Africa in the global economy : issues of trade and development in Africa

Abstract

This paper deals with various aspects of Africa's place in the world economy and how Africa's relative position has changed over the past 20-30 years. In broad summary the situation can be defined as further "marginalization" of Africa in the global economy. In this context marginalization refers to very low and stagnant or declining shares in world total output (GDP), in manufacturing output, in domestic savings and investment,and in international trade and financial flows. The principal emphasis of the paper is on international trade. It is now widely accepted across the world, by economists and policy makers, that economies open to international trade have grown faster than more closed economies. Yet the share of the poorest or least-developed countries, most of them in Africa, in global trade has declined since 1980.