Globalisation and sustainable Africa-China trade: what role play the African regional organisations?
Author: Daouda Cissé, .
Cissé, Daouda and , . 2015. "Globalisation and sustainable Africa-China trade: what role play the African regional organisations?." Occasional Paper 31. Uppsala: http://nai.diva-portal.org/smash/get/diva2:782298/FULLTEXT01.pdf
Globalisation has been one of the most debated con
-
cepts in the 21st century. It has brought together
developed, emerging and developing economies to
strengthen trade, investment as well as political and
diplomatic ties. Foreign trade based on the Gen
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eral Agreements on Tariffs and Trade (GATT) and
the World Trade Organisation (WTO) has been the
main vehicle for countries around the world for im
-
ports and exports.
In its ideal form, globalisation was initially based
on the economic principle of comparative advan
-
tage and free movement of goods across borders in
a free market. Comparative advantage assumes that
as countries concentrate on producing the kinds of
goods and services in which they have a relative edge,
the total effect will be an increased volume of trade
from which all trading partners will benefit. The
search for new and growing markets has become im
-
portant for countries around the world to increase
their market share and trade volumes. Policies have
been elaborated to achieve new developments in
world trade. But in addition to comparative advan
-
tage, globalisation is propelled by other more com
-
plex factors, which include frictions in the movement
of goods, policy implementation, the effect on the
market and numerous other conditionalities.
Besides, the development of Information Com
-
munication Technologies (ICT) and the moderni
-
sation of transport to enable communication and
the flow of goods have played an unprecedented
role in connecting the world. The contemporary
phase of globalisation has been underscored by ICT
and reduced transportation costs, paving the way
for compression of the world economy, blurring of
national borders and removal of barriers to enhance
trade, financial flows and labour movement, even
though the effects have been somewhat limited (Su
-
mit 2010).
Developed countries have had long relationships
with developing countries, including emerging
economies, due to the early trade and investment
connections they established, but globalisation has
also enabled interactions and greater economic co
-
operation between emerging economies and devel
-
oping countries within a South-South cooperation
framework. Globalisation has thus played a role in
the emergence of developing countries in the world
economy.
In the process of Africa’s trade liberalisation,
reforms aiming at import substitution have been
undertaken, but with limitations. In fact, most Af
-
rican countries have been dependent on imports of
manufactured goods as well as food products due to
a lack of policies to develop industries and achieve
food self-sufficiency, which could contribute to
more balanced trade between Africa and the rest of
the world.
In the 1990s, the strong commitment to import-
substitution evident in the 1960s and 1970s in Africa
was gradually abandoned in favour of a more open
and outward-oriented economic and policy stance
(Oyejide and Njinkeu 2007). However, in the wake
of globalisation, Africa seems not to be fully inte
-
grated into the interconnected global economy and
not to have policies for its economic transformation.
While Killick (2000) states that a significant part of
the world and a large number of countries are now
effectively participating in processes of integration
and globalisation, Africa has consistently fallen be
-
hind in trade growth. Today Africa’s total exports
hardly account for 2 per cent of total world exports,
and it has a 3 per cent share of world trade. African
countries have historically lacked active participa
-
tion and assertiveness in the various multilateral
trade negotiations that have shaped the institutions,
rules and operational modalities of the global trad
-
ing system (Oyejide and Njinkeu 2007).Published: 2015Typ: report