The technological potential of the primary export sector

This study makes an appraisal of the impact of technological change on the Latin American commodity sector, especially with regard to demand. It examines the factors underlying the apparently declining raw materials demand in developed countries and threatening to affect demand in developing countries as well. In this context, the process of materials substitution and the relationship between commodity demand and economic development are analysed from the standpoint of use-intensity, and the hypothesis is put forward that the threat posed by a reduction in materials demand in the North via “de-materialization”, economies and substitution could perhaps be mitigated by increasing materials requirements in the South by means of population increase, infrastructure works, consumerism and appropriate government policies. The region still has areas not fully exploited with the existing technologies whose potential could be substantially enlarged by changing or improving the prevailing production structure. This proposition is tested in four strategic areas (increasing the technological content of exports, intensification of local processing, redirection of commodity trade inwards to the region itself and strengthening of marketing and product promotion infrastructures).