Policy measures adopted developing countries to realize the full benefits from International Trade

  • Increasing the budget provisions to the security/defence machinery of peace keeping missions; the sale of arms to war torn countries should be brought into focus in International Law in form of crime against humanity.
  • Widening the scope of bilateral and multilateral trade agreements – specifically those seeking to open up the markets of developed countries to exports of the developing world (currently, the United States government has established the African Growth & Opportunities Act (AGOA) trade initiative which grants African textile and garment manufacturers preferential access to the US market); this is one of the ways forward.
  • Creation and sustenance of investor and development partners‟ confidence maintaining structures supportive of efficient and vice-free domestic economic governance
  • Enhanced credit facility access orientation – democratically elected governments tend to enjoy a wider scope of support from both citizens and development partners; STABEX funds in Kenya, for instance, should reach the intended coffee farmers without any hindrances in order to allow farmers to soundly decide, plan and control their farming activities with a view to increasing the total coffee output for export.

In addition, the government should maintain strict budget discipline having only manageable deficits in order to avoid the punitive economic effects ( eg high interest rates, external debt crisis) arising from continued borrowing from the open market and international financial institutions like the World Bank/IMF.

  • Redefining the role of governments in provision of public goods eg. physical and qualitative infrastructure etc.
  • Formation of regional groupings devoid of lack of political commitment
  • Extensive export promotion programmes:
    The Kenya National Chamber of Commerce and Industry, for instance, should upgrade its operations to world-class standards through search for markets, partners and financing information. Kenya’s entrepreneurs should be able to, for example, penetrate the Private Label Marketing Association (PLMA) which is based in Europe and represents the World’s leading supermarket chains. The rationale behind the association is to create their own brands and sell products under their own brand names, hence the need for developing countries businesses (Kenya for example) to enter into partnerships with the PLMA.
    Every year a number of Third World companies are selected to exhibit and display their products with a view to tapping into the Lucrative European Market. Only a few Kenyan Companies have done this; this failure is attributable to lack of guidance and awareness on how to tap into the huge EU market. Financial analysts caution that while the CDE is willing to assist, Kenyan companies must follow global trends, especially in ISO standardization, branding and advertising of their
    products. It’s also important for developing countries‟ key export products such as Kenya’s agricultural exports of Coffee, Tea, Cashew nuts, Fish, Handicrafts and Horticulture to be aggressively branded and advertised to reap maximum benefits to the economy.
    Kenyan Horticulture products in the EU market, especially in London and Paris are branded and displayed in supermarkets to make it appear they are locally produced without giving any credit to their country of origin. The consumers are not aware, for example, that their cup of the superior arabica coffee come from Kenya because it will probably have a German or Swiss Label. For far too long, Kenyan companies have concentrated on the production side and ignored branding and packaging which matters a lot to consumers in the developed world market. The Caribbean Companies selling bananas to Europe, such as Dole, have succeeded much more than the Kenyan companies selling flowers, fresh fruit and other horticultural products.
    Its vital that the developing countries‟ chambers of commerce and industry (eg Kenya National Chamber of Commerce & Industry) be revitalized as the voice for the export – oriented business community because export – led growth will play a key role in creating wealth and alleviating poverty.



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