- -- -- - - - -- - - -- - - -- - ----- uNITED NA'L'IONS
~ AFRICAN INSTITUTE FOR ECONOMIC DEVELOPMENT AND PLANNING
DA KA R
D. Carney Deve1opment and World Trade ( Course Outline )
IDEP/FJr/VII/127 May 1964
I. World. Trade . as an Enginè of Development : Experience of vlorld Tracle andDevelopment.
II. • . Commod-ity Problems of Developing countries :
( 1) Priees ( 2) Terms of Trade (3) Fluctuations in Export Earnings and Public Revenues ( 4 ) Synthetics and other Consequences of
technological progress in the industrialized countries ( 5) Balance of P.ayment s., ·externàl debt-and amortisation ( 6) External investrnent in primary and other production and the transfer problem.
( UNTAB Conference in Geneva~ 23 March, 1964 ) III. Short terms solutions to commodity Problems :
(a) Commodity stabilization Schemes - tin, coffee, wheat, sugar (b) European Common Market
(c) Compensatory Financing of Export Deficits arising from Terms of Trade or crop failures ( IMF )
(d) " Keynes Plan " and " Stamp Plan "
( e) Vdlmtary Sale Restriction of CommQdi ties on vlorld Markets base d on ...
Demdnd Elasticity
(f) GATT & Developing Countries
IV. Evaluation of Short Term Solutions
V. Long Term So.lutions basEd on Resource Reallocation
(a) Principles of resource reallo-cation for promotion of economie growth : shift of resources out of primary into secondary and
ter~iary industries, examination of resource allocation and use in African countries.
(b) Diversification of Production for Export and for the Domestic and African Markets.
1. Ag·ricul tural : · mu.l ti-product and mono-_product economies
cprnparison of product priee trends and changes in terrns of trade for these two types of economien ( UN Economie Survey of Africa since 1950-brought
up to date )
IDEP/ET/VII/127 Page 2
)
• ..
2. Mineral -· ·· • ëorii.:Parison·--c;r-:P·roduct priee trends· and changes in terms of trade, possible disadvantages of commodity agreements ( c.f. US position ) principle of
commodity stabilization schernes.
3. Manufactures import substitution designed to increase domestic employment, output and public revenues in individual countries ( foot-loose industries, especially in c.onsumer goods production - textiles, cigarettes,
Note ( l ) ( 2 )
beer and sof~ drinks, soaps, matches, cooking oils
~tc •. •• ) import substitution deeigned to create sub-regional integration on the basis of major mineral resources unevenly distributed throughout the sub-region ( raw-material and market. oriented_
~ndustries - fertilizer, iron and steel, petro-
chemical~ etc •• ) production of import substitutes for (a} markets of individual countries (b) sub-regional and regional markets (c) foreign markets.
Limitations of product diversification in ·agriculture Possibilfti
..,
es and advantages of product diversification in manufactures - intra-African market integration as compared with current pattern of intra-African trade and pattern of importation of manufactures and food from outside Africa - trade-expanding not trade-restricting ( UN Economie Survey of Africa since 1950 brought up to date ; African Statistics )( 3 ) Importation by African count~ies of manufactured goods based on raw materials produced in Africa
(a) comparative cast, given the demand
(b) quali ty differencE% and consumer preferences (c) advertising apd marketing in relation to
increase~ intra-African, trade in such import .substitutes
( 4 ) Purpose of trade is to create markets ( they do not arise spontaneously ) : sub-regional and regional trade
• . . ..
IDEP/ET/VII/127 Page 3
VI. International Trade Theory and the Plight of Developing and Developed Countries.
( a) Defects of Classical and Modern Trade Theories ( b) The Dilemna of International Trade
.,
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