Small Developing Countries And Global Markets

More than half the world's sovereign states are small economies. The majority are developing countries in sub-Saharan Africa and the Caribbean Basin. The globalization process poses special challenges for small economies because of their vulnerability and lack of diversification. How should they overcome the limitations of smallness and become better integrated into the world economy?

How should they take advantage of the opportunities resulting from globalization while avoiding the pitfalls? Opening the economy is widely recommended, but there are important risks for which policy-makers need to define a balanced response. This book discusses the main strategies or options for small developing economies towards better integration into the world economy.

They include membership of the World Trade Organization and unilateral economic liberalization. Another important strategy is regional integration among developing countries. Many small states also continue to rely heavily on special trade arrange-ments with industrial countries. Recently a lot of attention has been paid to quite a different strategy: North-South integration with reciprocal obligations.

In practice, the strategies are not mutually exclusive, but must be combined into a coherent policy package for maximum advantage. Review: 'Drawing lessons from a rich experience, Walter Kennes untangles our understanding of small developing countries and global markets. In this insightful book, he offers, not recommendations, but the most promising strategy mix to help concerned policy-makers meet the challenges and opportunities of globalization.' - Ahmedou Ould-Abdallah, Executive Secretary, Global Coalition for Africa 'With intimate knowledge of the subject, Walter Kennes presents a clear and concise overview of the options of developing countries for participating in the world economic system.

The book provides some new directions for reflecting on how African countries can take advantage of the processes of globalization and regionalization.' - Daniel Bach, Africa Studies Centre, Boston University 'The audience for this readable and practical book includes policy-makers, academics, politicians and the private sector in about half of the sovereign countries in the world (home to about ten percent of the world's population).

It is a very welcome addition to the development literature, not the least because it focuses on a large group of countries whose problems are often neglected by analysts busy working on the role of the big players in the ongoing integration of the world economy.' - Richard Blackhurst, Graduate Institute of International Studies (Geneva); former Director of Economic Research, GATT/WTO Secretariat (1985-97)