Introduction

Australia, Canada, New Zealand and South Africa share with each other far more economic characteristics than does any of them with most of the other countries of the world. Their economies contrast with almost all the other countries that enjoy high living standards in being greatly dependent on the export of primary products (especially if ‘primary’ is defined to include minerals and base metals); though it is true that manufactured exports have been of growing importance for all the four countries in recent years, and for Canada manufactures are now about as important as primary products in total exports. This emphasis on primary exports is associated with the high ratio of economically useful natural resources to population in each of these countries. The four countries contrast with the less developed countries of the world in their much higher living standards, and also (with the exception of South Africa) in the relative absence of disguised unemployment, and of a subsistence sector. On the other hand, they have in common with the less developed countries of the world the major role played by primary products in their exports, although for many less developed countries primary products make up an even greater proportion of total exports. Finally, they share with underdeveloped countries the characteristic of generally running a current account deficit in their balance of payments, though for the four rich primary-exporting countries this deficit is financed largely by private capital inflow, whereas various types of official grants and loans are the means of financing the current account deficit of most of the less developed countries.