Trade And Development In Sub-Saharan Africa:The Case Of Benin

A positive trade balance plays an important role in nations' development,because it is a key driver of economic growth and development.However,the African continent has a negative trade balance,thus marginalized.African nations import more than they export and the volatile source of their exports is one of the major factors contributing to the African continent's marginalization.The marginalization of Africa is deeply rooted in the history of its relations with Europe and the dialectic nature of the international system.During colonization,the traditional African economic dynamics were reoriented in such a way colonial metropolises were benefiting from the hard work and the resources of African colonies,thus affecting on the long term the continent's social,economic and political life.After independence,the colonial trade patterns would be maintained by the local elite,thus sustaining a system favorable for the former colonizers.The independence era generated a stratification of nations on the international arena:the former colonial powers became the developed nations and the global North and the former colonies and other countries became the third world,the developing nations and the global South.Since then,the nature of the relation between both sides would be one of the constant struggles for control and survival.As an example,the failed negotiations during World Trade Organization's sessions revealed the difficulties encountered by developing countries battle to make their voice heard.In addition,there is a lack of real willingness from the African local elites in solving problems they are confronted to.Despite the fact that the continent'^economy is not monolithic,the current trade patterns are similar across Africa and the consequences are disastrous.The priority given to cash crops increases the risk of food insecurity and causes an increase of foodstuffs imports,thus generating trade deficits.Trade deficits are challenging,because they are synonymous of budget deficits.Exports of raw materials are the primary source of cash flow indispensable to fund government's actions.African countries are then driven to indebtedness as they have to rely on loans.A decline in prices or in demand was immediately translated into losses,thus in a decline of economic growth.The imports of the continent have an environmental price:environmental dumping.Toxic wastes,unauthorized and used products are shipped to Africa and affect the ecosystems and the health of the locals.Imports also hamper the development of economic sectors with job creation potential.Like most of the countries on the continent,Benin suffers from trade deficits and shares similar trade patterns.The economic history of the country is marked by the quasi-indelible influence of France during colonization and after independence.An influence that has imposed cotton production and transit services as the main viable economic sectors.After independence,both economic and political life are essentially organized around those two sectors and led to the rise of a powerful merchant class.However,the African cotton,in general,is confronted to unfair competition from more developed countries,prompting Benin and other countries to advocate for the global suppression of agricultural subsidies.The direct or indirect involvement of the merchant class in politics deeply affects economic reforms.The substantial gains it earned from imports and transshipping activities is a factor that explains the reason why there are no effective reforms to change the trade patterns.