Mainstreaming trade in national development strategies: an issue paper

Abstract

This Issues Paper examines the integration of trade policies into national development strategies to enhance sustainable growth and poverty reduction in African economies. Emphasizing trade as a critical driver of external finance and competitiveness, it underscores the necessity of coherent, cross-ministerial coordination—particularly led by Finance Ministries—to align trade reforms with complementary policies in macroeconomics, regulation, education, and infrastructure. Challenges such as unintended consequences of protectionist measures (e.g., Ghana’s garment tariffs) highlight the complexity of policy design. The paper reviews Africa’s marginal position in global trade and the stalled Doha Development Round, stressing unresolved issues like agricultural subsidies, market access, and special treatment for developing nations. Domestically, addressing bottlenecks in trade finance, capacity building, and fiscal adjustments remains urgent. Regional integration is proposed as a pathway to global market integration, though slow progress on non-tariff barriers, rules of origin, and common external tariffs impedes advancement. The paper concludes that while multilateral cooperation and regional efforts are pivotal, overcoming domestic constraints and prioritizing strategic reforms are essential for Africa to harness trade’s transformative potential.