Wishful thinking and reality in the concept of vertical integration of developing countries in metal production

The concept of vertical integration plays an important role in the discussion on a New World Economic Order as well as in the Integrated Programme for Commodities. The idea is to relocate raw material processing industries and first stages of manufacturing from the advanced countries to the commodity exporting developing countries. As far as metal production is concerned – and this paper deals with iron and steel, aluminium, copper and tin – the conclusion is that vertical integration is in general far too simple a concept. Only project based analysis can reveal if development in this direction can be regarded as politically and economically feasible.