Concluding Remarks: Enhancing Africa’s Trade: From Marginalization to an Export-Led Approach to Development
Concluding Remarks: Enhancing Africa’s Trade: From Marginalization to an Export-Led Approach to Development
for the global economy. It has also acted as an engine of growth for particular national
economies -- in the 19th century, Canada and Australia and in the 20th century, Japan. In
recent years, trade has acted as an engine of growth for the newly industrializing countries
of Southeast Asia, the so-called "Gang of Four", namely, South Korea, Taiwan, Hong Kong,
and Singapore. Briefly, the dynamic gains from trade arise from the effects of trade on the
level of investment, and on the state of technical knowledge in the country. The increase in
investment and improvements in innovations and technical progress will then lead to
increased productivity and competitiveness, and trigger a further increase in trade. This
positive feedback effect continues and brings about a "virtuous circle" of increased trade and
economic growth.
However, the marginalization of many African countries especially during the last two
decades shows clearly that Africa needs to adopt and prosecute a policy of structural
transformation in order to achieve rapid and sustainable economic growth, raise living
standards, and reduce the incidence of poverty. Since African countries are generally
primary producing, structural transformation involves diversifying into manufacturing for
export. Export diversification refers to a deliberate policy to expand number and type of
exported items. This is important for primary producing countries that obtain the bulk of
their export earnings from one or two primary commodities. Dependence on one or a few
primary commodities leads to instability of export receipts and foreign exchange earnings
especially in a world of volatile primary commodity prices. Instability of commodity
prices inevitably leads to balance-of-payments problems and inability to steadily finance
development expenditures.
The obvious solution is to encourage exportation of other products or, more importantly,
the exportation of manufactured goods. Dependence on manufactured exports is more
beneficial as manufactured goods tend to have high price and income elasticities of
demand. Consequently, foreign exchange earnings from manufactured exports tend to
rise more rapidly over time and to be less volatile. Thus, a major benefit of export
diversification is that the country will become less susceptible to internationally transmitted shocks, particularly commodity trade cycles, and in general, the volatility of
global primary commodity prices. This will enhance development programming and
boost the rate of economic growth. Export diversification often goes hand in hand with
export promotion, which refers to the set of measures and policies used by a country to
boost the volume, value and variety of its exports in order to increase foreign exchange
earnings, ensure balance-of-payments viability and promote economic development.
African Development Bank
Economic Research Working Paper Series
Enhancing Africa’s Trade: From Marginalization
to an Export-Led Approach to Development
Milton A. Iyoha
Professor, Department of Economics & Statistics
University of Benin, Nigeria
Economic Research Working Paper
No 77 (August 2005)
Concluding Remarks Enhancing Africas Trade From Marginalization to an ExportLed Approach to Development - To learn more about this author, visit African Development Bank's Website.
Like this article? Share it with your friends
In the 19th and 20th centuries, trade has by and large been an engine of economic growth
for the global economy. It has also acted as an engine of growth for particular national
economies -- in the 19th century, Canada and Australia and in the 20th century, Japan. In
recent years, trade has acted as an engine of growth for the newly industrializing countries
of Southeast Asia, the so-called "Gang of Four", namely, South Korea, Taiwan, Hong Kong,
and Singapore. Briefly, the dynamic gains from trade arise from the effects of trade on the
level of investment, and on the state of technical knowledge in the country. The increase in
investment and improvements in innovations and technical progress will then lead to
increased productivity and competitiveness, and trigger a further increase in trade. This
positive feedback effect continues and brings about a "virtuous circle" of increased trade and
economic growth.
However, the marginalization of many African countries especially during the last two
decades shows clearly that Africa needs to adopt and prosecute a policy of structural
transformation in order to achieve rapid and sustainable economic growth, raise living
standards, and reduce the incidence of poverty. Since African countries are generally
primary producing, structural transformation involves diversifying into manufacturing for
export. Export diversification refers to a deliberate policy to expand number and type of
exported items. This is important for primary producing countries that obtain the bulk of
their export earnings from one or two primary commodities. Dependence on one or a few
primary commodities leads to instability of export receipts and foreign exchange earnings
especially in a world of volatile primary commodity prices. Instability of commodity
prices inevitably leads to balance-of-payments problems and inability to steadily finance
development expenditures.
The obvious solution is to encourage exportation of other products or, more importantly,
the exportation of manufactured goods. Dependence on manufactured exports is more
beneficial as manufactured goods tend to have high price and income elasticities of
demand. Consequently, foreign exchange earnings from manufactured exports tend to
rise more rapidly over time and to be less volatile. Thus, a major benefit of export
diversification is that the country will become less susceptible to internationally transmitted shocks, particularly commodity trade cycles, and in general, the volatility of
global primary commodity prices. This will enhance development programming and
boost the rate of economic growth. Export diversification often goes hand in hand with
export promotion, which refers to the set of measures and policies used by a country to
boost the volume, value and variety of its exports in order to increase foreign exchange
earnings, ensure balance-of-payments viability and promote economic development.
African Development Bank
Economic Research Working Paper Series
Enhancing Africa’s Trade: From Marginalization
to an Export-Led Approach to Development
Milton A. Iyoha
Professor, Department of Economics & Statistics
University of Benin, Nigeria
Economic Research Working Paper
No 77 (August 2005)
Concluding Remarks Enhancing Africas Trade From Marginalization to an ExportLed Approach to Development - To learn more about this author, visit African Development Bank's Website.
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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