The US government attempted to address sub-Saharan economic problems by taking advantage of the African growth and development plans. It is also important to assess and reassess whether there are additional considerations that need to be made by the US and SSA countries if the initiative's objectives are to be achieved. The U.S. government's strategy is to expand free markets, trade, and economic growth in the SSA countries.
By participating in the WTO, the US AND SSA countries are increasingly recognizing the commonality of their interests in key areas such as agriculture, market access for consumer and industrial products, and trade in services. However, the Act provides for the President of the United States to determine which of the SSA countries are eligible for benefits under the Act. The US is the sole judge of whether or not these eligibility criteria have been met.
Apparel Provision is given to SSA countries which are already entitled to duty-free and quota-free AGOA access to the US for items made from US fabric, yarn and thread. USAID works with other US agencies such as the Department of Commerce, the Office of the US Trade Representative, the Department of Agriculture, and the Trade and Development Agency to design and implement hub-funded programs.
MAIN HYPOTHESIS
Its proponents argue that the low level of development of developing countries could be explained by traditional characteristics such as low levels of work, low levels of production, etc. According to the modernization theory, the main reasons for the underdevelopment of African countries were explained in internal factors, such as African traditions or in the lack of sufficient sources of capital investment. Chambua, 1994).2 In addition, proponents of this theory assumed that there was a linear process in which developing African countries would gradually industrialize.
The developed countries exploited the raw materials of the developing countries and made supernormal profits on the manufactured goods made from these raw materials, while the developing countries made very low profits on exported materials. Postmodernism has been explained from the idea of (post), which means after modernity. Its main foundation is the economic theory of the invisible hand of free market enterprise and the notion that unfettered markets will lead to.
It has been observed that developing countries enter markets as unequal partners and leave with unequal rewards." (UNDP Report 2002)6 The second reason given for world income inequality is that in areas where developing countries have an advantage The AGOA initiative has been presented as a tool for increasing the trade and economies of SSA countries.
CHAPTER TWO
REVIEW OF LITERATURE
Advantage - Key Strategies for Winning in the Asia Pacific Region', says due to the country's import substitution policy during the 1960s and 1970s, the region focused on production for the protected domestic market. It can be argued based on the experience of the Southeast Asian Tigers that drove foreign direct investment. Without the parallel removal of domestic US agricultural subsidies and other trade-distorting practices, AGOA will never be able to unleash the economic potential of the African agricultural sector.
However, the participation of governments in the introduction and design of development programs has so far been limited, and their commitment and ownership of the programs weak. Policy makers are sometimes unaware of the challenges faced by those responsible for them. One of the questions in the questionnaire asked whether SSA countries have strategies to deal with this challenge.
Trade representative offices were asked about the extent of infrastructure support for economic activity, especially export activities. The question was whether this applies to most products from SSA countries.
COUNTRY ANALYSES
Constraints
The main constraint was considered to be access to capital followed by market knowledge and lack of technology. For a long time, many SSA countries have wanted to trade with the US but have not been able to. The USA is seen as the main economic power with high purchasing power and thus represents an inexhaustible market.
The US eligibility criteria identify some of the most common problems in the sub-Saharan region. There are ongoing conflicts in many parts of the region, weak institutions and divisions in leadership between different ethnic and religious groups, corruption and poor governance. It is therefore difficult to understand how some countries qualified and others were removed from the list.
The President of the United States, on US trade and investment policy towards Sub-Saharan Africa and the implementation of the African Growth and Opportunity Act, lists numerous abusive practices by recipient countries. To some extent, it can be argued that the US has not been consistent in its eligibility criteria. Four examples: Burkina Faso, Cameroon, Chad and Eritrea serve to illustrate the despicably cynical way in which the US government applies AGOA criteria to countries that have received less media.
Yet the US government's official assessment is full of praise for recent political developments in this West. However, because of its alleged involvement in the rebel insurgency in neighboring Cote d'Ivoire and arms shipments to Liberia, the US government refused to certify it. It appears that the primary consideration in this case is the strategic interests of the US rather than compliance with the criteria set forth by the US itself in the AGOA.
AGOA provides SSA countries with market access if they follow criteria set by the US. However, cases such as Cameroon and Chad, where the criteria were conveniently overlooked, have undermined the success of the initiative and the credibility of the US. However, raw materials from the US are said to be more expensive than those from Asia.
RECOMMENDATIONS
Diversification
Most African countries continue to depend on one or two products to support their entire economy. Many African nations lack the basic infrastructure to effectively move their products to regional or global markets.
HIV/AIDS
SSA Governments' Commitment
There is a need to coordinate trade policies with industrial policy and private sector policy within the overall poverty reduction strategy.
CONCLUSION
KEY ABBREVIATIONS
Product customization Other (specify) 5. Technical assistance received from the US for agricultural exports to meet standards. Aggressiveness of exporters Support from regional AGOA HUB Support from country trade mission Other (specify).
