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Trade And Structural Adjustment Policies In Selected Developing Countries

Author

Listed:
  • Jens Andersson

    (Swedish Minsitry of Foreign Affairs)

  • Federico Bonaglia

    (OECD Development Centre)

  • Kiichiro Fukasaku

    (OECD Development Centre)

  • Caroline Lesser

    (OECD Development Co-operation Directorate)

Abstract

The experience of the five examined industries (agro-food in Chile, cut flowers in Kenya,garment in Lesotho and in Mauritius and seafood in Thailand) demonstrates that non-traditional industries can emerge and achieved strong growth rates in very diverse settings in terms of geography and initial economic and social conditions. In most of these cases, the government adopted a relatively export-oriented, business- friendly attitude and adapted its policies as the industries developed. Hence, a key factor for successful structural adjustment has been the pro-active role of government in establishing an enabling economic and policy environment that allows local firms to operate on a level-playing field and strengthen their competitive edge in international markets. This highlights the importance of implementing trade policies in the framework of comprehensive development strategies and establishing a consultative national policy-making process for ensuring a coherent approach to trade and structural adjustment. The case studies also underscore that countries (government and industry) are compelled to constantly adapt in light of new sources of competition, growing wage levels, environmental constraints, technological advances and demanding product and process standards. Policy-makers in most countries under review are aware of this challenge. As a consequence, some of them have taken the initiative to set up specific mechanisms or programmes for further enhancing the competitiveness of existing export sectors and/or promoting emerging non-traditional export industries.

Suggested Citation

  • Jens Andersson & Federico Bonaglia & Kiichiro Fukasaku & Caroline Lesser, 2005. "Trade And Structural Adjustment Policies In Selected Developing Countries," Development and Comp Systems 0507003, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpdc:0507003
    Note: Type of Document - pdf; pages: 60
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0507/0507003.pdf
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    References listed on IDEAS

    as
    1. Federico Bonaglia & Kichiro Fukasaku, 2003. "Export Diversification In Low-Income Countries: An International Challenge After Doha," Development and Comp Systems 0307001, EconWPA.
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    Cited by:

    1. Thierry Mayer, 2006. "Policy Coherence for Development: A Background Paper on Foreign Direct Investment," OECD Development Centre Working Papers 253, OECD Publishing.
    2. Jonathan Munemo, 2011. "Foreign aid and export diversification in developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(3), pages 339-355.
    3. Peerally, Jahan Ara & Cantwell, John A, 2012. "Changes in Trade Policies and the Heterogeneity of Domestic and Multinational Firms’ Strategic Response: The Effects on Firm-Level Capabilities," World Development, Elsevier, vol. 40(3), pages 469-485.

    More about this item

    Keywords

    Trade and structural adjustment; export diversification; trade capacity building;

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Economic Systems

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