http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.05
R/$ = 12.32Change: -0.01
Au 1168.78 $/ozChange: -0.02
Pt 1083.00 $/ozChange: 1.00
 
 
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
An end to wage negotiations within the local government sector could be in sight as a conciliator’s proposal, setting out a number of settlement suggestions to resolve the deadlock, was expected on Monday. The Independent Municipal and Allied Trade Union (Imatu)...
Development financier Eastern Cape Development Corporation (ECDC) executive Noludwe Ncokazi on Friday said the organisation had the “huge responsibility of ensuring business continuity”, following the resignation of ECDC subsidiary Automotive Industry Development...
South Africa’s second-largest oil refinery, Engen Refinery (Enref), is set to undergo a three-day planned maintenance outage from July 9 as part of an ongoing maintenance programme to ensure that the facility, which delivers a significant portion of South Africa’s...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
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