Export Diversification in Low-Income Countries: An International Challenge after Doha

OECD Development Centre Working Paper No. 209

45 Pages Posted: 19 May 2005

See all articles by Federico Bonaglia

Federico Bonaglia

Organization for Economic Co-Operation and Development (OECD) - Development Centre (DEV)

Kiichiro Fukasaku

Organization for Economic Co-Operation and Development (OECD) - Development Centre (DEV)

Date Written: June 2003

Abstract

This paper discusses major policy issues related to commodity dependence and export diversification in low-income countries. Contrary to some widely-held view, it argues that natural resources are not necessarily a curse - that they do not condemn low-income countries to underdevelopment but can provide rather a basis for sustained export-led growth. Natural resource-based sectors have potential for export diversification. The OECD mirror trade data suggest that many different routes to diversification exist, including resource-based manufacturing and processing of primary products. However, these opportunities are not being exploited in many low-income countries. This is because export diversification is typically a slow process, and this process needs to be sustained by an appropriate and coherent strategy, characterised by a combination of vision, co-ordination and management of conflicting interests.

Moreover, the analysis of trade support services in two African countries points to a mismatch between private sector needs and the services available to them as well as to a limited institutional development of the trade and investment support network. Though important to Africa, lessons for trade capacity building are also relevant for other lowincome countries too.

Keywords: Export diversification, trade capacity building, Doha development Agenda

Suggested Citation

Bonaglia, Federico and Fukasaku, Kiichiro, Export Diversification in Low-Income Countries: An International Challenge after Doha (June 2003). OECD Development Centre Working Paper No. 209, Available at SSRN: https://ssrn.com/abstract=724761 or http://dx.doi.org/10.2139/ssrn.724761

Federico Bonaglia (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Development Centre (DEV) ( email )

2 rue Andrea Pascal
75016 Paris
France
+33 1 4524 9603 (Phone)
+33 1 4524 7943 (Fax)

HOME PAGE: http://www.oecd.org/dev

Kiichiro Fukasaku

Organization for Economic Co-Operation and Development (OECD) - Development Centre (DEV) ( email )

94, rue Chardon Lagache
Paris, 75775
France
+33 (1) 45 24 96 06 (Phone)

HOME PAGE: http://www.oecd.org/dev

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