Developing countries are being encourage to produce for developed markets if they are to realise a substantial growth that would fuel development. But is that the case?

Export led growth is the concentration of scarce financial and capital resources of developing countries to the production of labour intensive produce like textile, cotton, coffee and others.

Such countries found themselves spending thier last penny in the development of sectors that are not in anyway likely to yield real benefit. Let me quickly refer you to Lesotho an Least Developed Country (LDC) that took opportunity with AGOA to export textile to the US. The sector that is well know around the world is earning the economy of that country nothing but rentals of factory shells and underpaid salaries.

Hence all the benefit we might think of when we hear of the word export led growth are been transferred to third countries. Be a country of origin of a multinational or where such company invests its returns. There is no foreign exchange earned, no extra investments but the external costs cuased by the production activies of such companies.

They have poluted our evnironment, our air and corrupted our officials. If export led growth yield us corruption and pollution as the main outputs then Lesotho is Leading as is commonly referred to as the leader in African textile.