Issue n° 13 - October 2007
IN THIS ISSUE
THE TASK OF UNCTAD XII:
EXTENDING THE BENEFITS
OF GLOBALIZATION
Interview with Taffere Tesfachew
1
HOST COUNTRY
OF UNCTAD XII: GHANA
3
GHANAIAN TRADITIONAL
SYMBOLS
4
THE UNCTAD XII
POSTER
4
OFFICIAL THEME AND
SUBTHEMES OF UNCTAD XII,
ACCRA, GHANA,
20-25 APRIL 2008
5
REPORTS RECENTLY ISSUED
Least Developed Countries
Report 2007
Report on UNCTAD Assistance
to the Palestinian People 2007
Report on Economic Development
in Africa 2007
UNCTAD Handbook of Statistics
2006-07
Trade and Development
Report 2007
6
6
7
7
7
UPCOMING REPORT
World Investment Report 2007
7
UPCOMING
MEETINGS
8
Interview
THE TASK OF UNCTAD XII:
EXTENDING THE BENEFITS
OF GLOBALIZATION
TAFFERE TESFACHEW,
Chief, Office of
the Secretary-General,
and UNCTAD Spokesperson
The encouraging trends in global economic progress must be carefully managed
so that they continue, and so that the benefits are extended to the poorest people
and the poorest nations, urges a report setting the stage for the UNCTAD XII
conference, to be held 20-25 April 2008, in Accra, Ghana.
The Report of the SecretaryGeneral of UNCTAD, Dr. Supachai
Panitchpakdi, says the global
economic situation has been
remarkably good in recent years.
What can another big international
meeting do to help the world’s
poor that global economic
growth isn’t already doing?
You are right to say that there has been
unprecedented growth in the last five
years, but that does not mean that the
world’s development needs have been
met. Many countries, and people within
countries, have missed out on the benefits
of the global boom, and a large international meeting such as UNCTAD XII
can highlight this fact. It can also examine
the causes of the unequal distributions
of benefits, and --because it is an inter-
governmental meeting with representatives at the highest levels -- it can potentially
agree on ways to address some of these
problems.
Growth in recent years has also been
associated with a large and unsustainable
trade imbalance between China and
the US; indeed, between the US and
the rest of the world. This raises many
concerns for global trade and the global
financial system which can be addressed
at the meeting. And finally, or perhaps I
should have said this first, the meeting
will be held in Africa, which is particularly appropriate because the continent
epitomizes the two extremes of the
current economic boom. As Africa is
home to some of the world’s greatest
riches, and also some of its most
oppressive poverty, it is very timely to hold
a meeting like UNCTAD XII in Africa.
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news - 1
What has to occur for the rapidly
expanding global economy to
benefit those who are extremely
poor in Asia, Latin America, and
especially Africa -- people who
don’t have Internet connections,
or electricity, or much education,
or much chance of finding jobs
outside farming?
According to the report, trade
between developing countries,
so-called “South-South” trade,
tripled -- from US$577 billion to
$1.7 trillion -- between 1995 and
2005. Why is that significant?
It’s significant because this is a new phenomenon with global implications. SouthSouth trade simply did not happen much
before, as most trade was between the
North and the South. It is very encouraging that developing countries are now
trading both with one another and with
developed nations. This means there are
new doors being opened and new choices
of markets being created for many southern exporters, and this is particularly important because it is not only about trade,
but also about investment and technology
flows, and movement of skilled persons.
This is enabling the poorer countries to
acquire skills and technologies that are
different from those obtained from the
traditional sources. There is evidence that
such transactions are more applicable to
local conditions and needs; but equally
importantly, they are increasing the range
and diversity of available goods and
services, and knowledge.
A final reason why South-South trade is
so significant is that it is changing the wider
geopolitical and economic landscape.
Developing countries are accounting for
an increasingly significant share of global
trade and capital flows, and with this they
are also increasing their “voice” in global
political fora. These are new and potentially very significant changes in the world,
and UNCTAD XII will offer an arena in
which to consider some of the implications.
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Beginning at the international level, it is
essential to remove the constraints that
continue to impede developing countries’
meaningful participation in the global
economy. By this I mean that market
access to their products needs to be made
more equitable and also that in certain
cases developing countries, and particularly the least developed among them,
are given the special and differential
treatment that is needed to help them
“level the playing field”. A rules-based multilateral trade regime can offer us a powerful
tool to encourage economic growth and
human and social development, as long
as we can ensure that it is sufficiently
flexible and development oriented.
But actually, although market access is the
issue that generates the most publicity,
it is not in itself the solution. Access alone
is not enough, because countries also
need to have the capacity to produce
and to deliver goods and services to the
market. This can include national and
regional markets as well as international
markets. So this means that there needs
to be concerted international support to
boost productive capacities (for example,
through such initiatives as Aid for Trade).
We also need national and regional efforts
to put in place the kinds of policies that will
help boost investment, skills, technology
transfer, infrastructure (including, as you
mention, telecommunications and Internet
connections), a stable macro-environment,
and so on -- all part of what is being
called “an enabling environment”. This
will help boost job creation, which will
lead to increased production and exports.
Of course, these industrial policies also
need to be complemented by the appropriate social policies, including education,
for example, and national povertyreduction strategies to spread the benefits
of development more equitably and more
widely.
The report says the current global
economic situation has generated
a commodities boom with positive
implications for many developing
countries. But the report also calls
for caution. What is the danger,
and what should be done?
First, we need to recognize that the current
commodities boom has been driven by a
surge in demand from the industrializing
Asian developing countries. If this should
plateau or slow down, then the boom
would also likely deflate. Second, while the
boom has generated significant surpluses
for many commodity-exporting countries,
most of which are developing countries,
it has also created a rapid rise in costs
for countries that import commodities
-- many of which are also developing
countries. So there are significant development concerns amid the apparent
prosperity.
Third, let’s not forget that commodity
booms are usually followed by a bust -- this
is the historical experience of commodities, quite independent of the current
Asian-demand conditions I mentioned earlier.
So we should not assume that high prices
will be with us forever. And fourth, in view
of that, it is important that the surpluses
that are currently being enjoyed by
exporting countries should be invested
wisely -- used, for example, to help
diversify, to build infrastructure, and to
help boost domestic productive capacity
-- so that countries can have more
options than simply to be dependent on
commodities.
UNCTAD XII will address ways to
approach some of these pitfalls and
dangers, and, most importantly, it will allow
the sharing of experiences. For example,
one of the lessons that the poorer countries can learn from those economies that
have grown spectacularly in Asia in recent
years is that policy diversity is important
for meeting the needs of specific countries. Countries really need to think hard
about what to do, what set of policies
is most appropriate for them. This is
moving away from what has been the
standard of the last 30 years, moving away
from the one-size-fits-all approach to
policy-making. At this conference, if it
is used properly, people will share their
experiences.
HOST COUNTRY
OF UNCTAD XII: GHANA
This West African democracy of 238,000
square kilometres, with a population of 20
million, celebrated 50 years of independence
on 6 March 2007. Current President John
Agyekum Kufuor was elected in 2001 and
re-elected in 2004. The nation’s principal
exports are cocoa, gold and timber.
English is the official language. Several
local languages are also spoken, including
Akan, Ga, Ewe, Dagbani, and Hausa. The
capital city of Accra, where UNCTAD XII
will be held from 20-25 April 2008, has a
population of 1 million and is located on
the coast of the Gulf of Guinea.
The government has pledged to do
everything possible to ensure that UNCTAD
XII has suitable international prominence.
It considers the conference an exceptional occasion for placing the spotlight on
Africa, where development issues have
such crucial importance.
UNCTAD
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GHANAIAN TRADITIONAL SYMBOLS
African symbols known as Adinkra are used throughout Ghana and carry great meaning.
Some of the symbols used in communications materials for UNCTAD XII are shown and explained below:
DAME-DAME
AKOMA NTOSO
DENKYEM
ANANSE NTONTAN
Name of a board game,
symbol of intelligence and ingenuity.
“Linked hearts”,
symbol of understanding and agreement.
“Crocodile”, symbol of adaptability.
The crocodile lives in the water, yet breathes
the air, demonstrating an ability to adapt to
circumstances.
“Spider’s web”, symbol of wisdom,
creativity and the complexities of life.
Ananse the spider is a well-known
character in African folktales.
ESE NE TEKREMA
BOA ME NA ME MMOA WO
“The teeth and the tongue”, symbol
of friendship and interdependence.
The teeth and the tongue play interdependent
roles in the mouth. They may come into
conflict, but they need to work together.
“Help me and let me help you”, symbol
of cooperation and interdependence.
Source: “Cloth as Metaphor”,
by G.F. Kojo Arthur.
FUNTUNFUNEFUDENKYEMFUNEFU
NKYINKYIM
NKONSONKONSON
SANKOFA
“Siamese crocodiles”, symbol of democracy
and unity.
The Siamese crocodiles share one stomach,
yet they fight over food. This popular symbol
is a reminder that infighting and tribalism are
harmful to all who engage in them.
“Chain link”, symbol of unity and human relations.
A reminder to contribute to the community,
that in unity lies strength.
“Twisting”, symbol of initiative,
dynamism and versatility.
“Return and get it”, symbol of the importance
of learning from the past.
THE UNCTAD XII POSTER
The official poster of UNCTAD XII
blends Ghanaian and African symbols
and art with the international themes of
the organization. The upper background
includes a map of the globe, pointing to
the universality of the conference; it also
incorporates part of the United Nations
logo. Across the bottom are drawings of
the round-headed statuettes representing fertility and health ; these stand for the
importance of women in the develop-
4 - UNCTADnews
ment process and for the human aspect
of the topics to be discussed. Traditional
African Adinkra symbols (see above)
echo the nature of UNCTAD’s work and
represent such themes as interdependence, cooperation, adaptability, and the
linking of countries and peoples. The
yellow, orange, and brown earth tones
of the poster reflect the warm, positive,
welcoming character of Africa.
OFFICIAL THEME AND SUBTHEMES
OF UNCTAD XII,
ACCRA, GHANA, 20-25 APRIL 2008
UNCTAD’s 192 member countries have chosen the following topics
as the focus of the organization’s quadrennial conference:
THEME
Addressing the opportunities
and challenges of globalization
for development
By now it is widely acknowledged that
globalization has generated remarkable
wealth and prosperity for particular countries and particular industries. But those
benefits have not reached large swathes
of the world population; in numerous developing countries, and even within some
of the more prosperous countries, there
are many people who have not benefited
or who are even worse off. Given that
globalization will continue for the foreseeable future, the conference will explore
ways to harness globalization to raise living
standards, reduce poverty and ensure
sustainable development.
SUBTHEMES
Enhancing coherence at all levels for
sustainable economic development
and poverty reduction in global
policy-making, including the
contribution of regional approaches
Coherence is about making sure that
international policies work in tandem
towards our common goals. This therefore includes ensuring that the multilateral, rules-based trading regime is better
aligned to help find solutions to key issues
on agricultural market access, domestic
support in agriculture, industrial tariffs and
services. It may also require the adjustment of regional integration agreements,
to ensure that they help rather than hinder the international trading system and
its development objectives. Coherence
may also include the global financial system, which by comparison with the trade
system is far less regulated, and has failed
in the past to protect some economies
from the disastrous impacts of external economic shocks that can overturn
years of careful planning and austerity.
At the same time, many of the countries
most vulnerable to external shocks are in
great need of financing to develop and to
reduce poverty. Regulating private capital
flows and speculation while also raising
the funds that developing countries need
to stabilize their economies requires
coherence – coherence, or agreement,
between developing and developed
countries and among developing countries
themselves.
Key trade and development issues
and the new realities in the
geography of the world economy
Over the past 15 years or so, developing
countries have accounted for a growing
share of world trade and investment,
and that share continues to soar. The
result is a totally new landscape for world
economic relations, one in which the
countries of the South 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 devastating the climate, requiring
the development of alternative energy
sources, such as biofuels. All of these realities will have huge ramifications for trade
and development. Issues to be addressed
at UNCTAD XII include how developing
countries that are prospering from the
boom can better translate their revenues
into long-term development gains.
Enhancing an enabling environment
at all levels to strengthen
productive capacity, trade and
investment: mobilizing resources
and harnessing knowledge
for development
Productive capacities, trade and investment
are interlinked and mutually reinforcing
elements of the national and international
economic structure. There is a great deal
of cumulative causation between them.
Reflecting this, an enabling environment
needs to operate simultaneously at the
global level -- through policies that promote an open and equitable environment
-- and at the national level, through
policies that foster growth, investment and
entrepreneurship, as well as technology,
innovation and employment. Critical
international issues here include the
global finance and trade systems (including
the intellectual property rights systems);
the rise of South-South cooperation and
integration; and the role of Foreign Direct
Investment (FDI) and international investment agreements. National level policy
issues include macroeconomic policy and
the complementary trade and industrial
policies that can help to boost competitiveness, technological upgrading, and
domestic value-added.
Strengthening UNCTAD: enhancing
its development role, impact,
and institutional effectiveness
As the world changes and globalization
becomes a more powerful force, UNCTAD
must constantly refine its efforts to help
developing countries. As the United Nations
focal point for trade and development,
and the interrelated issues of finance,
investment, technology and sustainable
development, it brings more than four
decades of experience to the service of
development. UNCTAD’s 12th ministerial
conference offers a forum to discuss ways
of improving the organization’s working
methods. It will also help ensure that it
delivers high-quality and sharply focused
research and analysis; that the intergovernmental machinery is action-oriented and
effective; and that UNCTAD’s technical
cooperation activities help create beneficial
synergies and add greater value, for
example by contributing to the “One UN”
concept.
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REPORTS RECENTLY ISSUED
Least Developed Countries Report 2007:
Knowledge, Technological Learning
and Innovation for Development
Recent impressive economic growth in
many of the world’s 50 poorest nations -the least developed countries, or LDCs -is based largely on higher global prices for
commodities: not just for oil, but for basic
agricultural products. Such growth is not
enough to reduce poverty significantly,
the report says. And commodities booms
are usually followed by crashes.
Unless businesses and farmers in LDCs can
acquire the knowledge and technology
they need to catch up with the rest of the
world, the report warns, these countries
will be unable to achieve the sustained
growth needed to lift their populations
out of poverty. Most LDCs have not been
able to take advantage of recent prosperity to develop, to establish the ability to
manufacture and export more sophisticated products. With that ability will come
higher profits, more jobs, and long-term
economic stability.
Links with international markets are not
transferring the needed technology to
LDCs, the report says. Even where LDCs
are increasing exports and attracting
foreign investment, most are not climbing
the economic and technological ladder;
their economies remain locked into low
value-added commodity production and
low-skill manufacturing. International aid
programmes are not sufficiently addressing
the problem, either: annual aid for research
and advanced skills in LDCs amounted to
only 3.6% of total official aid disbursements
to LDCs from 2003 to 2005. In addition,
stringent rules on intellectual property
rights often mean that businesses in the
world’s poorest countries can’t afford
the technology and knowledge that could
help them expand. The report recommends that rules on intellectual property
be selectively adapted to give a break to
LDCs.
And the lack of economic opportunity in
these countries means a severe “brain
drain”. For example, five LDCs -- Cape
Verde, Gambia, Haiti, Samoa, and Somalia
-- have lost more than half their universityeducated professionals in recent years
to industrialized countries where opportunities are greater and salaries higher.
The challenge of transferring technology
and knowledge to LDCs is national and
international, the report argues. It must
be faced quickly and effectively.
The Knowledge Divide
and the Poverty Divide
The front cover of the Least
Developed Countries Report 2007
The front cover of the Least Developed
Countries Report 2007, subtitled “Knowledge, Technological Learning and Innovation for Development”, shows two maps
of the world in which countries are not
The Report on UNCTAD Assistance
to the Palestinian People 2007
The Report on UNCTAD Assistance to
the Palestinian People 2007 highlights the
economic state of affairs in the occupied
Palestinian territories. It focuses on the
deterioration of economic performance
6 - UNCTADnews
and living conditions and on the impact
within the territories of international
and national policies during 2006. It also
reviews UNCTAD activities in support of
Palestinian development.
shown according to their surface area, as
is usually done. Rather, in the top map,
countries are “sized” according to the
commercial knowledge they generate;
and in the bottom map, they are “sized”
according to the number of poor in their
populations.
The two maps show that the global
knowledge divide is almost a mirror image
of the global poverty divide. Reducing
poverty requires that poor countries
achieve technological upgrading; that
they master and produce knowledge; and
that they invest in innovation. The report
shows why this is so and explains how to
reach these goals.
The Report on
Economic Development
in Africa 2007
UNCTAD
Handbook of Statistics
2006-07
The Trade
and Development
Report 2007
The Report on Economic Development
in Africa 2007 discusses how to harness
domestic resources to spur economic
growth and poverty reduction in African
countries.
A 470-page collection of statistics on trade
and development, including international
merchandise trade and international
finance data.
The Trade and Development Report
2007 is subtitled “The role of regional
cooperation in development”.
It analyses how African countries can
increase these resources and channel
them into productive investments.
It analyses to what extent, and how,
regional cooperation among developing
countries can support national development plans. It draws lessons from past
experience and makes policy recommendations, taking into account the specific
conditions and circumstances of different
regions.
UPCOMING REPORT
The World Investment Report 2007
The World Investment Report 2007, to be published on 16 October, will focus on
foreign direct investment (FDI) in “extractive industries” such as oil drilling and the
mining of metals and minerals.
After reviewing current trends, the report will examine the development effects of
the activities of transnational corporations in the extractive industries.
It will also discuss what can be done to ensure that such activities result in tangible,
long-term economic growth in developing countries.
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UPCOMING MEETINGS
1-11 October 2007
Trade and Development Board, 54th
session. High-level segment: Globalization and inclusive development. This
gathering of high-ranking government officials
will discuss the kinds of policies required to
ensure that all developing countries, and all
segments of their populations, benefit from
increased international trade and economic
growth.
15 October 2007
Preparatory process for UNCTAD XII.
16-17 October 2007
Expert meeting on participation of developing countries in new and dynamic sectors
of world trade: the South–South dimension.
18-19 October 2007
Expert meeting on increasing the participation of developing countries’ small- and
medium-sized enterprises (SMEs) in global
value chains.
30 October - 1 November 2007
Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting, 24th session.
FOR MORE INFORMATION:
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1211 Geneva 10 - Switzerland
Tel: +41 22 917 5828 - Fax: +41 22 917 0051
Email: unctadpress@unctad.org
UNCTAD WEBSITE:
http://www.unctad.org
Press release and publications are available online:
http://www.unctad.org/Templates/Page.asp?intItemID=1528&lang=1
and http://www.unctad.org/Templates/Page.asp?intItemID=1717&lang=1
Photo credit
Page 1: WHIB/P. Virot - Page 3: Guiseppe Di Capua, Muriel Scibilia - Page 8: Jean-Philippe Escard
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19-23 November 2007
UNCTAD’s sixth interregional debt management conference.