Trade and Structural Adjustment Policies in Selected Developing Countries

OECD Development Centre Working Paper No. 245

68 Pages Posted: 25 Jul 2005

See all articles by Jens Andersson

Jens Andersson

Independent

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)

Caroline Lesser

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

Date Written: July 2005

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.

Keywords: Trade, structural adjustment, export diversification, trade capacity building

JEL Classification: O13, O14, F1, F13

Suggested Citation

Andersson, Jens and Bonaglia, Federico and Fukasaku, Kiichiro and Lesser, Caroline, Trade and Structural Adjustment Policies in Selected Developing Countries (July 2005). OECD Development Centre Working Paper No. 245, Available at SSRN: https://ssrn.com/abstract=759366 or http://dx.doi.org/10.2139/ssrn.759366

Jens Andersson

Independent ( email )

Stockholm
Sweden

HOME PAGE: http://www.sivik.se

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

Caroline Lesser

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

94, rue Chardon Lagache
Paris, 75775
France

Organization for Economic Co-Operation and Development (OECD) - Development Co-Operation Directorate (DAC)

2 rue André Pascal
Paris, 75775
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
213
Abstract Views
1,724
rank
185,696
PlumX Metrics