Trade expansion program (TEP) for Côte d'Ivoire: An examination of the current policies

Trade can be a powerful engine for economic growth, poverty reduction, and economic development of a nation. However, the power of trade is often difficult for developing countries because of supply-side domestic constraints such as the lack of trade-related infrastructure and capacity.    After Côte d'Ivoire became independent in the early 1960’s they expanded their economy through the exports of agricultural products, namely cocoa.  The economy grew quite rapidly in the 1970’s and the 1980’s as a consequence of the expansion in the trade of agricultural products.  These products comprised nearly 80 percent of the GDP of Côte d'Ivoire.  Real economic growth was 11 percent in the 1970’s and 7 percent in the 1980’s.  As a consequence of this economic growth, per capital income also increased during these years.  In addition, the small industrial sector also expanded during these years in Côte d'Ivoire and provided additional exports for Côte d'Ivoire. 

However, Côte d'Ivoire did experience some negative conditions experience in the world economy as well as the domestic macroeconomy.  This paper will highlight the changes in the 1980’s from the trade liberalization policies and the structural adjustment policies on the economy of Côte d'Ivoire and how these effects have affected the current economic state of Côte d'Ivoire.  The paper will look more closely at the major reforms in the agricultural sector which was initiated by the structural adjustment lending and the reform in the small industrial sector including the effects of the aborted mock devaluation program.