© 2000 International Monetary Fund
Production: IMF Graphics Section
Charts: Sana Elaroussi
Typesetting: Alicia Etchebarne-Bourdin
Library of Congress Cataloging-in-Publication Data
Trade and trade policies in eastern and southern Africa/prepared by a staff team led by Arvind Subramanian; with Enrique Gelbard … [et al.].
p. cm —(IMF occasional paper; 196)
ISBN 1–55775–942–1
Includes bibliographical references.
1. Africa, Eastern—Commerce. 2. Africa, Southern—Commerce. 3. Africa, Eastern—Foreign economic relations. 4. Africa, Southern—Foreign economic relations. I. Subramanian, Arvind. II. Series. III. Occasional Paper (International Monetary Fund); no. 196.
HF3892.Z5T73 2000
382’.09676—dc21 00–063446
CIP
Price: US$20.00
(US$17.50 to full-time faculty members and students at universities and colleges)
Please send orders to:
International Monetary Fund, Publication Services
700 19th Street. N.W., Washington, D.C. 20431, U.S.A.
Tel.: (202) 623–7430 Telefax: (202) 623–7201
E-mail: publications@imf.org
Internet: http://www.imf.org
recycled paper
Contents
-
List of Abbreviations
-
Preface
-
I Overview
-
II Eastern and Southern Africa: Broad Characteristics of the Region
-
III Trade Liberalization by ESA Countries During the 1990s
-
Unilateral Liberalization in Goods
-
Multilateral Liberalization in Goods
-
Liberalization in Services
-
-
IV Regional Integration
-
Preferential Liberalization in Goods
-
Trade Developments
-
-
V The External Environment and Trade Developments
-
External Environment
-
Openness
-
Export Performance
-
-
VI Macroeconomic Aspects of Trade Liberalization
-
Initial Macroeconomic Conditions
-
Trade Liberalization and Macroeconomic Outcomes
-
Fiscal Aspects of Trade Liberalization
-
-
VII Trade Policy Issues Ahead
-
The Unfinished Agenda of Unilateral Liberalization
-
Regional Preferential Integration
-
Preferential Agreements with Industrial Countries
-
Multilateral Liberalization
-
Role of Complementary Policies
-
Role of Major Trading Partners
-
-
References
-
Boxes
-
III 3.1. Trade Liberalization in the Context of IMF-Supported Programs
-
V 5.1. Trade Protection and Trade Outcomes in Africa
-
VI 6.1. South Africa: Dynamic Gains From Trade Liberalization
-
6.2. Mozambique: Successful Trade Liberalization
-
6.3. Zambia: Bold Liberalization but Low Growth
-
6.4. Mauritius: Heterodox Opening
-
6.5. Export Processing Zones
-
-
VII 7.1. The Impact of changes in the Trade Environment on the BLNS Countries
-
Tables
-
I 1.1. Selected African Countries’ Membership in Regional Trade Agreements
-
II 2.1. Eastern and Southern Africa: Basic Economic Indicators
-
III 3.1. Eastern and Southern Africa: Overall Trade Restrictiveness in the 1990s
-
3.2. Eastern and Southern Africa: Measure of Trade Restrictiveness in the 1990s: Nontariff Barrier (NTB) Regimes
-
3.3. Eastern and Southern Africa: Tariff Regimes in the 1990s
-
3.4. International Comparison of Trade Restrictiveness Rankings, 1998
-
3.5. Selected ESA Countries: Status of Tariff Exemptions, December 1998
-
3.6. International Comparison of Tariff Collection Efficiency. 1996
-
3.7. Eastern and Southern Africa: Banking Sector Structure and Liberalization, 1997
-
3.8. International Comparison of Liberalization of the Banking Industry: Developing Country Members of the WTO
-
3.9. Eastern and Southern Africa: Telecommunications Liberalization
-
-
IV 4.1. Eastern and Southern Africa: Intraregional and Extraregional Trade with Selected Partners
-
V 5.1. Eastern and Southern Africa: Openness Indicators, 1990 and 1999
-
5.2. Eastern and Southern Africa Countries; Growth in Export Volume
-
-
VI 6.1. Selected ESA Countries: Tariff Revenue
-
6.2. Eastern and Southern Africa: Trade Tax Revenue as a Share of Total Revenue
-
-
VII 7.1. Eastern and Southern Africa: changes in the Trading Environment
-
Figures
-
III 3.1. Eastern and Southern Africa: Changes in Tariff and Nontariff Barriers, 1990–98
-
IV 4.1. Eastern and Southern Africa: Destination of Exports, 1990 and 1999
-
V 5.1. Eastern and Southern Africa: Imports and Exports. 1990 and 1999
-
VI 6.1. Eastern and Southern Africa: Trade Liberalization and Economic Performance
-
6.2. Eastern and Southern Africa: Trade Liberalization. Fiscal Performance, and External Balance
-
-
VII 7.1. Main Regional Trade Arrangements
-
Appendices
-
I Overall Trade Restrictiveness Classification Scheme
-
II Statistical Tables
-
A1. Eastern and Southern Africa: Structure of Production (Constant Prices)
-
A2. Eastern and Southern Africa: Countries with IMF Arrangements During the 1990s
-
A3. Sachs-Warner Classification of Trade Policy of ESA Countries
-
A4. Eastern and Southern Africa: Current Account Exchange Restrictions, 1990 and 1999
-
A5. Eastern and Southern Africa: Nontraffi Barriers to Imports, December 1998
-
A6. Eastern and Southern Africa: Nontariff Barriers to Exports, December 1998
-
A7. Eastern and Southern Africa: Summary of Uruguay Round Commitments in Agriculture and Industry
-
A8. Eastern and Southern Africa: Commitments Undertaken in Trade Services in the WTO
-
A9. SADC: Intraregional and Extraregional Trade
-
A10. COMESA: Intraregional and Extraregional Trade
-
A11. CBI: Intraregional and Extraregional Trade
-
A12. Selected Eastern and Southern African Countries: Tariff Preferences
-
A13. Sub-Saharan Africa: Compound Annual Growth Rates for U.S. Dollar Value of Exports
-
A14. Sub-Saharan Africa: Structure of Exports, 1985–96
-
A15. Selected Eastern and Southern African Countries: Concentration of Exports
-
A16. Selected Eastern and Southern African Countries: Intra-Industry Trade Ratios, 1988 and 1996
-
A17. Eastern and Southern Africa: Economic Conditions, 1990–92
-
A18. Eastern and Southern Africa: Economic Conditions, 1993–99
-
-
The following symbols have been used throughout this paper:
-
… to indicate that data are not available;
-
— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
-
– between years or months (e.g., 1998–99 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
-
/ between years (e.g., 1998/99) to indicate a fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
List of Abbreviations
| BLNS |
Botswana, Lesotho, Namibia, and Swaziland |
| CBI |
Cross-Border Initiative |
| COMESA |
Common Market for Eastern and Southern Africa |
| DRC |
Democratic Republic of Congo |
| EAC |
Commission for East African Cooperation |
| EPZ |
export processing zone |
| ESA |
Eastern and Southern Africa |
| EU |
European Union |
| EU-SA FTA |
EU-South Africa free trade agreement |
| FTA |
free trade agreement |
| IOC |
Indian Ocean Commission |
| ITU |
International Telecommunications Union |
| MERCOSUR |
Common Market of the South |
| MFN |
most-favored nation |
| NAFTA |
North American Free Trade Agreement |
| NGO |
Nongovernment organization |
| NTB |
nontariff barrier |
| ODC |
Other duties and charges |
| RTA |
regional trade arrangement |
| SACU |
Southern African Customs Union |
| SADC |
Southern African Development Community |
| SSA |
sub-Saharan Africa |
| SITC |
Standard International Trade Classification |
| TFP |
total factor productivity |
| WAEMU |
West African Economic and Monetary Union |
| WTO |
World Trade Organization |
Preface
This occasional paper analyzes trade and trade policy developments in the countries of eastern and southern Africa during the 1990s, covering regional and multilateral integration issues, and the interaction between trade policies and macroeconomic conditions. It also discusses the main challenges these countries face as they enter a new decade.
The authors are indebted to Anupam Basu for his guidance and support to carry out this work. Jon Shields, Joseph Kakoza, Mwanza Nkusu, Gunnar Jonsson, Berte Esteve-Volart, Anne McGuirk, and John King provided valuable input to the paper. The paper has also benefited from comments by the Fiscal Affairs, Policy Development and Review, and Research Departments of the IMF. The research assistance of Jaouad Sebti, the editorial assistance of Thomas Walter and Jeremy Clift, and the secretarial support of Mariza Arantes are gratefully acknowledged.
The views expressed here are those of the authors and do not necessarily reflect the opinions of other members of the IMF staff or its Executive Directors.