Undertken under the guidance of UNCTAD's chief economist, one startling conclusion. Undertken under the guidance of UNCTAD's chief economist, one startling conclusion from the analysis is that, while developing country exports have grown faster than the world average, and include a lot of manufactured goods, the developed countries have actually increased their share in world manufacturing value added over this period. At the same time, developing countries' share in world manufacturing value added over this period has lagged considerably behind their share in world exports of manufactures.

The combination of increased competition among developing countries to attract foreign direct investment as locations for labour-intensive processes, crowded markets for labour-intensive manufactures, weak growth and protectionist inclinations in the advanced industrial countries can mean that what might be good for an individual exporter might not be good for all exporters. Thus, the fallacy of composition long suffered by the primary producers may also become a significant danger for the producer of labour-intensive manufactures in the South.

This analysis poses the vitally important policy challenge of what developing countries, confronted by the vigorous expansion of their foreign trade but no comparable rise in income, should do. The book warns that the key challenge confronting developing countries today is not more trade liberalization on their part, but improving the terms of their participation in trade and increasing the still limited and unstable benefits they derive from it. This requires not just getting developed countries to change their commercial policies that limit access to their markets, but renegotiating with transnational corporations the highly skewed distributions of gains from trade and investment, and enlarging their policy space in technological upgrading.

About the Author
Yilmaz Akyüz is Director of the Division on Globalization and Development Strategies at the United Nations Conference on Trade and Development (UNCTAD). He is the principal author and head of the team which prepares UNCTAD's coordinator of support to the Group of 24 at the IMF and World Bank on international monetary and financial issues. Previous to joining the UN system, he was Professor of Economics at various universities including Ankara University, he Middle East Technical University in Turkey and the University of East Anglia in the United Kingdom. His teaching and research has focused on macroeconomic issues including finance, the international monetary system, economic growth and development. He has written widely on these topics.

CONTENTS Abbreviations Preface by Rubens Ricupero, Secretary-General of UNCTAD
Chapter 1 : EXPORT DYNAMISM AND INDUSTRIALIZATION IN DEVELOPING COUNTRIES
Chapter 2 : COMPETITION AND THE FALLACY OF COMPOSITION
Chapter 3 : CHINA'S ACCESSION TO WTO: MANAGING INTEGRATION AND
INDUSTRIALIZATION
References ~ List of Tables ~ List of Charts ~ List of Boxes