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4.3 Conclusion: Economic Report on Africa 2007

4.3 Conclusion: Economic Report on Africa 2007

The following conclusions summarize the results of Africa’s export diversification
efforts and results:

• The regional and subregional evidence indicates that the effort towards
diversification in the 1970s and early 1980s had positive results in that for
most countries, the diversification indices generally trended downwards,
showing movements towards some diversification.

• The diversification gains were not sustainable as they could not withstand
the pressures of the economic crises and the attendant adjustment policies
that needed to be instituted to deal with them. The gains made during this
period remained low and the diversification results reflected volatility and
fragility. Africa has been unable to sustain a strong foundation of diversified
economy. Yet, other regions such as Latin America and Asia which came
under similar pressures managed to protect and even deepen their diversification
gains.

• Overall, the African economies appear to have responded differently to
the challenges posed by the economic crises of the early 1980s as opposed
to the kind of response that the Asian economies adopted. However, it is
important to point out that there have been clear differences between subregions
and between countries in the same subregions. In spite of differences
among subregions, it is clear that African economies were, on the whole, less
dynamic compared to the Asian countries in their response to the diversification
challenges.

• Five regimes characterize Africa’s experience with diversification. The policy
mix in the various African countries ranging from macroeconomic factors to
institutional issues have played a major part in determining the diversification
regime into which each African country falls.





43 Conclusion Economic Report on Africa 2007 - To learn more about this author, visit United Nations Economic Commission for Africa's Website.

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United Nations Economic Commission for Africa
(Visit United Nations's Website) The United Nations Economic Commission for Africa (ECA) is the regional arm of the United Nations, mandated to support the economic and social development of its member States, foster intra-regional integration, and promote international cooperation for Africa's development.

United Nations Economic Commission for Africa is a Platinum author on EvanCarmichael.com
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