Federico Bonaglia

Public Capital and Economic Performance: Evidence from Italy

This paper addresses the issue of whether and by how much public capital can enhance economic performance. We apply different methodologies to Italian regional data for the period 1970-1994. The results are presented for Italy as a whole, for different macroregions, and for individual categories of public capital. For the Center and the South, the methodologies employed indicate a positive contribution of infrastructure investment to TFP growth, output, and cost reduction. However, the magnitude of the cost reducing effect does not seem large enough to outweigh the social user cost of public capital. Also, we get mixed results on which types of infrastructure are most effective. Overall, investment in transportation appears to be the most productive: railways in the North and roads in the Center and South are the categories that mostly contributed to TFP growth.

Export Diversification in Low-income Countries: An International Challenge after Doha

This paper discusses major policy issues related to commodity dependence and export diversification in low-income countries. Contrary to some widely-held view, it argues that natural resources are not necessarily a “curse” — that they do not condemn low-income countries to underdevelopment but can provide rather a basis for sustained export-led growth. Natural resource-based sectors have potential for export diversification. The OECD “mirror” trade data suggest that many different routes to diversification exist, including resource-based manufacturing and processing of primary products. However, these opportunities are not being exploited in many low-income countries. This is because export diversification is typically a slow process, and this process needs to be sustained by an appropriate and coherent strategy, characterised by a combination of vision, co-ordination and management of conflicting interests. Moreover, the analysis of trade support services in two African countries ... Les principaux problemes lies a la dependance vis-a-vis des produits de base et a la diversification des exportations dans les pays a faibles revenus sont abordes dans ce Document technique. Contrairement a une opinion largement repandue, les ressources naturelles ne sont pas necessairement une “tare” — elles ne condamnent pas les pays pauvres au sous-developpement, mais peuvent au contraire constituer la base d’une croissance durable tiree par les exportations. Les secteurs lies aux ressources naturelles disposent d’un potentiel de diversification a l’exportation. Il ressort des donnees sur les echanges de l’OCDE que les voies de la diversification sont nombreuses et variees, notamment les activites de transformation des produits primaires et les activites manufacturieres a base de ressources naturelles. Toutefois, ces possibilites ne sont pas exploitees dans de nombreux pays a faibles revenus. En effet, la diversification des exportations est un processus lent, qui doit etre ...

Trade and Structural Adjustment Policies in Selected Developing Countries

The experience of the five examined industries (agro-food in Chile, cut flowers in Kenya, garment in Lesotho and in Mauritius and seafood in Thailand) demonstrates that non-traditional industries can emerge and achieved strong growth rates in very diverse settings in terms of geography and initial economic and social conditions. In most of these cases, the government adopted a relatively export-oriented, business-friendly attitude and adapted its policies as the industries developed. Hence, a key factor for successful structural adjustment has been the pro-active role of government in establishing an enabling economic and policy environment that allows local firms to operate on a level-playing field and strengthen their competitive edge in international markets. This highlights the importance of implementing trade policies in the framework of comprehensive development strategies and establishing a consultative national policy-making process for ensuring a coherent approach to trade and structural adjustment. The case studies also underscore that countries (government and industry) are compelled to constantly adapt in light of new sources of competition, growing wage levels, environmental constraints, technological advances and demanding product and process standards. Policy-makers in most countries under review are aware of this challenge. As a consequence, some of them have taken the initiative to set up specific mechanisms or programmes for further enhancing the competitiveness of existing export sectors and/or promoting emerging non-traditional export industries. L’experience des cinq filieres etudiees (agro-alimentaire au Chili, fleurs au Kenya, vetements au Lesotho et a Maurice, et fruits de mer en Thailande) demontre que des industries non traditionnelles peuvent naitre et generer de solides taux de croissance dans les contextes les plus varies de geographie ou de fondamentaux economiques et sociaux. Dans la plupart de ces cas, les pouvoirs publics ont adopte une approche relativement favorable a l’exportation et aux affaires, et adapte leurs politiques au developpement de ces activites. Partant, le facteur cle d’un ajustement structurel benefique a ete la determination des gouvernements a adapter leur economie et le cadre politique pour permettre aux entreprises d’operer a un stade approprie et de renforcer leurs avantages comparatifs sur les marches internationaux. Ce qui souligne l’importance d’inscrire la politique commerciale dans le cadre des strategies de developpement global et de mettre en place, pour assurer une approche coherente de l’ajustement commercial et structurel, une procedure consultative nationale d’adoption des politiques. Les etudes de cas soulignent aussi que les pays (pouvoirs publics et entreprises) sont condamnes a s’adapter constamment en fonction des nouvelles sources de concurrence, de la charge salariale croissante, des contraintes de l’environnement, des avancees technologiques, et des exigences de la demande et des progres. Les decideurs politiques de la plupart des pays passes en revue sont conscients de ce defi. Et c’est pourquoi plusieurs d’entre eux ont pris l’initiative de mettre en oeuvre des mecanismes ou des programmes specifiques pour renforcer la competitivite des actuelles filieres d’export et/ou pour favoriser l’emergence d’activites exportatrices non traditionnelles.

More than T-shirts

Technological change and organisational advancements have made possible the greater participation of developing country producers in international trade, in a wide range of goods and services. However, firms based in industrial countries often determine the scope for insertion and upgrading of those producers in global value chains (GVCs). * This Policy Insights introduces the Business for Development: Fostering the Private Sector report.

Innovation and internationalisation in the white goods GVC: the case of Arcelik

The present article sheds light on the process that has allowed a firm from a developing economy to transform itself successfully from an original equipment manufacturer to an own original brand manufacturer multinational enterprise. We study the case of Arcelik, a consumer electronics MNE from Turkey and identify four factors for successful internationalisation: rapid strategy execution, investment to build technological capabilities and organisational adaptation, focus on international marketing capabilities and distribution networks and leverage on business group resources. The analysis suggests that globalisation is being driven not just by the giant incumbent firms but also by emerging firms internationalising from the periphery, thanks to the above mentioned four strategies they adopt.

Africans Need not Miss Out on the Benefits of Globalisation

Strong commodity prices are driving Africa’s growth, which should be about 6 % in 2007 and 2008. External vulnerability is a function of its limited integration into international trade and investment flows. Africa should mobilise external sources more strategically. In this respect, aid for trade can be import. * This Policy Insights introduces the African Economic Outlook 2007.

Private Sector Development in Poor Countries

Private business activity, by creating and using “ideas”, drives economic growth in both rich and poor countries. Creating an enabling business environment is necessary but not sufficient for fostering the private sector in poor countries. Open dialogue, transparency, accountability and evaluation make private sector development policies more effective. * This Policy Insights introduces the Business for Development: Fostering the Private Sector report.

Plus que des T-shirts

Grâce au progres technologique et aux nouvelles pratiques d’organisation, les producteurs des pays en developpement participent de plus en plus aux echanges internationaux d’une large gamme de biens et de services. Pourtant, les entreprises des pays industriels decident souvent de l’ampleur de l’integration et de la montee en gamme de ces producteurs dans les chaines de valeur mondiales.

Le développement du secteur privé dans les pays pauvres

En creant et en exploitant des « idees », l’activite des entreprises privees tire la croissance, dans les pays riches comme dans les pays pauvres. La mise en place d’un environnement propice aux affaires est une condition necessaire mais non suffisante pour promouvoir le secteur prive dans les pays pauvres. Le dialogue, la transparence, la responsabilite et l’evaluation confortent l’efficacite des politiques de developpement du secteur prive.

La mondialisation, une opportunité à ne pas manquer pour l'Afrique

La bonne tenue des cours des matieres premieres tire la croissance africaine, qui devrait avoisiner les 6 pour cent en 2007 et 2008. Une insuffisante integration du continent dans le commerce international et les flux mondiaux d’investissement est source de vulnerabilite exterieure. L’Afrique doit developper une veritable strategie de mobilisation des ressources externes, notamment en utilisant davantage l’aide pour favoriser son insertion commerciale. democratisation.