Policy insights
Policy Insights
Policy Insight 2: Rethinking Trade Preferences to Help Diversity African Exports
The authors of CEPR Policy Insight 2, argue that OECD nations can do something to help Africa kick-start a development process.
The key is to offer trade preferences that allow African manufacturing locations to a chance to develop industrial clusters that cross the minimum-scale threshold - thus allowing them to compete with clusters in developing Asia. While preferences have to date failed in this task, the authors suggest key design changes that will give Africa a fighting chance.