Abstract

Commodity Export Dependence in Africa, by Kenneth Dadzie Africa's structural economie problems include a heavy dependence on the commodity sector which is evident both in the predominance of commodity production in the national income of virtually all African countries, and in the high proportion of foreign exchange obtained through commodity exports. The dilemma facing these countries is how to enlarge the contribution of the commodity sector to development in an external environment which militates against that sector as an engine of growth. This paper attempts to provide appropriate responses to the question of how progress can be achieved through a combination of various policy measures and orientations. Policies designed to increase the efficiency of production, processing, marketing and distribution, together with the improvement of linkages between the commodities sector and the rest of the economy, should be coupled with additional international measures aimed at improving the external environment. Such measures range from the resumption of faster world-wide economie growth generated by expansionary policies in developed market-economy countries, the reduction of protectionism, and the alleviation of the debt burden of developing countries. In line with the Final Act of UNCTAD VII, and in view of the entry into force of the Agreement establishing the Common Fund for Commodities, the international community would be in a better position to intensify international cooperation between producers and consumers and provide assistance for activities such as research and development, productivity improvement, vertical diversification and marketing in African countries. The conclusion of further agreements or arrangements containing economie provisions, developmental measures and measures to improve market transparency would also be relevant. Finally, cooperation among African countries themselves, particularly in the fields of intra-African trade and supply management, would help to realize the contribution expected from the commodities sector in development.

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