Developing countries, in particular the nations of Sub Saharan Africa (SSA) are still significantly defined by resource dependency. Many countries remain highly dependent on resource extraction and exports, despite efforts to promote industrial development as well as the diversification of exports and production. A crucial factor is the high volatility of commodity prices making the macroeconomic management of resource-based economies difficult.
The discussion on a fairer distribution of resource revenues has intensified as a consequence of the commodity price boom of the 2000s, which has furthermore brought the issue of resource-based development strategies back on the agenda of development debates. In particular, the role of upgrading strategies within global value chains, industrial policy and linkages is the focus here. In addition, development opportunities are determined by the new role of China, which has led and continues to lead to major shifts in commodity and financial flows.
As part of the research project “Financial Markets and the Commodity Price Boom”, funded by the Austrian National Bank, ÖFSE analyses the macroeconomic implications as well as the effects of current commodity price dynamics on the development of resource-dependent low-income economies in SSA. A key issue was, which macroeconomic implications step from the high volatility of commodity prices. In a structuralist Computable General Equilibrium (CGE) Model interactions of import-export dynamics and their differences in Burkina Faso, Ethiopia and Mozambique were demonstrated. In addition, the possibilities of resource-based development were analysed in the context of the global value chain approach. For this purpose, the global coffee value chain and its national effects in Ethiopia were examined, the cotton sectors in Burkina Faso, Mozambique and Tanzania were compared and the importance of national regulations was shown. In addition, ÖFSE examined China's activities and policies in the extractive sector and analysed their impact on development prospects in sub-Saharan Africa and Latin America.
Dr. Bernhard Tröster
Senior Researcher
phone: +43 1 317 40 10 – 117
b.troester@oefse.at
1090 Vienna, Sensengasse 3
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Deutsches Institut für Entwicklungspolitik (DIE) / DOI: 10.23661/dp1.2020, January 2020
The Discussion Paper examines the opportunities that the rising industrial wages in China wi ...
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Wien, October 2019
China is today the second-largest economy after the US (UN ECLAC 2018a) and the world-leadin ...
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The Hague, March 2018 | DOI: 10.1111/dech.12401
Restructuring of global and local markets has led to an increased influence of commodity der ...
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Wien, February 2018
The concept of the ‘resource curse’ has typically been used to explain the adverse effects o ...
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Wien, December 2017
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December 2016 | ISBN: 978-1-138-19595-0 (hbk) | ISBN: 978-1-315-63805-8 (ebk)
As demand for natural resources increases due to the rise in world population and living sta ...
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November 2016
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September 2016
Policymakers are increasingly turning to global value chains (GVCs) as a means of driving de ...
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September 2016
Many low-income countries are integrated into apparel global value chains through foreign di ...
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May 2016 | ISSN 3413-3175
This paper assesses the export-oriented clothing industry in the five main sub-Saharan Afric ...
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March 2016
Although the expansion of global production networks (GPNs) has been an important source of ...
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January 2016
This paper shows the importance of ownership, end markets and regionalism within the global ...
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January 2016
Commodity prices have crucial implications for developing countries. The question whether th ...
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Wien, December 2015
Ethiopia is known to be the origin of coffee, and still today coffee is of crucial importanc ...
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Wien, October 2015
Price instability is a major concern for commodity producers in developing countries. Commod ...
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Wien, August 2015
The functioning of commodity markets has changed related to processes of financialization th ...
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Wien, August 2015
Cotton is one of the most important cash crops in Sub-Saharan Africa (SSA) and has had an im ...
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Wien, June 2015
Many least developed countries (LDCs) face commodity dependence on the export and im-port si ...
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