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Africa trade ache cloud on meet
Prime Minister Narendra Modi hopes to pull Africa into a tighter hug with India when he hosts the continent’s leaders next month. But some of his guests may for now settle for a return to the economic sheen their ties enjoyed three years ago.
A sharp drop in trade with India over the past three years has triggered worries in Africa’s biggest economies at a time New Delhi is plotting its biggest ever outreach to the continent through a grand summit in October, African and Indian officials have cautioned.
From October 26 to 29, India will serenade leaders from each of Africa’s 54 nations in the triennial summit former Prime Minister Manmohan Singh started in 2008 as it tries to match China’s influence in one of the world’s fastest growing economic regions. Never before has India invited all 54 African nations to the summit.
But since the last summit, in Addis Ababa in 2011, India’s bilateral trade with each of Nigeria, South Africa, Egypt, Algeria and Angola – Africa’s five largest economies – has declined, in some cases steeply (see chart).
For India, some of this decline carries a positive tinge, at least in the short run. India’s import bill from these countries has fallen sharply because of the drop in global prices of oil and commodities like gold, aluminium and other minerals that form the mainstay of New Delhi’s purchases from Africa.
But with Nigeria, Africa’s biggest economy, India’s exports too have dropped marginally since 2011-12, according to ministry of commerce statistics for 2014-15. The sharp decline in economic gains for the biggest – and most influential – African nations means their leaders may head to New Delhi with a focus starkly different from Modi’s. That focus will include concerns that Modi’s economic regime needs to improve too.
“Reviving the bilateral trade between India and South Africa to 2011-12 levels is a key challenge, and one we are focused on,” Stefanus Botes, minister counsellor (economic) at South Africa’s high commission here told The Telegraph. “Gold is of course a key component of our trade, but we need to, and are trying to, diversify.”
India is the world’s biggest purchaser of South Africa’s gold, but a series of import control duties imposed by then finance minister P. Chidambaram hit purchases of the metal in 2013. Some of those duties have been eased by the Modi government but South African officials argue that much more can be done.
From constituting over half of all South African exports to India, gold today makes up just over 30 per cent of what New Delhi purchases from that country. Coal, for long India’s second-biggest purchase from South Africa, has surpassed gold but South Africa’s total exports to India have dropped 40 per cent since the last India-Africa summit.
Nigeria and Angola are today among India’s top 10 sources of crude – and their export gains to India have dropped with falling world oil prices. In the short run, Indian companies investing in oil and gas projects in Africa have gained while entering the sector because of the price crash, said Ruchita Beri, senior research associate at the Institute for Defence Studies and Analyses, a Delhi-based think-tank.
“They (African nations) are trying very hard to woo us. They know ours is a rare major economy that is growing,” Beri said. “Low commodity prices are hurting them, though these prices are often cyclical.”
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Africa Must Industrialize – Joint Communiqué by the AUC, OSAA, ECA, and UNIDO
Participants at a high-level event held today at the United Nations headquarters in New York, voiced strong support for the industrialization of Africa as a way forward to implement the Sustainable Development Goals.
The organizers of the event, the African Union Commission (AUC), the Office of the Special Advisor to the UN Secretary-General on Africa (OSAA), the UN Economic Commission for Africa (UNECA), and the UN Industrial Development Organization (UNIDO), issued the following joint communiqué:
Africa Must Industrialize
Africa has seen remarkable economic growth since the turn of the millennium. It has become the second fastest growing region in the world and continues on this path despite the persistent global economic slowdown. There is still need to accelerate annual economic growth to more than 7% to effect real economic transformative growth. To be sustainable and inclusive, this progress must now be accompanied by structural transformation, which remains the only option to lift the people of Africa out of poverty. To fully benefit from its rich natural resources and to reap the benefits of the demographic dividend, Africa must industrialize. Heavily investing in the training and education of women and youth is indispensable. In order to achieve inclusive and sustainable industrialization, we must embark on a skills revolution particularly in the areas of science, technology, engineering and mathematics.
The 2030 Agenda for Sustainable Development and Sustainable Development Goal 9 recognize the centrality of inclusive and sustainable industrialization for development. African leaders made a bold statement towards inclusive growth and sustainable development in their own Common African Position on the post-2015 development agenda and the African Union’s 50th Anniversary Solemn Declaration, culminating in the Africa Agenda 2063, and its First Ten Year Implementation Plan. Many African countries have already proceeded to formulate national strategies to take advantage of the current global momentum for fostering inclusive and sustainable industrial development.
In this context, the African leaders attending the High-level event on “Operationalization of the 2030 Agenda for Africa’s Industrialization” called upon the international community to raise its financial support in line with Goal 9 of the 2030 Agenda for Sustainable Development, and to back industrial and infrastructural projects underpinning this development, especially as articulated under Aspiration 1 of the Africa’s Agenda 2063, which calls for a prosperous Africa based on inclusive growth and sustainable development. In particular, they called upon the private sector to recognize Africa’s export and domestic market potential, and invited foreign investors to substantively increase their commitments to the continent. They also called upon international organizations to provide industrial policy advice and technical cooperation programmes to enable African countries to implement their strategies and to forge stronger regional and inter-regional cooperation. They emphasized the urgency for all countries to promote structural transformation, technological change and innovation.
Regional Economic integration, intra-African trade, increased foreign direct investment and official development assistance, and South-South and triangular cooperation will be fundamental pillars of this process. UNIDO’s new Programmes for Country Partnership, the New Partnership for Africa's Development (NEPAD), the African Mining Vision and the Action Plan for the Accelerated Industrial Development of Africa (AIDA) are promising mechanisms for mobilizing multi-stakeholder coalitions to promote industrialization. As also witnessed during the Third International Conference on Financing for Development, and the adoption of the Addis Ababa Action Agenda, emphasis should continue to be placed on inclusive economic growth and sustainable industrial development.
Now that the world has adopted the 2030 Agenda, we invoke all stakeholders to join forces and form a new global partnership for its implementation, particularly for the most vulnerable countries in Africa, including for the LDCs, the LLDCs and the SIDs. We need to seize this historical moment and take substantial steps collectively to achieve the transformative agenda of inclusive and sustainable industrial development for the benefit of all countries and their populations on the continent. The AUC, OSAA, UNECA and UNIDO fully commit themselves to support Member States in their calling upon the General Assembly to pass in 2016 a resolution for a Decade of African Industrialization 2016-2025.
Nkosazana Dlamini Zuma - Chairperson of the African Union Commission
Maged Abdelaziz - Under-Secretary-General, Special Advisor on Africa
Carlos Lopes - Executive Secretary, UNECA
LI Yong - Director General, UNIDO
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Great Lakes Project to help African traders get their goods and services to market
Consider the fate of a small-scale trader in the Great Lakes region of Africa.
She – for it is likely to be a she – works a small-scale farm in a border region with her family. On her back, balanced on her head, or perhaps with the aid of a cart or a small vehicle, she transports produce to a border crossing in the hopes of selling her produce on the other side. She is all too familiar with what awaits her there.
Officials from a dozen or more local, regional, and national government agencies on both sides of the border will insist on inspecting her goods and, in some instances, inspecting her. Either overtly or by strong implication, she will understand that she must bribe one or more of these officers if she wants to get her goods to market.
A bribe might only consist of a few eggs or a bunch of bananas. (A few eggs from every trader who crosses the border adds up to a lot.) But if she resists in any way, or perhaps even if she doesn’t, she may be subject to verbal or physical harassment, including humiliating body searches conducted by men.
All the while the trader’s produce, the main source of her family’s meager income, is at risk of spoiling in the equatorial heat before ever getting to market. The dusty border crossing lacks warehouse facilities where traders can store goods while awaiting customs clearance. Even once they get across the border, assuming their goods are still marketable, they may face a long trek just to reach a market.
Those lucky enough to have only short distances to cover can cross and re-cross borders multiple times in a day, but in each crossing, they must navigate the financial and physical hazards that are part of life for traders in the region.
New project to streamline cross-border trading
Addressing these daily hazards and at the same time boosting a vital part of the region’s growing economy form the core idea behind an initiative launched by the World Bank and the governments of the Democratic Republic of Congo, Rwanda, and Uganda. Implemented in cooperation with the Common Market for Eastern and Southern Africa (COMESA), the Great Lakes Trade Facilitation Project aims to clear logistical and administrative logjams at busy border crossings, reduce corruption and the harassment of traders – particularly women – boost local and regional economies, and alleviate poverty.
“Regional approaches to trade facilitation are critical to leverage national efforts,” said Makhtar Diop, World Bank Group Vice President for the Africa Region. “The three Great Lakes countries included in this project share similar challenges that must be tackled through collective action, and borders are the solution provided they are safe and enable traders to do business in a conducive environment.”
The project will unfold in two phases, beginning with grants and credits totaling $79 million for the Democratic Republic of Congo, Rwanda, and Uganda, and a second phase totaling $61 million for the Democratic Republic of Congo, Burundi, Tanzania, and Zambia.
“The economic impact, particularly from the 20,000 to 30,000 small-scale traders that cross the border between the Democratic Republic of Congo and Rwanda each day, is crucial for the Great Lakes region,” said Paul Brenton, one of the World Bank’s Task Team Leaders for the project.
“Trade generates solidarity between communities and improves livelihoods, which in turn reduces the likelihood of conflict” added Shiho Nagaki, a fellow Team Leader.
The project will fuse both physical and logistical improvements in customs and border facilities with policy and procedural reforms and capacity building. For example, the project will fund construction of shelters for traders waiting at the border; automated turnstiles to facilitate more speedy passage through the border and less physical contact with, and therefore potential harassment from, border officials; gender sensitivity training for border officials; and the enshrinement of policies such as a requirement that inspections of female traders be conducted by female officials.
The goal is to improve the efficiency, capacity, and security of border operations at a number of key border crossings connecting the economies of these countries, thus improving the economic health of the region.
Trade is key as Great Lakes countries emerge from conflict
The Great Lakes Region of Africa, encompassing countries bordering on Lakes Albert, Edward, Kivu, Victoria, Tanganyika, and Nyasa, is emerging from years of conflict that aggravated extreme poverty and displaced millions of people.
Robust economic growth has followed the winding down of conflict and underscored the enormous economic potential of a region rich in mineral wealth, arable land, and breathtaking natural wonders. Rwanda’s economy, for example, grew at an annual rate of 8.2 percent between 2001 and 2011, with the percentage of people living in poverty declining from 59 to 45 percent. The districts with the strongest economic performance have been those bordering Uganda, the Democratic Republic of Congo, and Burundi. In Uganda, the proportion of the population living below the official poverty line fell from 56 percent in the early 1990s to 19 percent last year.
But inefficiency and corruption persist at border crossings, imposing a significant drag on the regional economy, particularly for small traders, 8 out of 10 of whom are women, according to one recent survey. At teeming border crossings such as Kasindi and Mpondwe, between the Democratic Republic of Congo and Uganda, or Goma and Rubavu, between the Democratic Republic of Congo and Rwanda, border officials are themselves seeking to survive on low monthly salaries.
“There is a lot of rudeness and harassment at the border,” said Maman Bahati, a Congolese trader. “The border agents only want money. You always have to discuss and negotiate. To cope with this, some women have no other choice but to cross illegally and sneak through the process.”
Not all of the corruption at the border is official. Mama Chantal, a Rwandan green bean trader, reflected on the brutality of unofficial agents, who routinely rough up traders.
“They walk the streets near the border and as soon as they see you trying to transport goods, they quickly grab you by your bag or your clothes and demand payment of the taxes,” Chantal said. “If you refuse to pay then they take you to the neighborhood and intimidate you.”
Most of the trade at these border crossings is small scale, usually involving individual traders on foot, and most of them trading in agricultural products. Most is “informal” trading – legal but not recorded in customs records. Thus the project, to be implemented over seven years, seeks to benefit some of the poorest and most vulnerable groups in the Great Lakes Region.
The means of improving circumstances for these traders can be as simple as ensuring that women inspectors handle the job of conducting searches of female traders; providing written receipts when customs dues are paid; and affording traders with a reliable organization that can receive and respond to complaints about harassment and corruption.
Success will be measured by collecting data on the average time it takes for a trader to get goods across a border, the value and volume of goods crossing borders, the incidence of harassment of small traders, particularly women, and the views of traders as to the quality of services provided by border agencies.
Collaboration with COMESA
The project will help COMESA implement regulations and procedures for the treatment of small-scale border traders, including a toll-free complaint hotline, simplified immigration- and health-related procedures, streamlined access to air freight, and duty-free entry for eligible goods. Implementation of these improvements, along with modernized facilities at borders and changes as simple as providing separate lines for pedestrians, will not only benefit traders; it will also benefit government by generating more revenue.
“The Great Lakes Trade Facilitation initiative is about unlocking the economic potential of small traders who are a vital part of a growing regional economy,” said COMESA Secretary General Sindiso Ngwenya. “Research has shown that over 30 percent of the cross border trade taking place along the project target areas is from informal small scale traders, especially women and the youth. This intervention is therefore crucial in facilitating and streamlining cross border trade. COMESA is confident that its partnership with the World Bank will yield significant and positive economic impact.”
Part of the project will entail developing regional markets near to border crossings, so that small traders, particularly those on foot, can quickly sell their goods, making possible more round trips per day and increased income for poor families.
“We’ll be really looking to see if circumstances improve for these women and men and if they’re able to get their goods to markets across the border in a shorter time and with few to no negative incidents,” said Charles Kunaka, the World Bank’s co-Team Leader of the project. “Ultimately, we’d like to see an increase in the daily volume of trade, rising profits and revenues for traders, and better revenue generation and control for governments.”
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SACU drives trade facilitation
The Southern African Customs Union (Sacu) executive secretary, Paulina Elago, this week said the trade landscape in Sacu shows that trade has been increasing with the volume of intra-Sacu trade valued at N$185,6 billion in 2014 compared to N$98,9 billion in 2009 – increasing on average by 12% in the last five years.
“Therefore the increase in the volume of trade compels countries, around the world, to create a conducive environment for trade to thrive unhindered,” she said during a Sacu trade facilitation dialogue breakfast session with the private sector held in Windhoek.
Elago said as a result, international competition has increased and therefore said competitiveness will be measured on the speed, efficiency and the ease with which products move from one country to the other. “This is at the core of trade facilitation in general and in Sacu in particular,” she said.
Elago said trade facilitation is all about simplifying and harmonising trade procedures at point of entry into a country and exit.
She said governments and the private sector stand to benefit from trade facilitation as efficient border controls reduce instances of fraud and illegal entry of unwanted goods, whilst business can become more competitive as fast clearances will improve the speed within which their products would reach the final consumer.
Doing business
The World Bank Doing Business Survey of 2014 shows that import procedures, for containerised cargo, in the Sacu countries take on average 26 days (Botswana-35, Lesotho-33, Namibia-20, South Africa-21, and Swaziland 23).
This includes document preparation, customs clearance and technical control, ports and terminal handling and inland transportation handling.
“It is clear that there is a lot more to be done in this area through a regionally coordinated approach,” Elago said.
Sacu is implementing a Customs Modernisation project, in collaboration with the World Customs Organisation (WCO) funded by the Swedish International Development Agency (SIDA).
Overhaul
In a paper delivered at the event, Namibia Customs and Excise commissioner Bevan Simataa said the commission has redeveloped and overhauled its customs management system to take into account modern system security, system scalability, system interoperability and connectivity, management and operational dashboard report, information and data exchange.
Simataa said the second component is commitment to make trade information available and accessible 24/7 notwithstanding the location or geography of a client, through establishing the Namibia Trade Information Portal.
The portal has among its key features the duty calculator, classifier tool and, import/export requirements, which allow the potential importer of products to Namibia to access information related to such product in a predictable manner.
Minister of finance Calle Schlettwein said in a speech read on his behalf by permanent secretary Ericah Shafudah there is need to elevate dialogue between the private sector and the government.
Namibia’s value of imports accounted for N$85,9 billion in 2014 compared to N$ 67,4 billion recorded in 2013, while the export value of goods accounted for only 49,3 billion in 2014.
“This underpins a stark imbalance between export and import products,” he said.
This has led the government to adopt the ‘Growth at Home strategy’ to stimulate growth of agriculture, mining, energy, manufacturing, construction, hospitality and tourism, transport and logistics, communications and financial services to enable Namibia to compete favourably globally and within the SACU region.
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Africa looks west once again
China’s slowing economy is making the US a more attractive investor
For the first time in more than 15 years, Zimbabwe’s 91-year-old president, Robert Mugabe, openly asked for western re-engagement in his ‘state of the nation’ address in August. A decade ago, Mugabe told a packed rally at the Chinese-built national sports stadium in Harare: ‘We have turned east, where the sun rises, and given our back to the west, where the sun sets.’ Angola’s equally long-serving president, José Eduardo dos Santos, has also encouraged better relations with the United States in 2015.
Why this sudden change of mind? The fall in commodity prices, brought about by cooling demand for oil and minerals from China, and an improving US economy partly explain it. China imports nearly 60 per cent of the world’s iron ore and about 30 per cent of the world’s copper. A slowdown in Chinese demand hits exporting countries such as Zambia and South Africa.
China is Angola’s main customer for crude oil and low prices together with Beijing’s cutting back on imports are hurting. The result has been a depreciation in the value of the Angolan kwanza, rising inflation and a growing liquidity crisis. Sonangol, the state oil company, has had to deny that it is short of cash, and the government has rejected reports by the Angolan state media that President dos Santos visited Beijing in June to ask for a repayment holiday on Chinese loans. Li Keqiang, the Chinese premier, acknowledged during his May 2014 visit to Angola that 260,000 Chinese were working in the country. China has backed up it oil imports with building loans and Chinese construction sites have spread across the country.
Low oil prices, high production costs and other management problems have forced Chinese national oil companies to reappraise their portfolios. This March auditors sent by China’s National Audit Office to screen financial statements of the state company Sinopec’s overseas investment arm found that billions of dollars of investments made in five Angolan oilfields had underperformed. Sinopec has suffered a net loss of $1.6 billion in three of these oil blocks and is trying to extricate itself from opaque joint-venture deals.
Chinese investment will continue to grow in several sectors such as construction, infrastructure and manufacturing, however. Some of this investment could slow down, but Ethiopia and Tanzania are expected to remain favoured investment targets. China is also seeking deeper involvement in Mozambique due to its gas reserves.
Imports of Chinese goods to Africa will continue, and more competition from Chinese manufacturers is expected as they benefit from a devalued renminbi.
Although developments in China are important, they should not be seen in isolation from other global events and the calculations of African policymakers. Currency volatility since mid-2014 is also linked to events in Europe and the US, and may get worse if US interest rates rise. That would put more pressure on some African governments’ liquidity.
The 2015 World Investment Report, issued by the UN Conference on Trade and Development, said in June that foreign direct investment in Africa remained flat at $54 billion, decreasing in North Africa and rising in sub-Saharan Africa to $42 billion. What this report illustrated and what African governments have increasingly appreciated is that the US, Britain and France remain leading sources of foreign direct investment. Private equity firms such as KKR of the US and fellow Caryle group in 2014 have also made their first sub-Saharan African investments and this trend will grow. Foreign investment is still highly concentrated in a few resource-rich countries such as South Africa and Nigeria but this too will change over time.
South Africa appears to be pulling in an opposite direction from its southern African neighbours of Angola and Zimbabwe despite the importance of western investment for its economy. South Africa is China’s largest trading partner in Africa and Pretoria seeks to deepen this partnership. This is partly ideological, cementing its position as a member of the BRICS – Brazil, Russia, India, China and South Africa. President Zuma visited Beijing in September and this December the sixth Forum on China-Africa Cooperation will be hosted in South Africa. As many African states try to widen their international choices, South Africa risks becoming trapped in its BRICS narrative. Membership of the BRICS has become important for the ruling African National Congress, and anti-US rhetoric is cooling relations with Washington.
This century may well be Asia’s, but the sun is not setting in the west as quickly as Mugabe predicted, while China is increasingly seeking good governance and probity for sustainable longer-term investment in Africa. Despite China’s official ‘non-interference’ policy, Beijing does engage in stability and peace-building in Africa. A greater realism is emerging from African governments which recognize that they too need diversified partnerships to navigate a changing world order. China remains part of this calculation but improving relations with the West is back in fashion. President Obama’s trip to Nairobi in July and his meeting with Nigerian President Buhari in Washington both highlight this, while Burundi, Togo, Guinea and Mauritania have all opened embassies in London over the past couple of years.
Today, it is far from being a zero-sum choice between the East or West and diversification of partnerships is the favoured strategy of many African governments.
Alex Vines is head of the Africa programme and Director for Area Studies and International Law at Chatham House.
This article was first published in The World Today, October & November 2015 (Volume 71, Number 5).
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Global environmental leaders explore policies to put world on inclusive sustainable growth path
High-level panel in New York seeks to build momentum for the 2030 Sustainable Development Agenda
Environment ministers and representatives from governments, international organizations, civil society and the finance sector met on 25 September to build momentum for new policies that will accelerate the transition to a more inclusive and sustainable world by supporting the 2030 Agenda.
The high-level meeting took place on the first day of the United Nations Sustainable Development Summit 2015 in New York, during which more than 150 world leaders will formally adopt an ambitious new development agenda that will serve as the launch pad for global action to promote shared prosperity and well-being.
The German Minister for Environment, Nature Conservation, Building and Nuclear Safety, H.E. Barbara Hendricks said, “The big challenge is to achieve, as quickly as possible, the paradigm shift to an economic development that finally respects the ecological boundaries of our planet and at the same time eliminates poverty and hunger. Only a profound transformation can shift economies worldwide onto a sustainable path, ensuring social inclusiveness and conservation of our natural resources.”
The event was organized by the United Nations Environment Programme (UNEP), the Government of Germany and the United Nations Development Programme (UNDP), with the support of the secretariat of the Partnership for Action on Green Economy (PAGE) and the Poverty-Environment Initiative (PEI).
The panel analyzed key policies and investment decisions needed for countries to move towards more sustainable economic growth that respects planetary boundaries and ensures equitable outcomes. It identified how to strengthen bilateral and multilateral advisory mechanisms, networks and partnerships to support countries.
Ministers noted that achieving the Sustainable Development Goals (SDGs) will require support mechanisms, such as the Partnership for Action on Green Economy (PAGE) and the Poverty-Environment Initiative to transform institutions and economies through innovative integrated approaches to policy making that promote macroeconomic reform and comprehensive intersectoral collaboration.
The event saw a call for expressions of interest from countries willing to receive support from PAGE to advance their transition to a green economy for achieving the SDGs. UNEP Executive Director, Achim Steiner, also launched “Uncovering Pathways Towards an Inclusive Green Economy: A Summary for Leaders”, a synthesis report built on UNEP’s earlier Green Economy work.
Mr. Steiner said, “An inclusive green economy sees growth in income and employment from investments that reduce carbon emissions and pollution. This report speaks to the multiple benefits – economic, health, security, social and environmental – that such an economic model can bring to humanity.
“At today’s event, we heard from countries transitioning to inclusive green economies with policies that benefit all of society and maintain the ecological foundations underpinning their economic development. These reforms work when there is collaboration across ministries and sectors. We need all hands on deck to achieve the SDGs, and the type of cooperation we see in PAGE exemplifies this type of partnership.”
During the event, the European Commission Deputy Director-General Klaus Rudischhauser, reiterated the commitment of the EC to supporting countries in the achievement of the SDGs. He underlined this support by announcing an allocation of EUR 8 million to PAGE. The Commission recently also contributed EUR 8 million to the UNEP-UNDP Poverty-Environment Initiative.
Other nations also highlighted the Green Economy policies already in place, which are providing multiple benefits to their national economies.
“South Africa has already embarked on its green economy transition by putting in place innovative policies for green funding and green jobs,” said South African Minister of Environmental Affairs, Bomo Edna Molewa. “The country has selected a number of sectors to advance its transition to an Inclusive Green Economy, including transportation, building, energy, waste management and agriculture.
“In the renewable energy sector, South Africa is working with independent power producers and to date, 64 projects have been awarded a combined total investment of about 14 billion Rand with a generation capacity of approximately 3,922MW”.
The event also saw the launch of the PAGE application package, which provides information about the application process and guidance for countries interested in becoming a PAGE partner.
“We’ve heard today several examples of how countries have made successful efforts to change the course of their development path. A variety of experiences, integrated approaches and ideas has emerged. In light of such evidence and faced with multiple economic, social and ecological challenges, the Post-2015 Agenda and the SDGs are generating new momentum,” said Magdy Martínez-Solimán, Director of the Bureau for Policy and Programme Support at UNDP.
The adoption of the 2030 Agenda for Sustainable Development, with its 17 goals, has the potential to encourage more sustainable practices that can both generate economic growth and protect the environment.
SDG 8 most prominently aspires to “promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”. However, most of the SDGs recognize that only a path of economic development that respects ecological boundaries, fosters social equity and equal access to common goods, and contributes to poverty eradication is destined to succeed.
The SDGs provide a set of integrated and universally applicable goals and targets – against which the progress towards a more holistic form of wealth, towards an Inclusive Sustainable Economy and related institutional transformation in its various shapes and forms, can be measured.
The event featured German Minister for Environment, Nature Conservation, Building and Nuclear Safety, H.E. Ms Barbara Hendricks; South African Minister of Environmental Affairs, Bomo Edna Molewa; Norwegian Minister for Climate and the Environment, Tine Sundtoft; Deputy Director-General for Policy and Thematic Coordination, Directorate-General for International Cooperation and Development, European Commission (EC), Klaus Rudishchhauser; Deputy Director-General for Field Operations and Partnerships, International Labour Organization, Gilbert Houngbo; and Executive Director, United Nations Environment Programme (UNEP), Achim Steiner. The discussion was moderated by Magdy Martínez-Solimán, Assistant Secretary-General, United Nations Development Programme (UNDP).
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World Investment Prospects Survey 2014-2016
UNCTAD’s World Investment Prospects Survey 2014-2016 provides an outlook on future trends in foreign direct investment (FDI) by the largest transnational corporations (TNCs) and investment promotion agencies (IPA).
As reported in the World Investment Report 2014 (WIR14), UNCTAD projects FDI flows to rise in 2014-2016, mainly driven by investments in developed economies as their economic recovery starts to take hold and spread wider. However, the fragility in some emerging markets and risks related to policy uncertainty and regional conflict could still derail the expected upturn in FDI flows. Moreover, this prediction does not take into account megadeals such as the $130 billion buy-back of shares by Verizon (United States) from Vodafone (United Kingdom) in 2014, which will reduce the equity component of FDI inflows to the United States and affect the global level of FDI inflows.
Results from the World Investment Prospects Survey 2014-2016 (WIPS) support this cautiously optimistic scenario. According to this year’s WIPS, transnational corporations (TNCs) are aware of persistent downturn risks to the global economy and thus expressed uncertainty about the investment outlook for 2014 but had a bright forecast for the following two years. For the year 2016, almost half of the respondents had positive expectations and virtually none felt pessimistic about the investment climate.
As TNCs adopt a cautious optimism for the global outlook, FDI could rise in 2014-2016. However, the fragility in some emerging markets and risks related to policy uncertainty and regional conflict could still derail the expected upturn in FDI flows.
Responses to this year’s survey revealed that firms − mostly based in developed economies − are still cautious about recovery prospects in home economies and possible political uncertainties in emerging markets. This translated into a high share of investors (68 per cent) stating that they were neutral or undecided about the state of the international investment climate for 2014. However, almost half of the respondents (46 per cent) were confident about a positive global climate already for the year 2015, and 48 per cent of them expressed themselves as optimistic for the year 2016. The very low share of pessimistic answers suggests that while investors take into account possible risks in their investment plans they do not believe risks of a global recession can effectively upset the investment climate.
Investment promotion agencies (IPAs) were more optimistic in their assessment of the global investment climate and followed a similar pattern. While for 2014, IPAs also showed a high degree of uncertainty, with 45 per cent of respondents selecting neutral or undecided for the year, for the medium-term years, their expectations turned decidedly positive with almost 90 per cent of respondents being optimistic for 2016. Although the different perspectives on global investment climate largely reflect differences in the geographical coverage of the two surveys, IPAs tend to be more confident of their economic growth perspectives in spite of fragilities and recent political uncertainties.
The positive outlook on the investment climate is backed by confidence in the economic recovery. When asked about the principal factors positively and negatively affecting FDI flows in the medium term, TNCs in the survey put the state of the economy of both developed and emerging economies at the top of their list of positive factors. The state of the economy in the United States tops the positive factors list, followed by the economic conditions in BRICS (Brazil, Russian Federation, India, China, and South Africa) and other emerging economies, and in the 28 European Union economies (EU-28). This marks a big turnaround in investor sentiment especially with respect to the state of the European economy that last year was, in fact, at the top of their concerns. Other factors ranked among the most positively affecting FDI flows are the process of outsourcing and offshoring of manufacturing functions, regional integration, and changes in corporate tax regimes.
At the same time, uncertainty among investors about the global investment climate is related to a number of risks and political factors such as the rise of trade and investment protectionism, sovereign debt concerns, natural disasters, the threat of terrorism and the unwinding of quantitative easing measures that is behind much of the financial volatility in emerging economies (WIR14). The fact that political factors such as sovereign debt concerns are at the top of investors’ negative factors list corroborates the idea that firms are still not fully confident about the solidity and sustainability of the economic recovery, especially in their home countries.
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Success of development now tied to world leaders’ agendas at home
As the UN’s Sustainable Development Summit closed in New York on Sunday with a bold new global sustainability roadmap, world leaders now need to focus on fulfilling that vision. The task ahead is clear, but not easy – world leaders must go home and make the necessary administrative, legal, regulatory and fiscal decisions, and spend the next 15 years implementing and enforcing this agenda.
“Most importantly in the coming months, countries need to figure out how they’re going to contribute to achieving these goals and set benchmarks and indicators so they can report on their efforts,” said Yolanda Kakabadse, President of WWF International. “We’re in the race and can finally see the finish line – but we need some runners at the starting line if we’re going to make this happen in 15 years.”
Every country is required to develop national indicators and programmes of implementation through individual development plans. In March, countries will crucially agree a set of indicators that will allow the UN to report annually on global progress in coming years.
“Setting these indicators means striking a delicate balance between what is manageable and what will actually demonstrate progress toward holistic goals,” explained Kakabadse. “For example, for ending hunger it might be tempting for a country to use an indicator like tons of food produced: the data is more or less available, and the statistics are easy to measure. However using only an indicator like this would undercut the linkages built into the SDGs by not tracking the health of soils, genetic diversity and water systems vital for long-term food production and issues such as labor conditions, land access and market prices that also influence food security.
“The indicator question will be challenging, but if countries can unite to solve the financial crisis, they can figure this out. The crucial part will be working together and being as transparent with data as possible,” said Kakabadse.
In the short-term, delivering on these new global goals will require a complementary climate agreement in Paris. Anything less than a strong, science-based global agreement in Paris to rapidly slash carbon emissions would deflate the buoyant spirit of this week’s development plan.
“You cannot have economic security without food and water security, but you cannot have any of these without combatting climate change,” said Kakabadse. “If 193 governments can unify around how to address dozens of the world’s most difficult and complex challenges, they should be able to show that same collaborative spirit in the Paris climate talks and put us on a path to a clean energy future.”
With strong targets to protect the ocean, freshwater and forests now agreed as part of the 2030 Agenda, targeting climate change should be a top priority in the global effort to protect people and the planet. World leaders must complete a climate deal that is equally as fair and ambitious as the development package.
“By including climate change throughout the new deal, climate action becomes a driving force behind future development,” said Samantha Smith, leader of WWF International's Global Climate and Energy Initiative. “Governments must now carry forward the momentum generated around the new sustainable development deal to the climate negotiations in Paris.”
Critical climate measures in the new sustainable development deal include calls for a substantial increase in renewable energy use and a rise in global energy efficiency. The deal also puts the responsibility on wealthy countries to provide assistance against climate-related hazards in vulnerable countries and their promise to raise $100 billion annually by 2020 to support developing countries cutting carbon emissions through the Green Climate Fund.
Sustainable development plan gives the globe a chance
World leaders unanimously approve historic deal
It’s not often that the entire globe can agree on a deal that is politically challenging and technically complex. That is what happened today when the UN unanimously approved a new sustainable development deal. The deal is our best chance to eliminate poverty, promote prosperity and protect the environment.
The world is facing urgent issues that threaten the well-being of communities and the long-term health of the environment. This historic 15-year plan is the right deal at the right time that commits all countries to ensuring food, water and energy security for generations to come.
“Game-changing government decisions that benefit both people and the environment come along very rarely and never before at this scale and level of ambition,” said Yolanda Kakabadse, President of WWF International. Today’s decision is about survival. It’s a history-making moment that could fundamentally change how we treat our planet and all of its people.”
With global issues requiring global attention, it is only fitting that the agreement – Transforming our World: The 2030 Agenda for Sustainable Development – became official at a gathering of so many world leaders.
Sustainability and the environment are at the centre of the plan. With most people that live in extreme poverty relying on nature for their livelihoods, the 2030 Agenda and its 17 Sustainable Development Goals and 169 targets can help improve lives by protecting the ocean, freshwater and forests. This is a better agreement than we ever would have expected, and it gives us hope we can make the significant changes needed to help people and the planet.
“This plan is about survival and prosperity,” continued Kakabadse. “By accepting nature’s central role in supporting human well-being, the deal will ensure that people around the world will live happier, healthier, more prosperous and hopeful lives.”
In order to give the deal any chance of helping the 8.5 billion people that are expected to be living on the planet when the plan comes due in 2030, countries must now move quickly toward implementation. Leaders must show the same level of commitment to accomplishing the plan as they did toward reaching the initial agreement.
“Now world leaders must sustain this political courage at home and make the right choices, committing to a total economic, social and environmental overhaul. Today’s celebration must translate into delivery and quickly. For these goals to become a reality, decision-makers must demonstrate their intention to implement the 2030 Agenda and its Sustainable Development Goals is real and make their efforts transparent through careful follow-up and review,” said Kakabadse.Just as much as the sustainable development plan is meant to benefit the entire world, all countries have responsibilities to make the plan a reality. Countries from the North, South, East and West must play their part. Completion of a new global climate agreement is also necessary for the development deal to reach its goals.
Getting countries to provide the trillions of dollars in funding will be difficult, but just as important is making sure that the money is spent in smarter ways by making different choices. It is critical that money moves away from wasteful, harmful practices – like reliance on fossil fuels – and moves toward sustainable policies that help the environment and support livelihoods.WWF has worked from the beginning of the process to make certain that the plan puts the planet on the path toward truly sustainable development and that it includes the environmental elements that give it the best chance for success. WWF will work to ensure that leaders live up to their commitments while also partnering with governments, business and communities to see the job through.
“Bottom line: the world came together today and demonstrated that real solutions are both conceivable and attainable when we work as one and put politics aside. Now let’s make this happen together,” Kakabadse concluded.
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The fortunes of Africa will determine the success of the Sustainable Development Goals
Much of the focus of the UN Summit to chart a way forward on global development will be on Africa. As the wider world looks beyond the expiry of the Millennium Development Goals to the new Sustainable Development Goals, poverty eradication remains a gigantic challenge for Africa. Over 400 million people in Africa live in extreme poverty – that’s about 4 in 10 of its population – comprising a third of the world’s poorest people. The success or failure of the New York Summit will ultimately be measured by whether the new Sustainable Development Goals are making a difference in Africa in the years to come.
Africa’s economies are growing at an average of 5% per year, yet inequality is increasing all over our continent. The success of the fortunate few is obscured by the sense of exclusion by the majority. Hundreds of millions of people are left behind. Most of them are women and young people. They do not feel the impact of economic growth in their lives. Our collective challenge is to drive inclusive growth – growth that will lift millions out of poverty.
The Sustainable Development Goals which will emerge from the New York Summit accurately reflect Africa’s development priorities. They target a comprehensive and ambitious development agenda. Our task is not just to implement them, but to respond to a continent’s aspirations, too.
In my new role at the helm of the African Development Bank, I am implementing a ten-year strategy designed to bring about nothing less than the economic transformation of this continent, built on growth that is both inclusive and green. The strong growth we have seen across the continent since the Millennium counts for nothing if it is neither shared nor sustainable.
Here are the five pillars of the vision I set before the Bank at my swearing in on the first day of this month.
First, we have to light up and power Africa.
Energy is the engine that powers economies and creates a prosperous society. We must do more to power Africa. Africa cannot stand by with such massive resources for both conventional and renewable energy and yet be known for the darkness, not the brightness, of its cities and rural areas. Factories lie idle for lack of power. The lack of energy has impeded Africa’s industrialization. Hundreds of thousands, especially women and children, die every year from the effects of smoke, simply trying to cook meals for their families. Potential is wasted on our streets as small businesses owners, all hard-working Africans, spend most of their hard-earned incomes paying for energy.
Second, we have to integrate Africa.
Our aspirations are to deliver more equitable, quality growth and development to see all Africans prosper. The Bank will foster regional integration through smart regional infrastructures, including development of regional energy markets, transnational railways and highways to link economic activities among countries. We must work with regional member countries to improve policies and regulations that will facilitate the deepening of regional financial markets. These actions will expand the size of Africa’s regional markets and reduce the costs of movement of goods, services, and people, sparking a phenomenal boost in intra-African and global trade, and reducing inequalities between regions and countries.
Third, we have to feed Africa.
It is inconceivable that a continent with abundant arable land, water, diverse agro-ecological richness and sunshine is a net food-importing region. We must transform the perception of agriculture, so that it is seen as a wealth-creating, viable business option. Through the development of agro-allied industrial zones, Africa can move away from exporting primary commodities, and transition towards producing value-added products. Africa will expand its ability to export processed cocoa not cocoa beans, processed coffee not coffee beans, and textile instead of cotton. Africa will move up the value chain of wealth, diversify its economies, expand foreign exchange earnings, and reduce food import bills, boosting the fiscal and macroeconomic stability of its countries.
Fourth, we have to industrialize Africa.
We must build the African private sector to create wealth. By developing financial markets and leveraging private capital markets, businesses will be able to access long-term financing crucial to invest in the machinery, equipment and working capital we need. Unlocking the potential of small, medium and large businesses, Africa will fast-track industrial growth and development. As businesses pay taxes, domestic resource mobilization will grow to support national and regional development from within Africa.
Fifth, we have to improve the quality of life of the people of Africa.
Africa must use the skills of its people to transform its “demographic dividend” into “economic dividends.” Africa is the youngest continent, with an estimated 60% of its population between the ages of 15 and 24. But by some estimates, more than half of Africa’s youth are unemployed, underemployed, or inactive. This serves as a stark reminder that Africa is rapidly losing its future growth by underinvesting in education and quality job creation. We must invest in Africa’s youth to build skills and encourage entrepreneurship, while providing access to the financial resources necessary to unlock their creativity and unleash the power of their enterprises. We will embark on innovative programs and financing approaches to accelerate job creation and unlock economic prosperity from Africa’s greatest demographic asset.
The High 5s, I call them. They are achievable. They are fundamental to Africa, and Africa in turn is fundamental to the SDGs. This continent is their testing ground.
Akinwumi Adesina is the new President of the African Development Bank.
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WTO members tussle over size and shape of Nairobi package
With WTO members still divided on farm subsidies and market access issues, Director-General Roberto Azevêdo last week called for negotiators to start focusing their efforts on “the most promising issues” for the global trade body’s upcoming ministerial conference in Nairobi, Kenya this December.
However, negotiators from both developed and developing countries expressed unease at proposals to refocus talks on a narrow package of relatively uncontroversial “deliverables” for the Nairobi event.
A statement from the WTO explained that Azevêdo was referring to “LDC and development outcomes, outcomes on export competition in agriculture, and a number of provisions to improve transparency in several issues being negotiated.” There is widespread consensus that – at a minimum – the ministerial must contribute to progress on issues of concern to least developed countries (LDCs).
Trade sources told Bridges that they would be disappointed if the trade talks failed to make progress on controversial topics such as farm subsidies or tariffs for agricultural and industrial products.
“Most members want a comprehensive package addressing everything,” one developed country official said.
Negotiations aimed at just such a package were launched as part of the WTO’s Doha Development Agenda (or DDA) in 2001, but hit an impasse after talks broke down in 2008. The organisation’s Bali ministerial conference two years ago gave a boost to the struggling trade round with a commitment to agree to a work programme on the remaining Doha issues, but the talks since have shown continued divides.
US proposes farm subsidy cuts
Azevêdo’s call for members to refocus talks on a small package of less controversial measures was echoed by US Ambassador Michael Punke at an informal consultation on 17 September.
“The United States continues to believe that we have a good possibility of achieving a package of meaningful outcomes for Nairobi and the DDA, centered around the export competition pillar of agriculture, meaningful steps forward on issues important to LDC members, and potentially some advances in transparency in several areas,” Punke told the meeting.
In previous years, the EU has insisted that any concessions on export subsidies and similar measures under the WTO’s “export competition” pillar should form part of an overall Doha deal rather than being fast-tracked as a separate accord.
But trade sources told Bridges that the 28-nation bloc might be willing to reconsider its long-standing opposition to an “early harvest” that included elements on export competition, in light of evolving market trends and the negotiating context.
Punke nonetheless told negotiators that the US had prepared a new proposal on agricultural domestic support, which he said took account of the “red lines” – or non-negotiable issues – that trading partners had told them about previously.
In contrast, the US said that WTO members “are simply nowhere near achieving multilateral consensus” on market access for agricultural and manufactured goods, nor on services.
Market price support and input subsidies
The informal US proposal – a copy of which has been seen by Bridges – was shared at a small-group consultation among chief negotiators from seven major trading powers on 15 and 16 September in Geneva.
Brazil, Canada, China, the EU, India, Japan, and the US attended the meeting, which was called by the WTO Director-General, trade sources said.
The document proposes that it is particularly important to strengthen disciplines on two kinds of trade-distorting domestic support, namely market price support and input subsidies.
The proposal does not suggest taking specific action on other kinds of payments, such as non-product specific support payments that would also fall into the WTO’s “amber box” – the organisation’s category for the most trade-distorting types of payments.
The draft text explicitly states that the proposed accord would be without prejudice to WTO members’ rights and obligations under Article 6.2 of the Agreement on Agriculture. This clause provides greater flexibility to developing countries to use input and investment subsidies – types of support which are particularly important in India.
Standstill commitment
Members would agree that they “should avoid using market price support and input subsidies for agricultural products,” the new submission suggests.
They would also undertake a “standstill” commitment on either market price support or input subsidies. This could include agreeing not to increase the applied administered price for any farm products receiving market price support; not increasing the number of farm products benefitting from this kind of support; or not increasing product-specific input subsidies for agricultural products above existing levels.
Punke said the new proposal would not require any member to make changes to existing programmes that are WTO-consistent under current rules.
He also said that major subsidisers would have to answer one key question: “are [these countries] willing to search for any area where they can make a contribution to progress on this issue?”
In recent months, Washington has consistently argued that large developing countries such as China will need to agree to undertake cuts as part of any multilateral deal involving agricultural domestic support.
Sceptical reactions
New Zealand Ambassador Vangelis Vitalis, the chair of the WTO agriculture negotiations, held a follow-up meeting with a larger number of negotiators yesterday afternoon, officials told Bridges.
However, trade officials told Bridges that they did not believe the proposal would receive a warm welcome from other countries.
“It won’t fly,” said one developing country negotiator, adding that China and India did not accept the US approach.
A developed country official concurred, suggesting that it was “no surprise” that these members had reacted critically to a proposal that focused on their own trade-distorting support programmes without also addressing the types of schemes in use in other major subsidisers.
A number of delegates also questioned whether introducing a new approach to disciplining trade-distorting support so soon before the ministerial conference would be helpful in garnering consensus among members.
“I think it makes it more difficult,” one official told Bridges.
An LDC package?
An African official also cautioned that many developing country groups would be reluctant to accept a Nairobi outcome built around “deliverables” for least developed countries, but with little to offer other developing countries that did not fall into this category.
The coalitions that were concerned about this included the G-33 group of developing countries with significant populations of small farmers, as well as the African, Caribbean and Pacific Group (ACP) and the African Group, the negotiator said.
Negotiators are now hoping that trade ministers from the G-20 group of major economies will give further guidance to the talks when they meet in Istanbul on 5 October.
The G-7 major trading powers were expected to meet in the margins of the event to try to identify ways forward in the talks, trade sources said.
However, trade officials were conscious that few weeks remain to identify the contours of a possible deal and start filling in the details.
“Time is short,” Azevêdo told negotiators late last week. “It is essential that we have an answer to this question within the next month.”
This article is published under Bridges, Volume 19 - Number 31 by the ICTSD.
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UN adopts new Global Goals, charting sustainable development for people and planet by 2030
The 193-Member United Nations General Assembly on 25 September 2015 formally adopted the 2030 Agenda for Sustainable Development, along with a set of bold new Global Goals, which Secretary-General Ban Ki-moon hailed as a universal, integrated and transformative vision for a better world.
“The new agenda is a promise by leaders to all people everywhere. It is an agenda for people, to end poverty in all its forms – an agenda for the planet, our common home,” declared Mr. Ban as he opened the UN Sustainable Development Summit which kicked off on Friday and wraps up Sunday.
The UN chief’s address came ahead of the Assembly’s formal adoption of the new framework, Transforming Our World: the 2030 Agenda for Sustainable Development, which is composed of 17 goals and 169 targets to wipe out poverty, fight inequality and tackle climate change over the next 15 years.
The Goals aim to build on the work of the historic Millennium Development Goals (MDGs), which in September 2000, rallied the world around a common 15-year agenda to tackle the indignity of poverty.
The Summit opened with a full programme of events, including a screening of the film The Earth From Space, performances by UN Goodwill Ambassadors Shakira and Angelique Kidjo, as well as call to action by female education advocate and the youngest-ever Nobel Laureate, Malala Yousafzai along with youth representatives as torch bearers to a sustainable future.
The adoption ceremony was presided over by Danish Prime Minister Lars Løkke Rasmussen and Ugandan President Yoweri Kaguta Museveni, who stressed the successes of the MDGSs and the need for the full implementation of the new Agenda.
Speaking to the press after the adoption of the Agenda, Mr. Ban said: “These Goals are a blueprint for a better future. Now we must use the goals to transform the world. We will do that through partnership and through commitment. We must leave no-one behind.”
In his opening address to the Assembly, which also marks the Organization’s 70th anniversary, the UN chief hailed the new framework as an agenda for shared prosperity, peace and partnership. “It conveys the urgency of climate action. It is rooted in gender equality and respect for the rights of all.”
Mr. Ban urged the world leaders and others convened at the event to successfully implement the Global Goals or Agenda 30 by launching ‘renewed global partnership.’
“The 2030 Agenda compels us to look beyond national boundaries and short-term interests and act in solidarity for the long-term. We can no longer afford to think and work in silos.
Institutions will have to become fit for a grand new purpose. The United Nations system is strongly committed to supporting Member States in this great new endeavour,” said Mr. Ban.
“We must engage all actors, as we did in shaping the Agenda. We must include parliaments and local governments, and work with cities and rural areas. We must rally businesses and entrepreneurs. We must involve civil society in defining and implementing policies – and give it the space to hold us to account. We must listen to scientists and academia. We will need to embrace a data revolution. Most important, we must set to work – now,” added the Secretary-General.
“Seventy years ago, the United Nations rose from the ashes of war. Governments agreed on a visionary Charter dedicated to ‘We the Peoples’. The Agenda you are adopting today advances the goals of the Charter. It embodies the aspirations of people everywhere for lives of peace, security and dignity on a healthy planet,” said Mr. Ban.
General Assembly President Mogens Lykketoft called the 2030 Agenda on Sustainable Development “ambitious” in confronting the injustices of poverty, marginalization and discrimination.
“We recognize the need to reduce inequalities and to protect our common home by changing unsustainable patterns of consumption and production. And, we identify the overwhelming need to address the politics of division, corruption and irresponsibility that fuel conflict and hold back development,” he said.
On the adoption of the new agenda, UN Economic and Social Council President (ECOSOC) Oh Joon said action on Sustainable Development Goals must start immediately. “The Economic and Social Council stands ready to kick-start the work on the new agenda,” he added.
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International financial institutions back new global development agenda with stepped-up support
Multilateral Development Banks (MDBs) and the International Monetary Fund (IMF) hailed the adoption of a sustainable development agenda for the next generation and are fully committed to stepping up their support to ensure its success.
At the United Nations General Assembly in New York taking place from September 25-27, world leaders endorsed new Sustainable Development Goals on Friday, September 25, an ambitious agenda that aims to end poverty, promote prosperity and to protect the environment.
Leaders of the MDBs – the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, World Bank Group – and the IMF described the agreement as an historic landmark.
“The well-being of our planet and its people are at the heart of the new goals. They point the way towards greater prosperity and equality and will ensure more robust and sustainable economic growth,” the leaders said.
In July this year, at a Financing for Development Conference in Addis Ababa, the institutions unveiled plans to scale up their finance and support for countries seeking to achieve the development goals, pledging to increase their financial contribution to more than $400 billion over the next three years.
They vowed to examine how they could increase their own financing and also to work to ensure a greater mobilization of domestic resources and expanded funding from the private sector.
Quotes from the Heads of Multilateral Development Banks and the IMF
Akinwumi Adesina, President, AfDB
“The African Development Bank is fully committed to the successful implementation of the SDGs. We will work with our member countries, the private sector, civil society and other partners to deliver on the SDGs for Africa. The SDGs must work – and they must work for Africa.”
Takehiko Nakao, President, ADB
“We are committed to supporting the 2030 agenda and helping our member countries in achieving these ambitious new goals in Asia and the Pacific. We will increase our support for inclusive and sustainable development by up to 50% from 2017 to around $20 billion a year. By 2020, ADB will double its climate financing to $6 billion a year, about 30% of its overall financing. We will also increase co-financing with other development partners, catalyze private sector investment, and help mobilize greater domestic resources.”
Sir Suma Chakrabarti, President, EBRD
“The new goals overlap with core areas of the EBRD’s operations and with its strategic priorities. As a development bank specialised in working with the private sector, the EBRD is well placed to support the delivery of an agenda in which private firms will play a key role.”
Werner Hoyer, President, EIB
“The adoption of the SDGs shows our collective determination to safeguard the future of our planet. At the EIB we stand ready to work with our peers, other public authorities, and the private sector, and put our finance and expertise at work to support the implementation of the new goals.”
Luis Alberto Moreno, President, IDB
“The Sustainable Development Goals are ambitious, but the citizens of our countries expect no less than our full commitment to end poverty, promote sustainable and equitable economic development, and protect the environment. The IDB pledges to work closely with governments and with the private sector throughout Latin America and the Caribbean to ensure a prosperous future for all.”
Christine Lagarde, Managing Director, IMF
“The SDGs are ambitious, but achievable with determined implementation. We all have a responsibility to achieve these goals, at the country level and through our collective action at the global level. The IMF, with its 188 member countries, will play its part.”
Jim Yong Kim, President, World Bank Group
“The international community showed wisdom and courage fifteen years ago in adopting the Millennium Declaration, which set out eight ambitious goals to improve the lives of billions and bring the world together in closer cooperation and partnership. We cut poverty in half five years earlier than the declaration’s deadline, so I am confident we can achieve the great aspirations of these new global goals – particularly the first, which is to erase the scourge of extreme poverty from our planet by 2030. We can, and must, end this terrible blot on our collective conscience.”
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All eyes on UN as world body prepares to adopt new Sustainable Development Goals
World leaders, heads of global financial institutions and other dignitaries are heading to New York, where, after months of intense negotiations, the United Nations is set to launch a landmark new framework for sustainable development that will aim to end poverty and build a life of dignity for all, leaving no one behind.
The UN’s top development officials are keenly focused and enthusiastically preparing for the moment Friday afternoon when the Organization’s 193 Member States formally adopt the new framework, Transforming Our World: the 2030 Agenda for Sustainable Development, composed of 17 goals and 169 targets to wipe out poverty, fight inequality and tackle climate over the next 15 years.
In a series of interviews with the UN News Centre, the officials forecast 2015 as “a watershed year” for the United Nations for having reached an agreement that will “change the paradigm about development,” while “leaving no one behind” and giving a boost for a global climate change accord later this year.
Already this week, the likes of pop star Shakira and footballer David Beckham, both Goodwill Ambassadors of the UN Children’s Fund (UNICEF), have made appearances to preview the importance of these Global Goals: the UN Headquarters complex was lit up one night with colourful, massive projections of the new Sustainable Development Goals for all to see, and for those who missed that, New York City cabs are running mini lessons on taxi TV about the Goals to which world leaders will commit.
The three-day UN Sustainable Development Summit kicks off Friday with a record number of top world leaders expected to attend, as well as heads of multilateral bodies like the World Bank and the International Monetary Fund (IMF).
Joining them will be Pope Francis, who will be making a historic address to the UN General Assembly during a visit timed for the global gathering. The Summit will then open with a screening of the film The Earth From Space and that will be followed by performances from Shakira and fellow UN Goodwill Ambassador singer Angelique Kidjo, as well as call to action by female education advocate and the youngest-ever Nobel Laureate, Malala Yousafzaii, along with youth representatives as torch bearers to a sustainable future.
UN Deputy Secretary-General Jan Eliasson has said: “People have the right to have expectations because there is a need to make sure that the former goals, the MDGs [Millennium Development Goals] are truly achieved.”
The MDGs grew out of the 1992 UN Conference on Environmental and Development better known as the Earth Summit held in Rio de Janeiro, Brazil, where the concept of sustainable development began to gain momentum. With 2015 set as the target year for the MDGs, the new sustainable development agenda emerged from three years of negotiations to address the three interconnected elements of economic growth, social inclusion and environmental sustainability.
UN Secretary-General Ban Ki-moon described the agenda as “a clarion call” to “share prosperity, empower people’s livelihoods, ensure peace and heal our planet for the benefit of this and future generations” while his deputy, Jan Eliasson, said the UN leadership attaches “enormously high priority” to mobilizing the UN system, member states, civil society, the private sector and the scientific community to ensure the “transformative changes” take place to make the vision a reality on the ground.
Deputy Secretary-General Eliasson told the UN News Centre that 2015 could turn out to be a historic year for the United Nations if the world can also agree on a bold agenda to combat climate change in Paris this December.
At a press conference earlier this week, Amina J. Mohammed, the Secretary-General’s Special Adviser on Post-2015 Development Planning, described the agreement on the Goals as “really meaningful.”
“It's universal so it applies to everyone,” she explained. “We will no longer have a North-South conversation about what the North is doing for the South, but what we are doing for each other. Clearly anything that happens anywhere in this world has that fallout in many other places – from the global financial crisis to conflict and migration, we feel it everywhere – to natural disasters and climate change.”
Helen Clark, the Administrator of the UN Development Programme (UNDP), has said the new agenda “means doing development differently.”
The new goals “leave no one behind – not people, not groups and not whole countries. That’s a powerful message that we need to work in ways that to support the poorest and most vulnerable to succeed in development as well,” Miss Clark said.
“UNDP is totally committed to working alongside all developing countries to achieve the SDGs and to work with developed countries on making it possible through getting the funding which will help support us to help build and develop the capacity of countries to fly,” she said “That’s what we are dedicate to.”
Another senior UN development official eagerly looking forward to the formal adoption and implementation of the Goals was UN Assistant Secretary-General for Economic and Social Affairs Lenni Montiel.
“This year, 2015, is a watershed year,” said Mr. Montiel, describing the new agenda as “a unique agreement that will change the paradigm about development in the world.”
He drew attention to the fact that there was unprecedented involvement of young people from all countries throughout the negotiating process.
Jan Pasztor, the Secretary-General’s advisor on climate change, hailed the adoption of the global goals as “a really a very important development, in order to help and be ready to combat climate change.”
The new agenda gives a “very positive” momentum for governments who are negotiating a new, meaningful and universal agreement on climate change in Paris this December, Mr. Pasztor said.
Mr. Ban hopes the visit to the UN by Pope Francis will also bolster support for action on climate change, his advisor said.
And Wu Hongbo, Under-Secretary-General for Economic and Social Affairs, whose department is responsible for the development pillar of the United Nations, encouraged everyone to watch.
“We hope you will be an eyewitness to this historic moment,” Mr. Wu said.
» Visit tralac’s United Nations Sustainable Development Summit 2015 Resource box
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tralac’s Daily News selection: 25 September 2015
The selection: Friday, 25 September
Today, in New York: the Committee of African Heads of State and Government on Climate Change
On Monday, in New York: From the MDGs to the SDGs - Africa at a crossroads
Concluded, yesterday in Sandton: Agenda 2063 AUC/ECA/AfDB and RECs meeting on M&E convergence (AU)
Overall, whilst results based planning and budgeting has permeated almost every level within the AU and the RECs, there is still an evident lack of an overarching results based M&E system and rationalized resource mobilization strategy. The establishment of the COMESA, EAC, SADC Tripartite REC, as well as the recent adoption of the AU Agenda 2063 First Ten Year implementation Plan at the June 2015 Summit in Johannesburg present a great opportunity for the African Union to design, build and implement an overarching results based M&E system and a Balanced Score Card that will help track the levels of implementations of initiatives within the AU, between the AU and RECs up to Member States level, particularly with regard to following up on the levels of implementation of the targets and goals set out in the first ten year implementation plan for Agenda 2063. In the same vein, mechanism for mobilization of Africa’s own resources for financing of Agenda 2063 need be created and maintained by Pan-African institutions, including the African Development Bank. The specific objectives of the meeting include among others:
What future scenarios for the Southern African Customs Union? (tralac)
The Southern African Customs Union is in an impasse; and has been so for some time now. The Council of Ministers, which is SACU’s “supreme decision making authority”, is not meeting; no common policies are discussed; and no decisions on how to deepen integration among the Member States are taken. It is against this background that the present paper has been written and is disseminated for comments and responses. It discusses a number of possible scenarios for SACU’s future; which were debated at a recent tralac workshop attended by participants from the SACU Member States. We believe that SACU’s future should be looked at in terms of the bigger regional picture. [The author: Gerhard Erasmus]
Trade facilitation in SACU: Namibia (New Era)
The Minister of Finance Calle Schlettwein has urged local businesses to support trade facilitation initiatives and to inculcate a culture of compliance across all sectors to reduce the need for controls by government at ports of entry and exit. “Trade facilitation should not and cannot be allowed to merely become popular jargon. We should rather design and package it as a toolbox that would allow speedy delivery of best practices that impact our national and regional development agenda, be it our Growth at Home Strategy, the ACCESS Namibia Programme, the Industrial Upgrading and Modernisation Programme, our SME and Entrepreneurial Programme, as well as our relevant investment and tax incentive schemes,” said Schlettwein yesterday during a SACU breakfast meeting.
Amina Mohamed: statement to Kenya's parliament on 10th WTO Ministerial Conference (WTO)
To me and to many other Ministers, it is important that the WTO and the trade agenda respond to development concerns, and at the same time also reply to current challenges in world trade. Having said that, we also need to keep in mind that the outcomes need to be acceptable to ALL. The WTO, as you recall, takes decisions by consensus. Therefore, a large dose of realism is required, if we are to make progress in this Conference. We must also remember that this is not the last round of negotiations. This is not the end of history. Surely the WTO will still be there and other negotiations will take place in thin future. At the same time, we do need to make sure that the results of MC10 represent an advancement over what is currently on the table.
Roberto Azevêdo: speech to Peterson Institute (WTO)
Group of 77+China: statements by Helen Clark, Maite Nkoana-Mashabane
The new UN Sustainable Development Goals and regional integration in Africa: tralac discussion
William Mwanza, tralac Researcher, comments on the 2015 UN Summit for the adoption of the post-2015 development agenda and the relevance of regional integration frameworks when considering the agreed Sustainable Development Goals. tralac invites comments on the posting.
Joint Africa-EU Partnership Strategy: communiqué of the 4th Annual African CSO Continental Forum
More significantly the Forum conclusion went beyond JAF to emphasize the need for effectively mainstreaming of CSO interventions in larger framework of the Africa-EU Joint Strategy. As part of this process, it stressed the need for civil society actors in Africa (as in Europe) to be involved in and contribute to the outcomes of the Africa-EU Summit on Migration scheduled to be held in Valetta, Malta, from 11-12 November 2015. The Forum observed that migrants were mostly from civil society and it is essential that civil society actors from developing countries, including Africa, should be an integral part of the search for solutions on attendant problems of state-society. The Forum in particular underlined the need for an Africa Continental CSO Consultation on the Migration prior to the Summit as distinct from the side event that is being organized by Europeans organizations and the University of Malta. It stressed the need for assimilation of such issues effectively within the framework of the Intercontinental CSO dimension of the JAES process.
Marcelo M. Giugale: 'Let’s not cut aid for poor countries' (World Bank)
Europe's lingering economic troubles are at the centre of global attention and of much heated debate in Poland. Can the European Central Bank print enough money to jump-start the continent's economy? Or should that be done through a blast of public investment financed with new debt? How should Greece be helped? What does the sudden appreciation of the Swiss franc mean for the Eurozone? Will Russia's financial distress spill over to its neighbours? How those questions are answered will affect many rich countries of the world -- the likes of France, Germany, and now also Poland. Usually ignored, it will also affect some of the poorest. [The author is General Director, Macroeconomics and Public Finance]
Business Call to Action (UNDP)
At its Sixth Annual Forum on 24 September 2015, BCtA announced commitments by 33 companies in support of the new Sustainable Development Goals. This is the largest number of new members in a single year and represents a significant increase in the scope of commitments by companies to use viable businesses ventures that include those at the base of the economic pyramid as suppliers, distributors, retailers or customers. And it brings to 137 the number of businesses that have joined BCtA’s leadership platform since it launched in 2008.
Heads-up: This is how SABMiller is conquering Africa (City Press)
Localisation has been key to the success in SABMiller’s African expansion drive. Bowman explained that while SABMiller initially developed its footprint in Africa through the acquisition of assets and developing local markets using South African expertise, the group has spent a significant amount of money on new production lines, breweries and malting facilities in order to encourage localisation of the value chain. Localising costs has reduced foreign exchange exposure, while smaller, modular breweries are able to better serve markets because of unreliable logistics in rural areas. “We have a core belief in local management running operations, and we always defer to them,” Bowman said.
UNIDO to support industrial upgrading and modernization in Southern Africa
The industrial sector in countries of the Southern African Development Community is set to benefit from support provided by UNIDO. An initiative to support industrial upgrading and modernization in Southern Africa was presented by UNIDO representative to the European Union, Christophe Yvetot, during the SADC Business Forum hosted by the SADC Group of Ambassadors in Brussels. During the Forum, Yvetot said that UNIDO has already successfully implemented an Industrial upgrading and modernization programme at national and regional levels in a number of countries in the Middle East and North Africa region, and in the sub-regions of West, Central and East Africa. He said that the programme has had immediate impacts on the acceleration of the growth of industrial sectors, thereby contributing to overall economic growth and employment creation.
Zimbabwe: NECF working on competitiveness report (The Herald)
During the focus group meetings, NECF will present a draft NCAR report for discussion. Focus group meetings were held on Wednesday in Masvingo and Bulawayo while Mutare and Gweru had their meetings yesterday. More meetings will be held in other centres while the Harare discussion is scheduled for the first week of next month. The report is expected to be launched on October 29. Zimbabwe will join Tanzania, Egypt and Senegal among African countries to compile national competitive assessment reports with a view to improving the business environment in a manner that makes them competitive.
Zimbabwe: New policy set to transform industry (NewsDay)
“The Industrial Development Policy itself envisages transforming Zimbabwe from a producer of primary goods into a producer of processed value-added goods for both the domestic and export market through the promotion of viable industrial and commercial sectors,” he said. The overall objective for the government under the IDP (2017-2021) will be to restore the manufacturing sector’s contribution to gross domestic product doubling to 30% and its contribution to exports increased to 50% from 26%.
Tapiwa Mashakada: 'Addressing the ease of doing business' (Zimbabwe Independent)
Sugar in Mozambique: balancing competitiveness with protection (SPEED)
Going forward, Mozambique has many opportunities that can lead to a positive outcome for the sugar industry. Untapped interregional trade represents a major opportunity, particularly as traditional markets become uncertain (e.g., EU). Improving the business environment and encouraging diversification into other sectors though backward and forward linkages and increased value added activities. Weaning Mozambique from dependence on protection of the sugar industry could be key for more broad agricultural transformation, as was the case of Mauritius. Mozambique should carefully study the path of Mauritius and consider moving in that direction. [Downloads available]
The 2015 Mozambique Country New Alliance and Grow Africa report (SPEED)
Regional forum on up-scaling fertilizer usage (COMESA)
Hippo Valley to grow regional exports (Zimbabwe Independent)
Mozambique and Guinea-Bissau want to cooperate in the cashew sector (MacauHub)
Namibia: Pick n Pay commits to selling locally grown veggies (New Era)
South African Cereal and Oil Seed Trade Association: regional integration strategy (AgBiz)
Nigeria's FG partners China on agricultural development, woos Chinese investors (ThisDay)
Namibia: IMF concludes 2015 Article IV Consultation (IMF)
Namibia’s growth outlook is clouded with downside risks, while facing significant policy challenges. The main near-term risks are associated with (i) highly volatile SACU revenues, (ii) rapid growth of house prices, and (iii) external environment.
Malawi attempts to resurrect Shire-Zambezi shipping project (AIM)
The transport ministers of Malawi, Zambia and Mozambique have met in the Malawian capital Lilongwe to discuss the feasibility of using the Shire and Zambezi rivers for international merchant shipping. The ministers are considering a report by consultants on the navigability of the Shire-Zambezi Waterway (SZW) project. The proposed route is from Nsanje in Malawi to Chinde, the small Mozambican town at the mouth of the Zambezi. Most of the 343 kilometre long route is through Mozambican territory.
Portuguese firm Mota-Engil to construct $200m dry port (StarAfrica)
Central Africa to network against corruption (UNECA)
OECD's Global Forum on Competition: postings by Mexico, United Kingdom
Sipho Moyo lands top AfDB post (AfDB)
African Statistical Journal: September 2015 edition (AfDB)
Ethiopia, Benin, Côte d’Ivoire to benefit from African Trade Insurance membership programme (AfDB)
Trade Advocacy Fund Advisory Toolkits: various downloads available
This week in the news
Catch up on tralac’s daily news selections for the past week:
The selection: Wednesday, 23 September 2015
The selection: Tuesday, 22 September 2015
The selection: Monday, 21 September 2015
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Structural transformation should underpin Africa’s priorities – ECA Chief
As the curtains close on the Millennium Development Goals, Mr. Carlos Lopes has stressed that the intense participation of Africa in defining the new sustainable development agenda paves the way for governments to make critical structural changes in response to socio-economic inequality.
Speaking at the ECA ahead of the UN General Assembly this September, Mr. Lopes stated that the new Sustainable Development Agenda must take on board Africa’s development goals and priorities, in particular, the need for innovative ways to finance our future.
“The financing imperatives for a sustainable future are immense; and a policy paradigm, centred on among others, Africa’s trillions of dollars in savings is the way forward,” he emphasized.
The landmark UN General Assembly is seen as a watershed moment that ushers in a new sustainable development agenda. Mr. Lopes will participate at severalhigh-level events aimed at consolidating the critical issues underpinning the implementation of the Sustainable Development Goals. He notes that while the high-level events will touch on the significant progress that has been achieved on the MDGs, there will be a greater focus on lessons and implications for the next 15 years.
He also expressed great appreciation for the work done by Liberian President Ellen Johnson-Sirleaf in her role as Co-Chair of the High Level Panel on Sustainable Development Goals and for steering Africa’s priorities, together with the African Union, towards a Common African Position that now completes the MDGs and transitions the focus on Africa’s priorities in the context of the SDGS.
Mr. Lopes will participate in the launch the last of a series of yearly reports co-published by the African Union (AU), the United Nations Economic Commission for Africa (ECA), the African Development Bank (AfDB) and United Nations Development Programme (UNDP) entitled, “Assessing Progress Toward the Millennium Development Goals in Africa”.
In addition to speaking at other events on environment, natural resource management and the investment climate in Africa to be held during the UN General Assembly, Mr. Lopes will participate in a major event organized jointly by the United Nations Industrial Development Organization (UNIDO), the African Union, the Economic Commission for Africa and the Office of the Special Advisor on Africa on the theme ‘Operationalization of the post-2015 Development Agenda for African Industrialization.’
These events are being preceded by a retreat of the African Permanent Representatives to the United Nations in New York held on 12 September at which Mr. Lopes emphasized the need for linkages between Africa’s Agenda 2063, the new Sustainable Development Agenda, the Climate Change negotiations and the centrality of financing Africa’s development.
The Common African Position recognizes rising trends such as population growth and the youth bulge, urbanization, climate change and inequalities. It reiterates the importance of prioritizing structural transformation for inclusive and people-centred development in Africa. It is an African Union (UN)-sponsored document. It received technical support from the New Partnership for Africa’s Development (NEPAD) Agency, the African Development Bank (AfDB), the Economic Commission for Africa (ECA), the United Nations Development Programme (UNDP), Regional Bureau for Africa, and the United Nations Population Fund (UNFPA).
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Statement by Kenya’s Cabinet Secretary for Foreign Affairs, Ambassador Amina C. Mohamed, on the 10th WTO Ministerial Conference – Nairobi
Statement by Ambassador Amina C. Mohamed, Cabinet Secretary, Ministry of Foreign Affairs and International Trade, at the Kenyan Parliament, 14 September 2015, Nairobi – Kenya
Within exactly three months, Trade Ministers of more than 150 nations will be gathered here in Nairobi, at the 10th WTO Ministerial Conference. This will be the first WTO Ministerial to be held in Africa – and Kenya is proud to host it.
This conference is key to the future of the WTO and for the advancement of the Multilateral Trading System. The central issues of the current Round of negotiations, the Doha Development Agenda, will be on the table for discussion and decision by Ministers.
At the outset, let me say that the Government – and myself in particular – are totally committed to making this conference a success.
Let me take this opportunity to brief you on the substantive side of the Conference and on its preparations.
As of today, in Geneva, Director-General Roberto Azevêdo is resuming an intensive process of consultations with WTO Members. He is starting this process with a meeting of LDC, ACP and African Group representatives. The objective of this meeting is to hear from these representatives their main concerns and their expectations for the Conference.
Development, as you may know, is central to all discussions in the WTO. This Round of negotiations was predicated on the reaffirmation of development as the main goal to be achieved through further opening and regulation of international trade.
At the previous Ministerial Conference in Bali, in 2013, Ministers took several decisions in favour of LDCs. Representatives in Geneva are now discussing how to strengthen and broaden the scope of those decisions. An important proposal was tabled in late July by the so-called G90 group of developing countries to help advance the discussions. The ACP countries also tabled a proposal with several concrete suggestions and calling for a constructive spirit in the negotiations.
And as we speak of development, the area of Agriculture will be central to any outcomes in December here in Nairobi. A new chairperson – the incoming ambassador of New Zealand – has been selected for the negotiating group on Agriculture, and intensive discussions are continuing in several configurations in Geneva, covering the three areas of Export competition, Domestic Support and Market Access.
Progress in the discussions on Agriculture will be the main parameter and determining factor of progress in other areas.
These other areas – and mainly Non-Agricultural Market Access (NAMA, in the WTO jargon) and Services are also central to the negotiations. Rules (or trade defence issues such as Antidumping), Intellectual Property and Trade and Environment are additional chapters in the negotiations.
The Director-General is of course keeping all Members constantly informed of the consultations which he is holding and to which he is invited.
The next weeks will be crucial to determine the results for Nairobi – and all WTO Members will be called to take tough political decisions rapidly. A quick flow of information and a smooth dialogue between representatives in Geneva and governments in capitals – including parliaments – will be key to the progress in these talks.
Several trade ministers will be meeting in Turkey in early October, on the margins of a G20 meeting. Other opportunities may arise for ministers to meet in different formats before the Conference here in Nairobi.
To me and to many other Ministers, it is important that the WTO and the trade agenda respond to development concerns, and at the same time also reply to current challenges in world trade.
Having said that, we also need to keep in mind that the outcomes need to be acceptable to ALL. The WTO, as you recall, takes decisions by consensus. Therefore, a large dose of realism is required, if we are to make progress in this Conference.
We must also remember that this is not the last round of negotiations. This is not the end of history. Surely the WTO will still be there and other negotiations will take place in thin future. At the same time, we do need to make sure that the results of MC10 represent an advancement over what is currently on the table.
The Conference we are hosting can deliver that – but we must all work hard – and fast.
One word on the logistical arrangements: we continue to work hand-in-hand with the WTO Secretariat and the team at the KICC to make sure the logistics for the Conference run smoothly. Several WTO teams have visited Nairobi – the most recent in late August – and some WTO officials are here this week too. From now on, we will be on a count-down mode, to make sure everything is ready when the Director-General, Ministers and delegates, as well as NGOs and invited guests arrive in December.
The WTO and the multilateral trading system have been an instrument of growth and stability since their creation. It is extremely important that the system is strengthened and continues to progress in the future.
At a moment of high fluctuations in the markets, of uncertainty as to the economic outlook in some large trading partners, at a moment when the whole world is interconnected and when whatever one government (or monetary authority) does has effects on so many other countries, it is imperative that we retain and care for the safety net which the WTO and its body of regulation represent.
Our Conference in Nairobi in December can help Ministers in doing just that.
We will need all the support we can get to make that conference a landmark in advancing the WTO and multilateral trading system.
I count on all of you for that. Thank you.
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Communiqué of the 4th Annual African CSO Continental Forum on the Joint Africa-EU Partnership Strategy (JAES)
AU-CSO Continental Forum: Towards Preparation for the Joint Annual Forum (JAF) of the Africa-EU Partnership, Djibouti, 18-20 September 2015
The 4th Annual African CSO Continental Forum on the Joint Africa-EU Partnership Strategy (JAES) has just been concluded in Djibouti. The consultation lasted for three days from 18-20 September 2015. The Forum began with a meeting of the African Steering Committee on 18th September 2015 followed by the Continental Forum of African Civil Society Organizations on 19-20 September 2015.
The Forum was attended by about 40 leaders and representatives of civil society organizations across the five regions of the African continent. The Citizens and Diaspora Organizations Directorate of the AU Commission (CIDO) facilitated the Forum with support from the Economic, Social and Cultural Council of the African Union (ECOSOCC) and the Partnership Management and Coordination Division (PMCD) of the Bureau of the Chairperson.
The main focus of the Forum was to define Africa CSO priorities and framework of action within the current cycle of the Africa-EU partnership process with emphasis on preparation for the Joint Annual Forum (JAF) as the only comprehensive stakeholder platform for civil society participation. The Forum was concerned with reviewing the concept note that is being developed by state actors for this purpose and making appropriate recommendations and proposals to ensure that JAES remains people-centred and people-driven in the aftermath of the Brussels Summit of April 2014 and its outcomes.
The official opening ceremony was held on 18th September 2015 and received 5 main addresses from the Director of CIDO, Dr. Jinmi Adisa, Mr. Joseph Chilengi, the ECOSOCC Presiding Officer, Professor Dipo Kolawole, the Chairperson of the African Steering Committee and Mr. Ismail Sanalasse Said, the President of Djibouti Civil Society Associations. Subsequently, Mr. Hassan Omar Mohammed Bourhan, the Minister of Interior and Decentralization of the Republic of Djibouti formally declared the consultation open.
In his official opening remarks, the Minister praised the AU Commission, particularly CIDO and ECOSOCC for taking serious measures to ensure strong and effective CSO participation in the JAES process. He conveyed the greetings of the President of the Republic and pledged Djibouti’s support for the outcomes of the Forum. He observed that Djibouti has always respected and encouraged effective contribution of civil society in the development process of the state system and that the decision of Djibouti to support the same processes in relations across the Mediterranean is simply a logical extension of Djibouti’s desire to build a comprehensive stakeholder community in Djibouti, within Africa, in Africa’s relation with the world and in global affairs.
On the Outcomes of the Brussels Summit of April 2014, the Forum observed that the implementation mechanisms and structures contained in the two Outcome Documents of the Africa-EU Summit of April 2014 (the Roadmap and Declaration) were essentially state-centred, noting that the main exception was the framework of Joint Annual Forums (JAF) which replaces the Joint Task Force of the previous partnership cycle and will gather together all actors of the partnership. The Forum recognized the JAF will serve therefore, as the only comprehensive stakeholder Forum for driving the people-centred aspirations of the Africa-EU partnership Process. Consequently, the Forum embraced JAF as the appropriate mechanism for channelling, promoting and sustaining the activities of non-state and non-governmental actors.
The Forum however, regretted the undue delay in activating the JAF process in view of its peculiar importance. It observed that it is almost one and half years since the Brussels Summit of April 2014 and a process intended annually had not yet taken place and even now only has a remote chance of happening this year. The meeting called on all parties and structures responsible for the planning process, particularly the two Commissions, to accelerate the process of implementing JAF. It further underlined the need for actors in civil society to play a critical role in lending content to JAF, defining its agenda and work program, its modalities of operation, execution of its mandate and outputs.
Regarding the relations with State Actors in the JAF Process, the Forum noted the important profile of state actors in the current efforts to define JAF Agenda, content and modus operandi. The participants concurrently agreed with the general objectives being proposed for JAF and the concept paper being developed by the two Commissions as a baseline working document. Moreover they added that in order to perform its functions as designed by the Summit the orientation, constitution and working methods of JAF and use of its outputs must be people-centred and civil society actors must be fully integrated within its framework. In conclusion and as part of this process, the Forum decided to review the JAF concept paper of the two Commissions and make appropriate recommendations to the paper which remains work in process.
Furthermore, some recommendations were made in relation to the JAF Concept Paper. The Forum emphasized the need for the JAF to be held as soon as possible, preferably in the last quarter of 2015 or very early in the first quarter of 2016 to be followed by another in a time frame preceding the 2015 Summit and recommended that the location of JAF meetings should be rotated among the two continents with the first in Africa and a second in Europe in line with the two JAF model proposed by the Forum.
The Forum underscored that as the only comprehensive stakeholder platform of JAES, JAF must be open to all stakeholders particularly civil society actors and agreed that the context of such inclusive participation must be in a continuum that includes preparation, consultation, definition of purpose, goals and execution of outputs. Each of contributing parties should also select its own representatives that will work with other stakeholders to define collective results.
On the civil Society Interventions, the Forum agreed that civil society interventions should assume a coordinate and collaborative structure. This will include autonomous CSO action to popularize and extend the reach and impact JAES to the grassroots, interconnectivity across the Mediterranean and the holding of regional conferences and regional platforms to disseminate information and build grassroots support for JAES. The Forum also recommended upwards and downward mainstreaming of civil society contributions within JAF and the alignment and use of the Pan-African civil society envelope to support these processes across the two continents.
The Forum proposed a duration of 2-3 days for JAF as required to produce meaningful outcomes. It also requested that the definition of the JAF agenda be based on wider stakeholder agreement and that the working sessions should have chairs and rapporteurs (from civil society). It further recommended that conclusions should be adopted by plenary sessions. Inputs of seminars and regional conferences must also feed into the agenda and work programs of JAF, concluding that outputs of JAF should include assessment and progress reports on
a) challenges, options and possible solutions as well as methods to address challenges;
b) discussion of thematic and strategic issues;
c) agreement on reporting frameworks to assess the implementation of the roadmap;
d) timetable of operation, feedbacks and corrective mechanism;
e) effective employment of outputs to strengthen the framework of operations.
The Forum observed that the importance of JAF notwithstanding, the people-centred aspirations of the architects of the Africa-EU Partnership requires that CSO involvement in JAES must go beyond JAF and should be mainstreamed in all aspects and forms of the partnership endeavor particularly its key and important elements.
As part of this process, the Forum stressed the need for civil society actors in Africa (as in Europe) to be involved in and contribute towards the outcomes of the Africa-EU Summit on Migration scheduled to be held in Valetta, Malta, from 11-12 November 2015. The Forum observed that migrants are mostly from civil society and it is essential that civil society actors from developing countries, including Africa, should be an integral part of the search for solutions on attendant problems. The Forum, in particular, underlined the need for an Africa Continental CSO Consultation on the Migration prior to the Summit as distinct from the side event that is being organized by Europeans organizations and the University of Malta on the eve of the Summit. It stressed the need for assimilation of such issues effectively within the framework of inclusive continental and Intercontinental CSO dimension of the JAES process to guarantee the integrity of inputs within the process.
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Statements at the 39th Annual Meeting of the Ministers of Foreign Affairs of the Group of 77+China
The 39th Annual Meeting of Ministers for Foreign Affairs of the Group of 77+China took place at the United Nations Headquarters in New York on 24 September 2015. Statements from the meeting appear below.
Remarks by Ms Maite Nkoana-Mashabane, South African Minister of International Relations and Cooperation and Chair of the Ministers of Foreign Affairs of the G77+China
After the immense misery and social disintegration as a result of the Second World War, the establishment of the United Nations provided nations the means to foster peace, build democracy and create a just society on a global scale. The creation of the organisation was also a pathway for the independence of many of the members of this Group. 70 years after its establishment, we should use this occasion to evaluate the UN’s history and its many achievements and challenges and assess its effectiveness in addressing the specific interests and needs of developing countries.
The future of developing countries lies in a strong and robust multilateral system, based on the principles of international law. We must secure the restructuring of international political and economic systems in order to rectify the inherent asymmetries of power. This would safeguard developing countries, which make up the majority of countries across the globe, having a voice in global governance.
The Group of 77 and China has made notable contributions over the years to the effective functioning of the United Nations. As the largest grouping of States within the UN system, the Group of 77 and China, has played a fundamental role in crafting international economic policies and relations, narrowing the gap between developing and developed countries. The Group has also been a major actor in developing initiatives to advance development and international economic cooperation among developing countries. The Group can therefore legitimately claim a large part of the credit for advancing the interest of marginalised people of the world within the UN system.
Today’s meeting provides us with an opportunity to reaffirm our commitment to the continuing validity and relevance of the objectives and principles of our Group. In this regard, this meeting will adopt a declaration that will include strategies of action underpinning and supporting the processes in which we have been involved during the past year and in which we remain involved.
During the past nine months, we have witnessed the finalisation of the negotiations on the 2030 Agenda for Sustainable Development. The outcome document that the Summit will adopt build on the Millennium Development Goals and covers all three dimensions of sustainable development. This global development agenda recognises and responds to the triple challenges of poverty, inequality and unemployment that most of us continue to face.
It has been our Group’s active engagement of the negotiation process that has ensured that the key interests of developing countries are reflected in the outcome document.
The realisation of the new Agenda will only be achieved if the Global Partnership focuses on adequate means of implementation as identified under Goal 17 and under each individual goal. It is imperative that the follow-up and review process for the goals should also focus on whether the means of implementation have been achieved and whether developed countries have kept to their commitments.
Of major importance in the outcome document is the inclusion of the Principle of Common but Differentiated Responsibilities (CBDR) which recognises our different national realities, capacities and levels of development and respects our national policies and priorities.
Another major achievement has been the reference to the right to development; and, removing the obstacles to the full realisation of the right of self-determination of people living under colonial and foreign occupation.
The 3rd International Conference on Financing for Development (FfD3) resulted in the adoption of the Addis Ababa Action Agenda.
While the Addis Agenda emphasises the importance of financing for development, it is disappointing that there is little in the way of new funds to fill the existing development financing gap. Developed countries merely repeat their 45-year-old commitment to allocate 0.7% of their Gross National Income (GNI) to Official Development Assistance (ODA). The problem is that only a handful of developed countries have ever met this target.
South Africa welcomes the work carried out by the Ad Hoc Committee on Debt Restructuring Processes. South Africa, within the Group of 77 and China, will continue considering improved approaches to restructuring sovereign debt, taking into account the newly adopted Basic Principles and work carried out by the international financial institutions, in accordance with their respective mandates.
The 10th Ministerial Conference of the World Trade Organisation (WTO) will be held for the first time in Africa, in Nairobi, Kenya this December. South Africa urges the international community to work tirelessly to conclude the Doha Development Round of negotiations and give priority to issues that address the imbalances and inequities of the current global trading system by agreeing on legally binding outcomes that will allow developing countries to effectively engage in equitable global trade.
In December at the upcoming Paris Climate Conference, we hope to adopt a new legal agreement which we are currently negotiating under the Durban Platform for Enhanced Action.
It is important that this multilateral process on climate change be respected and lead to the adoption of an ambitious and fair agreement in Paris. This agreement should serve our twin objectives of ensuring environmental integrity, whilst protecting the development space of developing countries. To be successful, the new legal agreement must be fair.
Fairness would imply respect for the Convention’s principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR&RC). There should be differentiation between the actions required of developed and developing countries based on different capacities and historical responsibility for climate change. Respect for CBDR&RC also means the provision of the financial and other support from developed countries that developing countries require to enable them to undertake their best efforts to address the climate challenge.
The new legal agreement must accord adaptation the same priority as mitigation. Since adaptation is a global responsibility, we should call for the adoption of a global goal on adaptation.
Means of Implementation and support for developing countries (public sector finance, technology transfer and capacity building) will be of central importance to the Paris outcome.
Developed countries should commit to a goal of jointly mobilising US$ 100 billion per year by 2020 to address the needs of developing countries. Funds provided to developing country Parties may come from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources.
A significant share of new multilateral funding for adaptation should flow through the Green Climate Fund.
It is essential that existing commitments covering the pre-2020 period are honoured and that the second commitment period to the Kyoto Protocol comes into force preferably before COP21/CMP11. The new legal agreement covering the post-2020 period will have limited credibility if there is insufficient action in the pre-2020 period.
The 70th anniversary of the UN is also an opportune time for us to evaluate and discuss ways in which to strengthen South-South cooperation. South-South cooperation remains important for strengthening the economic independence of countries of the South and is not a substitute, but rather a complement to North-South cooperation.
We should also look at ways in which we could strengthen the institutions of the Group of 77 and China. We must ensure that the Secretariat of the Group is adequately funded to ensure that it carries out the Group’s objectives in an effective and efficient manner. Similar support should also be extended to institutions that promote and contribute to the unity and solidarity of the Group, including the South Centre, in order to be our power houses for service delivery, knowledge sharing, information, professionalism and excellence.
During this session, we will approve both the biennial budget for 2016-2017 and the scales of assessment. The Group should continue to stress that the level of resources approved by the General Assembly must match the increase in mandates and activities approved by Member States. It is essential that arbitrary cost-cutting not be used as an excuse to shift funding from developing country programmes to the detriment of the South.
In conclusion, and in view of our ongoing endeavours for a fair and just world, the Group of 77 and China should remain involved and relevant in all multilateral processes, specifically at this important juncture when the international community is considering our collective development aspirations beyond 2015. From our own experience, it is clearly evident that the G77 is most powerful when it is most united. Let us harness the diversity of our group to fortify our unity.
I thank you.
Statement by Helen Clark, Chair of the United Nations Development Programme (UNDP)
It is a pleasure to address this Ministerial Meeting of the Group of 77 and China. I thank the Permanent Representative of South Africa for his leadership and his work with the United Nations in New York.
Can I take this opportunity to wish the people of South Africa a happy Heritage Day today – a day established in recognition of the diverse cultural heritage of the country.
A new era for sustainable development: Agenda 2030
As the UN marks its 70th anniversary this year, Member States are also launching a new era for sustainable development.
“Transforming our world: the 2030 agenda for sustainable development” is due to be adopted tomorrow. This new agenda is bold, ambitious, and visionary, and will guide our work together for the next generation. At its centre is the urgent task of eradicating poverty.
The process of formulating and adopting the seventeen Sustainable Development Goals (SDGs) has been inclusive and participatory. G77 and China has played a central and crucial role, as the Group does in all the work of the United Nations through its commitment to multilateralism and to finding enduring solutions to the world’s most pressing challenges.
As attention now turns to implementation of the sustainable development agenda, ever deeper engagement of the Global South is essential. UNDP stands ready to support implementation of the SDGs, at national request and in line with national priorities.
Eradicating poverty is a necessary condition for sustainable development. Thus it is important that the integrated nature of the 2030 Agenda directs us to the root causes of poverty. That means addressing vulnerability and exclusion, and providing opportunities for all. In supporting the new agenda, UNDP will also focus on reducing risks from shocks, on rapid and effective recovery from conflict, and on helping countries to prepare for and deal with the consequences of climate change and natural disasters.
Our support for the implementation of the new agenda will be based on an approach we are calling “MAPS” – Mainstreaming, Acceleration, and Policy Support:
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First, under mainstreaming, we will, at national request, work with countries to reflect and incorporate the SDGs into national development plans, policies, and budgets. This work is already underway in a number of countries.
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Second, we will support countries to accelerate progress on SDG targets they have identified as priorities for action. Here we will draw on our experience with the MDG Acceleration Framework, which over the past five years has helped many countries to remove bottlenecks and accelerate progress on lagging targets.
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Third, the policy expertise of the whole UN development system will be available to governments as they pursue integrated policy solutions to sustainable development challenges.UNDP is committed to working with the Group of 77 and China to meet the aspirations of the new development agenda. We will be guided by our mandate, and strengthened by our universal presence, our extensive knowledge network, and our role as co-ordinator of the UN development system. We can contribute to the design and implementation of the kinds of integrated solutions so urgently needed for sustainable development.
Financing the new agenda requires big partnerships
The financing requirements for achieving the internationally agreed development goals and meeting national aspirations are large. All sources of finance – domestic and international, public and private – must be drawn on. The different sources of finance need to complement and reinforce each other.
The Addis Ababa Action Agenda, agreed in July, updated the financing for development framework, set important priorities for investment, and agreed on new mechanisms to finance technology and infrastructure needs.
The Addis Agenda rightly highlights the vital and continued need for Official Development Assistance (ODA), and for its more catalytic use to build national capacities for domestic resource mobilization. UNDP will continue to advocate for this.
ODA remains particularly vital for many countries, especially for LDCs, LLDCs, SIDS, and other countries in special development situations.UNDP will continue to prioritize support for the poorest and most vulnerable countries. In 2014, ninety per cent of our core programme resource was allocated to low-income countries, and 74 per cent to LDCs.
UNDP will continue to support countries to secure the resources they need to pursue development, manage risk, and build resilience to shocks.
Our ability to do all this and more, as effectively as possible, depends on a strong base of core funding.
That is why we have launched the ‘100 Partners’ campaign, to expand the number of contributors to our core budget from 56 Member States last year to one hundred by 2017. This is also important for reinforcing UNDP’s universal and multilateral character: it is not financially or politically sustainable to rely on just fifteen partners for 97 per cent of our Core funding.
We therefore greatly value the core budget contributions we receive from a number of G77 and China members. I invite all members of the Group to support the campaign, and to consider whether they can make a core contribution from 2016. A more diverse funding base will add great impetus to our work to advance human and sustainable development.
South-South Co-operation vital to the new global agenda
South-South Co-operation has become a vital source of innovation, knowledge, expertise, and solutions in tackling development challenges. It will play a central role in implementation of the new global agenda – not as a substitute for, but as a complement to traditional North-South ODA.
G77 and China itself is illustrative of South-South Co-operation at work – bringing together a diverse array of Southern perspectives for collective decision making. UNDP recognizes and values the importance of South-South Co-operation which the G77 helps to promote and foster.
UNDP has made South-South and Triangular Co-operation central to its work, placing it at the heart of our Strategic Plan for 2014-17. Our global and regional programmes prioritise support for South-South and Triangular Co-operation, which are fully integrated in guidelines for our Country Programme Documents.
A centerpiece of UNDP support is its hosting of the UN Office for South-South Co-operation. The Office plays a lead role in strengthening system-wide efforts on SSC. UNDP highly values its hosting role, which works in synergy with its broader role as a knowledge broker, a builder of capacity, and a facilitator of exchanges among developing countries.
50th Ministerial & Conclusion
Next year UNDP turns 50. Our five decades of development practice in over 170 countries and territories have had a lasting impact around the world. Yet, there is much more to be done.
We will be hosting a high-level Ministerial Meeting on February 24 next year to mark UNDP’s 50th anniversary. We will also take this opportunity to recognize our long term relationships with programme countries. I hope senior country representatives of G77 and China will join us on this important occasion in New York.
As UNDP embarks on the new era of sustainable development support and our next half-century, we look to build new partnerships and strengthen existing ones, to continue our mission to eradicate poverty in all its forms, to promote inclusive growth, and to protect the environment.
We look forward to working closely with G77 and China to realize our mission. Thank you all for your goodwill and support.
Related News
Azevêdo: “Our record in recent years shows that we can deliver”
In a speech delivered at the Peterson Institute in Washington D.C. on 24 September 2015, Director-General Roberto Azevêdo said that over the past 20 years, the WTO has firmly established itself as part of the architecture of global economic governance. Looking ahead, he said that the WTO “must build on recent success in order to deliver even more in the future” and that the prospects for global cooperation in trade are encouraging. This is what he said:
It’s a pleasure to be in Washington once again.
I want to thank our friends at the Peterson Institute for organizing this event.
In 1995, 128 governments came together to create a global organization to govern trade.
Now, 20 years later, I think it is a good time to assess the progress made so far, and also to think about what the next 20 years might hold.
The US has played a leading role throughout the history of the multilateral trading system. And that leadership will be as important as ever as we shape its future.
Yet, often, in the active trade debate in Washington nowadays, the WTO does not feature very strongly. You are more likely to hear about the TPP or TTIP negotiations.
And this is no surprise. The WTO has faced big challenges over its 20 years, some of which have shaken people’s faith in the system. The slow progress of the Doha Round is an obvious background in any such conversation.
There is no denying this – and I will come back to the negotiating function of the WTO in a moment. But it is important to remember that the WTO is about more than its negotiating function alone.
The organization is much broader, and so I think we should also remember the significant contribution that the WTO makes to global economic governance.
Achievements over 20 years
Trade is now governed by a robust organization, with a much broader scope than in the GATT years, and backed-up by a fully-functioning, automatic and mandatory dispute settlement system.
As a result, the cause of liberalised, inclusive, rules-based international trade has been advanced significantly.
In these two decades, 33 members have joined the WTO, including big players such as China and Russia. So today, the WTO covers 98% of global trade flows.
It is no coincidence that, over this period, average tariffs have fallen dramatically – in fact they have been cut in half. Average applied tariffs were 15 per cent in 1995. Today they stand at less than 8 per cent.
And trade volumes have more than doubled.
In addition, social issues have come to the fore in the trade debate over this period. The impact of trade policy on people’s lives is something which is always on my mind – largely because it can be such a powerful tool in the fight against poverty.
The new Sustainable Development Goals which are being agreed this week in New York are a reminder of this as they place significant emphasis on the role that trade can play.
And of course the visit of Pope Francis is another reminder. His Holiness has delivered important messages on the role of multilateralism in providing an equitable trading system which supports small and poor countries.
I think the debate at the WTO now puts much more emphasis on these important issues – and of course, the voices of developing and least-developed countries are heard in that debate as never before.
It is also worth remembering that much of the day-to-day work of the organization goes unseen, but it is vital in administering the global trading system, and keeping commerce flowing.
On a daily basis, WTO members monitor each other’s practices and regulations to ensure that agreements are being observed.
The regular activities of WTO committees and bodies, for instance, enable members to exchange information, raise concerns and suggest new approaches on a range of standards and regulations. They deal with all sorts of real-life issues – from the use of chemicals in toys or toxins in food, to the labelling of products. Hundreds of issues are raised and discussed each year.
Moreover, our regular monitoring exercises, examining countries trade policies and trade restrictive measures, help to improve transparency and avoid protectionism.
In this way the system helped to avoid an outbreak of protectionism after the financial crisis. We have stepped-up our monitoring work since then.
Our latest report shows that trade protectionism remains of concern to the global economy. However, there has also been some more positive news in the most recent reporting period showing that the number of trade liberalizing measures has also been improving.
When disagreements arise in these monitoring activities – as they often do – the WTO offers a platform for dialogue that very often results in mutually acceptable understandings.
If disagreements prove unbridgeable, we offer a dispute settlement mechanism that has a solid track record on the international stage.
In just 20 years we have successfully dealt with almost 500 trade disputes, helping members settle differences in an open and transparent manner.
This is a phenomenal level of demand.
It has put pressure on the dispute settlement system. But I think that pressure is a result of its success.
And the topics that are being handled in our disputes show that the WTO is in tune with current issues.
Recent disputes touch upon: the relationship of trade and renewable energy; policies to discourage tobacco consumption; packaging information for consumers; preservation and management of exhaustible resources; and many other issues.
In this way the jurisprudence arising from these cases can help to update trade rules in an incremental way.
Indeed, the fact that the bulk of the WTO rulebook is now 20 years old is not, in itself, a problem.
When they founded the WTO and agreed the legal texts, our members provided the equivalent of a constitution for global trade.
That constitution enshrines the basic principles of trade – such as non-discrimination, or national treatment – which will stand the test of time.
But of course, we do need to negotiate new rules as well. Especially where we need more clarity or where we have no disciplines at all.
Overall, I think the organization has helped to enhance global cooperation on trade in a range of ways.
But our underperformance on the negotiating front has become our Achilles heel and is something we cannot ignore if we are seeking to improve the overall health of the organization.
Negotiations and RTAs
Of course there have been some real negotiating successes in the WTO over the past 20 years.
We have negotiated new agreements and improvements in Telecommunications, Financial Services, and Government Procurement.
In fact, we had a major breakthrough in the expansion of the Information Technology Agreement this July.
This is the first tariff-cutting deal at the WTO in 18 years – and it is a big one.
It will eliminate tariffs on over 200 IT products. Trade in those products is valued at over 1.3 trillion dollars each year. So that means the deal will eliminate tariffs on approximately 7% of global trade.
Now, these are examples of agreements that were negotiated by groups of members.
But we have also shown we can deliver multilaterally.
The Bali Package – negotiated two years ago, and including the Trade Facilitation Agreement – is clear proof of that.
Again this will deliver real economic benefits – providing a boost of up to 1 trillion dollars each year to the global economy, once the agreement is implemented.
So promising steps have been taken.
But clearly, we need to deliver more, and to deliver it more quickly. And we cannot naively expect that market access negotiations would move as fast multilaterally as they do regionally and bilaterally.
This is illustrated by the emergence of the major Regional Trade Agreements that we are seeing today.
And we must consider how these agreements fit with WTO rules in particular.
This is something that the G20 has asked us to take a detailed look at.
What we have found so far is that WTO rules provide the basis for many RTAs. When RTAs deal with issues covered by WTO disciplines, those disciplines are maintained. This is mostly the case in anti-dumping provisions, safeguards, technical barriers to trade, sanitary and phytosanitary measures, and rules of origin in services.
However, RTAs also go beyond WTO rules in some areas. And we need to think about the implications of this into the future, as RTAs tackle new subjects. A proliferation of different rules and standards would be a drag on business, so this is an important area of work.
But of course, we shouldn’t overstate the issue. The multilateral trading system has always coexisted with regional agreements – and proved to be mutually reinforcing.
Indeed, there are many issues which RTAs cannot address, such as agriculture or fishing subsidies. These are issues that need to be discussed collectively, with a multilateral approach.
And so this puts the spotlight back on the WTO – and our capacity to negotiate.
Future of negotiations
We need to have a firm, honest look at the current situation.
Right now, we are working hard to deliver meaningful outcomes in our next Ministerial Conference in Nairobi, this December. This will be the first time such a meeting has been held in Africa.
But as things stand today – and this won’t come as a surprise – it doesn’t look like there will be big breakthroughs in the issues that have been stalled for so long, such as domestic support in Agriculture and market access in Agriculture, NAMA and services.
The gaps in these areas are still very big. The situation may change, but there are few signs of this at present.
And if there are no prospects for a major advance on these issues, members will need to face the reality. They will need to think about what they want the WTO to be and how it should work in the future.
It’s a very important debate. The paper prepared by the Peterson Institute earlier this year, on the future of the WTO, was a welcome contribution to the discussion. Indeed it is a debate receiving attention at the highest political levels. At the Brisbane meeting last year, G20 leaders discussed what can be done to make the international trading system work better. And they plan to return to it at their Summit in Turkey in November.
Despite differences on major issues, I think there is still potential for a meaningful agreement in Nairobi. And indeed delivering a successful Nairobi meeting is perhaps the best thing we can do to make the system work better.
From conversations with a wide range of members – and groups of members – I sense that a set of deliverables in Nairobi is within reach.
These include outcomes on export competition in agriculture, as well as a number of provisions to improve transparency in several areas.
And crucially, there is a broad understanding across the membership that those deliverables must include significant steps on development and LDC issues.
We must continue our efforts in domestic support and market access, but we also need to start some serious work on these promising issues.
So that is our immediate challenge.
Looking at our negotiating prospects more broadly, I think a look at our history can provide some important clues on possible ways forward.
We have proven that we can negotiate at the WTO, and we’ve often had success where we’ve taken more innovative approaches.
I see this work as following two broad tracks.
The first track is where all members are involved.
In these cases we are talking about a very diverse group. So the approach must reflect that.
This means that we can’t have a monolithic, rigid outlook. In my opinion, the days of the ‘one size fits all’ approach are gone.
We need to have flexibilities inbuilt into agreements, which allow members to take on obligations at an appropriate pace according to their capabilities, and providing assistance to help them to do so when necessary.
Bali – especially the Trade Facilitation Agreement – provides precisely this type of template.
This provided a new attitude to the way we look at negotiations, and proved that we can find common ground.
So I think this is food for thought.
Now, the second track to advance negotiations is one that embodies less than the full membership – for example, in pursuing sectoral agreements.
These kinds of approaches have provided an important avenue for groups of members to tackle specific issues of importance to them.
And this is a format we know how to work with, and where we’ve had many achievements.
Just look at the breakthrough we had in negotiating the expansion of the Information Technology Agreement.
And this is also the template followed by the prospective Environmental Goods Agreement – which again tackles a very important, emerging sector.
Of course, this track can be more rigid and demanding in its application, and demands much effort and commitment. Thus, not all members might be equipped to join them.
But because the agreements are negotiated in the WTO, their benefits are available to the other members as well.
So we have at least two possible ways to explore negotiations. And let’s not ignore the possibility of hybrid approaches.
Of course, major trade rounds are very important. But the trading system has never been limited to that.
When progress is more difficult, we need to use the full range of tools available to us. We need to be innovative and keep an open mind to new formats and approaches.
Conclusion
The question posed in the title of this event today is: what are the future prospects for global co-operation in trade?
I think that the answer, based on WTO’s track record in the last 20 years, is that the prospects in most areas are encouraging. Indeed I am positive about the future of the Organization. I certainly do not agree with some of the doomsayers who would say the best years are behind us. It is quite the opposite!
Today the WTO is firmly established as part of the architecture of global economic governance. The rule of law in trade is spread wider than ever before. And the daily work of administering the system – monitoring trade policies and settling disputes – provides an invaluable framework for members.
Yes, we need to look at how we can restore the negotiating function to a more positive footing – but I think we made a good start to that in Bali and again earlier this year, and I want to ensure that we continue this in Nairobi.
While I would not deny that we face real challenges, if you expect to be a truly relevant institution for global economic governance, the challenges and the stakes are always going to be very high.
Our record in recent years shows that we can deliver – and that we can do so in a variety of ways.
We should not lose sight of that. We must build on recent success in order to deliver even more in future.
And we have some clear next steps ahead of us to make it happen.
This starts with delivering the expanded Information Technology Agreement, implementing the Trade Facilitation Agreement and other Bali outcomes, pushing forward the Environmental Goods Agreement, and – most important of all – delivering meaningful outcomes in Nairobi.
In fulfilling this mission, your involvement and contributions will be as important as ever.
I hope we can continue to rely on your support – and welcome your views on the way ahead.
Thank you.
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Inclusive business a key contributor to the new global development agenda
Business Call to Action sees strong increases in membership, commitments to improve lives and livelihoods for world’s poor people
From small social entrepreneurships to large national and multinational companies, from urban neighborhoods to remote communities, from the farmyard to the schoolhouse, an increasing number of companies have rallied around the Business Call to Action (BCtA) by committing to inclusive business models designed to support the new sustainable development agenda and drive growth.
At its Sixth Annual Forum on 24 September 2015, BCtA announced commitments by 33 companies in support of the new Sustainable Development Goals (SDGs). This is the largest number of new members in a single year and represents a significant increase in the scope of commitments by companies to use viable businesses ventures that include those at the base of the economic pyramid as suppliers, distributors, retailers or customers. And it brings to 137 the number of businesses that have joined BCtA’s leadership platform since it launched in 2008.
“The private sector is a valuable – and valued – partner in our collective efforts to support sustainable development around the world. We have seen major increases in the private sector’s interest and involvement in development over recent years,” said Magdy Martínez-Solimán, UNDP Assistant Administrator and Director of Bureau for Policy and Programme Support. “Companies cannot advance inclusive business alone, they need support from many stakeholders which brings us back to the importance of partnerships in realising this new global development agenda.”
New BCtA member companies have made commitments to 10 of the 17 new SDGs. These include commitments to SDG 2 (Zero Hunger) to help 5.4 million farmers experience better agricultural yields; SDG 3 (Good Health and Well-being), to ensure health and promote well-being for 100.5 million people; SDG 5 (Gender Equality) to achieve ender equity and empowerment for 3.2 million women through increased productivity and revenue generating activities; and SDG 8 (Decent Work and Economic Growth), by creating 100,000 full time jobs. The new members, 68 percent of which are small- to medium-sized and social enterprises, are working in 37 locations in 19 countries (including not previously part of BCtA’s network) with 57 percent in Africa, 30 percent in Asia and 14 percent in Latin America. Six are led by women.
“The advantages of inclusive business are tangible, spurring the increase in the number of companies engaging in these innovative models and joining BCtA. For businesses, our newest members’ initiatives are helping to drive product innovation (Banka BioLoo, Basic Water Needs), open new markets (AccuHealth, Bata), strengthen supply chains (Lal Teer, Equator Kenya,) uncover new sources of profitability (CrediFamilia, Ignitia), and enhance long-term competiveness (Novo Nordisk, Access Afya),” said Sahba Sobhani, Office in Charge, Business Call to Action and Global Programme Advisor, Private Sector, BPPS. “As a result, people at the base of the economic pyramid are enjoying the benefits of higher productivity, sustainable earnings and greater empowerment. Engaging in Inclusive business offers the potential to unleash the economic power of the private sector to realise the SDGs.”
BCtA’s Sixth Annual Forum showcased the potential for and evidence of inclusive businesses aligning their core business activities with the SDGs and featured leaders from BCtA member companies, as well as senior representatives from governments, bilateral donors, civil society and the United Nations.
New Business Call to Action Members 2015
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AACE Foods: Combating malnutrition in Nigeria while engaging smallholder farmers in value chains.
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Access Afya: Bringing affordable health care to low-income families in Kenya
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AccuHealth: Expanding tele-monitoring of chronic non-communicable disease in Latin America.
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aWhere: Providing agricultural intelligence to smallholder farmers for better decision making.
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Banka BioLoo: Improving health and dignity in India through sustainable and affordable sanitation solutions.
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Basic Water Needs: Expanding access to safe drinking water for communities at the base of the economic pyramid in Malawi.
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Bata Shoe Company: Empowering women in Bangladesh, Latin America and Africa through the Rural Sales Program.
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BIDCO Africa: Building the livelihoods of smallholder farmers and entrepreneurs along the value chain.
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Centurion Systems: Building technical capacity and increasing the employability of low-income youth in Kenya
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Contigo: Providing financial services to bottom-of-the-pyramid customers in Mexico.
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Credifamilia: Increasing access to mortgage financing for low-income customers in Colombia.
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DDD Kenya: Enabling Kenyan youth to bring their families out of poverty through employment, skills and education.
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Equator Kenya: Increasing smallholder farmers’ productivity in Kenya through technology.
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GE Healthcare: Delivering sustainable, affordable healthcare through education, training and low-cost technologies.
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Ignitia: Providing reliable weather forecasting for informed decision making by farmers in the tropics.
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Ilumexico: Expanding solar energy solutions in off-grid rural communities in Mexico.
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Lal Teer Seed: Enhancing the sustainability of Bangladesh’s agricultural sector.
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Lotus Foods: Cultivating markets for sustainably produced rice in Asia and Africa.
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Medtronic Surgical Technologies, Inc.: Preventing hearing loss and empowering women in India through the Shruti Program.
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Mozambikes: Improving living standards in Mozambique through access to transportation.
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Nairobi Techpharm: Pharmnet®: a network of trusted pharmacies in Kenya.
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Novo Nordisk: Facilitating access to diabetes care for bottom-of-the-pyramid communities in Kenya.
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ONergy: Providing rural communities with access to clean energy in India.
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Pamoja Cleantech: Providing off-grid productive power from sustainable biomass for rural Ugandans.
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Pronaca: Strengthening the supply of domestically sourced corn in Ecuador
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Sanofi: Providing diabetes care for low-income people in Colombia
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salaUno: Providing accessible eye care for the bottom-of-the-pyramid communities in Mexico.
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Sevamob: Increasing access to primary healthcare in India via mobile clinics and a tele-health marketplace.
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Shiseido: Empowering women and improving hygiene in rural Bangladesh.
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Shubham Housing Development Finance Company: Building communities through access to home financing in India.
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Sompo Japan Nipponkoa Holdings, Inc.: Enhancing the resilience of small-scale farmers across Southeast Asia.
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Tolaro Global: Building the cashew nut value chain with smallholder farmers in Benin
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Vava Coffee: Expanding access to credit and financial training for smallholder coffee farmers in Kenya.
About Business Call to Action (BCtA): The Business Call to Action challenges companies to advance core business activities that are inclusive of poor populations and contribute to the achievement of sustainable development goals. Worldwide, 137 companies, from SMEs to multinationals, have responded to the BCtA by making commitments to improve the lives and livelihoods of millions through commercially-viable business ventures that engage low-income people as consumers, producers, suppliers, and distributors of goods and services.
The Business Call to Action is a unique multilateral alliance between key donor governments including the Dutch Ministry of Foreign Affairs, Swedish International Development Cooperation Agency (Sida), UK Department for International Development (DFID), US Agency for International Development (USAID), and the Ministry of Foreign Affairs of the Government of Finland, and the United Nations Development Programme – which hosts the secretariat – in collaboration with leading global institutions, such as the United Nations Global Compact, and the Inter-American Development Bank’s Opportunities for the Majority Initiative.