Diversifying economies in developing countries

Description

Diversifying economies in developing countries involves expanding economic activities beyond traditional sectors, such as agriculture or resource extraction, to include manufacturing, services, and technology. This strategy aims to reduce vulnerability to market fluctuations, create jobs, and foster sustainable growth. Practical actions include supporting small and medium enterprises, investing in education and infrastructure, encouraging innovation, and facilitating access to new markets, thereby remedying overdependence on limited industries and enhancing economic resilience.

Context

No world order can succeed in its objectives if it does not accommodate diversity. To do this, the World Trade Organization (WTO) process needs to restore the balance between the basic responsibility and accountability of governments towards their people and the requirements of an international system. It should respect the different priorities of countries at various stages of development. The acceptance of divergent development strategies is crucial, because development cannot be viewed in simple terms of per capita income. It is a multi-dimensional process, and each country should have the autonomy and flexibility to decide how it prioritizes these dimensions.

Implementation

This strategy features in the framework of Agenda 21 as formulated at UNCED (Rio de Janeiro, 1992), now coordinated by the United Nations Commission on Sustainable Development and implemented through national and local authorities.

Diversification initiatives of developing countries may be supported at at the local, regional and international levels.