Trade liberalisation and the developing nations : a strategy for sustainable growth

Botha, Anton (2004-03)

Thesis (MBA)--Stellenbosch University, 2004.

Thesis

ENGLISH ABSTRACT: Developing economies are greatly influenced by changing factors of globalisation, trading pattems of industrialised countries and currency fluctuations. Trade reform is expected to play a critical role in creating competitive advantages among developing countries. However, liberalisation of developing countries has not always given the expected result. Too often, mullilateral organisations lecture developing countries on the merits of good governance, building dynamic institutions and greater openness to trade and foreign direct investments (FDI). The International Monetary Fund (IMF) estimates that if Sub-Saharan Africa's institutional capacity were raised to the level of developed countries, per capita GDP would be raised by 150 percent. The rich world's trade protectionism and inadequate FDI inflows are blocking poor nations' efforts to integrate within the global economy. Currently, protectionist barriers set up by developed countries disrupt global economic market adjustments. Extending liberalisation to trade in all commodities would almost double world gains and would benefit developing countries in particular. To sustain development through liberalisation, nations need to reform themselves domestically and all nations must be given reasonably free market access.

AFRIKAANSE OPSOMMING: Ontwikkelende ekonomiee word grootliks beinvloed deur die veranderende omstandighede met betrekking tot globalisasie. Handelshervorming sal na verwagting 'n kritieke rol speel om 'n kompeterende voordeel te skep vir ontwikkelende lande. Nogtans het die liberalisering van sommige van hierdie lande nie die verwagte resultaat gelewer nie. Dit gebeur gereeld dat multilaterale organisasies ontwikkelende lande voorskryf oor die meriete van goeie bestuur, die ophou van dinamiese instellings en 'n meer ontvanklike houding teenoor buitelandse handel en beleggings. Die Internasionale Monetere Fonds (IMF) skat dat as die institusionele kapasiteit van Suid van die Sahara Afrika tot op die vlak van ontwikkelde lande verhoog word, die bruto binnelandse produk (BBP) per capita met 150 persent sal styg. Maar die ryk wereld se handelsbeskerming en die onvoldoende toevloei van buitelandse direkte investering, blokkeer arm nasies se pogings om die wereldekonomie te betree. Tans ontwrig die beskermende maatreels in ontwikkelde lande die vermoe van die wereldwye ekonomiese mark om aan te pas. Deur liberalisering ten opsigte van alle handelsgoedere uit te brei, kan die wereld-winste bykans verdubbel word. Ontwikkelende lande sal veral hierby baat vind. Om ontwikkeling deur liberalisering te bevorder, moet nasies binnelands hervorm en alle nasies moet redelike vrye toegang tot die wereldmark gebied word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/50203
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