Since the early 1990s, growth of exports of developing countries as a whole has been robust. In both the first and second halves of the last decade, the average annual growth of developing-country exports surpassed the growth rate of world exports ( versus per cent for 1991-1995 and versus per cent for 1996-2000). Moreover, this trend continues—with global exports having expanded at an annual rate of per cent per year in 2001-2003, compared with a comparable rate of per cent for developing countries. A number of developing countries have focused explicitly on encouraging exports and. | Trade 35 Chapter II Trade Since the early 1990s growth of exports of developing countries as a whole has been robust. In both the first and second halves of the last decade the average annual growth of developing-country exports surpassed the growth rate of world exports versus per cent for 1991-1995 and versus per cent for 1996-2000 . Moreover this trend continues with global exports having expanded at an annual rate of per cent per year in 2001-2003 compared with a comparable rate of per cent for developing countries. A number of developing countries have focused explicitly on encouraging exports and have been remarkably successful with their strategies. In some instances this vigorous trade growth has led to what has been termed a new geography of trade with developing countries finding new markets for their commodities in other developing countries. Progressive multilateral trade liberalization has supported this robust trade performance. Further multilateral trade liberalization with a view to generating an equitable outcome to all participants can contribute to growth and development in developing countries. In fact the Monterrey Consensus of the International Conference on Financing for Development United Nations 2002 annex acknowledged that a universal rulebased open non-discriminatory and equitable multilateral trading system as well as meaningful trade liberalization can substantially stimulate development worldwide benefiting countries at all stages of development para. 26 . The present chapter begins by examining the relationship between trade and growth. It shows that the composition of its trade may affect a country s ability to reap trade gains. In particular dependence on primary commodity exports adversely influences a country s capacity to benefit from trade and globalization. The second section of the chapter turns to the discussion of trade vulnerabilities . Dependence on primary commodity exports constitutes one such .
