“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!!

allAfrica.com: Comparative Study On Export Policies – Egypt, Morocco, Tunisia and South Korea

http://allafrica.com/stories/201211071267.html

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