http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: 0.02
R/$ = 12.04Change: 0.03
Au 1188.10 $/ozChange: 1.50
Pt 1119.50 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 16, 2011

South-South trade booming despite high trade barriers

Back
OECD's Mario Pezzini speaks about the high trade barriers prevailing for South-South trade. Camerawork: Nicholas Boyd. Editing: Darlene Creamer.
 
 
 
Africa|Education|Flow|Resources|Africa|Flow|Infrastructure|Power
Africa|Education|Flow|Resources|Africa|Flow|Infrastructure|Power
africa-company|education-company|flow-company|resources|africa|flow-industry-term|infrastructure|power
© Reuse this



South-South trade is growing fast, but barriers among developing countries are still up to seven times higher than those imposed by the developed world, a representative from the Organisation for Economic Cooperation and Development (OECD) said on Wednesday.

Speaking at a Frontier Advisory seminar at the JSE, OECD Development Centre director Mario Pezzini said that South-South trade had experienced tremendous growth in recent years, with exports from developing countries now constituting 37% of global trade, of which about 50% related to South-South trade.

“The sharp increase in trade between developing countries, despite barriers remaining, just shows the increasing importance of these trading relationships.

“This leaves lots of opportunity to improve on the flow of trade, just imagine what gain would lie in the further reduction of trade barriers,” said Pezzini.

Historically, developing countries focused on preferential access to developed markets, but Pezzini said that the global economy had dramatically changed over the last two decades with wealth shifting from the developed world to developing countries, necessitating a change in thinking and attitude when it came to trade.

The situation was further exacerbated with the recent economic crisis, where developed economies experienced a recession, while some emerging economies continued showing double-digit growth figures.

Developing countries contributed to about 70% of the world’s growth in the last decade.

Pezzini said that the strong growth was fuelled by the rising demand for resources, especially from the growing Asian giants, which led to a decade of higher commodity prices and also stimulated growth in those countries producing raw materials.

Further, emerging markets started implementing better fiscal and macroeconomic policies, while increased liquidity provided for lower interest rates.

The OECD anticipated that the growth trend would continue, saying that while the developed world contributed about 60% of the world’s gross domestic product (GDP) in the 1990s, the picture would be reversed by 2030, with developing countries contributing 60% to the global GDP numbers.

However, Pezzini pointed out that accelerated growth from these countries had resulted in greater inequalities in society, which could lead to political unrest, like the recent displays in North Africa.

He said that good policy and governance was needed in these countries to build the correct developmental infrastructure, improve education and increase human capital, while continuously diversifying their economies with a strong focus on productivity and innovation.

“A great way to achieve this, is through the exploitation of the power of peer-to-peer learning, where policymakers can come together and share their successes and failures with each other. The OECD Developmental Centre has identified a strong demand for such policy dialogues and we have already arranged a number of opportunities for such interaction in the coming months,” concluded Pazzini.
 

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
IMD World Competitiveness Center director Arturo Bris
Updated 5 hours ago South Africa slipped one position, from 52 to 53, in the latest world competitiveness ranking, which highlighted power and infrastructure shortfalls, high youth unemployment, as well as inadequate education and technical skills availability as key challenges to the...
JSE-listed Dipula Income Fund reported that its distributable earnings grew 33.2% in the six months ended February 28, translating into a combined growth of 6.8% in distributions for both A- and B-linked units. The distribution attributable to the A-linked units was...
JSE-listed Growthpoint Properties’ Kirstenhof Office Park, in Johannesburg, has become the hundredth building in South Africa to achieve a Green Star SA certification from the Green Building Council of South Africa (GBCSA), securing a 5-Star Green Star: Existing...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96