In light of the above, there will be a need to formulate and implement economic policies geared toward developing alternative sources of growth – policies that will render the economies less vulnerable to external shocks and that will allow them to better navigate their way through shocks should they occur. One such source of growth concerns the tradedgoods sector.
Growth based increasingly on exports will help avoid the boom-bust cycle and asset-price bubbles that have in the past been associated with non-FDI capital inflows. Such a growth will prove more sustainable. A more-diversified export base will also help protect the economies concerned from sector-specific shocks, while providing an important mechanism for limiting the build-up of external debt.