User:Super ninja2/Sandbox/Commodity dependence



Commodity dependence is a high proportion of commodities in a country's exports. Therefore, a commodity-dependent country is a country in which commodities constitute the predominant share of its exports, that is when more than 60% of the merchandise a country exports, in value terms, are commodities.

The high number of exports combined with high proportion of commodities in the said exports has significant consequences on development of a country. Export reliance on main commodities, or "commodity dependence," has long been associated with underdevelopment, both conceptually and empirically. One of the main consequences of commodity dependence that commodity-dependent countries struggle with is when commodity prices get affected by negative price shocks, as this can negatively impact short- and medium-term economic development and welfare by increasing those countries' vulnerability to these price shocks.

More than half of the world's countries were dependent on commodities, according to a study made by the UNCTAD that looked at the level of commodity dependence around the world from 1998 to 2017, using trade data from 189 countries. Commodity dependence was found to be nearly entirely a developing country problem and to mostly affect those classified as least developed countries (LDCs) and landlocked developing countries (LLDCs) with Sub-Saharan Africa and South America being among the most affected regions.

It also revealed that there is a strong positive relationship between export diversification and a country's level of development (GDP per capita). However, only 13% of developed countries -- including Australia, New Zealand and Norway are in this situation.

Dependence can be higher for some nations. 35 countries in the world have commodities making more than 90% of their exports, with Angola, Iraq, Chad, Guinea-Bissau, and Nigeria surpassing 98%. The export revenue from a single product can be as high as 75% in some instances.

According to UNCTAD's State of Commodity Dependence 2021 report, published on September 8th, the number of countries that are heavily dependent on commodities has climbed over the past ten years, from 93 in 2008-2009 to 101 in 2018-2019.

Commodity dependence is persistent. Once a country is in this state, it is hard to break the chains of this dependence.

Statistics
102 out of 189 countries, or around 54% of all countries, are commodity-dependent. Only 13% of developed countries, including Australia, Norway, and New Zealand, are in this situation. In contrast, this percentage rises to 64% for developing countries and even higher—85%—for the least developed countries of the world. In other words, primary commodity export concentration and underdevelopment are related; the more the dependence, the poorer the country's development as indicated by its GDP per capita.

A case in point is the decline in commodity prices. Commodity prices fell significantly between 2013 and 2017 after peaking between 2008 and 2010. 64 nations that depend on commodities experienced a downturn in their economies as a result of this drop, with some of them entering a recession. And as their economies faltered, their fiscal situations deteriorated and their public debt climbed, frequently leading to more external debt. 17 developing nations that depend on commodities saw an increase in their external debt of more than 25% of their GDP between 2008 and 2017. The highest ratio of debt to GDP occurred in Mongolia, where it soared from 39% to 245%.

Dependence can be higher for some nations. 35 countries in the world have commodities making more than 90% of their exports, with Angola, Iraq, Chad, Guinea-Bissau, and Nigeria surpassing 98%. The export revenue from a single product can be as high as 75% in some instances.

According to UNCTAD's State of Commodity Dependence 2021 report, published on September 8th, the number of countries that are heavily dependent on commodities has climbed over the past ten years, from 93 in 2008-2009 to 101 in 2018-2019.

2
Commodity dependence is a high proportion of commodities in a country's exports. Therefore, a commodity-dependent country is a country in which commodities constitute the predominant share of its exports, that is when more than 60% of the merchandise a country exports, in value terms, are commodities.

The high number of exports combined with high proportion of commodities in the said exports has significant consequences on development of a country. Export reliance on main commodities, or "commodity dependence," has long been associated with underdevelopment, both conceptually and empirically. One of the main consequences of commodity dependence that commodity-dependent countries struggle with is when commodity prices get affected by negative price shocks, as this can negatively impact short- and medium-term economic development and welfare by increasing those countries' vulnerability to these price shocks.

More than half of the world's countries were dependent on commodities, according to a study made by the UNCTAD that looked at the level of commodity dependence around the world from 1998 to 2017, using trade data from 189 countries. Commodity dependence was found to be nearly entirely a developing country problem and to mostly affect those classified as least developed countries (LDCs) and landlocked developing countries (LLDCs) with Sub-Saharan Africa and South America being among the most affected regions.

It also revealed that there is a strong positive relationship between export diversification and a country's level of development (GDP per capita). However, only 13% of developed countries -- including Australia, New Zealand and Norway are in this situation.

Dependence can be higher for some nations. 35 countries in the world have commodities making more than 90% of their exports, with Angola, Iraq, Chad, Guinea-Bissau, and Nigeria surpassing 98%. The export revenue from a single product can be as high as 75% in some instances.

According to UNCTAD's State of Commodity Dependence 2021 report, published on September 8th, the number of countries that are heavily dependent on commodities has climbed over the past ten years, from 93 in 2008-2009 to 101 in 2018-2019.

3
Commodity dependence is a high proportion of commodities in a country's exports. Therefore, a commodity-dependent country is a country in which commodities constitute the predominant share of its exports, that is when more than 60% of the merchandise a country exports, in value terms, are commodities.

The high number of exports combined with high proportion of commodities in the said exports has significant consequences on development of a country. Export reliance on main commodities, or "commodity dependence," has long been associated with underdevelopment, both conceptually and empirically. One of the main consequences of commodity dependence that commodity-dependent countries struggle with is when commodity prices get affected by negative price shocks, as this can negatively impact short- and medium-term economic development and welfare by increasing those countries' vulnerability to these price shocks.

More than half of the world's countries were dependent on commodities, according to a study made by the UNCTAD that looked at the level of commodity dependence around the world from 1998 to 2017, using trade data from 189 countries. Commodity dependence was found to be nearly entirely a developing country problem and to mostly affect those classified as least developed countries (LDCs) and landlocked developing countries (LLDCs) with Sub-Saharan Africa and South America being among the most affected regions.

It also revealed that there is a strong positive relationship between export diversification and a country's level of development (GDP per capita). However, only 13% of developed countries -- including Australia, New Zealand and Norway are in this situation.

Dependence can be higher for some nations. 35 countries in the world have commodities making more than 90% of their exports, with Angola, Iraq, Chad, Guinea-Bissau, and Nigeria surpassing 98%. The export revenue from a single product can be as high as 75% in some instances.

According to UNCTAD's State of Commodity Dependence 2021 report, published on September 8th, the number of countries that are heavily dependent on commodities has climbed over the past ten years, from 93 in 2008-2009 to 101 in 2018-2019.

4
Commodity dependence is a high proportion of commodities in a country's exports. Therefore, a commodity-dependent country is a country in which commodities constitute the predominant share of its exports, that is when more than 60% of the merchandise a country exports, in value terms, are commodities.

The high number of exports combined with high proportion of commodities in the said exports has significant consequences on development of a country. Export reliance on main commodities, or "commodity dependence," has long been associated with underdevelopment, both conceptually and empirically. One of the main consequences of commodity dependence that commodity-dependent countries struggle with is when commodity prices get affected by negative price shocks, as this can negatively impact short- and medium-term economic development and welfare by increasing those countries' vulnerability to these price shocks.

More than half of the world's countries were dependent on commodities, according to a study made by the UNCTAD that looked at the level of commodity dependence around the world from 1998 to 2017, using trade data from 189 countries. Commodity dependence was found to be nearly entirely a developing country problem and to mostly affect those classified as least developed countries (LDCs) and landlocked developing countries (LLDCs) with Sub-Saharan Africa and South America being among the most affected regions.

It also revealed that there is a strong positive relationship between export diversification and a country's level of development (GDP per capita). However, only 13% of developed countries -- including Australia, New Zealand and Norway are in this situation.

Dependence can be higher for some nations. 35 countries in the world have commodities making more than 90% of their exports, with Angola, Iraq, Chad, Guinea-Bissau, and Nigeria surpassing 98%. The export revenue from a single product can be as high as 75% in some instances.

According to UNCTAD's State of Commodity Dependence 2021 report, published on September 8th, the number of countries that are heavily dependent on commodities has climbed over the past ten years, from 93 in 2008-2009 to 101 in 2018-2019.

5
Commodity dependence is a high proportion of commodities in a country's exports. Therefore, a commodity-dependent country is a country in which commodities constitute the predominant share of its exports, that is when more than 60% of the merchandise a country exports, in value terms, are commodities.

The high number of exports combined with high proportion of commodities in the said exports has significant consequences on development of a country. Export reliance on main commodities, or "commodity dependence," has long been associated with underdevelopment, both conceptually and empirically. One of the main consequences of commodity dependence that commodity-dependent countries struggle with is when commodity prices get affected by negative price shocks, as this can negatively impact short- and medium-term economic development and welfare by increasing those countries' vulnerability to these price shocks.

More than half of the world's countries were dependent on commodities, according to a study made by the UNCTAD that looked at the level of commodity dependence around the world from 1998 to 2017, using trade data from 189 countries. Commodity dependence was found to be nearly entirely a developing country problem and to mostly affect those classified as least developed countries (LDCs) and landlocked developing countries (LLDCs) with Sub-Saharan Africa and South America being among the most affected regions.

It also revealed that there is a strong positive relationship between export diversification and a country's level of development (GDP per capita). However, only 13% of developed countries -- including Australia, New Zealand and Norway are in this situation.

Dependence can be higher for some nations. 35 countries in the world have commodities making more than 90% of their exports, with Angola, Iraq, Chad, Guinea-Bissau, and Nigeria surpassing 98%. The export revenue from a single product can be as high as 75% in some instances.

According to UNCTAD's State of Commodity Dependence 2021 report, published on September 8th, the number of countries that are heavily dependent on commodities has climbed over the past ten years, from 93 in 2008-2009 to 101 in 2018-2019.