The WTO reports that machinery and transport equipment are the most exported products, followed by mining products, office equipment, and chemicals. The EU has the highest export value, followed by the US and China. Favorable trade balances are important for developing countries, but increased exports alone are not a solution for accelerating development. The traditional silk industry in Cambodia is an example of how exports can improve the lives of those in developing countries. Equitable land reform can also improve agricultural exports and the living conditions of farmers. The state of the trade balance between developed and developing countries affects the difference between the two groups.
The World Trade Organization (WTO) reports, as of 2003, that the products exported in descending order of their percentage share in overall export trade are as follows: machinery and transport equipment, mining products, office equipment and telecommunications , chemicals, automotive products, agricultural products, consumer goods, semi-finished products, clothing, iron and steel and textiles.
According to the World Fact Book, countries such as China, Israel, Hungary, Singapore and Belgium are known to export machinery. For the US and Japan, cars are a popular export. Japan is also exporting office machines. Germany and South Africa produce mineral products as exports. Portugal and Bulgaria have clothing exports, while one of the popular exports of Pakistan and Sri Lanka is textiles.
Furthermore, the World Fact book estimates that the European Union has the highest amount of exports, totaling 1.3 trillion US dollars (USD). The United States has the second highest value in exports, at $927.5 billion, and China is in third place, exporting $725.2 billion in commodities.
A country is known to have a favorable balance of trade when the value of its exports exceeds that of its imports. A favorable trade balance is seen as necessary to help developing countries eradicate poverty and hunger. In September 2006, the conference entitled “Bringing the poor into the export process: links and strategic implications” was attended by 160 participants from 35 countries and 15 humanitarian organizations of the United Nations. The conference explored how international trade, especially the export of goods, could alleviate poverty and improve general living standards in developing countries.
An example of the benefits an export-oriented industry could have on the lives of those living in developing countries is the traditional silk industry in Cambodia. This is a four million dollar export business that is estimated to grow into a ten million dollar industry by 2011. As a result of the industry’s success, many poor Cambodian farmers and weavers will be able to improve their life condition.
The findings, however, show that increased exports are not a panacea for accelerating development in poor countries. The United Nations Commission on Trade and Development (UNCTAD) argues that while overall exports reached $2.3 trillion in 2006, down from $12.6 billion in 1980, there has been a decrease in countries’ share of trade developing. One way commodity exports can help development is by improving the means by which citizens of developing countries produce these goods. For example, an equitable land reform would serve not only to improve the number of agricultural exports produced by a country, but also to improve the living conditions of the country’s farmers. Whether the difference between developed and developing countries is maintained or eliminated depends to some extent on the state of the trade balance between the two groups.
Protect your devices with Threat Protection by NordVPN
