Development and trade

The poor countries rely upon the world market for their exports and imports. They differ in their per capita national income, political institutions, participation in multinational component-chains and, typically, colonial patterning. They are similar in their agricultural base, low level of productivity and innovation, and exposure to the terms of trade. They are similar in their struggle to develop infant industries even where tariff protection for a period is believed to be essential in order to evolve into a more sophisticated (and perhaps more capital-intensive) form of comparative advantage. The preconditions include personal and business savings, incorruptible leadership, technology transfer and often development aid. Access to First World markets, the poor countries often argue, is the sine qua non.