Michigan State University Extension
Extenstion International Trade Res. - 07079501
03/31/96
USAID provides the fundamental building blocks to allow developing countries to enter the global economy. By providing U.S. expertise and technical assistance, USAID is helping foster sound economies and fair trade relations. USAID programs establish fundamental economic linkages between the United States and developing nations and are helping to create the fastest growing markets for American goods and services.
Most of the growth in U.S. exports is expected to come from two sources: countries in the developing world and countries whose economies were once state-dominated and now are in transition to a free market. Increased trade and continued economic growth in these countries are crucial to America's economic strategy.
U.S. exports to developed countries grew by only 6.2 percent between 1990 and 1993. In contrast, in 1993 alone, U.S. experts to developing countries rose by 14.3 percent. Over the four-year period, U.S. exports to developing countries rose 49.8 percent.
Developing countries and transition economies accounted for 41 percent of U.S. merchandise exports in 1993, compared to only 35 percent in 1990. Between 1990 and 1993, exports to developing and transition countries increased by $46 billion. This growth supported roughly 920,000 jobs in the United States.
Over the 1984-1993 period: --U.S. exports to the 10 nations that pursued policy reform programs that were considered to be the most active and far-reaching rose by 186 percent.
--U.S. exports to the "top 20" such countries rose by 174 percent.
U.S. exports to Latin America rose from $44 billion to $71 billion between 1989 and 1993, a gain of 61 percent. For nations whose efforts at reform were especially broad and sustained, U.S. exports rose: 98 percent to Guatemala; 76 percent to Honduras; 72 percent to Ecuador; 67 percent to El Salvador; and 63 percent to Panama.
The same pattern was seen among Asian policy reformers. Throughout the region, exports jumped 45 percent between 1989 and 1993. Exports to Indonesia surged from $1.3 billion to $2.8 billion; for Thailand, exports increased from $2.3 billion to $3.8 billion;and for the Philippines, they rose from $2.2 billion to $3.5 billion.