a good at a lower opportunity cost than other countries. When countries specialize based on their comparative advantages and trade, total world production increases as nations focus on producing the goods they are most efficient in making. Comparative advantage is the primary motivating factor for international trade as it leads to gains from specialization and trade.
Gold standard is a monetary system in which the standard unit of currency is a fixed quantity of gold or is kept at the value of a fixed quantity of gold.
Multinational corporations (MNCs) own or control production in multiple countries besides their home country. They have large-scale international operations through things like imports/exports, foreign investments, contract manufacturing, and opening plants abroad. MNCs can benefit host countries by increasing investment, employment, and income as well as transferring technology. However, they may also threaten economic sovereignty, kill local businesses through monopolies, and deplete natural resources. Both home and host countries experience advantages like jobs, exports, and development, but also disadvantages like unfavorable capital flows and neglect of the home country.
1) International debt, especially third world debt, is one of the most contentious issues facing the global economy as it highlights disparities between developed and developing nations.
2) As of 2002, total international debt amounted to $2.48 trillion, around 57% of debtors' collective GDP.
3) Third world debt presents challenges to both debtor and creditor nations, and finding solutions that adequately address the needs of both sides has proven difficult.
foreign direct investment
,
the direction of fdi
,
the source of fdi
,
why foreign direct investment
,
the form of fdi: acquisitions versus greenfield i
,
foreign direct investment in the world economy
,
trends in fdi
,
theories of foreign direct investment
,
the radical view
,
benefits and costs of fdi
This is a critical analysis of IMF and its importance and influence in modern day international trade and marketing. Prepared for an International Marketing Assignment.
The International Monetary Fund (IMF) is an international organization of 188 member countries that works to foster global monetary cooperation and secure financial stability. Formed in 1944, the IMF provides loans to countries experiencing economic crises in order to correct payment imbalances. In exchange for loans, the IMF requires countries to implement policy reforms aimed at stabilizing their economies. The IMF is governed by a Board of Governors and led by a Managing Director.
Economic integration and levels of integrationMahadi Hasan
The document discusses different levels of economic integration globally, including free trade areas, customs unions, common markets, economic unions, and political unions. It provides examples for each type of integration, such as NAFTA for a free trade area and the European Union as both an economic and political union. The highest level of integration is a political union, where members subordinate national political interests to a multistate organization.
This document outlines regulations regarding alien invasive species (AIS) in South Africa. It discusses the characteristics and impacts of AIS, including how they are easily spread and outcompete native species. The NEM:BA Act requires publishing a list of invasive species and categorizes them based on required actions - from immediate eradication to permits or exemptions. It details the duties of competent authorities to issue directives, notify land sales, and coordinate control programs. Violations may result in implementation of directives or cost recovery.
Topic reciprocal regulation of purine and pyrimidine metabolismjadabkishore
Purine and pyrimidine nucleotide biosynthesis are coordinately regulated through phosphoribosyl pyrophosphate (PRPP). PRPP is essential for both purine and pyrimidine biosynthesis and its synthesis by PRPP synthase is inhibited by feedback from purine and pyrimidine nucleotides, ensuring balanced production. Regulation occurs through inhibition and stimulation of enzymes by various nucleotides and allosteric effectors like ATP, GTP, and PRPP to achieve appropriate levels of AMP, GMP, UMP and CMP production.
Under a fixed exchange rate system, governments try to maintain a constant value for their currencies against other currencies. A country's central bank commits to buying and selling its currency at a fixed price in order to maintain this exchange rate. Fixed exchange rates provide stability for international trade and control of inflation. Governments intervene in currency markets by buying and selling their own currency to influence supply and demand and maintain the fixed exchange rate when market forces would otherwise cause the rate to change.
This document discusses the international product life cycle model and provides examples of how it applies to light bulbs and drones. The model describes how an industry evolves across borders over time. In developed nations, innovation and production stages occur as new products are invented and scaled for the domestic market. Products are then exported as markets become saturated. Manufacturing is later transferred to developing nations for lower costs. In developing nations, importation occurs initially due to lack of innovative capabilities. Mass consumption follows as demands increase, then local production of copied goods which are eventually exported to other countries.
Unit -2 lecture-6 (international investment theory)Dr.B.B. Tiwari
The document discusses several theories of international investment:
1. The theory of capital movements explains international investment as the transfer of capital between countries to obtain profits through interest, dividends, or share of profits. It can involve physical or financial capital.
2. Market imperfections theory explains international investment flows that arise due to markets not meeting the standards of perfect competition.
3. Internalization theory explains why firms choose foreign direct investment over licensing to retain control of proprietary knowledge and avoid transaction costs of contracting.
4. Location-specific advantage theory considers location factors like resources, labor costs, or infrastructure that make one location more profitable for investment than others.
5. Dunning's eclectic theory
The document discusses the evolution of international monetary systems from early systems of bimetallism up to the current flexible exchange rate regime. Key points include:
- Under bimetallism before 1875, both gold and silver were used internationally as money with Gresham's Law implying the least valuable metal would circulate.
- The classical gold standard from 1875-1914 established gold as the primary global reserve asset with currencies pegged to gold and exchange rates determined by relative gold contents.
- The interwar period saw the breakdown of the gold standard and widespread currency devaluations.
- The Bretton Woods system from 1945-1972 pegged currencies to the U.S. dollar which was peg
A weaker pound benefits UK exporters by making their goods cheaper overseas, boosting export volumes. It allows UK exports to become more competitive on world markets. However, a weak currency can also drive up costs for UK importers and consumers as imported goods become more expensive. Exchange rates are determined by foreign exchange markets and reflect the relative demand and supply of different currencies. A weaker pound means it takes more pounds to purchase the same amount of foreign currency like dollars or euros. This hurts UK importers by increasing their costs.
Economic integration involves reducing trade barriers between countries through international agreements or regional partnerships. The main approaches are multilateral cooperation under the WTO or smaller regional blocs. Integration provides benefits like increased trade opportunities and employment but can also divert trade away from non-member states. Deeper integration involves moving from preferential trade areas and free trade zones to customs unions and common markets with coordinated economic policies and freedom of movement. The European Union represents the most integrated model as both an economic and political union.
The role of government in a market economyAlicia Ross
The document summarizes key characteristics of a market economy, including private property rights, free enterprise with low barriers to entry, self-interest as the main motivator, competition among buyers and sellers, and supply and demand determining prices. It also discusses the appropriate role of government in a market economy, such as providing legal protections, public goods, addressing market failures, maintaining competition, redistributing income, and stabilizing the economy.
This document provides an overview of fixed and flexible exchange rate systems. It discusses key concepts like the demand and supply of foreign exchange, historical exchange rate regimes like the gold standard and Bretton Woods system, and current regimes including pegged rates, crawling pegs, and target zones. The advantages of fixed exchange rates are outlined as promoting international trade and investment by providing certainty, removing speculative activities, and being suitable for currency areas and developing countries seeking economic stability.
The International Monetary Fund (IMF) is an organization of 186 countries that was created in 1944 at the Bretton Woods Conference. The IMF aims to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and reduce poverty. It provides loans to countries experiencing economic crises or balance of payment issues. The IMF is funded through quotas paid by member countries, and its headquarters are located in Washington D.C.
This document provides an overview of key economic concepts and factors relevant to international business operations. It defines measures like gross national income, gross domestic product, inflation, unemployment, poverty, and productivity. It also profiles different types of economic systems, the dimensions of economic freedom, and means of economic transition.
Modes of Entry in International BusinessAbhinav Singh
Modes of entry into international business can include exporting/importing, foreign direct investment, licensing, franchising, joint ventures, turnkey projects, mergers and acquisitions, and management contracts. Exporting involves selling goods and services internationally, while importing involves purchasing foreign goods and services. Foreign direct investment involves investing in foreign businesses. Licensing and franchising allow firms to use intellectual property and brand names owned by other companies. Joint ventures combine resources and share control between two or more firms.
Countries seek to maximize their limited resources by specializing in goods and services they have a comparative advantage in producing over trading partners. Comparative advantage allows a country to produce a good at a lower opportunity cost than other countries. When countries specialize based on their comparative advantages and trade, total world production increases as nations focus on producing the goods they are most efficient in making. Comparative advantage is the primary motivating factor for international trade as it leads to gains from specialization and trade.
Gold standard is a monetary system in which the standard unit of currency is a fixed quantity of gold or is kept at the value of a fixed quantity of gold.
Multinational corporations (MNCs) own or control production in multiple countries besides their home country. They have large-scale international operations through things like imports/exports, foreign investments, contract manufacturing, and opening plants abroad. MNCs can benefit host countries by increasing investment, employment, and income as well as transferring technology. However, they may also threaten economic sovereignty, kill local businesses through monopolies, and deplete natural resources. Both home and host countries experience advantages like jobs, exports, and development, but also disadvantages like unfavorable capital flows and neglect of the home country.
1) International debt, especially third world debt, is one of the most contentious issues facing the global economy as it highlights disparities between developed and developing nations.
2) As of 2002, total international debt amounted to $2.48 trillion, around 57% of debtors' collective GDP.
3) Third world debt presents challenges to both debtor and creditor nations, and finding solutions that adequately address the needs of both sides has proven difficult.
foreign direct investment
,
the direction of fdi
,
the source of fdi
,
why foreign direct investment
,
the form of fdi: acquisitions versus greenfield i
,
foreign direct investment in the world economy
,
trends in fdi
,
theories of foreign direct investment
,
the radical view
,
benefits and costs of fdi
This is a critical analysis of IMF and its importance and influence in modern day international trade and marketing. Prepared for an International Marketing Assignment.
The International Monetary Fund (IMF) is an international organization of 188 member countries that works to foster global monetary cooperation and secure financial stability. Formed in 1944, the IMF provides loans to countries experiencing economic crises in order to correct payment imbalances. In exchange for loans, the IMF requires countries to implement policy reforms aimed at stabilizing their economies. The IMF is governed by a Board of Governors and led by a Managing Director.
Economic integration and levels of integrationMahadi Hasan
The document discusses different levels of economic integration globally, including free trade areas, customs unions, common markets, economic unions, and political unions. It provides examples for each type of integration, such as NAFTA for a free trade area and the European Union as both an economic and political union. The highest level of integration is a political union, where members subordinate national political interests to a multistate organization.
This document outlines regulations regarding alien invasive species (AIS) in South Africa. It discusses the characteristics and impacts of AIS, including how they are easily spread and outcompete native species. The NEM:BA Act requires publishing a list of invasive species and categorizes them based on required actions - from immediate eradication to permits or exemptions. It details the duties of competent authorities to issue directives, notify land sales, and coordinate control programs. Violations may result in implementation of directives or cost recovery.
Topic reciprocal regulation of purine and pyrimidine metabolismjadabkishore
Purine and pyrimidine nucleotide biosynthesis are coordinately regulated through phosphoribosyl pyrophosphate (PRPP). PRPP is essential for both purine and pyrimidine biosynthesis and its synthesis by PRPP synthase is inhibited by feedback from purine and pyrimidine nucleotides, ensuring balanced production. Regulation occurs through inhibition and stimulation of enzymes by various nucleotides and allosteric effectors like ATP, GTP, and PRPP to achieve appropriate levels of AMP, GMP, UMP and CMP production.
The document compares India's terms of trade with 3 developing countries (Bangladesh, Brazil, Iran) and 3 developed countries (Australia, Netherlands, Italy). It provides background on terms of trade and how it is calculated. For each country, it gives the most recent terms of trade adjustment value according to World Bank data and some key facts about each country's economy and trade. India saw improvements in terms of trade from 2008-2010 while most of the developing countries saw deteriorations over the same period.
Laws are rules established to govern relations between people in society. They must be just, obligatory, promulgated by legitimate authority, and for the common benefit. The Constitution is the fundamental law that binds the government and people. Supreme Court decisions establish jurisprudence that lower courts must follow under stare decisis. Religious freedom is protected, so students cannot be compelled to attend flag ceremonies against their beliefs.
This document defines and compares different types of terms of trade, including commodity terms of trade, gross barter terms of trade, income terms of trade, single factoral terms of trade, and double factoral terms of trade. It provides formulas for calculating each type and examples to demonstrate how they are used. It also discusses the limitations and criticisms of each approach.
The document discusses some key differences and improvements in Doctrine 2 compared to Doctrine 1. It notes that Doctrine 2 has a completely rewritten codebase for PHP 5.3 that results in much better performance. It also removes magical aspects that could be difficult to debug. Overall, Doctrine 2 aims to be more explicit and less magical through an object-oriented design.
Balance of trade and balance of payments are key economic indicators of international trade. Balance of trade refers specifically to physical goods, comparing the value of a country's exports to its imports. It is favorable if exports exceed imports. Balance of payments includes both physical goods and invisible items like services, income, and capital transfers. It always balances to zero and includes the current account for trade in goods/services and the capital account. Unfavorable balances can be caused by economic, political, and social factors but can be improved through export promotion, reducing imports, and exploring new markets.
The Balance of Payments (BoP) is a systematic record of all economic transactions between residents of a country and the rest of the world. It includes a country's trade balance, financial capital flows, services, and international transfers. Changes in a country's BoP can signal pressures on its foreign exchange rates and provide insights into its economic strengths and weaknesses relative to trade partners. India's BoP includes details of its imports, exports, invisibles, capital account and reserves. Its major trading partners are members of the European Union, OECD, OPEC, and developing countries like China.
This document provides an overview of balance of payments (BOP) accounting. It defines BOP as a systematic record of all economic transactions between a country and the rest of the world. It notes that BOP has three main components: the current account balance, capital account balance, and the overall BOP. The current account tracks goods/services exports and imports, while the capital account tracks financial flows. The document also discusses factors that can cause BOP disequilibriums and monetary/non-monetary policy tools to correct imbalances, such as devaluation, export promotion, and tariffs.
The balance of payments is a record of all economic transactions between a country and the rest of the world over a period of time. It includes exports and imports of visible goods as well as invisible items like services, capital inflows and outflows. The balance of payments statement has a current account, which covers trade in goods and services, and a capital account. India's balance of payments was positive in the early five-year plans but turned negative later as imports grew.
The document discusses the balance of payments, which is a systematic record of all monetary transactions between a country and the rest of the world over a period of time, usually one year. It includes transactions by citizens and the government. The balance of payments considers all transactions, while the balance of trade only considers trade transactions. A country aims for its balance of payments to equal zero. The main components are the current account, capital account, reserve accounts, and errors and omissions. The document also discusses causes of imbalances and measures to correct adverse balances, such as increasing exports, reducing imports, and controlling the population.
The East African Community (EAC) was established in 2000 between Kenya, Uganda and Tanzania with the aim of increasing trade and economic cooperation in the region. It has since expanded to include Rwanda and Burundi. The EAC seeks to create a large common market to attract investment and increase competitiveness. With a population of over 137 million currently that is projected to exceed 150 million by 2015, the EAC represents a sizable consumer market in Africa second only to Nigeria. Member states have also experienced strong GDP growth averaging around 8-9% annually in recent years. While challenges remain, the EAC's political and economic integration has progressed further than its previous iteration and its development is expected to significantly impact business opportunities in East
Beyond Commodities - Gulf investors and the new AfricaJoannes Mongardini
The document examines Sub-Saharan Africa's growth outside of natural resources and commodities, and the role of Gulf investors. It finds that Africa has proven more resilient to global headwinds than expected, supported by demographic trends, a growing middle class, and economic reforms. East Africa is emerging as the most appealing region for non-commodity Gulf investment, particularly in manufacturing, retail, tourism, and education. Gulf investors have potential options like co-investing with private equity or direct acquisitions. Retail, tourism, and improving logistics networks represent opportunities, but challenges remain in some sectors and countries.
Edwin Laurent opened remarks at a conference on economic potential for Africa's regional trade cooperation by acknowledging the importance of an Africa-led approach to development. He highlighted that Africa has not fully benefited from globalization and economic growth in the same way as other developing regions. However, regional integration efforts including trade blocs could help address challenges by extending domestic markets and enabling countries to better capitalize on economic opportunities through cooperation rather than competing interests of foreign entities. While regional approaches show promise, Laurent noted transportation infrastructure and costs present major barriers to realizing their full benefits for development in Africa.
This document provides an overview of investment opportunities in Africa outside of commodities sectors and the potential role of Gulf investors. It finds that Africa has shown resilience to global headwinds like falling commodity prices due to positive demographic trends, economic reforms, and regional integration efforts. East Africa is emerging as the most appealing region for non-commodity Gulf investment, particularly in sectors like retail, tourism, manufacturing, and education. Gulf investors can enter African markets through various means like co-investing with private equity funds or acquiring existing businesses. Key opportunities exist in developing shopping centers, investing in tourism, and improving logistics for fast-moving consumer goods.
Africa tapping into growth opportunities challenges and strategies for cons...Dr Lendy Spires
Africa represents a significant growth opportunity for consumer products companies due to its growing population, increasing urbanization, and rising incomes. While risks must be considered, companies can succeed in Africa by adapting products to local needs, investing in communities, and taking a long-term view. Coca-Cola and Unilever are cited as examples through strategies like product modifications, partnerships with small retailers, and sustainable sourcing programs. When expanding operations, companies should build local presence, leverage first-mover advantage, and gain government relationships.
This document summarizes how external economic factors influence policymaking and management in Sub-Saharan Africa. It discusses several challenges, including weak competitive capacity in global trade which makes African exports less competitive. It also examines how commodity price fluctuations, decreasing capital inflows, high external debt burdens, and economic shocks in other countries negatively impact African countries' ability to effectively plan and implement development policies. The document concludes that African countries need to address internal weaknesses to strengthen their ability to deal with challenges posed by the external economic environment.
The document summarizes international trade and its importance for developing countries. It discusses how international trade has increased living standards globally by integrating economies. Developing countries have benefited from trade liberalization through faster economic growth, poverty reduction, and increased manufacturing exports. Further trade liberalization could realize even more gains, especially for the poorest countries. Key regional trade organizations that help developing countries participate in international trade, like AFTA and APEC, are also summarized.
This document summarizes international trade and its impact on developing countries. It discusses that international trade allows countries to gain access to goods outside their borders through principles like comparative advantage. Developing countries that participate in international trade include Brazil, India, Russia, South Africa, and others. Trade organizations like ASEAN Free Trade Area (AFTA) and Asia-Pacific Economic Cooperation (APEC) aim to increase market access and economic growth among member developing countries through reducing trade barriers. International trade benefits developing countries by supporting economic growth, industrial development, capital investments, and poverty reduction.
THE IMPACT OF TRADE LIBERALIZATION ON ECONOMIC GROWTH; THE CASE OF SUB-SAHARA...AkashSharma618775
The main aim of this research is to explore the effect of trade liberalization on economic growth in subSaharan Africa by analyzing certain macro-economic indicators using Ordinary Least Squares approach to
estimate regression equations. Many developing countries have substantially liberalized their trade regime over the
past three decades, either unilaterally or as part of multilateral initiatives. Nevertheless, trade barriers remain
high in many developing countries. One of the concerns that attributes to the reluctance of many of these countries
to liberalize their trade regime is the possible worsening of the trade balance.
This research paper is meant to give a recommendation on which macro-economic indicators sub-Saharan African
countries should pay particular attention to, implementing the necessary policies to ensure its effectiveness thereby
ensuring a step-up in those aspects of the economy in order to promote development. It considers 46 different
countries with different economic policies in sub-Saharan Africa for a 14-year period. Most papers considering
sub-Saharan African region consider a selected few countries based on certain economic reasons of their choice,
and those who consider most countries in the region have different macroeconomic indicators they employ for their
modeling. This paper considers if not all, almost all sub-Saharan African countries regardless of their economic
status.
The WTO has made broad efforts to support trade development in Africa over the last 10 years through various agreements, programs, and technical assistance. This includes supporting implementation of the Trade Facilitation Agreement to reduce trade costs, the Standards and Trade Development Facility to help exports meet sanitary requirements, and capacity building initiatives on intellectual property, government procurement, and trade in services. The COVID-19 pandemic has significantly slowed economic growth and development gains in Africa due to disruptions to trade and the continent's vulnerability. The WTO and multilateral trading system aim to continue providing frameworks to spur investment and recovery through open and predictable markets.
The African continent represents the opportunities of tomorrow, and we at Roland Berger see strong business opportunities being created by Africa's improving economic strength. Mining this unprecedented potential requires sound knowledge and a thorough understanding of the market. That is the purpose of our study titled "Africa – The next growth opportunity". Its main goal is to highlight selected economies with environments conducive to robust economic growth, and at the same time help companies and investors benefit from and contribute to this growth by providing an in-depth analysis of high-potential industries within these economies.
The African continent represents the opportunities of tomorrow, and we at Roland Berger see strong business opportunities being created by Africa's improving economic strength. Mining this unprecedented potential requires sound knowledge and a thorough understanding of the market. That is the purpose of our study titled "Africa – The next growth opportunity". Its main goal is to highlight selected economies with environments conducive to robust economic growth, and at the same time help companies and investors benefit from and contribute to this growth by providing an in-depth analysis of high-potential industries within these economies.
Border Posts, Checkpoints, and Intra-African Trade: Challenges and SolutionsCláudio Carneiro
The document discusses challenges to regional integration and intra-African trade. It finds that while regional economic communities have proliferated in Africa, intra-African trade remains low at around 10% of total trade. This is due to barriers like poor infrastructure, inefficient border posts and customs procedures, and corruption. Addressing barriers like improving transport networks, border infrastructure through measures like one-stop border posts, and reducing corruption through greater automation and transparency, could significantly boost intra-African trade and regional integration in Africa.
Border Posts Checkpoints and Intra-African Trade - formatedSjoerd Visser
This document discusses challenges to regional integration and intra-African trade. It finds that while regional economic communities have proliferated in Africa, they have failed to significantly increase trade, investment, and economic development. Barriers like tariffs, infrastructure issues, and inefficient border processes continue to impede the free flow of goods and services between countries. The document focuses on how improving border posts and customs procedures could reduce trade costs and delays, boost government revenues, and accelerate economic growth. Establishing joint border posts and one-stop border posts are presented as potential solutions to better facilitate cross-border commerce in Africa.
The document discusses various topics related to international business management including globalization, trade liberalization, GATT, WTO, and foreign direct investment (FDI). Regarding globalization, it provides an overview of aspects like trade, capital flows, movement of people, and spread of knowledge across borders. It then discusses the positives of trade liberalization such as increased growth, poverty reduction, and new jobs. The summary compares GATT and WTO, noting that WTO replaced GATT and has broader coverage of trade in goods, services, and intellectual property with stronger dispute settlement procedures. It also explains that MNCs pursue different business strategies and may opt for FDI to enter foreign markets in order to gain high anticipated profits.
This document discusses diversifying African trade. It provides a snapshot of current African trade, which remains highly dependent on commodities, with minerals and ores making up over two-thirds of exports. While the EU and US are still major trade partners, Chinese trade with Africa has surged significantly in recent years. The report examines partnerships with emerging economies like India and Turkey that are increasing trade with Africa. It also looks at regional trade blocs and external trade policies, identifying obstacles to trade and providing recommendations to further diversify African trade and promote sustainable economic growth.
Project on trade blocs and trade barriersKiran Joshi
1. The document discusses trade blocs, which are agreements between countries to reduce trade barriers and promote trade within the bloc.
2. It provides examples of major trade blocs like the European Union, NAFTA, SAARC, and OPEC.
3. The objectives of trade blocs are outlined as removing trade restrictions, improving relations, encouraging resource sharing, establishing collective bargaining, and promoting economic growth among member nations.
An Analysis of Constraints to Economic and Trade Cooperation between the Chin...Dr. Amarjeet Singh
The constraints in the economic and trade cooperation of the China-Africa community of shared future that cannot neglect. The main constraints to the development of China-Africa economic cooperation include the imbalance of China-Africa economic and trade, the unitary commodity structure, and competition in the international market. There are differences in the political and legal values between China and Africa. Western developed countries restrict and exclude the economic cooperation between the Chinese and African communities, fabricate the China threat theory, and seek energy and political interests to disrupt the smooth development of China-Africa economic and trade cooperation.
The document provides an overview of the Middle East and North Africa (MENA) region, including:
- MENA accounts for approximately 6% of the world's population and contains 60% of the world's oil reserves and 45% of natural gas reserves, making it an important source of global economic stability.
- Key sectors discussed are trade/infrastructure, water/agriculture, health/education, and emerging challenges of climate change and conflict resolution.
- Currently, the region faces turmoil from ongoing conflicts in Syria, Iraq, Libya and Yemen, which have displaced millions of people and set back development. Unemployment also remains high in many countries.
The East African Community (EAC) is an intergovernmental organization composed of Kenya, Rwanda, Tanzania, Uganda, and Burundi. The EAC aims to strengthen economic, political, and social cooperation among member states. It establishes a single market to facilitate business and trade within the region. The EAC also provides a platform for collective bargaining on international trade agreements and addresses common issues like security threats. While the EAC has benefits, challenges remain such as varying customs procedures between members and differences in economic development levels.
Inovações e velhas aspirações no “modelo” para o sector portuárioCláudio Carneiro
I. O comércio internacional e o transporte marítimo têm registado um crescimento sustentado, o que deverá manter a importância dos portos nacionais para o comércio externo de Portugal.
II. Os principais portos portugueses aumentaram a carga movimentada nos últimos 10 anos, situando Portugal no top 15 da UE. No entanto, falta competitividade internacional aos portos portugueses.
III. A falta de objetivos claros, coordenação estratégica e mecanismos de regulação eficazes, associada a contr
Este documento fornece um glossário de termos técnicos relacionados aos setores dos transportes em Portugal, definindo siglas e conceitos importantes mencionados no relatório. Contém mais de 100 entradas que visam facilitar a compreensão dos leitores.
Porto de Sines fez mais 71% em contentores .......... Altri defende terminal portuário na margem sul do .... um "aprofundado estudo, elaborado pelo. Prof.
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O documento fornece um resumo sobre:
1) A China como a 4a maior economia mundial com forte crescimento nos últimos 30 anos;
2) O sistema político chinês de partido único e centralismo político com descentralização económica;
3) O 12o Plano Quinquenal da China que visa um crescimento mais qualitativo e sustentável através da inovação e diversificação económica.
O documento discute os principais conceitos relacionados aos transportes, como modo de transporte, distâncias, tempo e custo. Detalha a evolução histórica dos transportes desde a Revolução Industrial e discute as vantagens e desvantagens dos principais modos de transporte atuais como rodoviário, ferroviário, marítimo e aéreo. Também aborda a importância da integração dos modos de transporte e das redes transeuropeias.
Linha Ferroviária Sines-Caia isoladamente não serve o país exportadorCláudio Carneiro
O presidente da Câmara de Viseu defende a modernização da linha ferroviária entre Aveiro e Vilar Formoso para transporte de mercadorias, afirmando que a linha Sines-Caia isoladamente não serve as necessidades do país. Ele também diz que Portugal não pode perder a oportunidade de financiamento europeu para melhorar a rede ferroviária e ligá-la à rede europeia.
Plano de Infraestruturas do Governo: erro histórico para a Economia Cláudio Carneiro
1. O Plano de Infraestruturas do Governo comete um erro histórico ao privar Portugal de ligações ferroviárias competitivas com a União Europeia, condenando a economia portuguesa ao isolamento.
2. As propostas do plano para a ferrovia de bitola europeia são soluções de "remendo" que não são competitivas e não têm visão estratégica para o médio e longo prazo.
3. O plano condena Portugal a ser um apêndice do sistema ferroviário europeu, quase isolado da Europa e da Espanha.
1) O documento expressa preocupação que as ligações ferroviárias internacionais em bitola europeia não estejam entre as principais prioridades do Grupo de Trabalho para Infraestruturas de Alto Valor Acrescentado.
2) Em particular, a nova linha Aveiro-Vilar Formoso e a linha Poceirão-Caia, ligando aos portos de Sines e Setúbal, não constam das primeiras prioridades, colocando em risco a competitividade da economia portuguesa.
3) Sem estas ligações ferroviárias em bitola europeia, Portugal ficará mais
Portugal: Consolidação da reforma estrutural para o apoio ao crescimento e à ...Cláudio Carneiro
1. Portugal tem registado progressos significativos na abordagem aos desequilíbrios de longa data, com a eliminação do défice da balança corrente e melhorias na competitividade e exportações.
2. As reformas estruturais estão a começar a melhorar o desempenho do mercado de trabalho e de produtos, abrindo caminho para um crescimento mais forte e inclusivo, mas são necessárias mais reformas para aumentar a produtividade.
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Actividades Portuárias no nível nacional para o Futuro 2011Cláudio Carneiro
O documento discute as tendências do setor marítimo-portuário e o desafio do mercado de GNL. Também aborda os modelos de gestão portuária e como a contentorização revolucionou o transporte global de cargas, levando ao crescimento dos principais portos de transbordo. Finalmente, descreve o modelo de desenvolvimento do Porto de Sines em Portugal.
Apesar de um ambiente econômico enfraquecido em Portugal, Sines Container Terminal viu seu aumento de volume em quase 70%. Nova tráfego da Ásia para a África Ocidental e aumento do movimento de carga para EUA / Canadá contribuíram para o forte desempenho em Sines. A segunda fase do terminal do desenvolvimento começou com o cais que está sendo prorrogado por 210 metros para 940 metros.
In spite of a weakened economic environment in Portugal, Sines Container Terminal saw its volume surge by nearly 70%. New traffic from Asia to West Africa and increased cargo movement to US/ Canada contributed to the strong performance at Sines. The terminal’s second phase of development got underway with the quay being extended by 210 metres to 940 metres.
APS edita publicação "Porto de Sines - Uma história em números"Cláudio Carneiro
Este documento apresenta estatísticas e dados financeiros da Administração dos Portos de Sines e do Algarve (APS) de 1978 a 2013. Os dados mostram o crescimento do volume de negócios, investimentos, movimentação portuária e licenças/concessões da APS ao longo dos anos, com aumentos significativos a partir de 2004 com a adição de novos tráfegos como contentores e gás natural. Os resultados líquidos variaram ao longo dos anos devido a fatores como ampliação de terminais, concessões e amortizações.
This document discusses potential development scenarios for the Port of Sines Terminal XXI container facility in Portugal between 2014-2030 and beyond. It presents Terminal XXI, located in Sines, Portugal, as a deep water port capable of accommodating large post-Panamax vessels. The terminal has seen significant growth since opening in 2004. The document analyzes Terminal XXI's key target markets in Iberia and potential impact from widening of the Panama Canal, concluding the terminal is well positioned to capitalize on growth in trade between Europe and Americas.
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1) O documento é um livro branco da Comissão Europeia sobre a política de transportes da União Europeia no horizonte de 2010.
2) O livro branco discute as opções políticas para os transportes na UE até 2010, considerando que esse é um momento crucial para decisões.
3) O documento analisa os desafios dos transportes e propõe uma estratégia para melhorar a sustentabilidade, eficiência e integração dos sistemas de transporte na Europa.
Roteiro do espaço único europeu dos transportes – Rumo a um sistema de transp...Cláudio Carneiro
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Sobre a interpretação do Regulamento (CEE) n.º 3577/92 do Conselho relativo ...Cláudio Carneiro
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O documento discute um novo projeto ferroviário de transporte de mercadorias em Portugal. O projeto é apoiado pelas principais empresas exportadoras e irá ligar os portos do sul de Portugal à Espanha e ao resto da Europa. O projeto tem como objetivo reduzir custos para exportadores e aumentar a capacidade de carga.
1. O documento descreve a evolução da política de coesão da União Europeia ao longo do tempo, desde a sua criação em 1957 até aos dias atuais.
2. Os fundos estruturais como o FSE e o FEDER foram criados para promover a coesão económica, social e territorial entre os Estados-membros e suas regiões.
3. Os alargamentos da UE aos países do sul da Europa, como Portugal e Espanha, aumentaram as disparidades regionais e levaram a novas abordagens para reduzir essas diferenças.
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Este documento fornece um ponto de situação das metas da Estratégia Europa 2020 em Portugal. Resume o progresso feito no equilíbrio das finanças públicas, estabilização do sistema financeiro e implementação da agenda de transformação estrutural, concluindo que Portugal cumpriu a maioria das metas acordadas, apesar dos altos custos econômicos.
What Lessons Can New Investors Learn from Newman Leech’s Success?Newman Leech
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A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
Every business, big or small, deals with outgoing payments. Whether it’s to suppliers for inventory, to employees for salaries, or to vendors for services rendered, keeping track of these expenses is crucial. This is where payment vouchers come in – the unsung heroes of the accounting world.
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Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
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Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
South Dakota State University degree offer diploma Transcriptynfqplhm
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“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
The enterprise managers compared the work results in May 2024 with April, assessed the indicators at the time of the survey (May 2024), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...beulahfernandes8
The eLITE RuPay Platinum Credit Card, a strategic collaboration between Poonawalla Fincorp and IndusInd Bank, represents a significant advancement in India's digital financial landscape. Spearheaded by Abhay Bhutada, MD of Poonawalla Fincorp, the card leverages deep customer insights to offer tailored features such as no joining fees, movie ticket offers, and rewards on UPI transactions. IndusInd Bank's solid banking infrastructure and digital integration expertise ensure seamless service delivery in today's fast-paced digital economy. With a focus on meeting the growing demand for digital financial services, the card aims to cater to tech-savvy consumers and differentiate itself through unique features and superior customer service, ultimately poised to make a substantial impact in India's digital financial services space.
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
TRADE AND ECONOMIC DEVELOPMENT
1. SESSION 2
DISCUSSION PAPER
TRADE AND ECONOMIC DEVELOPMENT
BY WILLIAM KRIST AND JOHN SEWELL
WOODROW WILSON CENTER
Over the past thirty years many developing countries have taken advantage of an increasingly
open world trade and investment system to grow and develop. Unfortunately, a number of
African countries have not been part of the global trade system and, as a result, their growth has
not been as rapid as it could have been. Addressing the barriers to greater African participation
in the global commercial system can be an important spur to future economic development in
Africa.
This paper is intended to promote discussion as to the role that trade can play in speeding
development in Africa and the possible steps that can be taken to enable Africa to participate
more fully in the global market. It does not cover all the barriers to expanding trade by African
countries. Other important topics – notably infrastructure, especially ports and roads, and
corruption – are discussed in other conference papers. It also does not include issues that are not
directly related to trade and which can only be dealt with in the longer term, such as improved
health and education, which were critical components of the success of the Asian “tigers”.
It is important to emphasize that the 53 member countries of the African Union vary widely in
environment, access to markets, governance and institutional capacities. They include oil
producers and fifteen land-locked states. Moreover, thirty-three African Union countries are
classified as “least-developed” by the United Nations.
However, change now is underway in Africa. A number of African countries are growing
rapidly, and have reduced the level of poverty. The opportunity now is to craft strategies to help
these countries and those lagging behind to sustain and deepen progress.
Africa’s Trade Record
The good news is that exports from the 53 member countries of the African Union increased as a
percent of total world exports from just over two percent in 1999 to slightly more than three
percent in the ten years ending in 20091
(See Attachment 1). The bad news, however, is that
while 33 African Union countries increased their share of total world exports, 19 countries
experienced a decline2
.
1
Any time period, of course, is arbitrary. In considering this table, it needs to be borne in mind that 2009 was a year
of severe global recession.
2
Data is not available for the Sahrawi Arab Democratic Republic, the 53rd
member of the African Union.
2. A number of those countries that experienced an increase in their share of world exports are oil
exporters that benefited from the rise in the price of oil. However, many of the countries that
increased their export share – such as Tanzania, Uganda, Zambia, Rwanda, Ghana, Namibia,
Benin, Egypt and Tunisia – achieved this result through the pursuit of effective policies.
Additionally, most impressively, nine of the fifteen landlocked African nations increased their
share of world exports.
For those 19 African Union countries that experienced a decline in their share of world exports,
political unrest was often a major factor. Additionally, several, particularly Botswana and
Mauritius, whose growth has been spectacular, experienced a decline in their share of world
exports because their principal exports experienced a decline in prices in 2009, diamonds in the
case of Botswana and sugar and apparel for Mauritius.
Increasing economic growth is the sine qua non for increasing trade both within Africa and with
countries on the outside. Fortunately, there is a group of sub-Saharan countries that have grown
rapidly over the last decade. Steven Radelet has identified 17 “emerging” sub-Saharan African
countries that between 1996 and 2008 have averaged growth rates of 3.2 per cent a year. For
these countries, trade and investment have doubled, school and health indicators are improving,
the number of people living in poverty has been cut from 59 per cent to 48 per cent, and the
overall distribution of income has actually improved.
Much of the trade expansion by these emerging countries has been with traditional trade
partners, including the U.S. and Europe, but a growing share has also come from new partners,
such as China and India. “It has included a wide range of products: fruit, flowers, rubber, wood,
aluminum, ore, electricity . . . furniture, jewelry, data entry, and canned tuna, to name a few.”3
Radelet also categorized an additional six countries as “threshold” – that is countries that fall
short of his 2% standard for the emerging countries, but which look set to embark on sustained
economic growth. His other two categories are “oil exporters” and “other”. Oil exporters face
both the blessing and the curse of natural resource abundance and experience very different
dynamics than other nations. Countries in the “other” category have made little change in
income levels, social indicators and governance.
Giving Priority to Growth
Fortunately, a great deal has been learned from those countries that sustained economic growth
over several decades. To sustain economic growth in the long run, more complex and politically
difficult reforms are necessary. The Commission on Growth and Development identified 13
economies that have experienced average annual growth of seven percent or more for a quarter
of century or longer since 1950. These high-growth economies share a number of distinctive
characteristics, including:
1. Fully exploiting the world economy;
2. Maintaining macroeconomic stability;
3. Achieving high rates of saving and investment;
3
Radelet, Steven. Emerging Africa: How 17 Countries are Leading the Way, page 39.
3. 4. Letting markets allocate resources; and
5. Having committed, credible, transparent, and capable governments.
These principles of mainstream economics, however, do not lead to a single strategic design or
universal policy prescription applicable to all developing countries. In other words, there is no
magic “development” bullet - a development model that fits all. The lesson is that countries
must make their own choices and learn from trial and error.
All the countries that have grown rapidly for sustained periods designed their own sets of
policies and institutional arrangements, which did not necessarily conform to the standard policy
recommendations provided by either bilateral or multilateral development institutions.
Moreover, these countries have been willing to experiment with both policies and institutions
and, importantly, they have been able to end experiments that did not pay off.
However, starting economic growth is easier than sustaining it. Many countries have grown
rapidly, only to fall off the wagon after five or ten years. In fact, only the13 countries mentioned
in The Growth Report have managed to sustain growth at high levels over two decades4
(See
Growth Commission report).
Trade can be an engine for growth. Economic growth is, at its base, an indigenous process.
However, once countries make the commitment to speed growth and increase exports, the
policies of countries outside Africa also have an important impact on Africa’s ability to trade.
Obstacles to Increasing Trade and Recommendations for Improvement
African countries can all benefit from strong export growth. There are a number of specific
actions that African countries themselves can take to accomplish this, and there are a number of
measures that need to be taken by their trade partners to support this effort.
Three key barriers must be overcome if African countries are to achieve their export potential.
Some recommendations for overcoming these barriers are:
1. Almost all African economies are small. Accordingly there is a need for deeper regional
integration. “Of the 53 African countries, 39 have fewer than 15 million people, and 21 have
fewer than 5 million. Although Africa has 12 percent of the world’s population, it produces just
2 percent of the world’s output because its productivity is low. . . . [Regional Economic
Communities], by creating larger markets, are thought to enable African countries to exploit
economies of scale and enhance domestic competition as well as to raise returns on investment
and, hence, attract more foreign direct investment.”5
The intent of the Regional Economic
Communities is not to divert trade from other countries, but to build competitiveness within the
region so as to better compete in world markets.
There are seven Regional Economic Communities (RECs) recognized by the AU:
o Arab Maghreb Union (UMA),
o Common Market for Eastern and Southern Africa (COMESA),
4
See Growth Commission report, page 14.
5
Yang, Yongzheng and Sanjeev Gupta. Regional Trade Arrangements in Africa: Past Performance and the Way
Forward, page 9.
4. o Community of Sahel-Saharan States (CEN-SAD),
o East African Community (EAC),
o Economic Community for Central African states (ECCAS),
o Economic Community of Western African States (ECOWAS), and
o Southern African Development Community (SADC).
The South African Customs Union, the East African Community and the West African
Economic and Monetary Union (WAEMU)6
have all made good progress in removing internal
trade barriers. COMESA and SADC have also made some progress toward eliminating barriers
to trade among their members, although liberalization is behind schedule to varying degrees,
while ECOWAS7
has made minimal progress. Liberalization has often been particularly slow
on import sensitive products (and unfortunately, these are precisely the areas which can have the
largest beneficial impact.) UMA, CEN-SAD and ECCAS have made virtually no progress
toward trade liberalization.
Some of the RECs also call for removal or liberalization of non-tariff barriers (NTBs), but only
limited progress has been made in this effort. NTBs include quantitative restrictions, import
bans, roadblocks, delays at ports, cumbersome customs formalities, and restrictive and
cumbersome rules of origin that define which products can qualify for liberalized trade within
the REC.
Given the relatively small degree of trade liberalization within some of the RECs, it is not
surprising that the increase in intra-REC trade has been correspondingly small. As can be seen
in the table below, since 1980 intra-arrangement trade has increased for WAEMU and SADC,
but not significantly for CEMAC, COMESA and ECOWAS.
Table. Intra-Arrangement Trade8
(percent of total trade)
1980 1990 1998 2003
Exports
CEMAC 1.6 2.3 2.3 1.4
COMESA 9.1 8.1 8.9 8.6
ECOWAS 10.6 8.9 11.1 10.1
WAEMU 12.6 15.3 13.0 16.2
SADC 2.7 6.9 6.0 6.0
Imports
CEMAC 3.7 3.6 3.9 2.9
COMESA 2.8 3.4 3.9 5.8
ECOWAS 10.2 14.9 12.9 11.5
WAEMU 7.6 14.8 9.8 13.3
SADC 3.8 6.0 6.1 6.3
6
WAEMU is a customs union of six former French colonies which are all part of the larger ECOWAS community.
7
ECOWAS requires that “products need to meet relatively stringent rules of origin, and need to be registered
through a complex two-stage (national and regional) process.” (Brenton, et. al., page 5.)
8
Yang, Yongzheng and Sanjeev Gupta. Regional Trade Arrangements in Africa: Past Performance and the Way
Forward, page 17.
5. The main obstacle to removing barriers to internal trade within the RECs is political, as vested
interests in many countries resist liberalization. Generating increased political will has to come
from Africa’s political and business leaders.
However, if Africa’s leaders decide to make a renewed and greater effort to liberalize trade
within the RECs, there are several measures that might be taken.
First, as can be seen in Attachment 2, a number of African Union countries are members of two
or more RECs. Multiple memberships make trade liberalization more complex, since the
different agreements all seek to liberalize trade on a different schedule and have made varying
degrees of progress toward trade liberalization. In order to prevent trade diversion, countries
that are members of multiple RECs will have to have very strict rules of origin, which will limit
trade liberalization and increase the costs of doing business.
Recommendation: The African Union, working with member countries, should rationalize
membership in the various RECs.
Customs duties constitute almost one-third of government revenues in African countries9
. This
dependence on tariffs has sometimes been a factor that has limited the ability of the RECs to
eliminate tariffs; this can be particularly an issue for customs unions which have to determine
the distribution of tariff revenues among the members. Over the longer term, African Union
countries will steadily identify other sources of revenue, such as value added taxes or income
taxes, which will facilitate removal of tariffs. In the meantime, where revenue concerns are not
a major factor, the RECs should move as rapidly as feasible to remove tariffs on internal trade.
Recommendation: Consideration should be given by the development agencies to increasing
assistance to African countries for improving tax systems to make up for revenue lost due
to removal of tariffs on inter-REC trade. For would be customs unions, where distribution
of tariff revenues is an issue, the REC should first concentrate on eliminating tariffs on
internal trade before trying to adopt a common external tariff.
Third, non-tariff barriers are a bigger obstacle to free trade within the RECs than tariffs, and
removing non-tariff barriers would not have an adverse revenue effect. Barriers to trade in food
are particularly severe, which results in smuggling and waste. African traders know which
barriers create the biggest problems and they need to be able to provide regular input to
governments on NTBs. The experience of the EAC in addressing NTBs suggests that raising
awareness of NTBs and improving transparency, however, is not sufficient to ensure their
removal. SADC has had some success with a formal dispute settlement mechanism with a
legally binding outcome, and this should be considered for the other RECs.
Recommendation: Removal of non-tariff barriers on inter-REC trade should be given a
higher priority and mechanisms need to be developed to enable the private sector to help
identify barriers. Dispute settlement mechanisms for rapid resolution of complaints
regarding NTBs should be considered.
9
Yang, Yongzheng and Sanjeev Gupta. Regional Trade Arrangements in Africa: Past Performance and the Way
Forward, page 14.
6. Along with expanding trade for goods within the RECs, there is enormous potential for
expanding services trade. The EAC, COMESA and SADC are all committed to creating an
integrated regional market for services and have made some progress, and UEMOA allows the
free circulation of a number of professional services, including doctors, architects, and
lawyers10
. A number of types of services can provide an enormous boost to economic
development, such as trade in electricity, engineers and business services.
2. African exports face numerous trade barriers in their potential global markets.
Even if trade barriers were completely eliminated on internal RTA trade, however, Africa would
still need to expand trade with the rest of the world. In the short term, increasing trade within
the RECs is limited by the fact that most of the African countries have similar economies that
are reliant on subsistence agriculture. Perhaps more importantly, Africa’s export infrastructure
is more oriented toward outside trade than trade within the RECs, and this will take time to
correct.
Finally, many of the products that African countries need are not produced in Africa. “For
example, machinery and transport equipment account for approximately three-fourths of total
(global) African imports, but they account for less than 4 percent of intra-African trade. “. . .
This “suggests that the greatest boost to African trade in the short to medium term must come
from policies promoting trade with the rest of the world. The African market is too small to
sustain high export growth.”11
To pay for these imports, of course, Africa must export, but unfortunately the continent’s
exporters face an array of barriers and trade distortions, particularly on the products where they
are most competitive. First off, most developed and advanced developing country tariff
structures feature higher tariffs on processed goods than on raw materials. “For example, the
United States charges no duty on raw cocoa beans, but imposes duties as high as 52 cents per
kilogram on imported chocolate.”12
This tariff escalation is a part of the reason why most
agricultural and mineral products are not processed in Africa, but instead are exported as raw
materials.
Additionally, the U.S., EU, Japan, China and many other countries have far higher trade barriers
on agricultural goods than on manufactured goods, and agriculture, of course, is Africa’s relative
strength. For the U.S. and China, import restrictions on agricultural goods are roughly twice as
high as those on manufactured goods, Japanese restrictions on agricultural imports are roughly
five times as high, and EU restrictions on agricultural imports are roughly 7.5 times higher than
for manufactured goods, according to Alberto Portugal-Perez and John Wilson13
.
African countries themselves also have high barriers to trade in agricultural products, which
limit trade opportunities, increase costs of food, and cause waste of scarce food resources.
10
Brenton, Paul, Nora Dihel, Ian Gillson and Mombert Hoppe. Regional trade agreements in sub-Saharan Africa:
supporting export diversification.
11
Yang, Yongzheng and Sanjeev Gupta. Regional Trade Arrangements in Africa: Past Performance and the Way
Forward, page 27.
12
Radelet, Steven. Emerging Africa: How 17 Countries are Leading the Way, pages 155-156.
13
Portugal-Perez, Alberto and John S. Wilson. Why Trade Facilitation Matters to Africa, page 9.
7. Removing these barriers would enable African agricultural surplus countries to export to those
that have food shortages.
African farmers also have to compete with producers in developed countries, particularly the
U.S. and EU, which receive enormous subsidies from their governments. The silver lining of
the current U.S. and EU budget crises is that these huge subsidies might finally be significantly
reduced. These subsidies on products such as cotton depress world prices, and this reduces the
return to African farmers and robs them of potential markets.
Recommendation: The U.S. and other developed countries should reduce the trade
distorting impact of their agricultural subsidies.
For most of their exports, almost all African countries benefit from preferential schemes, which
provide duty free treatment in the U.S., EU, Japanese and other markets. For the products that
qualify under these programs, tariff escalation is not an issue, since both raw materials and
finished goods are duty free. However, some products of importance to African producers face
quota limits on the amount that can be exported duty free (for example, Malawi could export
more tobacco if the U.S. quota were removed). While the U.S. African Growth and Opportunity
Act and the EU Everything But Arms programs cover virtually all products, a number of other
countries, such as Brazil, China, India and Turkey, could expand the coverage of their programs.
These preference programs can be important; according to Bernard Hoekman and Alessandro
Nicita of the World Bank, a 1 percentage point advantage over competitors provides an increase
in exports of about 3.5 percent14
. However, the actual effective rate of these preferences for a
beneficiary depends on how many competitors also receive the preference, transportation costs
and whether there are non-tariff barriers that impede trade. For example, Mexico, Chile and a
number of other countries have duty free access to the U.S. market, and are subject to lower
transportation costs than African countries. Hoekman and Nicita estimate that the effective
preference margin is almost always less than one percent. “Only Madagascar has significant
preferential margins – greater than 2 percentage points – in more than two markets. Most
countries have meaningful preferential margins in only one or two markets. . . . these
calculations suggest that the value of preferential programs is quite limited15
.”
Additionally, every country’s preferential scheme has unique rules of origin which means that a
product may be eligible for duty free treatment under one country’s scheme but subject to the
MFN duty rates in other countries. And some rules of origin are more liberal than others. For
example, under the EU’s EBA, yarn must be woven into fabric and then made into apparel in the
same country, while under AGOA fabric from any country may be used. The AGOA rule has
been more successful in facilitating African apparel exports.
Recommendation: Developed countries should expand the coverage of their preference
programs for Africa and harmonize their preference schemes, particularly the rules of
origin, and apply the most liberal rules to products from Africa. The G-20 countries16
14 Hoekman, Bernard and Alessandro Nicita. Trade Policy, Trade Costs, and Developing Country Trade.
World Bank Policy Research Working Paper 4797, December 2008, page17.
15
Ibid. Page 11.
16
The Group of 20 (G-20) is made up of the finance ministers of the EU and the following 19 countries:
8. should all give African countries duty-free, quota free access under their preference
programs.17
Perhaps one of the most difficult barriers for African countries trying to expand exports is the
need for compliance with sanitary and phytosanitary measures (SPS) and technical product
standards (known as “technical barriers to trade” or TBT) in the rest of the world. These
standards are intended to serve an important purpose of protecting the health and safety of the
consumer, preserving the environment or other similar purposes. Under WTO agreements, these
measures may not be more trade restrictive than necessary to achieve the legitimate purpose of
the measure and they must be non-discriminatory. Additionally, SPS measures must be science
based. Finally, countries are supposed to base their measures on international standards and
guidelines; the intent of this is to harmonize different country measures to the greatest extent
possible.
The costs of compliance with these standards can be high. “Proving conformity with standards
and technical regulations requires establishing efficient testing, certification and accreditation
mechanisms that conform to the requirements of the SPS and TBT Agreements and enjoy
international recognition. Testing, calibration and certification facilities thus take on extreme
importance for African countries wanting to benefit from trade opportunities18
.”
Unfortunately all too often countries have different tests and requirements. For example, “out of
a total of 67 different tests applicable to compliance for different fish and shellfish products, [the
U.S.], EU and Japan all require different combinations and total number of tests19
.”
Recommendation: Developed and Newly-Industrialized countries should make a major
effort to better harmonize their SPS and TBT standards.
While SPS and TBT standards have a legitimate role, often countries design them to be
deliberately protectionist. For example, the EU imposed a de facto moratorium on the
importation of genetically modified (GMO) crops, which the U.S. challenged in the WTO. In
2003 the WTO ruled that the EU’s moratorium and some of the member state bans on marketing
of biotechnology agricultural products was not consistent with WTO obligations since it was not
science based. However, these restrictions largely remain in place today.
This EU action has a major negative impact on Africa. GMO crops include corn, cotton and
other products widely grown in Africa, and the GMO varieties are resistant to pests, thereby
reducing the need for pesticides. A number of African countries, particularly in West Africa,
have hesitated to use these varieties because of concerns about being blocked from export to the
EU. However, this renders their agriculture less competitive with countries that use these
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia,
Saudi Arabia, South Africa, Korea, Turkey, UK and the U.S.
17
Open Markets for the Poorest Countries: Trade Preferences That Work. The CGD Working Group on Global
Trade Preference Reform. Kimberly Ann Elliott, Chair. The Center for Global Development. April 2010.
18
United Nations Industrial Development Organization. Trade Capacity building Background Paper: supply side
constraints on the trade performance of African countries, page iv.
19
Ibid. page 7.
9. products, such as South Africa. And their use has important health risks, since pesticides are
often sprayed by hand, thereby exposing workers to potentially severe health threats.
Recommendation: The EU should work with the African Union to ensure that their de facto
moratorium does not inhibit African nations from using GMO crops if they so choose.
3. Trade facilitation costs are high for African exporters and importers, which limits their
ability to compete in global markets. Even if other countries eliminated import barriers on
African goods, most African countries would still be at a competitive disadvantage compared to
many of their competitors from Asia and the Americas. For example, Alberto Behar and
Lawrence Edward report that “it costs more than twice as much to clear a standard 20-foot
container for exports or imports in . . . SADC countries as in the East Asia & Pacific. . . . The
time taken to export and import is also high in . . . SADC countries compared to other regions:
more than three times that of the OECD and twice that of Latin America & Caribbean20
.”
Yongzheng Yang and Sanjeev Gupta note that “customs administration . . . is weak in most
African countries . . . Crossing a border in Africa can be equivalent to the cost of more than
1,000 miles of inland transportation, while in Europe the cost is equivalent to 100 miles21
.”
Murat Seker reports a finding “that each additional day a product is delayed prior to being
shipped reduces trade by at least 1%22
.”
Trade facilitation costs include such things as: the number of documents needed to import or
export a product, the costs of obtaining approvals for import or export, and the efficiency of the
ports. As can be seen in Attachment 3, some African countries such as Egypt, Mauritius and
Tunisia have done a great job in reducing the costs of trade. Others, such as Somalia, Eritrea,
Sierra Leone, Chad and the Central African Republic still have a great deal of work to do.
According to Alberto Portugal-Perez and John Wilson “the gains for African exporters from
cutting trade costs half-way to the level of Mauritius [would have] a greater effect on trade flows
than a substantive cut in tariff barriers. As an example, improving logistics so that Ethiopia cuts
its costs of trading a standardized container of goods half-way to the level in Mauritius would be
roughly equivalent to a 7.6 percent cut in tariffs faced by Ethiopian exporters across all
importers23
.”
Recommendation: Reducing the costs of importing and exporting needs to be a very high
priority for those countries with high costs. Individual countries and donors need to focus
on those specific factors in each country that are the largest cost factors.
Landlocked countries such as Ethiopia, of course, have to ship most of their exports through
neighboring countries to reach the nearest port, and accordingly trade costs can only be cut in
cooperation with these nations. The East African Community has made significant progress in
reducing trade costs for its landlocked members through developing efficient trade corridors.
20
Behar, Alberto and Lawrence Edward. How Integrated Is SADC? Trends in Intra-Regional and Extra-Regional
Trade Flows and Policy. page 17.
21
Yang, Yongzheng and Sanjeev Gupta. Regional Trade Arrangements in Africa: Past Performance and the Way
Forward, page 29.
22
Seker, Murat. Trade Policies, Investment Climate, and Exports, page 3
23
Portugal-Perez, Alberto and John S. Wilson. Why Trade Facilitation Matters to Africa, Abstract.
10. Recommendation: Substantial emphasis needs to be given to developing efficient trade
corridors to better enable landlocked countries to benefit from world trade.
In addition to constraints on exporting, many African countries lack an infrastructure that can
support a vibrant export sector, such as efficient customs brokers, export financing facilities and
information on foreign market conditions. Sometimes, government regulations even promote
inefficiencies by giving special preferences to select service providers that can then charge
higher prices than would be the case under free competition.
Recommendation: An important area for capacity building is to assist Africa in strengthening
and developing the critical services, such as financing, customs brokers and other trade
facilitators, needed to support a vibrant export sector.
Become part of global value chains
A large portion of world trade today is conducted by multinational firms that buy and sell from
all over the globe. Often these firms buy for their own account, but often they are specialized
firms that purchase raw materials, process them and then sell to other firms that market to
retailers.
For example, one firm specializes in buying raw coffee, tea and spices from around the world,
processing them in central locations and then selling the product to companies such as
Starbucks, Coca-cola and McCormick Spice Co. In deciding where to purchase and process the
raw materials, this firm looks to the desire of local farmers to produce for world markets. For
example, under guidance from this firm, vanilla bean growers in Tanzania formed a cooperative
which now includes some 7000 small farmers so that they can produce the quantity needed.
And the firm works with the growers to help them produce the highest quality vanilla bean that
they demand for world markets. In deciding where to do business, this firm looks first to
countries that have a business friendly environment, which includes a government that actively
tries to remove barriers to its enterprises.
The advantage of working with these global supply chains is that they handle all aspects of
exporting, from finding buyers in markets around the world to financing all aspects of the
shipment and to working with local enterprises to develop world-class quality control systems
and large-scale production. “African enterprises need to link with global supply chains to
market their products internationally. SMEs [small and mid-size enterprises], which
predominate in African economies, have inherent difficulties with access to capital, productive
capacity, technology and servicing because of resource limitations24
.”
Reducing the impediments to exporting and to business generally is critical to becoming part of
these global supply chains. But in addition, countries need to develop an export strategy that
involves identifying areas of potential comparative advantage, working with the private sector to
strengthen these areas, and then reaching out to these global supply chain purchasers to
encourage them to consider the country as a supplier.
24
United Nations Industrial Development Organization. Trade Capacity building Background Paper: supply side
constraints on the trade performance of African countries, page iv.
11. An example of a successful export strategy is mangoes from Mali. “Though the government
identified mangoes as an option for diversifying Mali’s export base in the 1990s, it faced several
significant inefficiencies: high costs of air freight, poor access to sea ports, and weak harvesting
and post-harvest techniques . . . lack of finance, insufficient management capacities, an
unfavorable investment climate. . . . In 1993, Mali began implementing a multi-modal (road,
rail, and sea) transportation system to move mango exports to destination markets in Europe
more efficiently. Through partnership with private operators and backed by donor financing, a
cold-chain (refrigerated) system was developed, phyto-sanitary improvements were made,
certification and traceability programs were implemented, and training in orchard management
practices and post-harvest handling was offered to Malian agricultural workers. . . . Mali’s
mango exports increased 1,042 percent between 1993 and 2008, from 1,050 to 11,995 metric
tons25
.”
Aid for Trade
Support for building the human and institutional capacities within Africa to promote growth and
expand trade can come from a variety of sources (including the private sector), but there is an
important opportunity for non-African countries and institutions to help African countries and
their entrepreneurs build trade capacities.
As part of the initial discussions in the WTO concerning the Doha Round, the industrial
countries committed to providing funds to help build trade capacities - now better known as
“Aid for Trade” (A4T).26
A4T includes aid for transportation and logistics infrastructure (the
largest share of A4T), meeting international product standards, improving management of
borders, and projects that link rural producers to markets. It also includes adjustment assistance
to workers and communities adversely affected by trade liberalization.
Aid for Trade flows are not negligible. A4T increased from 2002 to 2008 by 21 per cent in real
terms; the share of the low income countries went from 44 to 54 per cent. More than half of that
went to sub-Saharan African countries27
, and more than half goes for infrastructure - an
important factor in increasing exports. In particular, lack of good roads and rail lines, and access
to low cost, high quality services such as telecommunications and transport and distribution are
critical to competing in international markets.
Trade-related aid suffers from all of the short-comings of other aid programs. There are simply
too many donors doing too many projects in too many countries. There are more than 40
bilateral and multilateral agencies involved in trade related technical assistance. There is no
central coordination mechanism for delivering aid for trade; most is delivered through existing
bilateral and multilateral aid agencies. A recent evaluation of trade-related assistance by the
OECD's Development Assistance Committee found major weaknesses in existing programs.
25
. Africa’s Future and the World Bank’s Support to It. The World Bank. 2011. page 9
26
One widely cited study of the costs of implementing just three of the agreements reached in the Uruguay Round
for restructuring domestic regulations in just three of the poorest countries would cost these countries $150
million a year, more than the annual development budget for 12 of the least-developed countries. (Finger, J.
Michael and Phillip Schuler, "Implementation of the Uruguay Round Agreements: The Development Challenge,"
in The World Economy. April 2000. pp 511-525
27
Bernard Hoekman and John S. Wilson. Aid for Trade: Building on Progress Today for Tomorrow's Future,
page 8.
12. “...inadequate needs assessment, weak project management and governance, a lack of
integration into an overall trade strategy or development program, weak links to poverty
reduction, inadequate donor coordination, and inadequate communication to, and expertise in,
filed missions28
.”
However, the available literature indicates that “... aid for trade can be effective, provided that
countries own the program and incorporate trade objectives thoroughly into their development
strategies.”29
Recommendation: Focus trade-related aid on those countries committed to expanding trade
and equitably sharing the benefits as widely as possible. Aid providers should make long-
term commitments to build capacities to trade so that user governments know that funding
will be available for a longer-term effort.
Recommendation: Key constraints to trade often are outside individual country borders,
and this is particularly true of land-locked countries, where more than a quarter of
Africa's population lives. The need for regional cooperation is widely recognized, and the
gains could be substantial, but support for these programs has been limited. Aid for trade
should help build regional cooperation and integration of markets to a significantly greater
extent than is currently the case. Focusing on building capacities to expand trade in
services is particularly important.
Recommendation: There is a great need for consistent country data on trade outcomes,
particularly on tracking performance over time. A concerted effort is needed to insure
that data is collected on the impacts of policy reform and interventions so that they can be
compared across countries and over time. Such a capacity does not now exist.
Conclusion
Africa has made progress in taking advantage of the opportunities to stimulate economic growth
through expanded trade, but much work remains to be done. The situation is different in each
country and the measures needed must be tailored to meet those needs. But in each case the
country itself must play the lead and key role.
Removing barriers to trade within the Regional Trade Arrangements and those maintained by
outside trade partners is important. However, a number of observers believe that for most
African countries the greatest payoff can come from removing their internal barriers to export
and to strengthening their resources for promoting exports.
Donors do have an important role to play in assisting Africa in promoting exports. In this
connection, the trade capacity building work has much promise and a number of areas have been
highlighted where this assistance could be helpful. The African Union should continue to press
for a successful conclusion to the negotiations on aid for trade (A4T) and then for
implementation of the A4T agreement.
28
Ibid, page 12.
29
Ibid, page 13 (Underlining is the authors)
13. Appendix 1: Comparison of Merchandise Exports of African Countries, 1999 – 2009
Appendix 2: Memberships in Regional Trade Agreements
Appendix 3: Comparison of trade facilitation costs of African Union countries
Bibliography
Behar, Alberto and Lawrence Edward. How Integrated Is SADC? Trends in Intra-Regional and Extra-
Regional Trade Flows and Policy. World Bank Policy Research Working Paper 5625, April 2011.
Brenton, Paul, Nora Dihel, Ian Gillson and Mombert Hoppe. Regional trade agreements in sub-Saharan
Africa: supporting export diversification. World Bank Africa Trade Policy Notes, Note #15, March
2011.
Commission on Growth and Development. The Growth Report: Strategies for Sustained Growth and
Inclusive Development. The World Bank. 2008.
Finger, J. Michael and Phillip Schuler. "Implementation of the Uruguay Round Agreements: The
Development Challenge," The World Economy. April 2000 Vol. 23, no. 4,511-525.
Hoekman, Bernard and Alessandro Nicita. Trade Policy, Trade Costs, and Developing Country Trade.
World Bank Policy Research Working Paper 4797, December 2008.
Hoekman, Bernard and John S. Wilson. Aid for Trade: Building on Progress Today for Tomorrow's
Future. Policy Research paper 5361. The World Bank July 2011
Kirk, Robert. Addressing Trade Restrictive Non Tariff Measures on Goods Trade in the East African
Community. World Bank Africa Trade Policy Notes, Note #7, August 2010
Portugal-Perez, Alberto and John S. Wilson. Why Trade Facilitation Matters to Africa. Policy Research
Working Paper 4710.Washington, DC: World Bank, September 2008.
Radelet, Steven. Emerging Africa: How 17 Countries are Leading the Way. Center for Global
Development. Washington, D.C.: Brookings Institution Press, 2010.
Rodrik, Dani. One Economics, Many Recipies:Globalization, Institutions, and Economic
Growth.Princeton University Press.2007.
Seker, Murat. Trade Policies, Investment Climate, and Exports. Washington, DC: World Bank,
February 2011.
United Nations Industrial Development Organization. Trade Capacity Building Background Paper:
supply side constraints on the trade performance of African countries. Background Paper No. 1.
Vienna: UNIDO, April 2006.
World Bank. Africa’s Future and the World Bank’s Support to It. Washington, DC: March 2011.
14. Yang, Yongzheng and Sanjeev Gupta. Regional Trade Arrangements in Africa: Past Performance and
the Way Forward. IMF Working Paper WP/05/36.Washington, DC: International Monetary Fund,
February 2005.
16. Central African Republic 146 0.0026% 120 0.0010% -62.4116% Other Landlocked
Eritrea 21 0.0004% 15 0.0001% -67.3339% Other Coastal
Liberia 469 0.0082% 150 0.0012% -85.3734% Threshold Coastal
Sahrawi Arab Democratic Republic - Data not available
Source: http://www.wto.org/english/res_e/statis_e/its2010_e/appendix_e/a06.xls
17. ATTACHMENT 2
Memberships in Regional Trade Agreements
CEN-SAD COMESA EAC ECCAS ECOWAS SADC UMA
Number of
Memberships
Algeria X 1
Angola X X 2
Benin X X 2
Botswana X 1
Burkina Faso X X 2
Burundi X X X 3
Cameroon X 1
Cape Verde X 1
Central African
Republic X X 2
Chad X 1
Comoros X X 2
Congo X 1
Congo, Dem. Rep. of X X X 3
Côte d'Ivoire X X 2
Djibouti X X 2
Egypt X X 2
Equatorial Guinea X 1
Eritrea X X 2
Ethiopia 0
Gabon X 1
Gambia X X 2
Ghana X X 2
Guinea X X 2
Guinea-Bissau X X 2
Kenya X X X 3
Lesotho X 1
Liberia X X 2
Libya X X X 3
Madagascar X X 2
Malawi X X 2
Mali X X 2
Mauritania X X X 3
Mauritius X 1
Mozambique X 1
Namibia X 1
Niger X X 2
Nigeria X X 2
Rwanda X X 2
Sahrawi Arab DR 0
Sao Tome and Principe X X 2
Senegal X X 2
Seychelles X X 2
Sierra Leone X X 2
Somalia X 1
South Africa X 1
Sudan X X 2
Swaziland X X 2
Tanzania X X 2
Togo X X 2
Tunisia X X 2
Uganda X X 2
Zambia X X 2
Zimbabwe X X 2
18. ATTACHMENT 3
Comparison of trade facilitation costs of African Union countries
Logistics
Performance
Index
Ease of Doing
Business Index
Ease of Trading
Across Borders
Index
South Africa 3.46 34 149
Senegal 2.86 152 67
Tunisia 2.84 55 30
Uganda 2.82 122 148
Benin 2.79 170 127
Mauritius 2.72 20 22
Congo, Dem. Rep. of 2.68 175 172
Madagascar 2.66 140 106
Egypt 2.61 94 21
Tanzania 2.6 128 109
Togo 2.6 160 93
Guinea 2.6 179 129
Kenya 2.59 98 144
Nigeria 2.59 137 146
Cameroon 2.55 168 155
Niger 2.54 173 174
Côte d'Ivoire 2.53 169 160
Gambia 2.49 146 87
Chad 2.49 183 171
Congo 2.48 177 180
Ghana 2.47 67 89
Comoros 2.45 159 135
Ethiopia 2.41 104 157
Gabon 2.41 156 134
Djibouti 2.39 158 38
Liberia 2.38 155 116
Algeria 2.36 136 124
Libya 2.33 na na
Botswana 2.32 52 151
Mozambique 2.29 126 133
Zambia 2.28 76 150
Mali 2.27 153 154
Angola 2.25 163 166
Burkina Faso 2.23 151 175
Sudan 2.21 154 143
Guinea-Bissau 2.1 164 137
Rwanda 2.04 58 159
Namibia 2.02 69 153
Sierra Leone 1.97 143 136
Eritrea 1.7 180 165
Somalia 1.34 na na
Seychelles na 95 36
Swaziland na 118 147
Cape Verde na 132 55
Malawi na 133 173
19. Lesotho na 138 140
Zimbabwe na 157 168
Equatorial Guinea na 164 137
Mauritania na 165 163
Sao Tome and Principe na 178 92
Burundi na 181 176
Central African
Republic na 182 182
Sahrawi Arab Democratic Republic - Data not available
African Union countries are in order of the best score on the Logistics Performance Index. The
11 countries that have not been ranked on LPI, are in order of the best score on the Ease of
Doing Business Index.
The Logistics Performance Index is based on a worldwide survey of global freight forwarders
and express carriers to assess the logistics friendliness of 155 countries. It measures such things
as the efficiency of the clearance process, the quality of trade and transport related
infrastructure, and the timelines of shipments in reaching their destination. Scores are on a scale
of 1 to 5, with higher scores indicating a more effective system. The LPI is available on the
World Bank’s web page at
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTTRANSPORT/EXTTLF/0,,contentMDK:21514122
~menuPK:3875957~pagePK:210058~piPK:210062~theSitePK:515434,00.html.
The Ease of Doing Business Index ranks economies from 1 to 183, with 1 indicating the most
business friendly economy. The ranking for each economy is based on a simple average of its
percentile rankings on each of the following 9 indicators: starting a business, dealing with
construction permits, registering property, getting credit, protecting investors, paying taxes,
trading across borders, enforcing contracts and closing a business.
The Ease of Doing Business Index is available at http://www.doingbusiness.org/rankings.
The Ease of Trading Across Borders Index ranks economies from 1 to 183, with 1 indicating the
most trading friendly economy. The ranking for each economy is the simple average of the
percentile rankings on its component indicators: Number of documents needed to export and
import, days required to export and import, cost (US$ per container) incurred to export and
import. The Ease of Trading Across Borders Index is available at
http://www.doingbusiness.org/rankings