• Federica Riccadonna posted an update in the group Group logo of African FuturesAfrican Futures 7 years, 9 months ago

    “Export-led growth strategies?” And the risks of such strategies?

    – lack of product diveristy in economies that rely only products in which they have comparative advantage;
    – African countires have a comparative advantage mainly in primary commodities, which have a long term trend of declining prices;
    – leading to deteriorating terms of trade, so that benefits go to richer and more specialized enconomies and countries.
    – Instability and Volatility of international market;
    – Vulnerability to adverse exogenous shocks and currency risks
    – “dual economy”; areas characterised by enclaves of economic growth surrounded by underdeveloped areas.
    … …

    Of course, exporting is crucial to increase exchanges among countries and regions, to transfer skills and technology and to allocate resources within a country..but..
    Considering only ‘one-direction’ strategy is reductive. We need an holistic, comprehensive approace, including internal demand-led growth strategy!!

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