Open Economies Work Better! Did Africa's Protectionist Policies Cause its Marginalization in World Trade?

Sub-Saharan Africa's declining importance in global trade is primarily due to its inability to remain competitive in international markets. If Africa merely retained its 1962-1964 shares for major products its exports would now be 75% ($11 billion) higher. External protection against Africa has not played an important role in this decline, in fact, OECD trade preferences made market access conditions for Africa more favorable than that for many other exporters. In contrast, sub-Saharan Africa's own trade barriers are considerably higher than those of most other developing countries, particularly those that launched sustained export-oriented industrialization drives. Since numerous studies show countries which pursue liberal trade policies generally achieve superior growth rates, these findings accent the importance of domestic policy reforms if Africa is to reverse its diminishing role in world trade. In short, the future of African economies will be determined by Africans themselves and not by outsiders