text: market economies anddeveloping countries, 1965-1987 •••••••••••••••••• Apparent consumption andtheshareofimports ofdeveloped market economies, 1987•••••••••••••.......................................... -iv-16 17 18 20CONTENTS (continued) 10.Average annualrealgrowthoftheapparent consumption andgrowthof sharesofimports ofmanufactures inapparent consumption in developed market economies, 1970-1987 ••••••••••••••••••••••••••••••••• 21 11.Shareofdeveloping country imports intheapparent consumption of manufactured goodsindeveloped market economies, byregionof origin, 1987.............•....••.•••..••..••....••.••..•.•.......•••.. 22 12.Apparent consumption andimportsharesindeveloped marketeconomies, byproduct, 1987•.•••...••••••••..••••••••••...•••••••••••••••••.•.••. 23 13.Shareofimports intheapparent consumption ofmanufactured goodsin thedeveloped market economies, 1970-1987 ••••••••••••••••••••••••.•••• 24 Whoisn'tina"tradebloc"?.......................................... -v-29I.MAINFINDINGS ANDRECOMMENDATIONS A.Themedium-term Qutlook: apolicychallenge 1.TheprQspects fQrdevelopment andalleviatiQn QfpQverty intheshQrtand mediumtermremainbleakformostdevelQping countries eventhoughpercapita GDP growthisexpected tocontinue atamodest paceinthedeveloped market eCQnomies. ManySouthandEastAsiancountries arealsoexpected tocontinue todowell. But inmostotherdeveloping countries, growthofpercapitaQutputisexpected tQbe onlymarginally positive orevennegative. Insub-Saharan Africa, inparticular, percapita income maycontinue onitsdownward course. 2.Thereasons forthedisparities inexpected growthratesarediscussed inthe present report. TheCommittee emphasized thatthebleakpicture emerging fromthe projectiQns isprimarily theresultoftheassumption ofunchanged policies. At theinternational level,co-ordinated policymeasures couldreducethelevelof interest ratesandaccelerate aresolution oftheinternational debtproblem, anda successful conclusion totheUruguay RoundQfGATTnegotiations CQuldleadtoa moreQpentrading system. 3.Thereisalsoconsiderable scope,especially inmiddle-income developing countries, foreffective eCQnomic pOlicies whichwouldencourage entrepreneurship, increase domestic investment, andexpandexports. Thedismalprospects forAfrica inthemedium termpresent achallenge notonlytQnational Governments inAfrica butalsotothedeveloped market economies whichneedtoimprove boththevolume andquality oftheiraid. B.Emerging trading blocsandthemultilateral trading system 1.Analytical findings 4.TheCommittee affirmed thevalidity ofthepropositiQD thatexports contribute greatly toeconomic growth. Byexploiting cQmparative advantage, theyimprove resource allocation andutilization andexposedomestic economies tointernatiQnal standards ofproductivity. S.Thedominant factorinthegrowthofworldtradeduringthepasttWQdecades hasbeenthegrowthinexpQrts ofmanufactures. Developing countries' exports of manUfactures havegrQwnfasterthanworldexports ofmanufactures andnQwaccQunt formorethanhalfofdeveloping CQuntry exports. However, theseexports havebeen concentrated inQnlyaboutadozendeveloping countries. 6.ExpQrtpessimism hasbeengivenanewleaseonlifebyfearsthatthenew regional trading arrangements willleadtogreater protectionism. Theformation of theCanada/United States andAustralia/New Zealand blocsandoftheIsrael/United Statesblochaveaddedtodiscrimination withintheglQbaltrading system. Market accesstothecountries oftheEuropean Community (EC)andtQNorthAmerica and Japanareessential ifdeveloping countries aretobeenabled tQdiversify by destination aswellasbyprQduct andtomovefrominter-industry tointra-industry trade. -1-7.Export pess~m~sm isnotwarranted, however, byananalysis ofp~sttrendsin marketpenetration. Thetwomostimportant trends havebeentherap~dgrowthin overall consumption ofmanufactures indeveloped market economies andtheequally impressive riseintheshareofimports inconsumption. Thereisgreatscopefor further growthofexports ofmanufactures frombothdeveloping countries andthe countries ofEastern Europe andtheUnionofSovietSocialist Republics. 8.However, developing countries shouldrecognize thatexport growthisboundto bemorelimited andprotectionist pressures greater inproduct linescharacterized
analysis: The text primarily discusses economic issues, focusing on the growth of developing countries, international trade, and the impact of policies on economic development. It also touches on the importance of exports, market penetration, and the potential for growth in certain product lines. The language used is technical and economic, indicating a focus on economic development and international trade.