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Consumer, environment to gain most from digitalization – but adoption depends on business, government
Much of the value that digitalization can potentially generate for society will remain trapped unless efforts are stepped up to align private-sector investment incentives with the long-term public good, according to findings of the World Economic Forum Digital Transformation Initiative (DTI).
The DTI analysis estimates that more than half of the value that digitalization offers is in the form of societal benefits. These include net job creation and reduced income inequality, improved health outcomes and fewer accidents, reduced carbon emissions and time and cost savings for consumers.
“The majority of the benefits of digital will accrue to society, but only if collective action is taken to assess the potential, using consistent criteria to evaluate the outcomes of specific policy actions,” said Bruce Weinelt, Head of the Digital Transformation Initiative at the World Economic Forum. “A greater change in the mindset of business will also be necessary. The private sector will have to go beyond measuring performance by growth and profit, and begin to embed sustainable and trust-based business models at the heart of their strategies.”
The DTI project, undertaken in collaboration with Accenture, has completed value-at-stake analyses in 10 industries to help the private sector identify opportunities for growth. It has complemented this with a new societal value framework enabling the private and public sectors to understand and measure wider societal benefits in financial terms. This provides a consistent evidence base that helps governments and businesses design regulatory and policy changes that remove investment barriers at national and regional levels.
The new societal value model has been tried in India, the UK and Denmark to engage dialogue with policy-makers. In the Indian state of Telangana, the four digital initiative models demonstrated that value generated in the next decade could be equal to 40% of India’s GDP in 2015. Of the benefits of digitalization, 94% could accrue to society and the environment, as opposed to industry. For example, digital payment solutions could improve access to financial services for small businesses, creating 4.5 million jobs and $410 billion in value to society. This will require measures to spur more investment in broadband and wider adoption of digital applications.
Mature OECD economies could see even greater social benefits from digitalization than the global average. For example, the higher costs in sectors such as healthcare could result in greater savings and productivity improvements. In the UK, improved safety mechanisms in vehicles could reduce road fatalities by 9% a year, while advanced driver assistance systems could save consumers $25 billion in insurance and accident-related costs. Progress would depend on mandated supply of such systems in cars and in automotive services. More broadly, further incentives and policy changes could allow digitalization to deliver $9 trillion in economic benefits globally by addressing the United Nations Sustainable Development Goals to combat poverty, inequality and climate change.
The societal value framework includes a staged approach to help companies identify the initiatives that allow them to deliver greatest value to society while achieving long-term commercial benefits. This comprises steps to identify the social trends of greatest relevance to companies, track the potential value at enterprise level and execute strategies to achieve them.
“To unlock the digital revolution’s full value to society, governments, businesses need to shape strategies that measure the value of innovation and investment,” said Mark Knickrehm, Group Chief Executive, Accenture Strategy. “More than just paying lip-service to shared value, this means leaders applying hard-nosed economic tools to fully understand the costs and benefits of digital transformation for business and society, while committing to enhance the role of people at work.”
The World Economic Forum DTI reports recommend a range of actions, including rapid reskilling and greater alignment of education with the new demands of fast-changing markets. Other action areas include public-sector investment, tax incentives, simplified regulation and measures to improve transparency in the use of data so as to encourage wider adoption of new technologies.
The reports note that while new technologies have the potential to increase economic growth, reduce inequality and promote inclusivity, they could be jeopardized by retreat of globalization, the rise of political populism and social instability. Concluding that business and political leaders are at a crossroads, the reports call for responsive and responsible leadership to proactively counter forces that would constrain innovation, trade and growth.
The 47th World Economic Forum Annual Meeting is taking place on 17-20 January in Davos-Klosters, Switzerland, under the theme Responsive and Responsible Leadership. More than 3,000 participants from nearly 100 countries will participate in over 400 sessions.
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EAC gender equality Bill to address gaps in trade
East African Community (EAC) partner states will be legally obliged to collectively promote participation of women and men in regional trade and sustainable economic growth, while considering gender dimensions to personal safety in cross border trade once a new Bill is passed this month.
The East African Legislative Assembly (EALA) is sitting in Kampala, Uganda to, among others; consider the pdf EAC Gender Equality and Development Bill, 2016 (5.32 MB) , which makes provision for gender equality, protection and development in many aspects of the EAC’s integration agenda.
The draft seen by The New Times partly indicates that in the process of engendering trade, countries shall: support national and regional associations of women in business; address gender and non-tariff trade barriers; and ensure gender analysis in diagnostic trade integration studies and other trade impact assessments.
Francine Uwera Havugimana, second vice chairperson at the Private Sector Federation (PSF), in Kigali, is concerned by how the culture myth harming women will be deflated.
“As we all know that women are starting freshly, my opinion would be to set a proper policy supporting women in this long and hard journey in order to avoid disappointment,” Havugimana told The New Times on Monday.
“For example, putting in place a strong policy that is well regulated where by 30% is applied for gender equality as minimum share in procurement, loan in big project, or joint venture with government in big projects for development. I think this will be the only way to build this trust among women and in the entire Community.”
The mover of the Bill, MP Nancy Abisai [Kenya], says it seeks to consolidate and harmonise various commitments on gender equality made at regional, continental and international levels in EAC context.
Women constitute over 60 percent of the EAC population and 52 percent in Rwanda.
Last month, Rwandan women entrepreneurs in Kigali urged EALA to hasten work on the legislation. During the first ever national conference on the role of women in socio-economic development in the EAC held to mobilise women to tap into opportunities provided by regional integration, it was noted that regional laws are gender blind.
At the time, Elizabeth Ampairwe, coordinator for women and girls’ empowerment at the Eastern African Sub-Regional Support Initiative for the Advancement of Women (EASSI), said the EAC Elimination of Non-Tariff Barriers law passed in 2015, “does not address the needs of women.”
EASSI gender analysis found gaps and called upon countries to invoke implementation of the Act in a gender responsive way.
Stephen Gerald Okello, the EASSI project officer for women’s economic justice in the EAC, told The New Times that the Elimination of NTBs Act has been ratified by only Tanzania and Kenya.
“The Act has no specific consideration for women traders and yet the gender dimensions of trade clearly highlight that women are acutely affected by the NTBs as compared to their male counterparts. The ministries or departments of gender in some EAC countries are not consulted especially on issues concerning trade,” Okello said.
“For example, ministry of gender is not part of the national monitoring committee on NTBs in Tanzania, Uganda and Kenya. However, some ministries of trade have mainstreamed gender in their programmes through establishing gender desks at the ministry or within the department of trade. Nonetheless, these desks are silent or inactive.”
According to Okello, the 2015 Act also does not give special consideration to small scale traders.
The NTB reporting mechanism does not take into consideration the sex of the respondent, therefore categorisation of NTBs by sex is not possible, he added.
“Further study on why certain NTBs are faced by women and men may not be explored due to this limitation. Also, the time bound programme on the elimination of NTB is also not gender responsive.”
Partner States ratified regional and international instruments relating to gender equality and women’s rights and have national legislations and policies on gender equality.
However, according to EASSI, these are either not extended to fully protect women’s rights or efforts to implement them are insufficient, which still leaves women vulnerable to human rights abuses and have exacerbated inequalities in governance and trade.
Partner States are being urged to implement requisite instruments, ensure legislation and policies, allocate sufficient funds and take affirmative action to address gender inequalities and women’s rights and mitigate barriers to advancement of women and girls.
Meanwhile, there is no legal framework providing authoritative data that can be used to hold EAC partner States accountable on their gender commitments and, for the first time, the region is also looking to produce a gender equality barometer, a tool which will include a gender and development index and citizens perceptions.
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Kenya, Rwanda block chicken imports from Uganda after bird flu outbreak
Kenya and Rwanda have banned importation of live birds and poultry products from Uganda after a confirmed outbreak of Bird Flu on Sunday evening.
Kenya’s Chief Veterinary Officer Juma Ngeiywa said all public health and veterinary officers at Busia and Malaba border posts had been placed on high alert to ensure no imports of poultry products are allowed in until the situation in Entebbe has normalised.
“Permits issued to chicks, eggs, poultry meat and breeding chicken importers will have to be reviewed to safeguard spread of Bird Flu to Kenya,” Dr Ngeiya said.
Similarly, Rwanda’s Agriculture minister Dr Geraldine Mukeshimana said “importation of chicken and all poultry products (eggs and meat) from Uganda and countries in Europe where Bird Flu has been detected has been temporarily suspended.”
European countries affected by the ban include Hungary, Germany, The Netherlands and Denmark.
Avian Flu
The alerts follow a Uganda government announcement that the Highly Pathogenic Avian Influenza (HPAI), which infects both animals and humans, had been detected after tests on carcasses of white winged-black tern birds that died on the shores of Lake Victoria near Entebbe at Lutembe beach on January 2.
A second incident was confirmed on January 13 at Bukakata area within Masaka district, 75 kilometres from Kampala City, when carcasses of five domestic ducks and a hen tested positive to HPAI prompting re-activation of the National Task Force to co-ordinate the fight against Avian Flu.
Acting General Health Services Director in Uganda Anthony Mbonye, however, allayed fears of people contracting the Avian Flu, saying the probability of bird-to-human infection was low.
“Any infected person will show influenza-like symptoms-coughs, muscle-aches, headaches and diarrhoea. It can be mild, but also very lethal as it attacks the lungs and the kidneys,” he said.
Uganda’s Agriculture, Industry and Fisheries minister Christopher Kibazanga confirmed the outbreak, saying measures had been taken to avert any further spread of the disease.
Migratory birds
The Avian Flu could have been brought to Uganda by white winged black terns (migratory birds) that fly in from Europe during winter to breeding grounds on the shores of Lake Victoria.
Rwanda has also called its wildlife officers to be on high alert and closely monitor the situation.
“Security organs, customs, immigration, national parks and lakes-responsible institutions, as well as local leaders are encouraged to follow closely on the issue and ensure that the guidelines are implemented,” Dr Mukeshimana said.
According to Davidson Mugisha, the president of Rwanda Birding Association, the country is a common destination of migratory birds.
“We do receive migrant birds which stop over either passing through to the South or as ‘summer’ visitors. Main stopovers are Akagera National Park, Bugesera District, Mashyuza, Buhanga Forest and Rugezi, among others,” Mr Mugisha told The EastAfrican.
Traders
Poultry traders in Rwanda and Kenya have been sourcing eggs, hatched day-old chicks and poultry meat from Uganda earning handsome profits.
An egg seller at Kenya, Nakuru Wakulima Market, Benard Ngugi said that at least 6,000 crates of Ugandan eggs were offloaded at the market every week helping meet an egg shortage, which if not checked could cause a steep price hike.
According to available figures, Rwanda imports about 300,000 eggs from Uganda alone every week and about 150,000 day-old chicks every month from Uganda, Belgium and Holland.
The Ugandan government downplayed the outbreak, but instructed poultry keepers to confine their chicken to avoid any contact with wild birds that could lead to infections.
The statement added that any bird death should be promptly reported for analysis.
Prof Mbonye said no one should touch a dead bird with bare hands, but should report promptly to the authorities to facilitate further investigations.
The ban could also affect hawking of roasted poultry meat along the Kampala-Masaka highway, adversely affecting the livelihoods of about 300 traders.
Uganda has been enjoying a boom in commercial poultry production with several hatcheries and egg production companies established in various parts of the country.
Currently there are no statistics showing the poultry trade volumes between Kenya and Uganda.
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At Cape Town Forum, UN Women and partners seek ways to close gender data gaps
With only 41 per cent of countries regularly producing data on violence against women and only 13 per cent of countries having a dedicated gender statistics budget, the first-ever United Nations World Data Forum yesterday explored ways to close these data gaps.
“Gender statistics are critical for setting priorities, planning interventions and assessing their impacts,” Purna Sen, the Director of Policy Division at UN Women, told a panel discussion. “They can put a spotlight on inequality and women and girls who are left behind.”
The panel, titled ‘Gender Data for Decision-making: Strengthening the Links,’ was among the nearly 100 sessions and parallel events scheduled throughout the 15-18 January gathering in Cape Town, South African, of more than 1,400 data experts around the world.
Ms. Sen said that when the 2030 Agenda for Sustainable Development was adopted in September 2015, UN Women, formally known as the UN Entity for Gender Equality and the Empowerment of Women, faced “a hard truth:” difficulty monitoring the overwhelming majority of the gender-related targets.
Political will needed to prioritize gender statistics
Noting that the global statistical community has made substantial progress in recent years in the area of gender statistics, including strong normative and technical advances, better coordination, more and better technical resources and innovative programmes, she said that lots of challenges remain.
Gender statistics are often not prioritized because of a number of factors linked to the lack of political will, particularly in politically charged areas such as violence against women that, frankly speaking, can make a government look bad, she added.
Ms. Sen also pointed out that gender specialists often do not understand statistics and statisticians do not always understand gender.
Based on the latest data from OECD-DAC, only two per cent of funds for statistical capacity building are dedicated to projects whose principal objectives are to strengthen gender statistics, she said.
“Data are simply not useful if they are not used”
At a high-level event during the 71st session of the UN General Assembly last fall, UN Women launched a flagship initiative on gender statistics, “Making Every Woman and Girl Count,” which aims to effect a radical shift in the availability, accessibility and use of quality data and statistics on key aspects of gender equality and women's empowerment.
The initiative support efforts to conduct an assessment of gender statistics and identify gender data gaps, mainstream gender in national strategies for producing statistics, and developing national plans to localize gender-related Sustainable Development Goals (SDGs) targets and indicators.
The initiative also aims to ensure that data are accessible to all users, including governments, civil society, academia and the private sector, and can be analyzed to inform research, advocacy, policies and programmes and promote accountability.
“Data are simply not useful if they are not used,” she said, explaining that this is the area where capacities are extremely weak and a lot of work and efforts are needed by all stakeholders.
Emily Courey-Pryor, Executive Director of Data2X, who moderated the discussion, said that “we will only be able to truly promote gender equality, alleviate poverty, and advance development progress if we improve gender data.”
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tralac’s Daily News Selection
Featured tweet, @UKenyatta: Kenya and Mauritius have agreed to make our two countries the financial and trade hubs for Africa
Diarise: the German-African Business Summit will be held in Nairobi, 8-10 February
The East African Legislative Assembly convenes today in Kampala: statement by EALA Speaker, Daniel Fred Kidega
The harmonization/approximation of Laws in the EAC context is also fundamental for the region to move in tandem. A report of the Committee on Rules and Privileges of the Oversight activity on approximation of national laws in Partner States adopted by the Assembly in November 2016, indicates that Republic of Rwanda and Uganda have each harmonized 10 laws, Tanzania (6 laws), Kenya (4 laws) and Burundi (3 Laws). Let me also take this opportunity to urge the Council of Ministers to finalize the policy with regards to harmonization of academic and professional qualification regulations. The Assembly is also keen to enact legislation on cross-border practice of professional services and on social security portability. This shall address the regional services’ market which is currently fragmented by restrictive policies, many pegged on nationalistic requirements, in licensing, qualification, regulatory and educational requirements. Such legislation would institute a framework for professional workers across many sectors – be they legal, medical, education and others to move freely in the region thus operationalising Article 76 of the EAC Treaty.
A work in progress: integrating markets for goods, labor, and capital in the EAC (IMF)
Trade integration does not seem to have increased significantly since the implementation of the CU. External tariff rates in EAC countries have decreased significantly between 2000 and 2014, with the average external tariff rates converging to about 12–14%, while all EAC member states have reached zero effective tariff rates for intra-EAC trade. However, while intra-EAC trade has grown substantially in nominal terms, the share of intra-EAC imports in total imports has not increased since the implementation of the CU and remains low (single digit). On the export side, intra-EAC trade represents a higher share of total exports (about 20%) because the value of total exports is much lower than that of total imports. Gravity equation estimates show that the intensity of bilateral trade within the EAC lags behind that within Asia, America, and Europe even after controlling for size, level of development, culture, and distance. However, intra-EAC trade is more intensive than in any other region in sub-Saharan African, except for the West African Economic and Monetary Union (WAEMU) area. [Chapters: Analysis of merchandise trade integration in the EAC, Labor migration and remittances in the EAC, Financial integration in the EAC] [The analysts: Emre Alper, Wenjie Chen, Jemma Dridi, Herve Joly, Fan Yang]
Regional integration, poverty and the EAC: what do we know and what have we learnt? (ECDPM)
In the first section we provide a conceptual discussion of the relationship between trade liberalisation and poverty. In the second section we discuss the available evidence on poverty in East Africa and how it has changed over time. One of the messages that emerges from this discussion is the relative paucity of data on poverty for the countries of the East African Community, and even more so with regard to changes over time. In order to draw the link between regional integration and poverty reduction, in the third section we evaluate the extent of progress on integration in the EAC. The fourth section of the paper looks at some descriptive empirical evidence as to the impact on trade and then considers the more formal empirical evidence as to the impact of regional integration on poverty in the region. A key focus of the review is identifying to what extent there is evidence specific to integration processes as opposed to considering trade more generally. We find that the regional integration specific literature is limited and hence there are clear evidence gaps. The final section concludes. [The analysts: Michael Gasiorek, Bruce Byiers, Jim Rollo]
IMF’s Lagarde to visit Uganda next week (Daily Monitor)
West Africa: Cross-border co-operation and policy networks (SWAC/OECD)
This publication examines how policy actors involved in cross-border co-operation contribute to the regional integration process in West Africa. It uses a pioneering methodology, known as social network analysis, to visualise the formal and informal relationships between actors involved in cross-border policy networks, showing that borders have notable and diverse impacts on exchanges of information and the relative power of networks. The report then analyses a range of regional indicators of co-operation potential, visually demonstrating that borders can also affect the ability of sub-regions within West Africa to develop cross-border initiatives in a number of ways. Combining these two analyses with the perceptions of regional policy makers as to which border areas they consider as priorities for regional integration, the publication concludes with the analytical foundations for more effective place-based policies that can enhance cross-border co-operation in West Africa. [Table of contents: Part 1 - Towards a new approach to cross-border co-operation, Part 2 - Cross-border co-operation: potential, networks and political priorities]
Sahel trade routes: arms, people and drugs (Deutsche Welle)
In Niger, anti-smuggling efforts risk trading one crisis for another (African Arguments)
West Africa Brief: 1-9 January (SWAC/OECD)
ECOWAS Human Rights Day: statement
Catherine Grant Makokera: ‘Let’s not forget the region: trade facilitation in the face of protectionism?’ (TUTWA)
So what does 2017 hold for Southern Africa in terms of trade and economic development? There are a few key themes I would like to highlight, including trade facilitation and industrialisation. These are not new agendas but are anticipated to continue to dominate policy debates in the region in the coming year. Zimbabwe deserves a special mention as a market that offers great potential and is critical for regional initiatives as well.
South Africa Economic Update: private investment for jobs (World Bank)
Using firm level data, the report examines the effectiveness, cost, and impact of investment tax incentives granted to the various economic sectors for additional investment and job creation. It contends that if targeted well, ITIs can result in increased investment and job creation as intended and support poverty alleviation as each job created lifts about one person out of poverty. However, the report reveals that the current set of ITIs, which the government of South Africa has deployed among other policy instruments that are aimed at promoting industrial development, have not yielded a significant reallocation of private capital toward industrial sectors, nor produced higher industrial employment as expected. Instead, private investment has in recent years increasingly gone to less productive sectors, generating negative total factor productivity growth.
Djibouti breaks ground on massive Chinese-backed free trade zone (Reuters)
The president of Djibouti on Monday formally launched the construction of a project touted as Africa’s largest free trade zone, to be built in the tiny Horn of African nation with Chinese backing. "(Djibouti) aims to become a gateway not only to Ethiopia but to South Sudan, Somalia and the Great Lakes region," Aboubaker Omar Hadi, chairman of the Djibouti Ports and Free Zone Authority, told Reuters. "This new free zone will be the country’s first employment reservoir, with more than 15,000 direct and indirect jobs created."
Kenya: Tullow strikes more oil in Turkana ahead of early export plan (Business Daily)
Kenya has hit another oil bonanza, taking the country closer to hitting one billion barrels of recoverable reserves. British explorer Tullow Oil on Tuesday announced more finds at the Erut-1 well in Turkana basin, in what is set to lift the country’s estimates of the black gold from 750 million barrels.
Mauritius: ICT/BPO Industry Review 2016 (GoM)
Referring to the eight main indicators which govern the ICT sector (amongst which the UN e-Governance survey and the World Economic Forum’s Network Readiness Index), Mr Sinatambou observed that Mauritius ranks 1st in Africa. Now, he said, we have to compare with other frontline players, that is, two giants in the IT sector: India and China. Looking at the figures, out of the eight key indicators, Mauritius is actually doing better than India and China in five of them, the Minister stated. Total employment in the ICT-BPO industry has crossed the 20 000 threshold and presently stands at 23 000. The BPO segment remains the main generator for jobs with 53% of total employment in the segment of call centres, BPO non-voice and shared services. The key drivers highlighted in the 2016 Survey include (pdf): [Regional e-Governance Academy to be set up in Mauritius]
Trump-Africa commentaries: Connor Gaffey: ‘What we’ve learned about Donald Trump’s Africa policy’ (Newsweek), Janet Eom: ‘Donald Trump’s team has questions about China in Africa. Here are answers.’ (Washington Post), Nico Vermuelen: ‘Too early to speculate on US trade policy, says South African auto body’ (Engineering News), Daniel Pelz: ‘Obama’s Africa legacy: more trade than democracy’ (DW)
WEO UPDATE: A shifting global economic landscape (IMF)
After a lackluster outturn in 2016, economic activity is projected to pick up pace in 2017 and 2018, especially in emerging market and developing economies. However, there is a wide dispersion of possible outcomes around the projections, given uncertainty surrounding the policy stance of the incoming US administration and its global ramifications. The assumptions underpinning the forecast should be more specific by the time of the April 2017 World Economic Outlook, as more clarity emerges on US policies and their implications for the global economy. With these caveats, aggregate growth estimates and projections for 2016–18 remain unchanged relative to the October 2016 World Economic Outlook. The outlook for advanced economies has improved for 2017–18, reflecting somewhat stronger activity in the second half of 2016 as well as a projected fiscal stimulus in the United States. Growth prospects have marginally worsened for emerging market and developing economies, where financial conditions have generally tightened. Near-term growth prospects were revised up for China, due to expected policy stimulus, but were revised down for a number of other large economies - most notably India, Brazil, and Mexico. [Transcript of a WEO press briefing]
Services and performance of the Indian economy: analysis and policy options (Working Party of the Trade Committee, OECD)
To set in motion such a virtuous cycle, services sector reforms are needed. India scores well above the average on the STRI in most sectors and among the highest of all countries in some sectors. The scores stem partly from a general business environment that imposes significant costs of establishing and conducting business. Among these are restrictions on the movement of people for the purpose of providing services, restrictions on access to land and real estate, rules and regulations related to establishing a branch or subsidiary and relatively burdensome administrative procedures for obtaining the permits and licenses needed to conduct business. Thus, liberalising international trade and FDI alone would not make a sufficient dent in the cost of establishing and conducting business to obtain the objectives of the Make in India initiative. [Services trade to top India’s agenda during WTO Chief’s February visit]
Today’s Quick Links:
Kaddu Sebunya: ‘Beyond China’s ivory ban’
Poland targets Asia and Africa with new trade agency
SADC Logistics cell situation report: week 01 2017, tables and charts
US files WTO complaint against Chinese aluminium subsidies (WTO)
Update of ANNEX III to ‘WCO Guide for Technical Update of Preferential Rules of Origin’
UNCTAD Briefing on the UN Oceans Conference 2017: the trade and development perspective
Opening Plenary of the UN World Data Forum: remarks by Wu Hongbo
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South Africa Economic Update: Well-targeted private investment could create additional jobs
Re-orienting tax incentives could boost growth, jobs and support poverty alleviation
Re-orienting investment tax incentives towards sectors of the South Africa economy that have high productivity and a comparative advantage would stimulate growth, create additional jobs and support poverty alleviation, according to a World Bank report released today.
The ninth edition of the South Africa economic update, Private Investment for Jobs, analyzes the effectiveness and efficiency of investment tax incentives (ITIs) in various economic sectors. ITIs are one of several policy tools the government has used to accelerate industrial development in the past decade to promote additional investment and job creation against the shortcomings of a commodity-driven growth model, the report notes.
“We see from this report that most job creation, mainly from the service sector, took place during the commodity super cycle and its recent end calls for alternative sources of growth,” said Sebastien Dessus, World Bank program leader. “Our research suggests that re-aligning the ITIs into sectors of the economy that have high productivity and a comparative advantage is one way to help stimulate growth, create additional jobs and support poverty alleviation.”
The Update suggests that encouraging private investment is one area where policy can help to decisively turn around the South African economy and enhance growth.
Using firm level data, the report examines the effectiveness, cost, and impact of investment tax incentives (ITIs) granted to the various economic sectors for additional investment and job creation. It contends that if targeted well, ITIs can result in increased investment and job creation as intended and support poverty alleviation as each job created lifts about one person out of poverty.
However, the report reveals that the current set of ITIs, which the government of South Africa has deployed among other policy instruments that are aimed at promoting industrial development, have not yielded a significant reallocation of private capital toward industrial sectors, nor produced higher industrial employment as expected. Instead, private investment has in recent years increasingly gone to less productive sectors, generating negative total factor productivity growth. The report shows that in order to generate a post-tax return of 10 percent on investment, a pre-tax rate of return of 8.8 percent is needed in mining, against a pre-tax rate that is nearly three time higher in manufacturing which stands at 29.6 percent. This may be have resulted in investment moving away from productive sectors such as manufacturing.
“What we observe is a negative composition effect since 2012 in which capital went to sectors such as mining, electricity, transport and other services that recorded a decline in their capital productivity and away from sectors recording increases in capital productivity such as agriculture, manufacturing, construction, trade and finance, thus reducing average capital productivity,” says Dessus.
The report argues that re-orienting investment tax incentives to favor agriculture, manufacturing, construction, trade and other services sectors more would increase job creation at no additional fiscal cost as overall, tax incentives have generated additional private investment which exceeded foregone fiscal revenue. Furthermore, sectors which would benefit from re-oriented incentives are also those enjoying the largest employment multipliers, thus amplifying the impact of incentives on jobs creation. The positive impact of re-oriented tax incentives would be further magnified by the emergence of new comparative advantages in sectors such as manufacturing resulting from the recent evolution of South Africa’s terms of trade.
The update forecasts modest economic recovery in the next two years, with real gross domestic product (GDP) growth projected at 1.1% for 2017, and 1.8% for 2018. This increase will be driven by rising commodity prices, easing inflationary pressures and a pickup in credit stimulating household consumption demand, according to the report. However, the report warns, while growth will pick up, GDP will not rise sufficiently on a per capita basis to generate jobs on a large scale, and reduce poverty and inequality.
Private investment will be the determining factor in influencing the government’s current GDP trajectory, according to the report.
“Continued weak private investment would further undermine growth prospects, raise again the likelihood of a costly rating downgrade, and perpetuate a vicious circle of low growth-low investment,” said World Bank Senior Economist, Marek Hanusch.
“Accelerated private investment could benefit from a still weak stable rand, improving electricity capacity, and smoother labor relations, to boost exports and growth and stabilize the capital account.” Providing an enabling environment for private investment is a key priority for policy, the report notes.
Job creation is one of South Africa’s fundamental goals, with the country’s National Development Plan (NDP) targeting the creation of 11 million jobs to reduce the high unemployment rate to 6% by 2030, and to significantly reduce poverty and inequality. To meet this target, the report estimates that the economy would have to produce at least 600,000 new jobs on average, annually. However, the report reveals that the pace of job creation in the past decade has been too slow with about 310,000 jobs having been created on average every year; 265,000 by the private sector, and about 50,000 by the public sector between 2005-2015.
Unemployment, which reached its highest mark in 13 years in 2016, currently stands at 27.1% and poverty is expected to remain roughly constant between 2016 and 2018, when employing micro-simulations that model the impact of growth on household consumption, according to the report.
“Accelerating the implementation of the NDP with strong coordination of implementing stakeholders, improving the execution of key public investment projects, strengthening cities as South African powerhouses and reducing political certainty are all areas that can raise gross fixed investment crucial to raising the growth potential of the South African economy and generating sustainable jobs,” says Hanusch.
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A work in progress: Integrating markets for goods, labor, and capital in the East African Community
This paper assesses the extent of economic and financial integration among the East African Community (EAC) along a number of dimensions and, where possible, whether integration has increased in the wake of the major regional integration policy milestones.
Overview
The EAC aims to deepen cooperation among its member states in the political, economic, and social domains. The EAC was formally established by Kenya, Tanzania, and Uganda in 2000; Burundi and Rwanda subsequently joined in 2007. Economic and financial integration in the EAC has been supported by several initiatives, including joint protocols and common regulatory frameworks. It is likely to deepen further as new initiatives (for example, regional infrastructure projects) get under way. Three main protocols have underpinned the process of integration: the customs union or CU (C2005), common market or CM (2010), and monetary union protocol (2013). In principle, EAC member countries have pursued economic integration not only for its economic benefits but also as a stepping stone to political integration – the ultimate objective.
The EAC as a whole is among the fastest-growing regions, but there are significant differences across countries. Growth has been strong for many years in most member countries, allowing for a significant increase in living standards. The situation in Burundi, however, has been less favorable, leading to large differences in per capita income across member countries. While agriculture still represents a large share of economic output and exports in all EAC countries, there are significant differences in economic structures. Kenya, Tanzania, and Uganda have had more diversified exports in recent years, for instance. Kenya has a much more developed financial sector than the other EAC countries (see Appendix I). All countries in the EAC are net commodities importers, but a number of them face the prospect of becoming significant hydrocarbon producers.
This paper assesses the extent of economic and financial integration along a number of dimensions and, where possible, whether integration has increased in the wake of the major regional integration policy milestones. Since the purpose of the common market is to have free movement of goods, capital, and people, the paper focuses on these broad categories. Data availability and quality, however, are often a major limitation. For instance, there is no direct and comprehensive measure of capital flows between EAC countries, and data on labor flows are very scarce. Therefore, the objective of this paper is not to be comprehensive, but to propose a number of stylized facts and quantitative approaches allowing for at least a partial assessment.
Trade integration does not seem to have increased significantly since the implementation of the CU. External tariff rates in EAC countries have decreased significantly between 2000 and 2014, with the average external tariff rates converging to about 12-14 percent, while all EAC member states have reached zero effective tariff rates for intra-EAC trade. However, while intra-EAC trade has grown substantially in nominal terms, the share of intra-EAC imports in total imports has not increased since the implementation of the CU and remains low (single digit). On the export side, intra-EAC trade represents a higher share of total exports (about 20 percent) because the value of total exports is much lower than that of total imports. Gravity equation estimates show that the intensity of bilateral trade within the EAC lags behind that within Asia, America, and Europe even after controlling for size, level of development, culture, and distance. However, intra-EAC trade is more intensive than in any other region in sub-Saharan African, except for the West African Economic and Monetary Union (WAEMU) area.
Labor mobility in the EAC does not seem to have increased significantly either with the implementation of the CM. The analysis of available data on bilateral EAC migration and remittances in this paper shows that (1) significant migration flows occur in EAC countries, (2) these flows are to a significant extent intra-EAC flows, (3) they are more significant for the smaller countries, (4) intra-EAC migration flows do not seem to have increased in recent years, and (5) intra-EAC remittances are low and do not appear to have increased meaningfully following the implementation of the CM.
Financial market integration remains limited, too. There still exist many legislative restrictions on the free movement of capital within the EAC that inhibit or make entry into the market expensive. While Uganda, Kenya, and more recently Rwanda have achieved a higher degree of capital account openness in the EAC, Tanzania had restrictions on all assets until recently. In the absence of data on intra-EAC capital flows, the application of the beta-convergence and sigma-convergence concepts to financial market returns for various maturities provides an indirect (and imperfect) way to assess financial integration. Empirical estimates point to convergence in short-term market returns within the EAC. Yet, there is no evidence for such convergence in longer-maturity instruments.
Overall, the implementation of the CU and CM do not seem to have led to a major increase in economic and financial integration in the EAC. This paper does not elaborate on the reasons for this empirical result, which could reflect a range of very different issues. For instance, there could be measurement problems, such as the possible misclassification of transit trade or underreporting of cross-border trade in the EAC, which could affect significantly the quality of available data. There could also be exceptional factors at play, such as high hydrocarbon prices during a large part of the period under review or infrastructure investment efforts, both having a large impact on imports from the rest of the world, that could distort the evolution of certain ratios and lead to an underappreciation of the development of intra-EAC trade. Another factor could be the time needed for policies to change existing patterns, and the limited scope of the first phase of CM implementation. However, a number of existing studies have pointed to the incomplete implementation of the CU and CM protocols. For instance, there are still many nontariff barriers affecting intra-EAC trade. The comprehensive assessments (“scorecards”) conducted in 2013-14 and 2015-16 by the EAC Secretariat and the World Bank note that laws and regulations of the EAC countries still present barriers to increased cross-border trade and foreign direct investment into the region. Progress to eliminate restrictions has been slow, and some countries have introduced new measures despite their obligations under the CM. These factors have likely slowed the development of the common market.
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UN Data Forum explores ways to improve and modernize national statistical systems
With the statistical community facing myriad challenges as countries begin to implement the new 15-year global plan for sustainable development, it is imperative to modernize, improve capacity and cooperate at a truly global level, the top United Nations economic and social affairs official told a gathering of more than 1,500 data experts yesterday.
“Success requires that all communities represented in this room fulfill a critical role and find ways to work together and create partnerships and synergies,” Wu Hongbo, the UN Under-Secretary-General for Economic and Social Affairs, said at the opening plenary of the UN World Data Forum under way in the South African city of Cape Town.
Mr. Wu stressed that accurate, reliable, timely and disaggregated data is essential to achieving the 2030 Agenda’s 17 Sustainable Development Goals (SDGs), which were adopted at a UN summit in September 2015.
“This Forum takes place at a crucial time for strengthening data and statistical capacity around the world. We have begun the second year of implementing the 2030 Agenda, an agenda that will guide international development efforts and national policy making through 2030,” he said.
In particular, National Statistical Offices (NSOs) have a key role to play, and therefore it is also essential to strengthen national statistical capacities in countries where financial and human resources for statistics are lacking, he added.
The Forum will also serve as a launching pad where diverse data producers and users can get behind the Cape Town Global Action Plan for Sustainable Development Data, which will be formally approved by the UN Statistical Commission at its 48th session in March this year.
This Plan calls for the full, active and focused commitment of government, policy leaders and the international community to undertake key actions under six strategic areas: coordination and strategic leadership; innovation and modernization of national statistical systems; strengthening of statistical systems; dissemination of data on sustainable development; building of partnerships; and mobilization of resources.
In addition to the opening plenary, titled ‘Harnessing the Power of Data for Sustainable Development,’ Monday’s events included sessions on big data innovations; state of the art in data visualizations and dashboards to support the 2030 Agenda; rethinking capacity development; recent initiatives to improve capacity on migration and refugee statistics; and integrating human rights with data collection and dissemination.
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UNCTAD Briefing on the United Nations high-level Oceans Conference 2017: The trade and development perspective
Message from Mr. Wu Hongbo, Under-Secretary-General for Economic and Social Affairs and Secretary-General of the Ocean Conference
I wish to thank UNCTAD for organizing the briefing on the preparations for the high-level United Nations Conference to Support the Implementation of Sustainable Development Goal 14 in Geneva.
I want to take this opportunity to reiterate our deep appreciation to UNCTAD for its steadfast support to the Ocean Conference and its preparatory process.
Oceans, seas and coastal areas form an integrated and essential component of the Earth’s ecosystem and are critical to sustainable development.
Oceans contribute to poverty eradication by providing opportunities for sustainable livelihoods and employment. Oceans are crucial for global food security and human health. They are also the primary regulator of the global climate.
Despite their importance, oceans, seas and marine resources are increasingly threatened, degraded or destroyed by human activities, reducing their ability to provide crucial ecosystem services.
In the 2030 Agenda for Sustainable Development, UN Member States responded to the ocean crisis by committing themselves to conserve and sustainably use the oceans, seas and marine resources and adopting Sustainable Development Goal 14 and its associated targets.
In further follow-up action, the General Assembly decided to convene the UN Conference to Support the Implementation of SDG 14 at UN Headquarters in New York, from 5 to 9 June 2017. The Conference will be co-hosted by the Governments of Fiji and Sweden.
The overarching theme of the Conference is “Our oceans, our future: partnering for the implementation of Sustainable Development Goal 14”.
The Conference will be a great opportunity for Member States and stakeholders to assess challenges, identify opportunities and actions, as well as to strengthen partnerships to advance the implementation of SDG 14.
The outcome of the Conference will consist of a concise, focused, intergovernmentally agreed declaration in the form of a “Call for Action”, a report containing the Co-Chairs’ summaries of the partnership dialogues, as well as a list of voluntary commitments for the implementation of Goal 14.
The President of the General Assembly will convene a preparatory meeting on 15 and 16 February 2017 in New York. It will be co-chaired by the two cofacilitators, H.E. Mr. Álvaro Mendonçae Moura, Permanent Representative of Portugal to the UN, and H.E. Mr. Burhan Gafoor, Permanent Representative of Singapore to the UN. The meeting will consider the themes of the partnership dialogues, as well as the elements of a “Call for Action”. The preparatory meeting will be informed by the Secretary-General’s background note. Based on the deliberations at the preparatory meeting and other inputs, the co-facilitators will present a concise draft “Call for Action” in March 2017. The intergovernmental consultations on the “Call for Action” will be concluded by May 2017.
The United Nations Secretariat, including UNCTAD, stands ready to offer any kind of support required for the Conference. I am confident that under the leadership of the Governments of Fiji and Sweden, the President of the General Assembly and the two co-facilitators, and with great support from Member States and all stakeholders, the Conference will be a great success in bringing about solutions and concrete actions in the implementation of SDG 14.
Background
The 2030 Agenda for Sustainable Development, has 17 Sustainable Development Goals. Among them, SDG 14, the “Oceans goal”, aims to “Conserve and sustainably use the oceans, seas and marine resources for sustainable development”. It includes 10 targets relating to marine pollution, protecting marine and coastal ecosystems, minimizing ocean acidification, sustainable management of fisheries and ending harmful fisheries subsidies, conserving costal and marine areas, increasing the economic benefits to SIDs and LDCs, and means of implementation.
Many of these targets are related to policy making, negotiations and ongoing discussions in the WTO, FAO, UNCTAD, UNDESA and other relevant fora. On 22 December 2016, the United Nations General Assembly (UNGA) adopted resolution 70/226 deciding to “convene the High-Level United Nations Conference to Support the Implementation of Sustainable Development Goal 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development in New York, from 5 to 9 June 2017, coinciding with World Oceans Day, to support the implementation of Sustainable Development Goal 14”.
Furthermore on 7 September 2016, the UNGA adopted a resolution on “the Modalities for the United Nations Conference to Support the Implementation of Sustainable Development Goal 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development”. This resolution determines the main framework and steps in the preparation and staging this High-Level United Nations Conference. As a way to contribute to an informed debate on the road to the High-Level United Nations Conference, immediately following the briefing, UNCTAD will launch its Trade and Environment Review 2016. The Review is exclusively dedicated to “Trade in Fish” and has a specific focus on SDG targets 14.4, 14.6 and 14b.
The objective of the briefing on 16 January 2017 was to raise awareness within the trade community in Geneva about the High-Level United Nations Oceans Conference and the preparatory process. It provided Member States with an opportunity to discuss with the co-conveners and the United Nations Secretariat on next steps and possible implications for trade-related processes currently being dealt with in the Geneva context. It also sought to provide the most recent United Nations report focusing on trade-related aspects of fisheries in line with SDG 14, opening a useful debate on the eve of the World Economic Forum in Davos.
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A shifting global economic landscape: Update to the World Economic Outlook
Global growth is projected to pick up this year and next, with better economic prospects in United States, China, Europe, and Japan, says IMF Chief Economist Maurice Obstfeld. Uncertainty, however, has risen.
An accumulation of recent data suggests that the global economic landscape started to shift in the second half of 2016. Developments since last summer indicate somewhat greater growth momentum coming into the new year in a number of important economies. Our earlier projection, that world growth will pick up from last year’s lackluster pace in 2017 and 2018, therefore looks increasingly likely to be realized. At the same time, we see a wider dispersion of risks to this short-term forecast, with those risks still tilted to the downside. Uncertainty has risen.
Our central projection is that global growth will rise to a rate of 3.4 percent in 2017 and 3.6 percent in 2018, from a 2016 rate of 3.1 percent. Much of the better growth performance we expect this year and next stems from improvements in some large emerging market and low income economies that in 2016 were exceptionally stressed. That being said, compared to our view in October, we now think that more of the lift will come from better prospects in the United States, China, Europe, and Japan.
A faster pace of expansion would be especially welcome this year: global growth in 2016 was the weakest since 2008-09, owing to a challenging first half marked initially by turmoil in world financial markets. General improvement got under way around mid-year. For example, broad indicators of manufacturing activity in emerging and advanced economies have been in expansionary territory and rising since early summer. In many countries, previous downward pressures on headline inflation weakened, in part owing to firming commodity prices.
A significant repricing of assets followed the U.S. presidential election. Its most notable elements were a sharp increase in U.S. longer-term interest rates, equity market appreciation and higher long-term inflation expectations in advanced economies, and sharp movements in opposite directions of the dollar – up – and the yen – down. At the same time, emerging market equity markets broadly retreated as currencies weakened.
Of course, asset markets adjust not just to unexpected current events, but to shifting expectations of future events. Most commentators have interpreted the post-election moves as predicting that U.S. fiscal policy will turn more expansionary and require a swifter pace of interest rate increases by the Federal Reserve. Markets have noted that the White House and Congress are in the hands of the same party for the first time in six years, and that change points to lower tax rates and possibly higher infrastructure and defense spending.
In light of the U.S. economy’s momentum coming into 2017, and the likely shift in policy mix, we have moderately raised our two-year projections for U.S. growth. At this early stage, however, the specifics of future fiscal legislation remain unclear, as do the degree of net increase in government spending and the resulting impacts on aggregate demand, potential output, the Federal deficit, and the dollar.
There is thus a wider than usual range of upside and downside risks to this forecast. A sustained non-inflationary growth increase, marked by higher labor force participation and significant expansion of the U.S. capital stock and infrastructure, would allow a more moderate pace of interest rate increases in line with the Federal Reserve’s price stability mandate.
On the downside, if a fiscally-driven demand increase collides with more rigid capacity constraints, a steeper path for interest rates will be necessary to contain inflation, the dollar will appreciate sharply, real growth will be lower, budget pressure will increase, and the U.S. current account deficit will widen.
This last scenario, one with a widening of global imbalances, intensifies the risk of protectionist measures and retaliatory responses. It would also imply a faster than expected tightening of global financial conditions, with resulting possible stress on many emerging market and some low-income economies. Some emerging and especially low-income commodity exporters could benefit from higher export prices, but importers would then lose. The details of the U.S. policy mix matter; and as these become clearer, we will adjust our forecast and spillover assessment.
Among emerging economies, China remains a major driver of world economic developments. Our China growth upgrade for 2017 is a key factor underpinning the coming year’s expected faster global recovery. This change reflects an expectation of continuing policy support; but a sharp or disruptive slowdown in the future remains a risk given continuing rapid credit expansion, impaired corporate debts, and persistent government support for inefficient state-owned firms.
At the global level, other vulnerabilities include higher popular antipathy toward trade, immigration, and multilateral engagement in the United States and Europe; widespread high levels of public and private debt; ongoing climate change – which especially affects low-income countries; and, in a number of advanced countries, continuing slow growth and deflationary pressures. In Europe, Britain’s terms of exit from the European Union remain unsettled and the upcoming national electoral calendar is crowded, with possibilities of adverse economic repercussions, in the short and longer terms.
We continue to recommend a three-pronged policy approach relying on fiscal and structural policies alongside monetary policy, but one that is tailored to country circumstances.
Some advanced economies are now operating at close to full capacity, for example, Germany and the United States. In these, fiscal policy should focus, not on short-term demand support, but on increasing potential output through investments in needed infrastructure and skills, as well as supply-friendly, equitable tax reform. Policymakers in these economies should also turn their attention to longer-term fiscal sustainability, while monetary policy can follow a data-dependent normalizing path.
Structural reform remains a priority everywhere in view of continuing tepid productivity growth, although in many cases appropriate fiscal support can raise the effectiveness of reforms without worsening governments’ fiscal positions.
Financial resilience is another universal priority and requires stronger financial regulatory frameworks, better focused on key problem areas. Countries can do much on their own to improve financial oversight and institutions, but not everything, and continuing multilateral financial regulatory cooperation is vital.
Social dislocation due to globalization and, even more, to technology change is a major challenge that will only intensify in the future. One result has been wider inequality and wage stagnation in many countries. Rolling back economic integration, however, would impose aggregate economic costs without reducing the need for government investment in well-trained, nimble workforces, along with policies to promote better matching of available jobs to skills.
On this Martin Luther King Jr. Day in the United States, we do well to acknowledge a key takeaway from 2016: sustainable growth must also be inclusive growth.
Maurice Obstfeld is the Economic Counsellor and Director of Research at the International Monetary Fund.
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Mauritius ICT/BPO Industry Review: 2016 a year marked by growth for the sector
The ICT/BPO Industry Review 2016 report, highlighting 2016 as a rejuvenation year for the sector characterised by growth and diversification of most companies with a shift from ‘Do it cheaper’ to ‘Do it differently’, was launched yesterday afternoon at the Board of Investment (BOI) in Port Louis.
Speaking at the launch event, the Minister of Technology, Communication and Innovation (MTCI), Mr Etienne Sinatambou, stated that the sector is solidly anchored as the third pillar of the economy and has now reached past the 20 000 employee benchmark, with both the figures and the trend being positive. For him, the sector should be seen from an international perspective since looking at it from a local perspective, the outlook might actually be dwarfed and the perspective may not be as accurate as it would otherwise have been.
Referring to the eight main indicators which govern the ICT sector (amongst which the UN e-Governance survey and the World Economic Forum’s Network Readiness Index), Mr Sinatambou observed that Mauritius ranks 1st in Africa. Now, he said, we have to compare with other frontline players, that is, two giants in the IT sector: India and China. Looking at the figures, out of the eight key indicators, Mauritius is actually doing better than India and China in five of them, the Minister stated. We should not be underrating ourselves but should be sending the right signals and be real patriots as this is a sector which has tremendous potential, he pointed out.
For his part, the Managing Director, BOI, Mr Ken Poonoosamy, stressed that the BOI is committed to supporting the development of the ICT-BPO sector as it presents tremendous opportunities for Mauritius in its endeavour to move up the value-chain and become a high-income economy. The Industry Survey was launched back in 2004, when the BPO Secretariat was set up at the level of the BOI, he stated. The 2016 Survey symbolises the hard work put in place by all players and the arduous uphill path travelled by the sector from its very modest beginning to becoming today a major contributor to growth, export earnings, job creation and transfer of technologies and skills, the Managing Director added.
ICT/BPO Industry Review 2016 Highlights
The key drivers highlighted in the 2016 Survey include:
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Increase of 7% in terms of number of operational companies to reach 750 companies;
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35% of the industry consist of start-ups (employing 1 to 9 people) and are at the vanguard of digital marketing, social media and web development services;
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IT outsourcing is showing an expansion trend with an increase of 3% in terms of companies engaged in the development of software solutions. Nearly 353 companies operate within this segment with multiple companies offering new innovative activities such as software as a service.
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Within the BPO segment, an increase of 16% was noted with regard to the number of companies providing both voice and non-voice activities. It is expected that this trend shall continue given the global shift from voice to digital interactions.
The industry has also maintained its strength towards high-end activities. Total employment in the ICT-BPO industry has crossed the 20 000 threshold and presently stands at 23 000. The BPO segment remains the main generator for jobs with 53% of total employment in the segment of call centres, BPO non-voice and shared services.
It is recalled that the 2016 Survey has taken nearly two months from conception to completion of the Report. A hybrid data collection methodology was used to assess the Industry’s performance by using online surveys, emails, phone conversations, and one to one meetings as well as on-site visits.
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tralac’s Daily News Selection
The 7th meeting of Continental Free Trade Area Continental Task force took place last week in Nairobi
Mr Nadir Merah, Acting Director and Head of Trade Division of the Department of Trade and Industry of the AU Commission, said the meeting following a week of work by the DTI staff and CFTA Unit, with some trade technical experts, where analysis and diagnosis of the options of the modalities (both goods and services) and their impacts on Member States including trade mapping/liberalization of CFTA Member States was carried out. Mr Merah concluded by informing participants that “finalization of this exercise was hindered by the lack of comprehensive and complete trade data. It is hoped that as the reports are given, RECs will complement the data gathering exercise based on their regional databases." The expected outcome of the 7th Meeting of the CFTA-CTF are revised modalities as well as draft legal texts and annexes on trade in goods and trade in services which will be ready for circulation to Member States for national consultation prior to the next NF meeting scheduled for March 2017.
Starting today, in Nairobi: the FAO/WHO Coordinating Committee for Africa Food Standards Programme:
Keynote address by Dr Cris Muyunda (Vice President, CAADP Non State Actors Coalition) ‘SMEs and food trade – opportunities for building regional markets through use of Codex Standards’: To play a more meaningful role in transcontinental agri-food business, SMEs need support from public investments, complementing private investment and not only for infrastructure, policy and regulatory reforms are necessary, in particular addressing mis-aligned food safety regulatory frameworks. Strong national policies should set up conditions for food safety applicable to all, and not leaving safer food as a choice for richer populations, but guaranteeing the global access to safe food products, trough trusted national food control systems. With regard to the specific needs of SMEs, Codex food and feed standards address an important range of food products, with their safety as a core concern, and as such are a tool for SMEs to gravitate towards the satisfaction of needs for more diversified demand for food products.
Online platform for information sharing on food safety control systems: The primary use and purpose of the [prototype] platform is to facilitate information exchange between member countries. Secondary uses may include informing FAO, WHO and Codex work, including allowing for analysis to be undertaken on information submitted for presentation and discussion at RCCs. The platform’s success will depend on member countries seeing a need for and buying in to the development process. [Conference documentation, Twitter updates: @FAOWHOCodex]
The UN Data Forum opened yesterday in South Africa: downloads, Twitter updates from @UNDataForum]
Today, in Geneva: a briefing on the UN high-level oceans conference 2017 - The trade and development perspective (UNCTAD)
Trump team’s queries about Africa point to skepticism about aid (New York Times)
President-elect Donald J. Trump’s views of Africa have, until now, been a mystery. But a series of questions from the Trump transition team to the State Department indicate an overall skepticism about the value of foreign aid, and even about American security interests, on the world’s second-largest continent. A four-page list of Africa-related questions from the transition staff has been making the rounds at the State Department and Pentagon, alarming longtime Africa specialists who say the framing and the tone of the questions suggest an American retreat from development and humanitarian goals, while at the same time trying to push forward business opportunities across the continent. [Donald Trump queries Kenya’s health and terror funding]
Herman Cohen: ‘I forecast Trump will demand reciprocity in trade with Africa’ (ThisDay)
Q: As January 20 approaches, what are your expectations of a Trump Presidency for Africa? A: President-elect Trump has spoken of achieving "fairness" in international trade. He also wants American companies to increase their revenues, especially through exports. I have the feeling that he will ask African governments to accept reciprocity in trade relations. Right now, African countries can export their products to the USA duty free, while American exports to Africa pay customs duties. This is a one-way street relationship in bilateral trade relations. I can forecast that a future President Trump will ask for reciprocity. US exports to Africa should be duty free.
Q: According to Hayes there are new challenges for the CCA moving on, what do you consider to be those challenges and the way out? A: The big challenge, in my view, is maintaining interest in Africa within the American business community. Will they throw up their hands and say, China has taken over? Or will they say, we need to be aggressive in building new business relationships in Africa? The new CEO, Florie Lisier, will have to maintain a forward looking approach for US businesses in Africa.
Four related Trump-Africa policy commentaries: Stephen Lande: Florie Liser and shaping the next phase of the US–Africa Partnership (Habari Network), J Brooks Spector: The puzzle of Trump’s Africa policy (Daily Maverick), Charles Robertson: Will Trump hurt or help East Africa’s industrialisation? (Financial Times), Greg Mills: Is Trump a boon for Africa? (IOL)
Sub-Saharan Africa: US National Intelligence Council Global Trends
The political effects of these trends will vary considerably across the 49 countries, with some moving towards decentralization while others experiment with Rwanda-style centralization and authoritarianism. Most leaders will remain transactional and focused on political survival rather than political or economic reform. The generational transition in politics that many African countries will undergo in the next five years will be a telling indicator of future security and stability, with those that maintain the status quo risking instability and those that let power pass to the next generation probably better equipped to manage the technology- and development-induced changes to come. These transitions are also likely to play into ethnic divisions, heightening the possibilities for conflict. [Full report]
SA-Lesotho cross-border transport disputes: SA ministerial statement (GCIS)
According to preliminary investigation, legitimate cross border operators were prevented from conducting cross border operations from Lesotho into South Africa. The standoff between the two operators resulted in the Border Post being blocked on 2-4 January. However, following the intervention by various Stakeholders and Law Enforcement Authorities, the Border Post was reopened. Furthermore, it is important for the affected parties to keep in mind that the Cross Border Passenger Operations between South Africa and the neighbouring countries are regulated by the SACU Memorandum of Understanding on Road Transportation and SADC Protocol on Transport, Communications and Meteorology. The Department of Transport is aware of the on-going challenges and conflicts on the RSA/Lesotho corridor that negate the implementation of the SACU MoU and SADC Protocol.
Dangote announces establishment of truck assembly plant in Lagos (Premium Times)
The group said in a statement on Sunday in Lagos that the plant was floated by the group in partnership with National Heavy Duty Truck Group Company Limited, SINOTRUK, a Chinese firm. It quoted Anthony Chiejina, the Chief Corporate Communication Officer, Dangote Group, as saying that the plant, located in Ikeja, has the capacity to produce 10,000 trucks annually. He stated the before now, Dangote had been spending heavily on importing trucks to distribute its products both locally and across African countries. Mr Chiejina said the conglomerate owned a 60% stake in the assembly plant while SINOTRUK holds 40%, in a partnership that was formed in 2014. Nigeria is a major market for SINOTRUK products, with Dangote Group, operating the largest fleet in Africa, having over 10,000 trucks for the distribution of its products across the continent.
Tanzania: Chinese firm to invest $1bn in cassava sector (The Citizen)
Tanzania has signed a $1bn partnership agreement with a Chinese firm to commercialise cassava farming and processing, raising hopes to growers who have been grappling with the challenge of accessing reliable markets. Tanzania Agricultural Export Processing Zone Limited and Epoch Agriculture from China said they created an out-grower scheme that will ensure sufficient production of cassava for processing. The firm will also establish an industrial park comprising of factories to produce cassava flour, cassava starch, animal feeds, organic fartilizer and paper pulp, starting with three regions of Mtwara, Lindi and Coast, according to firm’s chairperson Dior Feng.
Rwanda oil survey stalls as talks with Chinese firm collapse (The East African)
Oil exploration in Rwanda has stalled after negotiations with Chinese firm BGP suddenly collapsed, The EastAfrican has learnt. The country expected to resume oil exploration in November last year when BGP — which also conducts explorations in Kenya and Tanzania — won a tender in May to explore for the “black gold” in Lake Kivu.
France-Africa Summit updates:
African leaders discuss strategies to expand continental export base (New Times): According to a post-summit communiqué, among the ways forward to be adopted include value addition, local content development among others. “The Heads of State and Government highlighted the need to promote inclusive growth, industrialization, value-addition, local content development and the diversification of African economies which will result in the creation of industries and real jobs,” the communiqué read in part.
Museveni warns on foreign interventions in Africa (Nigeria Today): Uganda’s President Yoweri Museveni has called on African countries to oppose foreign intervention in the continent if it lacks approval of appropriate and legitimate African bodies. Delivering a keynote address at the France-Africa Summit in Bamako-Mali on Saturday, Museveni said unilateral actions by international forces without the permission of the African Union or a legitimate national force is imperialistic and must be rejected completely. [Note: the full text of Museveni speech can be downloaded]
The inclusive growth and development report 2017 (WEF)
Around the world, no bigger policy challenge preoccupies leaders than expanding social participation in the process and benefits of economic growth. The report, which covers 109 economies, seeks to improve our understanding of how countries can use a diverse spectrum of policy incentives and institutional mechanisms to make economic growth more socially inclusive without dampening incentives to work, save and invest. The Report presents a new global index, the Inclusive Development Index (IDI), providing a richer and more nuanced assessment of countries’ level (and recent performance) of economic development than the conventional one based on GDP per capita alone. It also provides a policy framework showing the many factors that can drive a more inclusive growth process.
Have we hit ‘peak trade’? No, says research (WEF/VoxEU)
Our analysis, which we outline here, counters this view. Using a variety of approaches, together with data that allows us to track the paths of nearly 400,000 trade flows over the past 20 years, we push back against three primary variants of the peak trade argument.
A brave new world for global banking: McKinsey global banking annual review 2016 (MGI)
Emerging-market banks face a different challenge. They are structurally more profitable than their developed-market counterparts, with ROEs well above the 10 percent cost of capital in most cases but vulnerable to the credit cycle. Brazil, China, and Russia could have $50 billion in profits at risk, with China comprising $47 billion. A slower growth scenario could result in additional credit losses of up to $250 billion, of which $220 billion would be in China, our report finds, but with their current high profitability of $320 billion, Chinese banks should be able to withstand these losses.
Better Business, Better World: the report of the Business & Sustainable Development Commission
Today’s Quick Links:
Nigeria General Household Survey 2015-2016: data, documentation (World Bank)
South Africa: Poultry industry roasted (City Press)
South Africa: Changes coming to competition law this year (Business Day)
Botswana: Import ban triggers vegetable price hikes, shortages (Mmegi)
Maputo could be a mega-ship port (Maritime Executive)
Kenya: Millers grappling with new rules on importing wheat (Business Daily)
Djibouti-Ethiopia railway carries hope for pan-African trade (Financial Times)
ECOWAS defence chiefs meet, prepare for military action in Gambia (Premium Times)
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UN Data Forum opens in South Africa to harness power of data for sustainable development
The inaugural United Nations World Data Forum kicked off yesterday in the South African city of Cape Town, bringing together more than 1,500 data experts from more than 100 countries, with the aim of building broad consensus on how to harness the power of data for sustainable development.
Organized by the UN in cooperation with the South African government, the four-day gathering also aims to rally support behind a new global action plan.
“The Forum comes at a crucial time for strengthening data and statistical capacity globally. Countries all around the world are mobilizing to carry out the 2030 Agenda for Sustainable Development, which they adopted at a UN summit two years ago,” Wu Hongbo, the UN Under-Secretary-General for Economic and Social Affairs, told a press conference at the opening of the Forum.
“To do so, it is essential to have accurate, reliable, timely and disaggregated data. We need to track the unprecedented range of economic, social and environmental goals that are integrated under sustainable development. This will require everyone in the statistics and data community – from governments, the private sector, the scientific and academic communities and civil society – to find ways to work across different domains and create partnerships and synergies,” he added.
The 2030 Agenda was adopted by world leaders in September 2015 at an historic UN summit. A key component of the agenda is the 17 Sustainable Development Goals (SDGs), which came into force on 1 January 2016, and which set out new 15-year targets for global efforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuring that no one is left behind.
Mr. Wu stressed that the 2030 Agenda also poses enormous challenges for the global statistical community, to modernize and improve our capacity, so that all national statistical offices become the new data hubs for data sources from across many different data systems and provide the necessary data to inform policies, and for national, regional and global monitoring.
“To make this happen, we will need governments, international organizations, businesses, academia and civil society to join forces and work together,” he said.
The Forum will preview the Global Action Plan for Sustainable Development Data, which has been prepared over the past year by a high-level group of experts responsible for statistics and data policy in their countries.
The Plan calls for a commitment by governments, policy leaders and the international community to undertake key actions under six strategic areas, including: coordination and leadership; innovation and modernization of national statistical systems; dissemination of data on sustainable development; building partnerships; and mobilizing resources. It will be formally approved by the UN Statistical Commission at its 48th session in March this year.
Jeff Radebe, the Minister in the Presidency for Planning, Monitoring and Evaluation, and Chairperson of the National Planning Commission of South Africa, said open government cannot succeed without open data that is freely accessible to all citizens, and that “numbers will form the bedrock of a better life for all.”
According to the Forum’s organizers, the event will also provide an opportunity for major producers and users of data and statistics to come together to launch new initiatives and innovative solutions that will deliver better data on health, education, income, environmental indicators and other aspects of sustainable development.
The substantive part of the Forum will start on Monday, with close to 100 sessions and parallel events scheduled through Wednesday, including data labs and interactive knowledge-sharing spaces, as well as more traditional keynote speeches and panel discussions.
Interview: Data and accurate information ‘critical’ in the implementation of Agenda 2030 – UN DESA chief
The first-ever United Nations World Data Forum kicked off in Cape Town, South Africa, on 15 January 2017, with the aim of increasing political and resource support for statistical capacity building worldwide.
“Talking about data, statistics – these are very important subjects for the Member States, right from the beginning – day one – of the discussions about the Sustainable Development Agenda,” said Wu Hongbo, United Nations Under-Secretary-General for Economic and Social Affairs, in an interview with UN News, ahead of the Forum.
Accordingg to the UN statistics, more than 100 countries do not accurately count births and deaths, while the births of nearly one in four children under the age of 5 worldwide have never been recorded. Only 13 per cent of countries have a dedicated gender statistics budget. Seventy-seven out of 155 countries monitored do not have adequate poverty data, although there have been clear improvements in the last decade.
In the following interview (which has been edited for clarity), Mr. Wu explains the significance of the Forum in the context of the UN Sustainable Development Goals (SDGs), its expected outcomes, and what is in it for developed and developing countries.
UN News: What's the significance of this UN Data Forum; why should people care about it?
Wu Hongbo: The Global Data Forum, the first of its kind, is organized by the UN in cooperation with the South African government. Talking about data, statistics – these are very important subjects for the Member States, right from the beginning – day one – of the discussions about the Sustainable Development Agenda. The Member States always place statistics or data on their priority plates. They want to have sufficient, accurate information that will serve as a basis for what they're going to do. That's important. Secondly, I think this global data forum will provide the first ever worldwide platform not only for government representatives, but also entrepreneurs, private sectors, and all other stakeholders. According to the registration, we are expecting as many as 1,500 participants. So you could see the strong interest and enthusiasm among the participants in data.
Q: You mention the 2030 Agenda for Sustainable Development (SDGs). Why is data important for SDGs; what is the connection?
A: Let me give you a concrete example, to illustrate the point why data or statistics are so important for the international community, for national governments, and for people. Take the registration of birth and death, for example. According to our information, in this world, about 100 countries do not keep accurate and complete records of people who die and new babies. Just imagine, if you are planning for, say, employment, for city expansion, for education, [and] you do not know how many people you have in the country [and] the city. That would be disastrous. That shows how important data and accurate information is and will be for the implementation of Agenda 2030.
Q: You mention the deficiency and capability of those poor countries, and that the gathering of data varies, etc. How can countries with poor practices improve their use of data for sustainable development?
A: This is one of the challenges identified by the international community. It will be a very important subject to be discussed in the forthcoming global Data Forum. As far as all the countries are concerned, they all need improvement in data collection, and for developed countries, they need disaggregated information so as to find focused solutions to each area. But in the developing countries, as you mentioned, the situation is not that desirable. In some countries you simply do not find statistical information. They have no methodologies. What they need is really a challenge, not only for themselves, but also for the international community. So first, the awareness of the international community for the challenges that we see in the developing countries, in particular, the least developed countries – they need information, they need statistics, and they need data.
Secondly, I think that we need financial input to establish, and to improve statistics systems. The need for financial support is very important for developed countries as well. Thirdly, I think there's urgent need for partnership; the partnership between governments in developing countries and from developed countries. Also, [there is need for] partnerships between governments and the private sector. This is the issue [for which] we have not got [a] complete answer yet. We hope, after this conference, we [will] have some ideas for the way forward.
Q: Accuracy in gathering information and data is obviously very important. Can you give us an assessment in this regard, and some examples of good practices?
A: Worldwide, I think we have made a lot of progress. Starting from the implementation of MDGs, the international community began to realize they need indicators to measure their progress. So we have 8 goals altogether for MDG, and we do have indicators for them. But when it comes to SDGs, [we have] 17 goals, so the indicators are not good enough. We have to develop more. And we could see a lot of countries start their own experience, [developing] their own national indicators. And some countries [could] start to combine the official statistics with other information freely available. We see also some countries starting to set up partnership with companies and enterprises – the private sector. So all these are good practices, and they are success stories, [which] I think will be shared at the forthcoming global conference. However, I would like to say [that] the gap between what we have and what we want is still very large.
Q: There are many countries that are, unfortunately, affected by conflict around the world, and where security is a priority concern. For these countries, is data still or equally important?
A: The information which is accurate and timely will remain very, very important, even in countries [affected by] conflict. Just take, for example, countries in conflict – you have a large number of camps for refugees. If you do not know how many refugees are in the camps, how could you provide food and all the necessities that they need? We would like to come back to the idea of the relationship between peace and development. Without peace, development cannot take place. Without development, peace and security would not be sustainable; they are interrelated. What we would like to suggest, as the information and statistics are so important for countries post-internal/external conflict, the peace building process should include capacity building and statistics. We hope that the countries or international community is involved in helping these countries or these communities, keeping in mind that data and information are also important for their future development.
Q: What could be some of the outcomes of this forum?
A: Well, we have high expectations. And the participants would like to see that there will be some concrete deliverables. We cannot predict at this stage, but I would like to share with you some ideas that we plan to achieve. First, the global data forum would be the launching pad for the global action plan; that is a plan for capacity building, for accurate information collection, and for a better use of data. That will actually be officially adopted in March by the commission of statistics, but to launch it in South Africa is to demonstrate to the international community what we have in mind for the future work, and the cooperation would be very important. And secondly, we hope there will be more partnerships established. There are some new commitments that have already been made. We hope there will be more. This is very important. Thirdly, I think there will be some good practices emerging from the discussions and the meetings, and debates. For example, how to use new technology to collect the information we need, for instance, satellite images that can be used for mapping poverty and land erosion. Another example would be how to use drones – they're very popular – and open data to help to raise productivity, say on the African continent, where food scarcity is obvious. So we would like to see this as only the beginning of worldwide discussions on data and information. It's the first step to push in the right direction. And this is not a once-for-all event. More global data forums will follow in the future.
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Sustainable business can unlock at least US$12 trillion in new market value, and repair economic system
New report shows next decade critical for companies to open 60 key market “hot spots,” tackle social, environmental challenges, and re-build trust with society
More than 35 CEOs and civil society leaders of the Business & Sustainable Development Commission (the Commission) today reveal that sustainable business models could open economic opportunities worth up to US$12 trillion and increase employment by up to 380 million jobs by 2030. Putting the Sustainable Development Goals, or Global Goals, at the heart of the world’s economic strategy could unleash a step-change in growth and productivity, with an investment boom in sustainable infrastructure as a critical driver. However, this will not happen without radical change in the business and investment community. Real leadership is needed for the private sector to become a trusted partner in working with government and civil society to fix the economy.
In its flagship report Better Business, Better World, the Commission recognises that while the last few decades have lifted hundreds of millions out of poverty, they have also led to unequal growth, increasing job insecurity, ever more debt and ever greater environmental risks. This mix has fueled an anti-globalisation reaction in many countries, with business and financial interests seen as central to the problem, and is undermining the long-term economic growth that the world needs. The Commission has spent the last year exploring a central question, “What will it take for business to be central to building a sustainable market economy – one that can help to deliver the Global Goals?” Better Business, Better World – the release of which is timed with the World Economist Forum in Davos and the U.S. presidential inauguration – shows how.
“This report is a call to action to business leaders. We are on the edge and business as usual will drive more political opposition and land us with an economy that simply doesn't work for enough people. We have to switch tracks to a business model that works for a new kind of inclusive growth,” said Mark Malloch-Brown, chair of the Business & Sustainable Development Commission. “Better Business, Better World shows there is a compelling incentive for why the latter isn’t just good for the environment and society; it makes good business sense.”
At the heart of the Commission’s argument are the Sustainable Development Goals (or Global Goals) – 17 objectives to eliminate poverty, improve education and health outcomes, create better jobs and tackle our key environmental challenges by 2030. The Commission believes the Global Goals provide the private sector with a new growth strategy that opens valuable market opportunities while creating a world that is both sustainable and inclusive. And the potential rewards for doing so are significant.
The report reveals 60 sustainable and inclusive market “hotspots” in just four key economic areas could create at least US$12 trillion, worth over 10% of today’s GDP. The breakdown of the four areas and their potential values are: Energy US$4.3 trillion; Cities: US$3.7 trillion; Food & Agriculture US$2.3 trillion; Health & Well-being US$1.8 trillion.
“Global Goals hot spots” identified in the report have the potential to grow 2-3 times faster than average GDP over the next 10-15 years. Beyond the US$12 trillion directly estimated, conservative analysis shows potential for an additional US$8 trillion of value creation across the wider economy if companies embed the Global Goals in their strategies. The report also shows that factoring in the cost of externalities (negative impacts from business activities such as carbon emissions or pollution) increases the overall value of opportunities by almost 40%.
“At a time when our economic model is pushing the limits of our planetary boundaries and condemning many to a future without hope, the Sustainable Development Goals offer us a way out,” said Paul Polman, CEO of Unilever, and a commissioner. “Many are now realizing the enormous opportunities that exist for enlightened businesses willing to stand up and address these urgent challenges. But every day that passes is another lost opportunity for action. We must react quickly, decisively and collectively to ensure a fairer and more prosperous world for all.”
While the opportunities are compelling, the Business Commission makes it clear that two critical conditions must be met to build these new markets. First, innovative financing from both private and public sources will be needed to unlock the US$2.4 trillion required annually to achieve the Global Goals.
“As stewards of long-term capital, the investment industry and its clients can support the achievement of the SDGs by creating simple, standardized sustainability metrics integral to the investment process,” said Hendrik du Toit, CEO, Investec Asset Management, and member of the Commission. “We also need new streamlined partnerships with governments and communities that can reduce risks for everyone and bring more private investment at lower cost into sustainable infrastructure development.”
At the same time, the Commission believes a “new social contract” between business, government and society is essential to defining the role of business in a new, fairer economy. The recently released 2017 Edelman Trust Barometer reinforces this idea. It shows that while CEO credibility is sharply down, 75% of general population respondents agree that “a company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.” And they can do so in ways that align with recommendations and actions outlined in Better Business, Better World: rebuilding trust by creating decent jobs, rewarding workers fairly, investing in the local community and paying a fair share of taxes.
“The promise of the Sustainable Development Goals and the Paris Climate Agreement is a zero-carbon, zero-poverty world,” said Sharan Burrow, General Secretary, International Trade Union Confederation, and commissioner. “To achieve these Global Goals, we need to rebuild trust. A new social contract for business where people, their environment and economic development are rebalanced can ensure that everybody's sons and daughters are respected with freedom of association, minimum living wages, collective bargaining and safe work assured. Only a new business model based on old principles of human rights and social justice will support a sustainable future.”
Throughout 2017, the Commission will focus on working with companies to strengthen corporate alignment with the Global Goals, including: mentoring the next generation of sustainable development leaders; creating sectorial roadmaps and league tables that rank corporate performance against the Global Goals; and supporting measures to unlock blended finance for sustainable infrastructure investment. “We need to show these ideas work not just in a report but on the business frontline,” said Dr. Amy Jadesimi, CEO of LADOL, a Nigerian logistics and infrastructure development company, and a member of the Commission.
“The Global Goals provide a sustainable, profitable growth model for business, and have the potential to trigger a new competitive ‘race to the top,’” said Jeremy Oppenheim, Programme Director of the Commission. “The faster CEOs and boards make the Global Goals their business goals, the better off the world and their companies will be.”
The Business and Sustainable Development Commission was launched in Davos in January 2016. It brings together leaders from business, finance, civil society, labour, and international organisations, with the twin aims of mapping the economic prize that could be available to business if the UN Sustainable Development Goals are achieved, and describing how business can contribute to delivering these goals.
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African Union Commission to enhance the proposed options for CFTA negotiations modalities
African Union Commission (AUC) Experts in Trade-related issues were brainstorming in Nairobi, Kenya, within the framework of the 7th meeting of Continental Free Trade Area Continental Task force (CFTA-CTF) which kicked off on 9th to 14th January 2017.
The objective of the 7th meeting of the CFTA-CTF was to conduct a diagnostic analysis of the proposed options for CFTA negotiations modalities and to prepare the zero draft text for consideration by the Chief Negotiators.
The Forum took into account the first aspiration of the of Agenda 2063 for a continental market with the free movement of persons, capital, goods and services, which is crucial for deepening economic integration, and promoting agricultural development and food security, as well as industrialization and structural economic change. It’s also focused on Africa’s Regional Integration Program to boost Intra-African Trade and the establishment of the Continental Free Trade Area (CFTA) by the indicative date of 2017.
In his introductory remarks, Mr. Nadir Merah, Acting Director and Head of Trade Division of the Department of Trade and Industry of the AU Commission welcomed the participants to Nairobi. He said the meeting is taking place following a week of work by the DTI staff and CFTA Unit with some trade technical experts where analysis and diagnosis of the options of the Modalities (both goods and services) and their impacts on Member States including trade mapping/liberalization of CFTA Member States was carried out.
Mr. Merah concluded by informing participants that “Finalization of this exercise was hindered by the lack of comprehensive and complete trade data. It is hoped that as the reports are given, RECs will complement the data gathering exercise based on their regional databases”.
The expected outcome of the 7th Meeting of the CFTA-CTF are revised modalities as well as draft legal texts and annexes on trade in goods and trade in services which will be ready for circulation to Member States for national consultation prior to the next NF meeting scheduled for March 2017.
The meeting was also expected to review the CFTA activity plan for 2017 with the aim to rationalize it in line with other important REC events taking place during the year.
Participants at the meeting were drawn from the RECs and institutions; AMU, CEN-SAD, COMESA, EAC, ECCAS, ECOWAS, SADC, UNECA, as well as UNCTAD.
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FAO/WHO Coordinating Committee for Africa, Food Standards Programme meets
Keynote address on SMEs and food trade
Opportunities for building regional markets through use of Codex Standards
African SMEs face a number of challenges. Among these are the different standards and regulations in different countries. Championing harmonization of regulations across the continent based on Codex Alimentarius standards, recommendations and guidelines will contribute to reducing the challenges faced by SMEs, while at the same time protecting consumer health and ensuring fair trade practices.
In order to be competitive in domestic, African and international markets, African SMEs must meet international food safety standards. Accordingly, capacity to adhere to Codex Alimentarius Standards could provide the necessary competitive stance to ensure entry and sustainability of African SMEs in the global market place.
Codex is a powerful tool to overcome some of the handicaps faced by SMEs and offers additional benefits: African countries need to continue on the way towards integration and Codex is a good basis for this. Codex standards represent a consensus basis that should be used for harmonization. Faced with the reality of very big exporters to Africa (Brazil, China and India), African enterprises, and in particular SMEs, need economies of scale: enhanced regional integration and food safety standards harmonization would support this.
To play a more meaningful role in transcontinental agri-food business, African SMEs need support from public investments as well as complementary private investments. Support is needed not only for infrastructure but also in policy and regulatory reforms, in particular reforms that address mis-aligned food safety regulatory frameworks.
Given the ambitious target that African Heads of State have set for the continent under the Malabo Declaration of zero hunger and trebling in agricultural exports by 2025, it is vital that capacity by the majority of African SMEs to meet international food safety standards is attained. Codex food and feed standards address an important range of food products, with their safety as a core concern, and as such are a tool for SMEs to gravitate towards the satisfaction of needs for a more diversified demand for food products. Most importantly, in the context of a challenged global food security situation, safe and nutritious food products are a critical pillar that should not be overlooked.
It is important for stakeholders in Africa to launch a discussion on the multisector nature of Codex and how different sectors can gain from Codex and collectively contribute to the overall development and improvement of public health, food safety food security as well as socio-economic development. Presently, beyond clear export opportunities, a key opportunity for the African private sector is to gain a share of the continent’s ever growing food import bill, currently in the region of $40 billion annually.
Given the importance of SMEs in employment and job creation, gender empowerment and food diversification, partnership with SMEs is of utmost importance. In seeking interventions to support SMEs to take up opportunities that exist in the food sector, it is vital that we link up with the SMEs themselves through their representative institutions. Most African countries have one or more national SME umbrella institutions. At the continental level, key umbrella institutions include the CNC (CAADP Non State Actors Coalition) and its constituent institutions such as PanAAC (Pan African Agribusiness and Agroindustry Consortium) and WARESA (women and Resources in Eastern and Southern Africa) that are playing important roles in working with SMEs to attain some level of a competitive edge in a highly demanding consumer and regulatory marketplace. For greater impact, SME umbrella institutions are the key entities to partner with around Codex standards capacity building and implementation in the African SME Sector.
The 22nd Session of the FAO/WHO Coordinating Committee for Africa is being held from 16-20 January 2017 in Nairobi, Kenya.
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Weak and unequal recovery: Five-year average decline in living standards in advanced countries highlights need for new growth model
World Economic Forum report proposes new economic growth framework to widen social inclusion.
The World Economic Forum today issued a report proposing a shift in economic policy priorities to respond more effectively to the insecurity and inequality accompanying technological change and globalization.
The Inclusive Growth and Development Report 2017 concludes that most countries are missing important opportunities to raise economic growth and reduce inequality at the same time because the growth model and measurement tools that have guided policymakers for decades require significant readjustment.
The Report finds that annual median incomes declined by 2.4% or $284 per capita across 26 advanced economies between 2008 and 2013 (or most recent period available). Developing countries fared much better, with median incomes rising by an average of 10.7% or $165. However, 23% of them experienced a decline in median per capita income of 9%, as compared to 54% of advanced countries experiencing a decline of an average 8% or $1044 per person equivalent to $2,505 per average household.
IDI Ranking | Country |
---|---|
1 | Norway |
2 | Luxembourg |
3 | Switzerland |
4 | Iceland |
5 | Denmark |
6 | Sweden |
7 | Netherlands |
8 | Australia |
9 | New Zealand |
10 | Austria |
13 | Germany |
15 | Canada |
18 | France |
21 | United Kingdom |
23 | United States |
24 | Japan |
27 | Italy |
The Report argues that sustained, broad-based progress in living standards, a concept that encompasses income as well as economic opportunity, security and quality of life, should be recognized by policymakers as the bottom-line objective of national economic performance rather than GDP growth. It proposes a new policy framework and set of measurement tools to guide the practice and assess the performance of countries accordingly.
Inclusive Development Index (IDI). The report ranks countries based on 12 Key Performance Indicators of inclusive development. Providing a more complete measure of economic development than GDP growth alone, the Index has three pillars: Growth and Development, including GDP growth, labour force participation and productivity, and healthy life expectancy; Inclusion, including median household income, poverty and two inequality measures; and Intergenerational Equity and Sustainability, including adjusted net saving (including natural capital depletion and human capital investment), demographic dependency ratio, public debt and carbon intensity.
51% of the 103 countries for which these data are available saw their IDI scores decline over the past five years, attesting to the legitimacy of public concern and challenge facing policymakers regarding the difficulty of translating economic growth into broad social progress. In 42% of countries, IDI decreased even as GDP per capita increased. A chief culprit was wealth inequality, which rose in 77% of economies by an average of 6.3%.
Some countries rank significantly higher in the IDI than GDP per capita, suggesting they have done a relatively good job of making their growth processes inclusive, including countries as diverse as Cambodia, the Czech Republic, New Zealand, South Korea and Vietnam. By contrast, others have significantly lower IDI than GDP per capita rankings, indicating that their growth has not translated as well into social inclusion; these include Brazil, Ireland, Japan, Mexico, Nigeria, South Africa and the United States.
Richard Samans, Member of the Forum’s Managing Board said, “There is a global consensus on inclusive growth, but it has been far more directional than practical. To respond more effectively to social concerns, economic policy needs a new compass setting, broad-based progress in living standards, and a new mental map in which structural reform is reimagined and reapplied to this task, with chief economic advisers and finance ministers prioritizing it every bit as much their traditional focus on macroeconomic, financial supervisory and trade policy.”
New Framework or “Growth Model.” The Report suggests that 15 areas of structural policy and institutional strength together constitute the underlying “income distribution system” of modern market economies and are the crucial tools available to policymakers to strengthen economic growth and social inclusion in tandem. It argues that rising inequality reflects mainly “a lack of attention to this policy ecosystem rather than an iron law of capitalism.” Moreover, for many countries such a reimagined process of structural reform encompassing both demand- and supply-side elements also offers the best hope for boosting economic growth given their limited monetary and fiscal policy space in the aftermath of the 2008-09 financial crisis.
The Report also includes policy metrics – 140 Policy and Institutional Indicators across the 15 policy domains that have the potential to drive both stronger growth and wider social inclusion. These permit countries to benchmark their institutional strength and policy incentives in these areas against their peers.
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Education and Skills Development – access; quality; equity
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Basic Services and Infrastructure – basic and digital infrastructure; health-related services
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Corruption and Rents – business and political ethics; concentration of rents
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Financial Intermediation of Real Economy Investment – financial system inclusion; intermediation of real economy business investment
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Asset-building and Entrepreneurship – small business ownership; home and financial asset ownership
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Employment and Labour Compensation – productive employment; wage and non-wage labour compensation
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Fiscal transfers – tax system; social protection
An Agenda for Global Inclusive Growth. Based on its findings, framework and tools, the Report proposes a coordinated international initiative to combat the prospect of secular stagnation and dispersion (chronic low growth and rising inequality) by placing progress in median living standards – people – at the heart of national policy and global economic integration:
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Major economies to undertake mutual effort to address their structural weaknesses within this Framework with support of OECD and other international organizations, potentially by expanding and reprioritizing the G20 Enhanced Structural Reform Agenda, launched during China’s recent presidency.
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All countries experiencing labour market challenges related to the Fourth Industrial Revolution to set national investment targets and public-private implementation strategies across five areas of human capital formation: active labor-market policies (training); equity of access to quality basic education; gender parity; non-standard work benefits and protections; and school-to-work transition. Data indicate few countries are well positioned.
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International financial institutions to embrace this reformulation and reprioritization of structural economic policy in their public signaling, country advice, and development cooperation programs as well as catalyze a scaling of blended, public-private financing of sustainable infrastructure – crucial for attainment of the SDGs – by shifting from direct lending to risk mitigation, co-investment, aggregation and project development.
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Trade and investment cooperation to be refocused from the negotiation of formal new norms such as free trade agreements to the facilitation of trade and investment activity within as well as among countries, particularly in respect of SMEs, services and value chains, encouraging convergence around best practices and standards to reduce frictions and boost development impact, while increasing capacity-building assistance for these purposes.
The Report was developed as part of the Forum’s multistakeholder System Initiative on Economic Growth and Social Inclusion and includes written contributions from five international organizations, three companies and one G20 government highlighting their contributions to this challenge.
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Packed agenda for 28th African Union Summit
African leaders are meeting in late January to chart the continent’s development agenda, including the appointment of a new leadership team for the African Union secretariat, based in Addis Ababa, Ethiopia.
The 28th Ordinary Assembly of the African Union (AU) Heads of State and Government is set for 30-31 January in Addis Ababa, Ethiopia.
According to a draft agenda, one of the key issues for discussion is the appointment of a new leadership at the AU Commission to steer deeper integration in Africa. The commission is responsible for the running and delivery of the AU agenda aimed at advancing greater continental integration for a more prosperous Africa.
All members that make up the top leadership at the AU Commission have reached their first or second term limits or resigned, hence the need to appoint a new team. As per the AU Commission Constitution, the terms are for four years, renewable once.
The summit will elect a new chairperson, deputy chair and eight commissioners. The eight commissioners are responsible for peace and security; political affairs; trade and industry; infrastructure and energy; social affairs; rural economy and agriculture; human resources, science and technology; and economic affairs.
A total of five candidates are vying for the position of Africa’s top civil servant. These are Botswana Foreign Affairs Minister – and the Southern African Development Community (SADC) candidate – Dr. Pelonomi Venson-Moitoi; Dr. Moussa Faki Mahamat of Chad; Agapito Mba Mokuy of Equatorial Guinea; Dr. Amina Mohammed of Kenya; and Dr. Abdoulaye Bathily of Senegal.
Of the five candidates, only Dr Venson-Moitoi and Mokuy participated in the earlier elections held in July 2016 that failed to produce a winner as none of the candidates garnered the required two-thirds of the votes in the polls, hence the need to reschedule the elections to January this year.
The other candidate in the July election was Dr Specioza Kazibwe of Uganda, who has since withdrawn her candidature.
The elections of a new chairperson follows an announcement by the incumbent, Dr. Nkosazana Dlamini-Zuma of South Africa to resign after her first term of office came to an end in June 2016.
Dlamini-Zuma, who was a SADC-sponsored candidate when she etched her name in history books after becoming the first southern African to head the AU Commission in 2012, has decided to re-join active politics in South Africa.
Dr Dlamini-Zuma became the first southern African, and first woman, to head the AU Commission since the formation of the Organisation of African Unity (OAU) – predecessor to the AU – in 1963.
Other regions in Africa have previously had their candidates occupying the top AU post.
A key achievement of the AU during the leadership of Dlamini-Zuma was the continental vision of the future, titled Agenda 2063, and related planning documents such as the “Concept Note on Domestication of Agenda 2063 in Member States of the Union”.
The concept document defines the proposed role of individual countries and Regional Economic Communities (RECs), such as SADC, in achieving the targets and goals of Agenda 2063. The roles assigned to the RECs include:
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Being the focal points for the facilitation of the adoption, implementation, monitoring and evaluation of all continental frameworks related to Agenda 2063 by member states;
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Issuing regional specific Agenda 2063 implementation, monitoring and evaluation guidelines to member states; and;
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Organizing annual forums for member states to review regional implementation performance on Agenda 2063.
Agenda 2063 is a continental strategy adopted by the AU in 2013 and aims to optimize the use of Africa’s resources for the benefit of all Africans.
The AU Summit, which will run under the theme “Harnessing the Demographic Dividend through Investments in the Youth” will also deliberate on a report to reform the AU.
The idea to reform the AU follows a decision made during the 12th AU summit held in Ethiopia in 2009 where it was agreed to set up a committee to look into the modalities of turning the AU secretariat into an authority.
The decision to transform the AU Commission into an authority was reached as a compromise step toward eventually forming a continent-wide government. The proposed authority would have a broader mandate than the existing commission.
Another major issue for the leaders at their annual summit is the establishment of a Continental Free Trade Area (CFTA) by 2017.
Negotiations to launch the (CFTA) whose main aim is to promote the smooth movement of goods and services across the continent began in June 2015 and are progressing well.
When operational, the CFTA will bring together all African countries, creating a combined population of more than one billion people and a combined Gross Domestic Product of more than US$3.4 trillion.
The summit is also expected to consider a request by Morocco to rejoin the AU. Morocco withdrew from the OAU 32 years ago in protest at the continental body’s support for the Polisario Front and its recognition of the Sahrawi Arab Democratic Republic as an independent state.
The admission of Morocco will bring the membership of the AU to 55.
The political situation in some hot spots in the continent including the Democratic Republic of Congo, will also be discussed. Other issues on the summit agenda include trade, food security and climate change.
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Starting, Sunday, in Cape Town: the inaugural UN World Data Forum
Learning to Compete: evidence on exporting and firm-level performance (UNU-WIDER)
This Special Issue by the Journal of African Economies is based on the UNU-WIDER project Learning to compete (L2C) – accelerating industrial development in Africa. Learning to Compete seeks to answer a seemingly simple but puzzling question: why is there so little industry in Africa? Industry – including modern services and agro-industry – is often the key to job creation, poverty reduction, and growth. Most Asian economies began their industrialization processes with initial conditions quite similar to many African countries today, yet, while Asia had explosive industrial growth, Africa’s shares of global manufacturing value added and exports have fallen. To sustain growth Africa must learn to compete in global markets. [Table of contents: (i) Learning to export and learning from exporting: the case of Ethiopian manufacturing (ii) Export spillovers: comparative evidence from Kenya and Malaysia (iii) The dynamics of exporting and innovation: evidence from the Tunisian Manufacturing Sector (iv) Exporting and productivity: learning from Vietnam (v) Learning by exporting: the case of Mozambican manufacturing]
Kenya’s vegetable exports grow 17% on better access to the EU market (Business Daily)
Data from the Kenya National Bureau of Statistics indicates that vegetable sales stood at Sh19.6 billion up from Sh16.7 billion the previous year. The good performance resulted from improved market access after the country met most of the stringent measures set by EU, which had affected horticultural produce sales. The export volume rose from 40,000 tonnes in 2015 to 55,000 tonnes between January and October last year.
EAC-EU trade: Defining talks for East Africa presidents for late January (Business Daily)
Dr Kiptoo said that they would not want a scenario where the impasse on the EPA and negotiations would rock the gains the intra-regional trade bloc has made so far. “For us, this is a delicate matter as it involves one of our biggest local trading partners. It requires work for a mutual balance to be found and that’s what we are working on. I am hoping that in the next few weeks, from the scheduled meetings, we will get directions on how to proceed,” Dr Kiptoo said. Kenya is also looking at the variable geometry option for unlocking the impasse, which will see imports from European Union enter its market through its borders, but which will subsequently be subject to rules of origin in markets like Tanzania. “Unless the heads of state agree, then we could consider the variable geometry option, but this will see some countries impose the rules of origin conditions, which could also now be a new challenge and self-defeating,” Dr Kiptoo said.
Zimbabwe: Local firms decry delay in imports certification (Zimbabwe Independent)
Bureau Veritas, a company contracted by government to inspect imports, says it is not creating bottlenecks but abiding by international standards to block counterfeit goods into the country. BV vice-president Arnaud de Lamotte on Wednesday said due to a meticulous verification process conduted on imported goods, it takes an average of five days from the day an exporter contacts BV to the inspection date and the issuance of a certificate of conformity. “If the exporter is not compliant, BV cannot issue a certificate. Some guys are blaming BV for delays. This is not a delay, but a process. We don’t do what we want. We are accredited by International Organisation Federation of Inspection Agency. So we have to abide by those rules,” Lamotte said. This comes after Vice-President Emmerson Mnangagwa in December said the Ministry of Industry and Commerce should re-examine BV’s operations, amid concerns it was becoming a burden on local industries.
East Africa Agri Summit to address ICT and logistics in agriculture (Africa Science News Service)
The joint keynote plenary session, chaired by Ali Mufuruki, Chairman, TradeMark East Africa and CEO of Infotech Investment Group Ltd will look at a regulatory framework, opportunities in trade agreements, investment needs and new innovations in technology to create an enabling environment for agricultural development in East Africa. Agri Logistics East Africa Summit 2017 highlights include an in-depth look at first mile transport and development, transport hubs for agriculture transhipment, cold chain logistics and supply chain innovations and quality certification and customs management for exports. It will take place in Nairobi, 28 February to 1 March. [Boost for agriculture as Kenya gets Sh10b credit from India]
How creating new markets can change the future of development finance (WEF)
Africa is deep into the digital age. Around 750 million Africans have mobile service and access to the lifeline it can provide – linking distant communities, creating jobs, providing basic financial services and real-time crop information. For most people in Africa today, the first phone they ever used was a mobile phone. How was Africa able to so quickly embrace – and benefit from – the mobile revolution? By mixing smart regulatory reforms that encouraged opening up the telecom sector to competition with private investment. This powerful combination created a new market from scratch and changed lives for the better.
Macroeconomic developments and prospects in Low-Income Developing Countries, 2016 (IMF)
This paper is the third in a series assessing macroeconomic developments and prospects in low-income developing countries. The first of these papers examined trends during 2000–2014, a period of sustained strong growth across most LIDCs. The second paper focused on the impact of the drop in global commodity prices since mid-2014 on LIDCs—a story with losers (countries dependent on commodity exports, notably fuel) and winners (countries with a more diverse export base, where growth remained robust). The overarching theme in this paper’s assessment of the macroeconomic conjuncture among LIDCs is that of incomplete adjustment to the new world of “lower for long” commodity prices, with many commodity exporters still far from a sustainable macroeconomic trajectory. Extract: ’Box 1: Export diversification in LIDCs: progress and challenges’ (p9): The deterioration in economic prospects for commodity exporters has underscored the need for LIDCs specialized in a narrow range of exports to develop a wider export base. This box examines progress in export diversification, looking at: (i) product variety; (ii) variety in trading partners; and (iii) quality upgrading.
World Employment and Social Outlook: Trends 2017 (ILO)
Third, reductions in working poverty are slowing, endangering the prospects for eradicating poverty as set out in the Sustainable Development Goals Working poverty remained a problem in 2016, with nearly half of workers in Southern Asia and nearly two-thirds of workers in sub-Saharan Africa living in extreme or moderate working poverty (i.e. living on less than US$3.10 per day in purchasing power terms). Working poverty rates have been declining over the long term and this trend is expected to continue in 2017. In emerging and developing countries, the share of workers living in moderate or extreme poverty is expected to fall from 29.4% in 2016 to 28.7% in 2017. However, progress in reducing working poverty rates is slowing. The absolute number of working poor has also been declining over recent years, but the rate of that reduction is now also slowing, and in developing countries the number is on the rise. While both the rates and numbers of working poor have been falling rapidly in emerging countries, progress in developing countries has been too slow to keep up with employment growth. Consequently, the number of workers earning less than US$3.10 per day over the next two years is expected to increase by around 3 million per year in developing countries.
Harnessing automation for a future that works (McKinsey Global Institute)
The right level of detail at which to analyze the potential impact of automation is that of individual activities rather than entire occupations. Every occupation includes multiple types of activity, each of which has different requirements for automation. Given currently demonstrated technologies, very few occupations - less than 5% - are candidates for full automation. However, almost every occupation has partial automation potential, as a proportion of its activities could be automated. We estimate that about half of all the activities people are paid to do in the world’s workforce could potentially be automated by adapting currently demonstrated technologies. That amounts to almost $16 trillion in wages. The activities most susceptible to automation are physical ones in highly structured and predictable environments, as well as data collection and processing. In the United States, these activities make up 51% of activities in the economy, accounting for almost $2.7 trillion in wages. They are most prevalent in manufacturing, accommodation and food service, and retail trade.
The future is automated. Here’s how we can prepare for it. (WEF)
Thus, we are witnessing the emergence of the “liquid workforce” and the “human cloud” as new workforce models. The “liquid workforce” refers to employees who are able to re-train and adapt to their environment in order to stay relevant during the digital revolution. In recent years, Accenture and the business media have popularized the “liquid workforce” term, bringing it into the mainstream business lexicon as Accenture develops innovative and dynamic “liquid” workforce strategies for itself and its clients. [The next industrial revolution will reinvent supply chains (Manufacturers’ Monthly)]
Dani Rodrik: Trump’s defective industrial policy (Project Syndicate)
Sociologists Fred Block and Matthew Keller have provided perhaps the best analysis of the US “developmental state” – a reality that they say the reigning market-fundamentalist ideology has obscured. Block and Keller describe how a “decentralized network of publicly funded laboratories” and an “alphabet soup” of financing initiatives, such as the Small Business Innovation Research program, work with private firms and help them commercialize their products. They and their colleagues have documented the extensive role of both federal and state governments in supporting the collaborative networks on which innovation rests – whether in biotech, green technologies, or nanotech. Such industrial policies, based on close collaboration and coordination between the public and private sectors, have of course been the hallmark of East Asian economic policymaking.
Joshua Kurlantzick: The world isn’t waiting for Trump on trade (Bloomberg)
Many Asian officials privately say they would still prefer the TPP but will support any deal that even marginally maintains the momentum for trade in Asia. They also say they could eventually support a broader, regionwide trade deal known as the Free Trade Area of the Asia-Pacific that also excludes the U.S. (and includes China). Leaders of ASEAN, the Southeast Asia regional organization, recently proposed another trade pact that would expand the deal covering the region to include other Asian economies. While some Asian businesses are trying to use their ties to the president-elect to bolster their companies, there appear to be many more searching for ways to ensure their businesses grow even if the U.S. embraces protectionism. Many aren’t waiting for the RCEP or another replacement TPP deal to be completed to examine the long-term risk of investing in the U.S. for the next four years, or for the possibility that Trump will deliver on his suggestions of a 5 percent or 10 percent tariff on imports. [The author is senior fellow for Southeast Asia at the Council on Foreign Relations]
Robert Manning: In trade with China, the key is reciprocity (Nikkei Asian Review)
When it comes to U.S.-China relations, the pressing, real economic questions are whether to grant China market status in the World Trade Organization and how to counter China’s predatory industrial and investment policies. These matters require close U.S., European Union and Japanese cooperation. Trump’s anachronistic views on U.S.-China economic ties -- with his charges of currency manipulation and unfair trade practices -- suggest he is in something of a time warp. Yet he may well carry out his threat to impose 45% tariffs. [The author is a senior fellow of the Brent Scowcroft Center for International Security at the Atlantic Council and its Strategic Foresight Initiative]
China posts worst export fall since 2009 as fears of US trade war loom (Reuters)
The world’s largest trading nation posted gloomy data on Friday, with 2016 exports falling 7.7 percent and imports down 5.5 percent. The export drop was the second annual decline in a row and the worst since the depths of the global crisis in 2009. [Related: China steel exports fall from record in relief for global steelmakers, China’s trade surplus down 9.1% in 2016]
China: Measures planned to develop exports (ecns)
China will adopt fresh measures - such as encouraging more multinational Chinese companies to be formed and actively managing any friction created over trade - to help its exports in the current year, the Ministry of Commerce said on Thursday. The ministry said that the development of more Chinese multinational companies is part of the overall push for corporate China to go global and stimulate trade. The ministry also said the country has decided not to pursue high growth in foreign trade in 2017.
The Obama Administration’s record on trade enforcement (White House)
From day one, President Obama and his Administration have vigorously worked to build a far more capable trade enforcement system. The result has been a strong record of enforcement victories that are helping to level the playing field for American workers and businesses. The Administration has enlisted all relevant agencies and used all the tools at its disposal to identify, monitor, enforce, and resolve the full range of international trade issues, so that American workers, farmers, and businesses receive the benefits they are due under our trade and investment agreements and to prevent American jobs from being threatened by unfair trading practices.
Related News
UN World Data Forum set to kick off with ambitious agenda, launching innovative data solutions to improve lives
The inaugural United Nations World Data Forum, taking place in Cape Town, South Africa, on 15-18 January 2017, is set to kick off with an ambitious and innovative programme and roster of over 300 speakers from across the data community.
Over 1,000 data experts from more than 100 countries have registered for the Forum, including from national statistical offices, data scientists from the private sector and academia, international organizations, and civil society groups, as well as political leaders and sustainable development advocates. The programme is posted online at UNdataforum.org.
The Forum, which will be held at the Cape Town International Convention Center, will be a unique opportunity for major producers and users of data and statistics to collaborate in launching new initiatives and innovative solutions that will deliver better data on health, education, income, environmental indicators and other aspects of sustainable development.
With almost 100 sessions and parallel events, from data labs and interactive knowledge-sharing spaces, to more traditional keynote speeches and panel discussions, the Forum is expected to address a wide range of data issues.
“I am confident that the first UN World Data Forum will generate fruitful collaboration across the statistics and data communities, and cutting edge practical solutions to current challenges,” said Mr. Wu Hongbo, UN Under-Secretary-General for Economic and Social Affairs, who heads the Secretariat for the Forum.
“I also hope it will boost political and financial support and partnerships for improving statistics and data capacity in many countries, to harness the power of data for the public good and the implementation of the 2030 Agenda.”
Innovative approaches
Among many points of discussion, the Forum will feature presentations and data labs focusing on a number of innovative solutions, including:
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How using mobile phones and online interviews can improve the accuracy and cost-effectiveness of gathering data, based on experiences in Africa and Latin America.
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How high-res satellite images can be used to map poverty and measure soil fertility and crop yields.
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How call records and other sources can be used to gather better data on migration and refugees.
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How open data can improve the productivity of African agriculture, showcasing practical lessons learned from an 8-year public-private partnership, the Africa Soil Information Service, including ways to incorporate new technologies such as crowd-sourcing, remote sensing and drones.
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How involving mobile carriers, banks and social media companies in partnerships can generate new, large-scale data sources.
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How civil society groups are using data to talk to governments about citizens’ experiences and priorities, and how this can build accountability and change policy.
Core issues
Other plenary sessions and panels will focus on core issues agreed by the organizing committee, including:
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A new look at how to harness the data revolution for sustainable development;
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Rethinking how to build official statistical capacity in those countries where it is needed, encouraging new commitments and collaborations;
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Integrating new data sources and big data innovations into existing structures, and how to facilitate data sharing and collaboration across sectors;
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Counting minorities and vulnerable groups and improving gender data so that we “leave no one behind” and ensure the protection of human rights; and
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Understanding the world through data: data visualization, literacy and journalism.
The Forum was agreed by the UN Statistical Commission based on a recommendation by the UN Secretary General’s Independent Expert and Advisory Group on a Data Revolution for Sustainable Development. Improved use of data and statistics will be crucial to achieving the transformational vision of a better future for people and the planet, set out in the 2030 Agenda for Sustainable Development agreed by world leaders at the UN in September 2015. Better data is needed to track progress and inform policy decisions from the local to the global levels. Rapid expansion in new sources of data is creating large-scale opportunities for innovative solutions, which need to be integrated with strengthened official data mechanisms and structures.
The first UN World Data Forum will be hosted by the Government of South Africa and Statistics South Africa, with support from the Statistics Division of the UN Department of Economic and Social Affairs. A number of partners – including governments, the World Bank, UNICEF, and several civil society organizations and research institutes – are collaborating to organize the Forum.