A review of the dozen TPFs conducted to date reveals that while there are some respects in which developing countries’ circumstances and c...
A review of the dozen TPFs conducted to date reveals that while there are some respects in which developing countries’ circumstances and challenges are comparable, there is also a great deal of diversity in their experiences and prospects. It would be a fool’s errand to try to derive a single set of onesize-fits-all set of recommendations, and even if one attempted to do so, it would not be resolved solely through a review of the existing TPFs. The wide range of perspectives on the role of trade in development in these analyses can be appreciated by contrasting those prepared for Algeria, the Dominican Republic and Panama. They suggest differences in the present predicaments of the countries subject to these reviews and distinct points of view on how countries should devise their strategies. Consider the different approaches taken to that most fundamental question, the sectoral composition of the economy and the transition from the primary to the secondary and tertiary sectors. Even in some countries where services already predominate, the TPFs collectively suggest that there is still a place for the agricultural sector and its further development. The TPF for Panama argued that the incorporation of new technology is critical to increase agricultural production and export capacity. “This should go hand in hand with efforts to train and adapt producers and to certify production processes and sanitary processes in compliance with international measures,” according to the TPF, and “[n]etworks of agricultural producers can be instrumental to generate scale, for example in pooling resources and production capacity”.
Similarly, the Dominican Republic has lately experienced significant growth in its exports of primary goods, especially for products such as bananas and other fruits, vegetables and cocoa. That reliance on primary products has aided the Dominican Republic in adjusting to the challenges that stemmed from the dismantling of the textile quota system under the WTO Agreement on Textiles and Clothing. Just as there is no single formula for the sectoral evolution of developing countries, so too is there no single formula for how they ought to structure their trade policies. The evidence suggests that the more successful countries reach many and deep trade agreements, but it does not necessarily follow that all of their success can be traced back to those agreements, or that all other developing countries ought to emulate their strategies. The TPF for Panama lauded the decisions made in the 1990s to integrate the country into the multilateral trading system, and then to negotiate a network of bilateral agreements. The main need, according to this analysis, was to undertake trade negotiation initiatives to consider additional opportunities in different markets (e.g. in Asia and the Caribbean), and to take steps to ensure that the country took full advantage of the opportunities created by its openness. Even so, that same report found that Panamanian exports increased faster to non-FTA partners than they did to FTA partners. The TPF for Algeria likewise recommended that export promotion should be made a national priority, but favoured a more cautious approach to international commitments and a notably larger role for the State. While it called for completion of the country’s WTO accession, the TPF also suggested that a government council should set credible and quantified export targets, using such incentives as are still permitted by WTO rules (e.g. with respect to research and development, specialized banks, interest rate subsidies, tax relief). The report favoured public policies to promote import-substitution sectors and products. It also advocated the use of safeguards on behalf of infant industries and the establishment of a special incentive system that focuses on value addition and compliance with standards. The TPF also called for the banking system to reserve special support for the export sector by creating a specialized export bank. In short, the views expressed in TPFs can be as varied as the developing countries themselves. The challenges that these countries face each show their own characteristics, and that fact should be reflected in the analysis and recommendations of each TPF. While this chapter thus does not attempt to define best practices in trade and development per se, it does offer guidance on the best practices that countries should follow in the research and analysis that they conduct when deciding which paths are right for them. For those same reasons, the research and writing of a TPF is a complex and nuanced process that cannot be reduced to a simple recipe. Every country’s circumstances are special to some degree, and unique in others, and so the researcher must adapt to those circumstances. That said, there are some final guidelines that can be presented here in the form of checklists. Checklist 1 concerns the most fundamental questions that should be asked with respect to every country that is subject to the TPF exercise. Each study should begin by defining those characteristics of a country that cannot be changed, or at least cannot be shifted rapidly, and hence define the challenges and opportunities that are available to policymakers.
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