Lack of processing industry for primary commodities
- Lack of vertical economic diversification
Incidence
Since nominal tariff rates increase with the degree of processing, and since there is a long-standing vertical integration of industry (often with transnational corporation involvement) that already has control of all or most processing, developing countries have difficulty increasing their national participation in processing. In addition, absence of capital and technical knowledge leaves little for developing countries to attempt development on their own in these areas.
Broader
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Aggravates
Strategy
Value
SDG
Metadata
Database
World problems
Type
(D) Detailed problems
Subject
Economics » Economic
Industry » Commodities
Industry » Industry
Industry » Manufacturing processes
Societal problems » Scarcity
Content quality
Presentable
Language
English
Last update
Nov 4, 2022