UNCTAD XII: The Preparatory Process
Accra, Ghana, 20 – 25 April 2008
I. Introduction
II. Key Issues at Stake
III. The Core Theme and Sub-Themes
A. Main theme: Addressing the opportunities and challenges of globalisation for development.
B. Sub-theme 1: Enhancing coherence at all levels for sustainable economic development and poverty reduction in global policy-making, including the contribution of regional approaches.
C. Sub-theme 2: Trade and development issues and the new realities in the geography of the world economy.
D. Sub-theme 3: Enhancing an enabling environment at all levels to strengthen productive capacity, trade and investment: mobilising resources and harnessing knowledge for development.
E. Sub-theme 4: Strengthening UNCTAD: enhancing its development role, impact, and institutional effectiveness.
IV. Pre-Conference Events
A. Global Initiative on Commodities
B. Expert meeting: Identifying issues and priorities for least developed countries for action during and beyond UNCTAD XII
C. India-Africa Hydrocarbon Conference and Exhibition
D. Trade and development implications of tourism services for developing countries
E. Conference on Biofuels: An option for a less carbon-intensive economy
F. Science, Technology, Innovation and Information and Communication Technologies for Development
G. Globalisation of port logistics - Opportunities and challenges for developing countries
H. High-level panel on the creative economy and industries for development
I. Aid for Trade and development: global and regional perspectives
J. Lessons learned from South-South trade in Asian regions
K. Lessons learned from South-South trade and role of regional trade agreements in Asia
L. Development Strategies in Africa
M. Trade Facilitation and Aid for Trade: Keys for Unlocking the Landlocked
V. Conference Events Highlights
Acronyms
Preparations for the Twelfth UNCTAD to be held in Accra, Ghana, from 20 to 25 April 2008 have focused on a number of issues related to the main theme of Addressing the Opportunities and Challenges of Globalisation for Development. They take into account key emerging concerns in the world economy since UNCTAD XI in São Paulo, Brazil (13-18 June 2004). The 193 member countries, through their various regional groupings, are engaged in fine-tuning the main Conference Negotiating Text and Plan of Action to be adopted in Accra to guide UNCTAD’s work priorities for the next four years.
This Background Note examines the main issues considered by the members, with brief explanations of the main theme and sub-themes. At the plenary meeting of the Preparatory Committee on 7 April 2008, members still had to agree on 74 paragraphs out of a total of 226 in the Negotiating Text. After agreement on a few more paragraphs, a further revised version of was sent to Accra on 9 April. An Addendum is to follow reflecting further agreements in informal consultations taking place in Geneva. Differences remain over policy space, good governance, Intellectual Property Rights (IPRs), preference erosion, “transparency” in extractive industries, and commodities, among other issues. This Note presents an overview of the pre-Conference process, including some of the conceptual divergences between members. It also briefly describes the pre-Conference events and the Conference programme highlights.
I. Introduction
1. The Twelfth Session of the UNCTAD will be held in Accra, Ghana from 20 to 25 April 2008. The quadrennial Conference constitutes the highest decision-making body of this institution (a subsidiary organ of the UN General Assembly), where Ministers of the UNCTAD member States assess current trade and development issues, discuss policy options and global policy responses. The results of the Conference guide the organisation’s work priorities for the next four years. UNCTAD XII is the first such Conference to be held in Western Africa. UNCTAD IX was held in Midrand, South Africa, in 1996. A number of Heads of State or government, particularly from Africa, as well as President Lula of Brazil, have signalled their participation at UNCTAD XII.
2. Compared to the focus theme at São Paulo “Enhancing the coherence between national development strategies and global economic processes towards economic growth and development, particularly of developing countries”, the ambit of discussions for Accra appears wider. The core theme of the Accra Conference is “Addressing the Opportunities and Challenges of Globalisation for Development”. A central focus of discussion among members is how UNCTAD can best assist its members to enhance globalisation’s positive impact on development.
3. At the 43rd Executive Session of UNCTAD Trade and Development Board in Geneva on 3 March 2008, the UN Secretary-General Ban Ki-moon told members that he had submitted a report suggesting measures to strengthen the “development pillar” of the UN in response to a December 2007 resolution in the General Assembly. This report contains proposals to address critical capacity gaps faced by the UN Secretariat, including UNCTAD. They cover several key areas such as the scaling up of activities in support of the Millennium Development Goals (MDGs), and bolstering economic development, trade and finance. The Accra Conference can galvanise support for a more development-friendly global economic, trading and financial system, according to Mr. Ban Ki-moon. “Accra must also articulate an effective strategy to leverage globalisation, trade and investment for poverty reduction and economic growth”, he affirmed.
4. The current discussions on the UNCTAD Negotiating Text are taking place within the background of two important processes. The first relates to the reform of the UN [note 1] itself. The second relates to the slow progress of the multilateral trade negotiations at the WTO.
5. Two hearings with civil society and the private sector were convened as part of the Preparatory Committee for UNCTAD XII (on 28 January and 3 March 2008). The objective was to allow non-state actors to provide their inputs to the sub-themes of the Conference. The outcome of the hearings are contained in documents TD(XII)/PC/2 and TD(XII)/PC/3.
II. Key Issues at Stake
6. The areas where there has been most difficulty in reaching convergence are: “policy space” (an issue which remains controversial since UNCTAD XI), “good governance”, intellectual property rights (IPRs), erosion of trade preferences, “transparency” in extractive industries, commodities, etc. Those are the core issues which have made it difficult to have an agreed complete Negotiating Text as late as a week before the Conference begins. Apart from the core issues, a consensus is still to be reached on the emerging subjects like migration and climate change. In addition, there are some “political” issues (such as “unilateral trade measures” and support to the Palestinian people) that cannot be resolved in Geneva by experts and which will have to be tackled in Accra.
7. To recapitulate the process the Negotiating Text went through, it is relevant to recall that the first Pre-Conference Negotiating Text was issued on 13 November 2007 [note 2]. A revised version of the Chair’s text containing amendments proposed by the Preparatory Committee on first reading and as amended on second reading was brought out on 21 December 2007 [note 3]. A subsequent version of the Pre-Conference Negotiating Text came out on 22 January 2008 [note 4]. In the consolidated Negotiating Text of 17 March 2008, the four Facilitators had presented their versions of convergent views in each of the sub-themes, as follows: Sub-theme 1, Mr Christophe Guilhou (France); Sub-theme 2, Mr Arsene M. Balihuta (Uganda); Sub-theme 3, Mr Petko Draganov (Bulgaria); and Sub-theme 4, Mrs Mabel Gomez Oliver (Mexico).
8. In presenting the pre-Conference Negotiating Text, the Chair of the Preparatory Committee, H.E. Ambassador Petko Draganov informed that the Text was based on the position papers tabled by the members, the Report of the Panel of Eminent Persons [note 5], the Secretary General’s report to the Conference [note 6], and the outcome of the Mid-Term Review [note 7] (MTR). The Chair noted UNCTAD’s consensus-building role and that the Text must reflect the concerns and expectations of all members. The format of the Text includes three sections on each sub-theme: policy analysis, policy responses and UNCTAD’s contribution.
9. The last plenary meeting of the Preparatory Committee for UNCTAD XII was held on 7 April 2008. Members still had 74 paragraphs out of a total of 226 on which to reach convergence (Text dated 6 April 2008) . The last consolidated version of the Text, (dated 9 April) was sent to Accra. Members will continue meeting informally in Geneva to bridge remaining differences.
10. The last few items that were agreed and incorporated into the Text sent to Accra include an agreed paragraph related to accession to the WTO in general. The reference to excessive demands on acceding countries supported by the G77 and the Russian Federation was opposed by the EU and the US. Certain aspects of the commodities, notably on the use of commodities as an asset for poverty alleviation, the prerequisites for improving the role of commodities trade and on the implications of volatile energy and food prices, also found some convergence. Another issue on which there was agreement ad referendum was on competition policies (paragraph 47 quarter). Consensus was also possible on several areas of services, notably the importance of increased integration of LDCs into services trade and that progressive liberalisation should take place with due respect to national policy objectives.
11. The Group of 77 and China (G77) put forward the largest number of proposals in its position paper. While recognising that “conceptual differences” remained to be bridged, the G77 made it clear that it “would not countenance a diminution or redefinition of UNCTAD’s mandate”. Moreover, that the process of restoring development at the heart of the UN would include assurances that UNCTAD remains a key pillar of the UN’s development machinery. The G77 expects UNCTAD to supplement its traditional agenda with new and emerging issues like climate change, search for alternative energy sources and migration – especially in relation to the trade, finance and development implications.
12. The developed countries, on the other hand, are resisting attempts to “expand” UNCTAD’s mandate, particularly with references to “systemic issues”. They clearly oppose UNCTAD making pronouncements on the international financial architecture. The European Union’s objectives [note 8] for UNCTAD XII focus on four areas as priorities for the future: South-South trade and regional integration; commodities and trade in natural resources; investment and competition; and strengthening UNCTAD through reform. In all these areas, the EU considers special attention should be given to Africa and the LDCs.
13. On the question of strengthening UNCTAD, the EU has similarly spelt out the four changes it would like to see.
(i) Establishment, within UNCTAD mandate, of clear priorities for its work, based on practical relevance of the issues and the comparative strengths of the organisation.
(ii) UNCTAD speaking with one voice, providing actionable and practical solutions for developing countries.
(iii) Better involvement of national experts in the work of UNCTAD.
(iv) Streamlined intergovernmental process with more clearly defined functions and expected outcomes.
Finally, the EU has also called for a complete UNCTAD management team to be in place to implement the Accra outcome, particularly the appointment of a new Deputy Secretary-General as soon as possible.
14. While expressing strong support for UNCTAD’s technical assistance programs, the US insists on a better targeted research agenda [note 9]. On the latest UNCTAD flagship annual publication, the US stated [note 10] it was “disappointed by several recommendations in the Trade and Development Report that run counter to the foundations of sound economic and trade policy, as well as the research of other international organisations dedicated to promoting growth”. The US encouraged UNCTAD to develop an improved system of vetting and peer review of this UNCTAD report. The US questions the usefulness of aggregated analysis of developing countries as a whole, given their vast differences and the wide variety of international agreements. The US has also pointed out that attempts to reshape global financial systems, “will only detract from UNCTAD’s credibility” [note 11].
15. While discussion on ”policy space” was a controversial issue between the developed and developing members at São Paulo, it figures again this time around, particularly in the first two sub-themes. According to the developing countries, their development partners have tended to undervalue the importance of the international system and have laid greater emphasis on national policies. Good governance, to which there are numerous references in the text, is one example. Whereas developed countries want to see governance figuring prominently at the national level, developing countries consider it relevant in the international context. The issue of UNCTAD’s financial constraints has also emerged as a bone of contention: while developed countries feel that available resources should determine if additional issues can be taken up, developing countries contend that if UNCTAD has a core mandate, the financial resources should be forthcoming to fulfil that mandate.
16. There is a perception among developing countries that there is an attempt to narrow the mandate of UNCTAD. Reluctance on the part of developed country members to allow UNCTAD to deal with issues such as migration, intellectual property, climate change and financial issues, because they do not fall into the essential mandate of UNCTAD, is often cited in this regard. Developing countries are also concerned that implementation of emerging new standards in the areas of labour, social and environmental rights may be requested by developed countries, thus adding more obstacles to developing countries in market access.
17. The developing countries are keen to make specific references to the São Paulo Consensus [note 12] and the Mid-Term Review [note 13] in the Negotiating Text. Within the context of reform of UNCTAD’s Commissions [note 14], the developed countries are opposed to the setting up of a new Commission on Globalisation, a suggestion put forward by the developing countries.
18. The Group D contains a diverse amalgam of countries. Some are already fully functioning market economies and others are economies in transition at different stages of reforms. Broadly, there are three groups – those that have recently acceded the European Union, the South and East European countries, and the Commonwealth of Independent States (CIS) countries. In its initial input to the Chairman’s Negotiating Text, the Group made specific proposals under all the four sub-themes, keeping in mind the particular needs of the economies in transition. Technical assistance and capacity-building needs were identified in a number of areas, including trade negotiations, accession to the WTO, and investment and competition policies. The Group also noted that special attention should be given to small low-income countries in transition with particular geographical handicaps as in the case of landlocked countries.
19. The group of 31 landlocked developing countries (LLDCs) has been active in underlining their specific needs and priorities in the discussions. The 6 April version of the Negotiating Text states in ad referendum paragraph 73 that efficient transport, communications and logistics infrastructure and services, as well as capacity-building, are strategic factors for the expansion of trade opportunities. It also notes that a multilateral legal framework on Trade Facilitation would bring substantial benefits to the LLDCs. Paragraph 120, also agreed, calls for policies to promote competitive and effective transportation systems for both LLDCs and for transit developing countries. It also calls for “full support” to the “comprehensive and timely implementation” of the Almaty Programme of Action [note 15] (APoA).
20. UNCTAD is a key player in the implementation of the APoA. Its ASYCUDA software [note 16], for example, is a practical example of Trade Facilitation in streamlining Customs Information Systems. The software is used in more than 85 countries. UNCTAD also holds expert meetings to address the r egional cooperation in transit transport and solutions for landlocked and transit developing countries. A recent UNCTAD report [note 17] analyses selected international instruments and institutional solutions designed to allow the effective free movement of goods and equipment involved in transit operations to and from LLDCs. It provides an overview of the situation and discusses the status of implementation of the APoA. Selected regional, bilateral and corridor agreements are considered in the report with a view to producing more effective regional cooperative arrangements for landlocked and transit developing countries.
21. The African Union organised a meeting of Ministers of Trade and Finance Addis Ababa (1 – 3 April 2008). In general, the African Group supports the G77 position on the important implications of intellectual property rules for Africa’s economic, social and environmental development. The African Group strongly supports, as does the G77, the establishment by the UNCTAD Secretary General of a sub-programme on commodities, which would take into account the work and recommendations of other regional and international organisations, such as the WTO. In addition the African Group calls for the creation of a commodity-specific intergovernmental machinery charged with monitoring the commodities sub-programme. Support for the LLDCs in the context of trade facilitation problems is also highlighted by the African Group.
III. The Core Theme and Sub-Themes
A. Main theme: Addressing the opportunities and challenges of globalisation for development.
22. The main theme of the conference asks Ministers to identify the changes that need to be made to tackle the challenges and seize the opportunities brought about by globalisation. It is widely acknowledged that globalisation has generated remarkable wealth and prosperity. But those benefits have not reached large sections of the world population. Sub-Saharan Africa in particular has been described by the UN Secretary-General Ban Ki-moon as “the epicentre of a development emergency”. The Conference will explore ways to harness globalisation to raise living standards, reduce poverty and ensure sustainable development. However, this most important part of the Negotiating Text is still the subject of discussion.
B. Sub-theme 1: Enhancing coherence at all levels for sustainable economic development and poverty reduction in global policy-making, including the contribution of regional approaches.
23. The first sub-theme invites a discussion on how to continue improving development-oriented policy coherence at all levels, including global, regional, bilateral and national. The idea is to see how the various pillars of the global economic architecture, including trade and finance, could be made mutually supportive. In the section on policy analysis, the text highlights the systemic issues that characterise the challenges of globalisation. However, the questions of debt relief for heavily indebted poor countries, references to the nature of official development assistance, global governance processes, and the “development-friendliness” of multilateral and regional trade agreements are still being examined under this sub-theme and the final text will emerge only in Accra. In the section on policy response, the focus is on the opportunities that can be created for development by a concerted effort to address global imbalances or shortcomings. The strengthening of UNCTAD’s work in this area through its three pillars – research and analysis, consensus-building and technical cooperation – is still being debated. Another issue which remains controversial is the accent by developing countries on “policy space”. Developed countries favour a reference to “policy diversity” as the key for attaining development priorities and objectives.
C. Sub-theme 2: Trade and development issues and the new realities in the geography of the world economy.
24. The second sub-theme concerns an examination of the changing policy environment and of how new realities in the world economy affect development strategies. The negotiating text focuses on the challenges and opportunities open to developing countries through the new trends in international trade. It highlights the key current and emerging issues such as the proliferation of bilateral free trade agreements and regional trade agreements (both South-South and North-South), the role of trade preferences, the problems of commodity-dependent developing countries and the Aid for Trade (AFT) initiative.
25. Over the past 15 years or so, developing countries have accounted for a growing share of world trade and investment. In the present climate of “mild” recession in the US and the developed countries, growth rates in developing countries will be higher. In this new landscape of world economic relations, the developing countries are not only doing more business with one another, but are increasingly trading with and investing in developed countries. Rising demand and prices for oil, gas and other commodities mean booms for some countries, but economic hardship for others. The continuing exploitation and consumption of fossil fuels is one of the main factors of climate change, thus highlighting the need for developing alternative energy sources, such as biofuels. All of these changes will have a huge impact for trade and development. Issues to be addressed at UNCTAD XII include how developing countries prospering from the energy boom can better translate their revenues into long-term development gains.
26. However, important issues such as migration and climate change are under this sub-theme but no agreement has been reached on how to address them. On the other hand, consensus has been reached on the importance of the services economy for development (paragraphs 66 and 67alt.), regional trade agreements (RTAs), (paragraphs 42), biodiversity and traditional knowledge (paragraphs 52 and 53).
D. Sub-theme 3: Enhancing an enabling environment at all levels to strengthen productive capacity, trade and investment: mobilising resources and harnessing knowledge for development.
27. The third sub-theme explores how to strengthen productive capacity, trade and investment through the mobilisation of resources and the harnessing of knowledge for development. The many convergences in the various position papers on issues related to trade and investment are emphasised in the Negotiating Text. Global inflows of foreign direct investment (FDI) have increased in recent years, but they remain uneven in terms of focus on selected economic activities and concentration in a few FDI recipients. This sub-theme highlights investment and development-related issues, including the rise of Southern trans-national corporations, the challenges and opportunities brought about by international investment agreements.
28. All UNCTAD members have agreed ad referendum, that to seize FDI opportunities “countries need active and well-sequenced policies to maximize the development benefits of investment flows”.
E. Sub-theme 4: Strengthening UNCTAD: enhancing its development role, impact, and institutional effectiveness.
29. This is the most relevant institutional chapter to map the role of UNCTAD for the next four years. But it is also the sub-theme which has attracted the most polemic. Developing countries have floated some new ideas on the structure of the Commissions arising from the brainstorming meetings (such as setting up a new commission on globalisation). However, agreement has been reached by members on UNCTAD’s research and analysis role, but discussions continue on its “consensus-building” function. It will be up to the members to decide on how to restructure UNCTAD’s intergovernmental machinery, including the Trade and Development Board, the Commissions and Expert meetings.
IV. Pre-Conference Events
30. In the run up to the main Conference, UNCTAD organises a number of official events. They address some of the issues to be discussed in Ghana and pave the way for in-depth deliberations at the Conference. The following are brief accounts of the pre-Conference events, some of which are still on the horizon.
A. Global Initiative on Commodities
31. In preparation for UNCTAD XII, a conference [note 18] entitled “Global Initiative on Commodities: Re-launching the Commodities Agenda” was jointly organised by UNCTAD; the Common Fund for Commodities; the African, Caribbean and Pacific Group of States (ACP); and the United Nations Development Programme (UNDP). The conference took place from 7 to 11 May 2007 in Brasilia, Brazil. In re-launching the commodity agenda, four aspects of commodity markets have a direct bearing on commodity producers’ incomes and well-being, as well as opportunities for economic growth and sustainable development of commodity-dependent developing countries, particularly LDCs and other small and vulnerable economies: (a) the supply capacity limitations under which commodity producers operate; (b) the effective participation in the value chain; (c) the lack of diversification of commodity production and export base; and (d) an international enabling environment.
32. The conference focused on these issues and looked at ways in which policies and initiatives could be addressed at national and international levels by commodity-producing developing countries, their developed country partners, the enterprise sector, civil society and international organisations. It was recognised that effective commodity policies at the national level are constrained by – and their success depends on – effective global governance, policy coherence and enhanced solidarity.
B. Expert meeting: Identifying issues and priorities for least developed countries for action during and beyond UNCTAD XII
33. Forty experts from LDCs met in Arusha, Tanzania (22-24 October 2007) to identify concerns that should be addressed as a priority at UNCTAD XII. In their report [note 19], the experts requested that UNCTAD strengthen its support to LDCs seeking accession to the WTO. Such membership is considered important to protect these countries’ interests and provide opportunities for future economic growth. The experts also noted an urgent need for LDCs to diversify economically, because they are currently too dependent on commodities. Some 85 developing countries now rely on commodities for more than half their export earnings. For 70 of them, more than half of their exports consist of three or fewer commodities. Reliance on commodities is especially pronounced among LDCs. The experts noted that LDCs should diversify the economic sectors that are most attractive to FDI. Currently such investment is overly focused on extractive industries such as petroleum and mining. More should be done to use remittances to spur domestic economies. These remittances are so substantial that in most cases they exceed foreign investment or official development assistance.
C. India-Africa Hydrocarbon Conference and Exhibition
34. In the context of its work on commodities and South–South cooperation initiatives, UNCTAD organised this pre-event [note 20] in New Delhi (6-7 November 2007). Africa has much untapped oil and gas potential – proven reserves of about 16 billion metric tons of oil and 500 trillion cubic feet of natural gas. But it lacks expertise, training and technology for expanding and broadening the continent’s economies and for getting the most out of African hydrocarbon reserves. The framework of cooperation resulting from the New Delhi conference has among its goals “hydrocarbon cooperation agreements between India and various African countries covering exploration and production and downstream policy issues”. It also calls for cooperation in the area of research and development and technology transfer; cooperation in retail marketing of petroleum products and lubricants by Indian companies in African markets; and the training in India of technical and managerial African oil industry personnel,
D. Trade and development implications of tourism services for developing countries
35. This UNCTAD XII pre-event [note 21] focused on identifying best practices for promoting sustainable tourism. Experts recommended stronger links between tourism and other economic areas. Information and communication technology (ICT) and FDI also play a role. Direct advertising through the Internet, the use of electronic networks to arrange travel and the use of e-banking as a method of payment mean developing countries have the potential to provide the full package of services associated with tourism - and so keep a higher share of the profits at home. Much of such income in the past has remained overseas with foreign tour operators, airlines and the businesses that handle money transfers and currency exchanges. The conference also explored the potential for expanding tourism through multilateral trade negotiations in the context of the Doha Round as well as trade agreements and cooperation. It also discussed ways to help developing countries and tourism firms capitalise on what is unique in their natural and cultural heritages.
E. Conference on Biofuels: An option for a less carbon-intensive economy
36. The meeting, held in Rio de Janeiro, Brazil (4 - 5 December 2007), provided an overview of the biofuels market, its trade opportunities and its economic and environmental sustainability. Participants also discussed how trade can support climate change policy and contribute to an orderly transition to less carbon-intensive economies and to achieving effective, sustainable development. Climate change poses significant threats to developing countries, which lack resources for dealing with such expected outcomes as higher sea levels, more and fiercer tropical storms and shifts in agricultural zones. But along with all these difficulties there may also be some opportunities. Demand is rising rapidly for biofuels from crops such as sugar-cane and jatropha, which do not add to the greenhouse gases that cause global warming. An International Conference on Biofuels is planned by the Brazilian government in November 2008.
F. Science, Technology, Innovation and Information and Communication Technologies for Development
37. The meeting held in Geneva (6 December 2007) focused on government actions and on how governments, businesses, universities, international agencies and donors can work as teams to expand practical application of technology and use it in ways that lead to economic growth and higher living standards. At the heart of the discussions was the accelerating rate of scientific and technological progress, a major concern of developing countries. Currently many lack the financial means, knowledge, and infrastructure to do so. Participants concluded [note 22] that this topic needs high priority from the international community and should continue to receive extensive attention and research from UNCTAD. That is one reason a sub-theme of UNCTAD XII refers to “harnessing knowledge for development”. ICT is a key illustration of this challenge. For business-to-business transactions, for example, about 93 per cent of firms in the US used e-commerce in 2004.
G. Globalisation of port logistics - Opportunities and challenges for developing countries
38. The aim of this meeting in Geneva (12 December 2007) was to examine the most suitable ways for developing countries to meet the challenges and opportunities that the globalisation of logistics may pose to their national trade and investment policies, in the light of recent trends in international maritime transport and developments in sea, river and inland terminals. A large number of representatives of the maritime transport and logistics industry, including port operators, shipping lines, logistics companies, international terminal operators, port and logistics consultants, and UNCTAD and WTO experts participated. Experts at the meeting underlined [note 23] the importance of coherent policies for transport and port development which can be done through public-private partnerships, appropriate regulatory framework and facilitation measures.
H. High-level panel on the creative economy and industries for development
39. The objective of the Secretary-General’s high-level panel [note 24] which met in Geneva (14 - 15 January 2008) was to provide a platform for progress in the intergovernmental debate in this new area. Creative Industries can be defined as the cycle of creation, production and commercialisation of products and services that use knowledge and intellectual capital as primary inputs. They deal with the interplay of various sub-sectors ranging from traditional crafts, books, and visual and performing arts, to more technology-intensive and services-oriented fields such as the music and film industries, television and radio broadcasting, new media and design. UNCTAD estimates that international trade of creative goods and services reached USD 445.2 billion in 2005. These industries provide a feasible strategic option to diversify the economies of developing countries, including LDCs, by offering new venues for those countries to leapfrog into value-added high-growth sectors. The report [note 25] of the panel provides more details.
I. Aid for Trade and development: global and regional perspectives
40. This meeting in Bangkok (24 - 25 January 2008) was organised by the Working Group on Trade of the UN Executive Committee on Economic and Social Affairs, comprising UNCTAD, ESCAP, ECA, the ECE, ECLAC, ESCWA, UNEP and UNDP. Participants discussed ways to sustain the momentum to implement the Aid for Trade initiative and the supportive role to be played by the UN system. Member States committed themselves in the Millennium Declaration [note 26] and the outcome of the 2005 World Summit [note 27] to promote development and help reduce poverty.
J. Lessons learned from South-South trade in Asian regions
41. This workshop, organised by UNCTAD and the Japan External Trade Organization (JETRO), was held in Tokyo, Japan, on 25 March, 2008.
K. Lessons learned from South-South trade and role of regional trade agreements in Asia
42. This pre-conference event is also being organised by UNCTAD in partnership with JETRO but was held in Geneva on 2 April 2008.
Forthcoming Pre-Conference Events
L. Development Strategies in Africa
43. This workshop is being be held on the 19 April, 2008 in Accra, Ghana and is being coordinated by UNCTAD’s Division on Globalisation and Development Strategies. It will bring together a number of economists and specialists from African region as well as specialists from international organisations.
M. Trade Facilitation and Aid for Trade: Keys for Unlocking the Landlocked
44. Jointly organised by the Agency for International Trade Information and Cooperation (AITIC) and the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), this Ministerial-level pre-conference event will be held in Accra, Ghana on 19 April 2008. It will focus on the development prospects of landlocked developing countries (LLDCs).
45. The high-level meeting will take stock of the progress achieved in trade facilitation initiatives, including through the WTO negotiations and explore the range of support measures that Aid for Trade can bring to the LLDCs. The LLDCs as a group remain marginalised from world trade, thus preventing them from reaping the benefits of globalisation and using trade as an instrument for achieving their development objectives. This is mainly due to their lack of territorial access to the sea, remoteness and isolation from world markets, dependence on transit services and policies of their transit neighbours coupled with inadequate transit transport infrastructure facilities and cumbersome transit and border crossing procedures. Developing countries have made it clear that they would need technical assistance in undertaking new obligations negotiated in the WTO on Trade Facilitation. Aid for Trade can play a key role in this regard.
V. Conference Events Highlights
46. A high-level discussion devoted to Africa, where 34 [note 28] of the 49 LDCs are located, will be held on 21 April on "Trade and Development for Africa's Prosperity: Action and Direction". It will be chaired by UN Secretary-General Ban Ki-moon and moderated by UNCTAD Secretary-General Supachai Panitchpakdi. It will reflect the importance attached to ensuring that African countries benefit more from globalisation. A total of nine round tables are planned to be held during the Accra conference, based on the 4 sub-themes that members agreed on.
47. The commodities boom and its development importance, for example, will be reviewed at a roundtable on 23 April titled "The changing face of commodities in the 21st Century”. The significance of rapidly expanding South-South trade will be discussed at a 23 April roundtable titled " Emergence of a new South and South-South trade as a vehicle for regional and interregional integration for development." Whether and how FDI from these new sources and from traditional western transnational corporations (TNCs) can actually lead to broad-based poverty reduction will be discussed at a 22 April roundtable, " Creating an institutional environment conducive to increased foreign investment and sustainable development."
48. How poor nations can accomplish greater, more broad-based economic growth is also the topic of a 24 April roundtable on "Harnessing Knowledge and Technology for Development." The debate is based on UNCTAD's Least Developed Countries Report 2007. A roundtable on "Globalization, development and poverty reduction: their social and gender dimensions" (22 April) will consider how increased trade and economic growth affect such matters as income equality and women's roles in society and in national economies.
49. The risk of new debt crises will be weighed at a roundtable on "Debt management solutions supporting trade and development" (24 April). Although external debt in the developing world has declined modestly in recent years - driven in part by climbing trade and commodity prices and international debt-relief programmes - numerous countries still have substantial debt burdens and may be vulnerable to shifts in the global economic picture.
50. A roundtable on "Developing productive capacities in least developed countries" (24 April) will focus on the continuing difficulties of LDCs in shifting their economies away from dependence on exports of primary commodities - such as crude oil, and metal ores - and simple manufactures to more sophisticated and varied products that promise the creation of greater numbers of jobs at higher rates of pay. Economies based on higher "value added" also are historically less vulnerable to shocks and downturns. And two roundtables on 25 April will tackle the matter of " Strengthening UNCTAD: enhancing its development role and its impact and institutional effectiveness."
51. Other events in conjunction with the conference include a World Investment Forum to be staged from 18-21 April and a Civil Society Forum from 17-25 April. There will also be a high-level event called "The global leaders investment debate." The civil society gathering will attract numerous non-governmental organisations, business representatives, members of the academic community, and others to discuss ways to "enhance the impact and effectiveness of trade and development efforts." The forum will produce a "position document" that will be presented on 21 April to the opening plenary of the UNCTAD XII.
52. The creative industries – cultural and artistic undertakings such as folk art, festivals, books, paintings, music, and film - will be featured on 20 April with the launching of the first UN multi-agency report on the topic: Creative Economy Report 2007: the Challenge of Assessing the Creative Economy – Towards Informed Policymaking. On 21 April, the first Women in Business Awards will highlight the importance of entrepreneurship in developing countries.
Acronyms
ACP |
The African, Caribbean and Pacific Group of States |
AFT |
Aid for Trade |
ECA |
Economic Commission for Africa |
ECE |
Economic Commission for Europe |
ECLAC |
Economic Commission for Latin America and the Caribbean |
ESCAP |
Economic and Social Commission for Asia and the Pacific |
ESCWA |
Economic and Social Commission for Western Asia |
FDI |
Foreign Direct Investment |
ICT |
Information and Communication Technology |
IPRs |
Intellectual Property Rights |
JETRO |
Japan External Trade Organization |
LDCs |
Least Developed Countries |
| MDG |
Millennium Development Goals |
MTR |
Mid-Term Review |
ODA |
Official Development Assistance |
TNCs |
transnational corporations |
WTO |
World Trade Organization |
UNDP |
United Nations Development Programme |
UNEP |
United Nations Environment Programme |
|
