Comparative Advantage Is an Old-Fashioned Trick

Abstract A convergence of economic imperatives, including the need for raw materials and markets, alongside inter-European power struggles and social factors such as rising unemployment kickstarted Europe’s scramble for Africa. The resulting colonial era has left an indelible impact on Africa’s economic, political, and social dimensions. Much of this legacy is now encoded in the international protocols that govern trade between Africa and the rest of the world. These systems tend to protect the interests of established leaders and have systematically penalised latecomers. This puts Africa at an enduring disadvantage despite its bountiful resources and much-vaunted potential. In this chapter, we revisit data and anecdotal evidence showing how countries that have ‘made it’ in the global trade arena often counted more on dynamic comparative advantages than on simplified comparative advantage theory interpretations based on their natural resources bounty. We also compare African and Asian countries after the independence movement of the 1960s regarding economic and social indicators, where they are now, and what it will take for Africa to chart a new course to a fairer trade system.