Part I: The Role of Exchange-Rate Policy in Promoting Competitiveness
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International Monetary Fund
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Abstract

The key issue of how sub-Saharan Africa might build a strong comparative advantage in exports, especially of labour-intensive manufactures, preoccupies current debates on African development2. The concern stems from two turns of events. First, one of the most visible manifestations of the subcontinent’ s multifaceted development failures during the past 30 years has been its marginalisation in world trade, especially in the global market for manufactures. Second, recent development successes elsewhere have taught that export-oriented policies either have facilitated them, as in Korea and Chinese Taipei, or actually have generated export-led growth, as in Chile, Mauritius, Tunisia and the countries of Southeast Asia3.

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