The least developed countries have faced numerous challenges with trade policies and trade rules. *Martin Khor lays out the ways to address them.
TRADE HAS been at the centre of discussion of LDCs improving their economy and social conditions.
It was said that LDCs are not integrated into the world economy that is why they are marginalized. This is not true. Many LDCs have higher exports to GNP ratio than some developed countries. It is the way in which the LDCs are integrated in trade that has been a disadvantage. LDCs are too dependent on raw materials export,and prices of commodities have had a long-term trend decline, thus causing major revenue and income losses for LDCs.
In 2009, African heads of state adopted the African Mining Vision. Its key objective is the transformation of Africa’s mining sector into a catalyst of broad-based growth and development and a key component of a diversified, vibrant and globally competitive, industrializing African economy.
The vision foresees Africa moving away from being a source of unprocessed minerals, towards the production of value-added goods from its mineral resources. It also recognizes that the governance of Africa’s mining sector must improve. It must become more environmentally friendly, more inclusive in sharing its benefits, more socially responsible and be accepted by surrounding communities. The African Mining Vision also calls for an increased share of mineral revenues for African countries. In short, the African Mining Vision offers a more equitable future of economic relations between Africa and the rest of the world.It is Africa’s response to the disappointing developmental outcomes of two decades of mineral policy. From the late 1980s, amidst economic crisis, faced with low mineral prices, and under the heavy influence of western aid agencies, African countries liberalized their mining sectors. State mining companies were privatized