SG's Ad Hoc Expert Group Meeting UNLDC IV: Key Development Challenges facing the LDCs 18-19 February 2010 Making Trade More Development - Transmitting, Multiplying and Inclusive for LDCs By Mr. Bonapas Onguglo Senior Economic Affairs Officer The view expressed are those of the author and do not necessarily reflect the views of UNCTAD Making Trade More Development-Transmitting, Multiplying and Inclusive for LDCs Bonapas Onguglo Senior Economic Affairs Officer Overview 1. Trade performance of LDCs during the decade of the Brussels PoA: 2001-2010. 2. Suggestions on key areas for enhancing the contribution of trade to development of LDCs in the ‘Turkey’ PoA for the 4th decade: 2011-2020. 1. LDCs Trade Performance – 2001 to 2008 Table 3: LDCs' Total Merchandize and Services Exports, 1991 - 2007 , (Value in US Dollars millions and Share in percentage) YEAR 1991 2001 2006 2007 Total World Exports 4,375,341 7,720,327 14,913,483 17,170,189 LDCs Value 20,956 43,792 118,495 142,120 Share 0.48 0.57 0.79 0.83 Source: UNCTAD Globstat 1. LDCs Trade Performance – 2001 to 2008 Table 6. LDCs' Share in Total Global merchandise exports, 2001-2008 (Value in US Dollars million and share in percentage) World All LDCs Share 2001 6,187,574 36,177 0.58 LDCs: Africa and Haiti 0.35 LDCs: Asia 0.24 LDCs: Islands 0.005 Developing countries 1,579,440 Share 25.5 Source: UNCTAD GlobStat 2006 12,129,755 103,957 0.86 2007 13,956,934 128,705 0.92 2008 16,026,454 171,782 1.07 0.61 0.25 0.004 0.68 0.24 0.003 0.83 0.24 0.004 3,883,077 32.0 4,512,322 32.3 5,361,088 33.5 1. LDCs Trade Performance – 2001 to 2008 Table 9: Services exports to world by LDCs and developing countries, 2001-2008 (Value in $US Millions and share in percentage) World All LDCs All LDCs’ share LDCs: Africa and Haiti LDCs: Asia LDCs: Islands 2001 2006 2007 2008 1,529,040 2,877,891 3,416,193 3,856,987 7,562 13,655 16,101 18,457 0.5 0.5 0.5 0.5 4,471 2,460 631 Developing 289,102 countries Developing 18.9 countries’ share Source: UNCTAD GlobStat database 8,564 4,136 955 10,043 4,959 1,099 11,432 5,720 1,305 628,477 752,634 847,100 21.8 22.0 22.0 1. LDCs Trade Performance – 2001 to 2008 Table 5: LDCs' Trade Balance (Merchandize and Services), 2001 - 2007 (US Dollars at current prices in millions) YEAR All LDCs Balance Import Export 2001 -15,780 59,572 43,792 LDCs: Africa and Haiti Balance -10,321 Import 36,176 Export 25,855 LDCs: Asia Balance -4,963 Import 22,059 Export 17,095 LDCs: Islands Balance -495 Import 1,337 Export 842 Source: UNCTAD Globstat 2003 -18,217 73,215 54,998 2006 -6,849 125,343 118,495 2007 -2,696 144,816 142,120 -11,805 46,302 34,497 -804 84,058 83,254 4,893 96,774 101,667 -5,966 25,472 19,505 -4,975 38,894 33,919 -6,387 45,337 38,950 -446 1,441 996 -1,070 2,391 1,322 -1,202 2,705 1,503 1. LDCs Trade Performance – 2001 to 2008 Table 8: LDCs' Exports and Imports of All food items (SITC 0 + 1 + 22 + 4) , 2001-2008 (Value in $US million and share (%) 2001 Exports 4,599 Imports 8,277 Balance -3,678 2006 8,100 16,407 -8,307 2007 9,535 20,823 -11,288 2008 11,467 24,796 -13,329 Export 3,329 Import 4,995 LDCs: Asia Export 1,163 Import 3,086 LDCs: Islands Export 108 Import 195 Source: UNCTAD GlobStat database 5,566 10,246 2,331 5,773 203 388 6,281 12,356 3,049 8,009 205 458 7,505 16,379 3,692 7,804 269 612 All LDCs LDCs: Africa and Haiti 1. LDCs Trade Performance – 2001 to 2008 Table10 : LDCs' merchandise exports to developing countries, 2001-2007 ($ 000) Region South to exports 2001 2007 752,164,945 2,036,219,158 2,385,500,495 to 12,739,657 51,446,051 58,515,602 LDCs' share in South-South trade (%) 1.7 2.5 2.4 LDCs South South 2006 exports Source: UNCTAD South-South trade database. 1.2 LDCs Trade Performance – 2009 & projection for 2010 • Global economic crisis led to a trade slump globally, contracting between 10-15% in 2009, and expected to rebound in 2010. • LDCs’ trade performance also contracted, & predicted to recovery in 2010. • But signs of recovery remain fragile 2. Possible Areas for 4th PoA for LDCs: 2011-2020 Trade is important. Table 4. LDCs’ Total Merchandize and Services Exports as a Percentage of GDP, 2001-2008 2001 22.4 LDCs LDCs: Africa 24.0 and Haiti LDCs: Asia 19.5 LDCs: Islands 55.0 Source: UNCTAD GlobStat 2006 28.7 2007 28.4 2008 28.6 31.6 23.3 42.6 32.0 21.8 40.9 33.2 20.2 40.1 2. Enhancing trade’s contribution – LDCs & the international community (1) New approach, allowing for diversity of policy responses to develop best-fit solutions. (2) New generation of trade & related policies. (3) Producing dynamically growing products & services (that create jobs & increase incomes). (4) Further improving market access and entry opportunities for LDCs in North and South. 2. Integrating new generation trade policies into national development strategies 1. Services Policy Reviews in Nepal and Uganda 2. Creative industry policy reviews in Mozambique, Senegal & Zambia 3. Competition & consumer policies 2. Strengthening productive capacities to trade Improvement of market access and entry opportunities in North and South • • • • • Further improve DFQFT Address Non-tariff barriers Contribution of the WTO Doha Round to LDCs; facilitate WTO accession by LDCs. Enhance participation of LDCs in SouthSouth regional integration and interregional arrangements Combine market access/entry with supply-side capacity building