Trade liberalization as instrument for development: The United States trade policy towards sub-Sahara Africa.

摘要

This study addressed the issue of trade liberalization and socioeconomic development in the African context. It dealt with three main questions. First, what does current literature tell us about the episodes of trade liberalization polices and other economic development efforts in Sub-Sahara Africa since 1980? Second, did trade liberalization or increased openness to international trade lead to higher standard of living in Sub-Sahara Africa? Finally, what factors contributed to the dismal socioeconomic performance of sub-Sahara Africa relative to other regions of the globe?; To address these issues the study began with a review of the classical theory of free trade which suggests that greater participation in a free multinational trading system helps countries improve their economies and reduce poverty. Using seven Sub-Sahara African countries as case studies, the research examined the role of trade liberalization policies on national development from the human development vantage point.; The study also examined the role of political leadership and institutions in African development process. By analyzing seven cases, the study probed the relationship between public sector corruption as reflected in the Transparency International's annual Corruption Perception Index (CPI) and human development in sub-Sahara Africa. Multiple regression analysis was used to empirically explore the relationship between Trade Openness Index (TOI) and Human Development Index (HDI); between CPI and HDI and between Total Debt Service Ratio (TDS) and HDI.; The study found that increase in trade liberalization or trade openness index does not automatically lead to a corresponding increase in human development index. The study also found a negative relationship between government corruption and human development index in six of the seven countries of which three were statistically significant. The study concluded that lack of effective regulatory institutions and mismanagement of national resources are largely responsible for the development problems in five of the seven countries.