Trade and development

In line with the 1981 Berg Report, much World Bank research has suggested for a long time that Africa would gain most by specializing in agriculture. Removal or reduction of subsidies and protection in the North would give farmers in SSA the opportunity to significantly increase their shares in these markets, and would allow them to benefit from their comparative advantage in agriculture. Yet, the evidence of African agricultural competitiveness remains dubious for most crops. Reliance on trade liberalization and static comparative advantages in agriculture or resource-based industries is also at odds with the development experience of almost all earlier development or rapid growth experiences, which have invariably involved pursuing industrialization and diversification strategies (Chang 2003).

Related Subject(s): Economic and Social Development