I don't think that Gambia trading with USA can be classified under some neat
economic theorems such as comparative and absolute advantage.  As far as the
USA trading with Third World countries is concerned, most economic theorems
completely fly out the window.

For one, the global monetary system has always disadvantage poorer African
countries.  How can we expect our business people to trade with the USA when
the Dalasi is sliding faster than an avalanche on Mt Everest.  I have always
been of the perception that the monetary system must be overhauled to give it
some semblance of fairness in this modern age.  The Westerners had one up on
us when they stole gold from Africa and elsewhere then used the "Gold
Standard" as the monetary system.  In other words, the more reserves of gold
a country had, the stronger its currency was.  Regardless of this backdrop,
policies have to be introduced to stabilize the Dalasi.  At this point, I
have not see any such policies emanating from the government yet.  But the
country, for one, needs to cut down the unnecessary fiscal spending.

Furthermore, everyone knows how tough it is for anyone to penetrate the US
market.  The issue of tariffs and stringent regulations have to be addressed
to give The Gambia any chance of doing business here.  One also has to
consider the fact, that even for those rare good swhich Africans need here,
there are other African countries who are far ahead of us when it comes to
doing business here.  So we also have to compete with these countries.

My opinion is that as it concerns trade, we have little or no chance of
competing here.  Technical assistance will be a better gambit.  Macro and
micro economic policies have to be installed to stabilize the Dalasi and also
improve the economic standing of the country.

Our house has to be put in other before we can ever dream of trading with the
USA in any serious capacity.  We should keep it simple and strengthen our
trading status with countries in the sub-region.  This way we have a sliver
of a chance..

_Yus





In a message dated 3/12/2002 6:07:59 AM US Mountain Standard Time,
[log in to unmask] writes:


> >The idea here is simple and intuitive. If our country can produce some set
> >of goods at lower cost than a foreign country, and if the foreign country
> >can produce some other set of goods at a lower cost than we can produce
> >them, then clearly it would be best for us to trade our relatively cheaper
> >goods for their relatively cheaper goods

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