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Obstacles to progress

Realities

Exporting commodities and resources is seen as favorable to help earn foreign exchange with

which to pay off debts and keep currencies stable. However, partly due to the price war
scenario mentioned above, commodity prices have also dropped.

Furthermore, reliance on just a few commodities makes countries even more vulnerable to
global market conditions and other political and economic influences. As Gemini News Service
also reports, talking to the World Bank:

"More than 50 developing countries depend on three or fewer commodities for over half of
their export earnings. Twenty countries are dependent on commodities for over 90 percent of

their total foreign exchange earnings, says the World Bank."

"Structural Adjustment--a Major Cause of Poverty." 286
Global Issues (August 2020)
*****
With more than 10 per cent of the world's population, sub-Saharan Africa captures only 1 per

cent of global export market share
Source : World Bank data relate to 2001.

*****
When developing countries export to rich country markets, they face tariff barriers that are four
times higher than those encountered by rich countries. Those barriers cost them $100bn a year

– twice as much as they receive in aid.
***
While rich countries keep their markets closed, poor countries have been pressurised by the
International Monetary Fund and World Bank to open their markets at breakneck speed, often

with damaging consequences for poor communities.
***
Meanwhile, powerful transnational companies (TNCs) have been left free to engage in
investment and employment practices which contribute to poverty and insecurity,

unencumbered by anything other than weak voluntary guidelines. The World Trade
Organisation (WTO) is another part of the problem. Many of its rules on intellectual property,

investment, and services protect the interests of rich countries and powerful TNCs, while
imposing huge costs on developing countries.
***
Trade, in combination with appropriate domestic policies, could be used to reduce poverty and
foster development. An increase of just 1 per cent in world export market share could translate

into a one-fifth increase in average income in sub-Saharan Africa, which would increase annual
exchange earnings by $70 billion.

"Rigged Rules and Double Standards: Trade, Globalisation, and the Fight Against Poverty" 287
Oxfam International:(Oxfam GB, 2002)