Trade Policy to Catalyze Export Diversification : What Should Landlocked Fragile Countries Do? The Cases of Mali, Chad, and Niger
The landlocked and fragile countries Mali, Niger, and Chad have suffered, to varying degrees, from Dutch Disease, with high export concentration in natural resource commodities and in a few foreign markets, and little development of their non-resou...
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| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/867541570544000115/Trade-Policy-to-Catalyze-Export-Diversification-What-Should-Landlocked-Fragile-Countries-Do-The-Cases-of-Mali-Chad-and-Niger http://hdl.handle.net/10986/32520 |
| Summary: | The landlocked and fragile countries
Mali, Niger, and Chad have suffered, to varying degrees,
from Dutch Disease, with high export concentration in
natural resource commodities and in a few foreign markets,
and little development of their non-resource economies. The
three countries' ability to create a sustainable path
to economic growth and poverty reduction is inextricably
linked to their connectivity with external markets, in the
region and beyond. Thus, Mali, Niger, and Chad are first
challenged by their geography -- their landlocked nature
creates a barrier to market access beyond their immediate
neighbors, while their vast and thinly populated lands serve
to isolate the most vulnerable communities from external and
internal markets. Adding to these geographic disadvantages,
the incentive environment -- defined by high and variable
customs common external tariff regimes resulting from
multiple overlapping regional trade arrangements -- places a
wedge between domestic and international prices that
provides a disincentive to exports in favor of non-tradable
and domestic-oriented sectors. By bringing greater coherence
and convergence between the many common external tariff
regimes in operation and the rationalization of their
structures, and improving connectivity within and between
markets, Mali, Niger, and Chad can better promote the
reallocation of resources toward tradable goods and
services, putting the countries on a path toward greater
economic inclusion and sustainable growth. |
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