Part 2 of 2
The ITC has published The Policy Road Map for Export Success in an attempt to help governments and the private sector of developing countries gain an understanding of the factors that affect the international business environment. This is a continuation of my article on ITC’s Policy Road Map for Export Success. The first part can be found here.
Chapter 3 of the road map looks at elements that influence producer costs while Chapter 4 looks at factors that influence the price that is faced by consumers and user industries in the foreign market. Chapter 5 brings everything together to compile a final road map that attempts to give some idea of the timing for implementation of the various processes involved in international competitiveness and export success.
Here are additional key findings from the rest of the book:
- Competitiveness requires an enabling environment for business, including political stability and functioning institutions. The judicial system needs to be transparent, respected and accessible. Contracts have to be enforceable. Registration of business and foreign investment should be facilitated.
- Reforms to build international competitiveness often require reforms of tax systems and rates as stable, transparent and moderate corporate tax rates help to induce foreign investment and build competitiveness.
- Physical infrastructure has been identified as one of the main areas needed to lift international competitiveness, especially for landlocked countries. While such projects tend to be long term, the construction process itself creates jobs and income for poorer workers, similar to economic stimulus packages.
- There is a need to monitor developments in international trade and trade policy. Governments also need to take an active role in international trade negotiations at the multilateral and regional levels to advance their interests in opening markets for their export.
The book is a useful and comprehensive tool for policymakers to objectively look at their country’s export environment in order to build the proper roads to success. While much of this can be achieved through national efforts, developing countries would benefit from international support through organizations such as the ITC in the design and implementation of these trade programs.
Download the road map here:
Related articles on the ITC: