Despite increasing globalisation and liberalisation of trade production in some developing countries, the majority still depend on commodity exports as a main source of economic development. In order to achieve the the UN Millennium Development Goals, particularly that of reducing world poverty by half by 2015, major reform of commodity production and trade will be required, including broadening market access, reducing the use of agricultural subsidies, and improving both productivity and competitiveness in developing countries. This publication has been produced by UNCTAD and the Common Fund for Commodities with the aim of providing accessible data analysis on commodity production and trade which can be used by governments, industry, the media, civil society and the public at large as the basis for discussions on policy reforms.
For developing countries, the textiles and clothing industries have traditionally been an important gateway to industrialization and increased exports. With the expiration of the Agreement on Textiles and Clothing, the quota system originally set up through the Multifibre Arrangement was phased out. This has important implications for the allocation of export-oriented production and is likely to affect in various ways a large number of developing countries that rely heavily on such exports. Drawing on a wide range of studies as well as on original research, this volume shows that transnational corporations are likely to play a critical role in determining the future global production structure in these industries.--Publisher's description.
This document presents a revised version of the Model Law on Competition (ISBN 9211125952) published by UNCTAD in February 2003. It includes changes to commentaries on possible elements of a competition law and changes in national legislations. Topics include: restrictive agreements or arrangements; acts or behaviour constituting an abuse of a dominant position of market power; notification, investigation and prohibition of mergers affecting concentrated markets; and consumer protection.
China has achieved a significant rise in economic growth and development levels over the past two decades, which has transformed the country into a global economic force. This publication contains a collection of papers which discuss some of the key issues relating to China's development path in an increasingly globalising world, derived from various seminars held in relation to the joint UNCTAD/Ministry of Commerce of China (MOFCOM) project on 'Managing globalization and economic integration'.
Given the lack of adequate resources to finance long-term development in Africa, the need to attract foreign direct investment has become a key aspect of development strategies in recent years advocated by policymakers at national, regional and international levels. This publication evaluates the benefits and disadvantages that FDI brings for the host country in efforts to achieve sustainable economic development, and calls for a more balanced strategic approach which sufficiently recognises the economic and development challenges facing African countries.
One common mode of entry for foreign direct investment is through the making of a foreign investment contract with the State (State contracts). The aim of this paper is to consider specific International Investment Agreement provisions that act to affect the negotiation, conclusion and observance of State contracts by both the governmental and private parties.
This publication, one of a series of UNCTAD studies which discuss key international trade and development policy issues, focuses on the trade implications of the application of biotechnology techniques in agriculture and the use of genetically modified organisms (GMOs) and products derived from them. Topics considered include: domestic legislation on agro-biotechnology in selected developed and developing countries; the multilateral legal framework, including the Cartagena Protocol on Biosafety; actual and potential GM-related trade disputes.
The service sector is the most important sector for most developed economies being the largest contributor to gross domestic product, production, and employment. Developing economies on the other hand have a comparative advantage in labor services, however, the export of many of these services is limited by many restrictions on the temporary movement of labor imposed through domestic regulation. This study provides a comprehensive overview of the international trade in services focusing on market access in foreign markets. It also explains how developing economies are dealing with the issue of trade restrictions so as to spur development of the service sector.
"Tariffs for industrial products are a key element of the ongoing WTO negotiations. However, rather than clarifying the issues, the framework text agreed on 1 August 2004 leaves considerable uncertainty about the future direction of the talks. According to one view, the negotiations are back at first base, with little progress in evidence since the Fifth WTO Ministerial Conference, held in Cancâun. Others see the texts as the basis for an ambitious approach to tariff cutting. The more ambitious proposalsimply increased imports, lower tariff revenues, some labor market adjustments and reduced output in some key sectors in some developing regions. Furthermore, the main proposals do not fully resolve problems of tariff escalation and peaks. Proposals that take greater account of the need for special and differential treatment for developing countries seem less threatening and more likely to satisfy the wishes of the growing number of WTO members from developing countries. A successful outcome requires thatthe main focus be on high tariffs and market entry conditions in respect of products of export interest to developing countries. In addition, some way needs be found to assist some developing countries in coping with the likely adjustment costs of liberalization."--Publisher's description
This year's report examines Africa's export performance after trade liberalization in order to draw lessons for use in the design of future development strategies. It identifies Africa's weak supply response as the most important impediment to the continent's export performance, suggesting that future export policies should focus more on ways to increase production for export. The publication proposes some policies that could help Africa to refocus its development priorities on structural transformation in order to increase the continent's supply capacity and export response.
Since 2002, world economic expansion has had a strong positive impact on growth and helped support progress towards the United Nations Millennium Development Goals (MDGs). Most developing countries have benefited from this growth momentum as a result of strong demand for their exports of primary commodities and, to an increasing extent, of manufactures. However, global economic imbalances continue to pose a risk to the outlook of the world economy. Some improvements in market access, provision of debt relief and commitments by donors to substantial increases in ODA, as well as new opportunities to benefit from FDI and increasing migrants' remittances have benefited individual countries. In order for all developing countries to reach the MDGs and to reduce the large gap in living standards with the more advanced economies, the global partnership for development, stipulated in Goal 8 of the MDGs, needs to be strengthened further. Much depends on the ability of developing countries to adopt more proactive policies in support of capital formation, structural change and technological upgrading, and on the latitude available to them in light of international rules and disciplines. The Trade and Development Report 2006 offers relevant ideas and general principles for designing macroeconomic, sectoral and trade policies that can help developing countries to succeed in today's global economic environment. Particular attention is given to policies that support the creative forces of markets and the entrepreneurial dimension of investment.
Incentives are frequently used as a policy instrument to attract foreign direct investment (FDI), and can be classified as financial, fiscal or other (including regulatory) incentives. Given the important role that incentives can play in attracting FDI, recent IIAs (particularly at the regional and multilateral levels) have tended to deal with them more explicitly, including issues of definition, the application of the non-discrimination principle to regulate incentives, transparency, regulatory standards, and the promotion of development-oriented incentives both on the part of host and home countries.
This publication is a compilation of summaries of panel discussions and selected papers on themes deliberated by debt management experts and professionals at UNCTAD's Fifth Inter-regional Debt Management Conference, held in Geneva in June 2005. The conference was organized by UNCTAD's Debt Management and Financial Analysis System (DMFAS) Programme, with the aim of helping countries with developing and transitional economies build their capacity in debt management.
The WTO negotiations on agricultural trade policy remain deadlocked following the failure of the multilateral talks at Cancân. This study considers various options involved in the discussions, focusing on the Framework for Establishing Modalities in Agriculture (an annex of the revised draft Cancân Ministerial Text) and the positions of key players involved and the joint EC-US proposal. In order to quantify the economic effects of these proposals, the study uses a computable global trade model to analyse trade policy issues, and to assist in the preparation and evaluation of negotiating positions.
The Investment Policy Review gives insight into the country's investment environment and policies. The publication discusses foreign direct investment (FDI) trends and the steadily increasing flow of FDI. It also reviews the investment policy framework, which has improved the business climate; analyzes the attractiveness of the location for FDI and the role that FDI plays in the local economy. It is hoped that the analysis and recommendations presented in this review will contribute to an improvement of policies and investment promotion.
Technology is often packaged in the form of tangible assets, intangible property, and knowledge and skills. These different forms of technology may be transferred from one country to another through trade in tangible and intangible assets, the provision of services or licensing and leasing agreements, and also as part of foreign direct investment (FDI). These different modes of transfer and methods of payments may give rise to different tax obligations. This study examines the implications of various tax instruments on the transfer of technology from the perspective of both technology importing and exporting countries. It also identifies some of the tax-related policy instruments that can be used to promote technology transfer to developing countries.--Publisher's description.
This publication looks at the likely impact of the change of arrangements for the import of bananas into the EU. At present banana prices within the European Union are almost double world levels. These prices are maintained by restrictive import quotas and tariffs that generate rents that accrue to producers and distributors. The European Union is obliged to remove its quantitative restrictions and replace them with tariffs that are likely to give preference to existing quota holders from ACP countries. Indications are that a relatively small proportion of the rents are currently accruing to ACP producers and the loss in rent would be more than offset by the expansion of EU imports.
This study examines overt restrictions on foreign direct investment (FDI) in the services sector in developing countries and transition economies, drawing on a large number of sources in addition to the General Agreement on Trade in Services (GATS). Restrictions considered include: limitations on foreign ownership, screening or notification procedures, management and operational restrictions. These restrictions are computed for a number of services industries and then aggregated into a single measure for the services sector as a whole for each country. This study is part of an UNCTAD series of publications which seek to examine how transnational corporations and their activities impact on development issues.
This Investment Policy Review on Lesotho provides an overview of the Foreign Direct Investment (FDI) in the country, including the most recent trends and developments. It examines the legal investment framework currently in place and identifies new areas of high FDI potential. The Review is intended to improve Lesotho's investment policies and to familiarize the international private sector with the country's investment environment.
Prospects for global foreign direct investment are promising in both the short term (2005-2006) and the medium term (2007-2008). Although there are some potential risks, which may weaken momentum in the near future, FDI growth is likely to continue in the years to come. The recovery is increasingly fuelled by investment into, and from, developing countries. The overall mood is one of cautious optimism. This publication presents the future trends of global and regional FDI flows, strategies of transnational corporations and developments of FDI policies.
This volume of the 2006 Review of International Accounting and Reporting Issues contains the proceedings of the twenty-third session of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting. The two main agenda items the session dealt with were: a review of practical implementation issues of International Financial Reporting Standards; and comparability and relevance of existing indicators on corporate responsibility.
This handbook provides consistent data for the international trade of the major non-fuel minerals and metals, from primary to semi-processed forms. Both quantities and values for these products are listed. It includes summary tables on the value of world exports and imports of minerals, ores and metals by country and region and by the Standard International Trade Classification for the years 1995 to 2000, as well as detailed tables concerning 38 minerals and metals representing over 98 per cent of the world trade in 2000.
The Information Economy Report 2009: Trends and Outlook in Turbulent Times (IER 2009) is the fourth in a series published by the United Nations Conference on Trade and Development (UNCTAD). The report is one of the few publications to monitor global trends in information and communication technologies (ICTs) as they affect developing countries. It serves as a valuable reference for policymakers in those nations. It gives special attention to the impact of the global financial crisis on ICTs. The report offers a fresh assessment of the diffusion of key ICT applications between 2003 and 2008. It includes chapters on the use of ICTs in the business sector and on the impact of the financial crisis on ICT trade.
This publication, comprising a handbook and CD-ROM, contains a comprehensive range of full time series data regarding trends in world trade, investment and development, based on international and national sources. Data analysis uses values, percentages and rankings to facilitate interpretation, with regional breakdowns for countries and territories,classified under three main headings of developed market economies, countries in central and eastern Europe, and developing countries and territories; as well as economic and trade groupings. The data are organised into eight categories covering international merchandise trade, trade and commodity price indices, structure of international trade by region and product, international trade in services, international finance, development indicators, and special studies.
What was only a vision three decades ago has now become a reality. As of the beginning of 2005, over 100 countries, including the European Union, either require or permit use of international financial reporting standards (IFRS) for preparation of financial statements by enterprises in their respective jurisdictions. This publication has been prepared to disseminate the lessons learned to a wider audience. As a growing number of developing countries and countries with economies in transition are embarking on the IFRS implementation process, the need for sharing experiences and lessons learned is becoming even more vital. It is my hope that policymakers, regulators, standard-setters and educators will find this publication to be a timely reference and a useful tool as they go about tackling practical implementation challenges of IFRS.
The environmental world summits in Rio (1992) and Johannesburg (2002) have shownthat the business community has become committed to the concept of sustainabledevelopment and to improving its environmental performance. On the other hand,various stakeholders are demanding that enterprises report on theseimprovements. In particular, the financial community is concerned about howenvironmental performance affects the financial results of an enterprise.This concern about sustainable development is now complemented in the post-Enron era by corporate concern about "sustainable value" or "sustainable business".To achieve sustainable development, sustainable value or sustainable business,enterprise management must take into account the impact of their performance ontheir employees, their customers, their suppliers and the community, including itsenvironment. This manual presents the results of ISAR's work to extend the conventionalaccounting model and to link environmental performance with financialperformance. The precise correlation between improved environmentalperformance of an enterprise and its bottom line is extremely difficult to provebecause of the many factors that can affect profits. However, the concept of ecoefficiency,where increased profits are achieved under conditions of decliningenvironmental impact, demonstrates such a link. Despite the practical usefulnessof eco-efficiency indicators, their construction and use are highly problematic. Thismanual presents a method by which environmental and financial performanceindicators can be used together to measure an enterprise's progress in attainingeco-efficiency or sustainability. The manual provides detailed explanations andexamples for the preparers and users of eco-efficiency indicators so that they canproduce internally consistent environmental and financial information, thusimproving the quality of environmental reporting and stakeholder satisfaction.
Looking at recent trends in the world economy from the perspective of the Millennium Development Goals (MDGs), the good news is that in 2004 growth in the developing countries was rapid and more broad-based than it had been for many years. Strong per capita income growth continued in China and India, the two countries with the largest number of people living in absolute poverty. Latin America has seen a rebound from its deep economic crisis, and a return to faster growth, fuelled by export expansion. Africa again reached a growth rate of more than 4.5 per cent in 2004. Moreover, relatively strong growth in many African countries is envisaged in the short-term, owing to continuing strong demand for a number of their primary commodities. The bad news is that even growth rates of close to 5 per cent in sub-Saharan Africa are insufficient to attain the MDGs, and that the outlook for 2005, overshadowed by increasing global imbalances, is for slower growth in the developed countries with attendant effects on the developing countries. Since the beginning of the new millennium, the performance of the world economy has been shaped by the increasingly important role of China and India. Rapid growth in these two large economies has spilled over to many other developing countries and has established East and South Asia as a new growth pole in the world economy. Their ascent has been accompanied by new features of global interdependence, such as a brighter outlook for exporters of primary commodities, rising trade among developing countries, increasing exports of capital from the developing to the developed countries, but also intensified competition on the global markets for certain types of manufactures.
This publication, one of a series of UNCTAD studies which discuss key international trade and development policy issues, uses Indonesia's trade policy experience as a case study to draw wider lessons for future trade policy for developing countries, and the potential benefits and costs of alternative trade strategies. Issues discussed include: the evolution of the Indonesian trade policy regime, trade barriers in export markets, six policy scenarios for trade liberalisation, and potential impacts on exports and imports, government revenues and sectoral effects.
El Salvador made a firm strategic choice to develop as an open market economy decades ago, and it has long adopted an open attitude towards FDI. A large number of reforms have been implemented in the past decades that reflect this choice: regional economic integration has been fostered and crucial free trade agreements have been concluded, the US dollar was adopted as legal tender, competition rules have been enforced and key segments of the economy have been privatised. This strategy has allowed El Salvador to gain macro-economic stability and attract beneficial FDI inflows. Much progress remains to be achieved, however, to eradicate poverty and reduce income inequality. In addition, El Salvador needs to improve the general level of competitiveness of its domestic firms in order to reap the full benefits of openness to global trade and investment flows. The Review offers concrete recommendations in order to allow El Salvador to promote FDI in support of global competitiveness and to generate higher levels of beneficial foreign investment.
This study examines the challenges facing developing countries against the background of regional trade agreements (RTAs). Section one offers a discussion of the main features that characterize the "new regionalism", in trade between countries. The second section highlights some of the major challenges confronting developing countries in regard of regional trade agreements and the multilateral trading system (MTS). The final section focuses on the issue of regionalism and trade in services, analyzing some of the main issues that need addressing at the World Trade Organization.
With concern over the impact of corporate enterprises on society growing, a number of initiatives have been undertaken to assess and report on it. Responding to these developments, the Intergovernmental Working Group of Experts on International Standards of Accoung and Reporting (ISAR) identified corporate social responsibility as one of the emerging issues that could be discussed at future sessions. This paper has been prepared to facilitate that future consideration. It provides an overview of definitions, the main initiatives undertaken and analyses the main factors that govern corporate relations with society.
This publication, the 17th in a series of UNCTAD annual reports, analyses the latest trends in foreign direct investment (FDI) flows worldwide at the regional and country levels and examines emerging measures to improve its contribution to development. The 2007 report focuses on the role of transnational corporations (TNCs) in the extraction of oil, gas, and metal minerals, looking at key countries and companies involved and how the forces driving investment change as raw materials progress up the value chain to become finished products, and as different types of companies participate. Findings include that global FDI inflows rose in 2006 for the third consecutive year, with growth shared by all major country groups (developed countries, developing countries and the transition-economies of South-East Europe and the Commonwealth of Independent States). Rising demand for commodities was reflected in a steep increase in natural resource-related FDI, although the services sector continued to be the dominant recipient of FDI. Among the developing regions, FDI inflows to subregions such as North Africa, sub-Saharan Africa, West Asia, South Asia, East Asia, and South-East Asia were at record levels, as were foreign investment flows to transition economies.
This publication is part of a new series of current studies on foreign direct investment and development. The series aims to contribute to a better understanding of how transnational corporations (TNCs) and their activities impact on development. This study quantifies and analyses the past and current trends on the degree of internationalisation of the largest TNCs as well as TNCs from developing economies. It shows how some developing economies have emerged as significant actors in international production. Firms from the United States and Germany and firms in the pharmaceutical industry dominate the top of the list of the most transnational TNCs. The United Kingdom and the Netherlands are the locations most favoured by the largest TNCs, and Brazil and Mexico from the developing economies are also among the top hosts.
This new annual publication analyses current trends in information and communication technologies (ICT), such as e-commerce and e-business, and national and international policy and strategy options for improving the development impact of these technologies in developing countries. The report replaces the UNCTAD's E-commerce and Development Report series, redefining its scope to reflect the expansion of information economy and its key role in trade and development.
Information and communications technologies (ICT) have considerable potential to promote development and economic growth, by helping to foster innovation, improve productivity and expand the knowledge capacity of developing countries, especially for small and medium-sized enterprises. This is the fourth report in the series, published by UNCTAD, which seeks to assess the implications of the growing role of ICTs in economic development. Issues discussed include: the growth of e-commerce and issues for international dialogue; e-business survey results in Latin America; the use of digital and internet technologies in the creative industries, particularly in the music industry; online learning in the higher education sector; government e-commerce applications in e-procurement; legal issues and challenges of data privacy in an information society; and the ICT sector in Tunisia and the development of a national e-strategy.
This publication is part of a series designed to help countries improve their investment policies and to promote awareness of investment opportunities by governments and the international private sector. It examines the recent investment trends and performance of Kenya, its investment framework, and the strategic agenda for promoting foreign direct investment (FDI).
IIAs covering services FDI are proliferating at the bilateral, regional and multilateral levels. The resulting network of international rules on FDI in services is multifaceted, multilayered and constantly evolving, with obligations differing in geographical scope and substantive coverage. These rules are increasingly setting the parameters for national policies in the services sector. Services IIAs can offer a series of potential benefits. They can provide a stable, predictable and transparent enabling framework for attracting investment and benefiting from it. At the same time, the optimal realization of these potential benefits remains a challenge. Specifically, the challenge is to strike a balance between using IIAs for attracting FDI and benefiting from it on one hand, and preserving the flexibility needed for the pursuit of national development strategies in the services sector on the other.--Publisher's description.
This publication sets out a comprehensive range of data on international trade, investment and development topics, both for individual countries and for economic and trade groupings. Based on national and international sources, the data are presented in an analytical way through the use of rank orderings, growth rates, shares and other calculations. Topics covered include: international merchandise trade; trade and commodity price indices; export and import structure by product, commodity group and by regions of origin and destination; international trade in services; international financial data, including balance of payments, foreign direct investment, external indebtedness and workers' remittances; and selected indicators of development.
Prospects for global foreign direct investment (FDI) are expected to be positive in both the short term (2004-2005) and the medium term (2006-2007). The extent and the speed of the FDI recovery, however, will vary by region and industry. Despite the FDI recovery, competition for FDI is expected to become fierce in the years to come. Overall, the positive factors will outweigh the negative ones, although the recovery will be modest when compared to the 1999-2000 FDI boom driven by massive MandA deals.This publication brings together the results of three UNCTAD surveys and covering the whole spectrum of views on FDI prospects of IPAs, TNCs and location experts around the world. Chapters covers assessing overall FDI prospects, future trends for individual economic regions, analyses policy developments and implications and the methodology employed in the prospects assessment.A panel discussion was organized based on this study during the UNCTAD XI Conference in Saäo Paulo on 15 June 2004.
Examines the possible effects of a regional economic integration organization (REIO) exception in international investment agreements.
"Using a quantile regression econometric formula, this study examines the relationship between export performance, supply capacity factors and foreign market access. The main determinants of export performance are discussed and the results of the study are explained."--Publisher's description.
This publication is part of a series designed to help countries improve their investment policies and to promote awareness of investment opportunities by governments and the international private sector. This review of Botswana notes that it has moved from least developed country (LDC) status within one generation and is now a middle-income country. Foreign direct investment (FDI) has been a key driving force in this transformation, and although the focus of government policy is now on domestic business development to ensure economic growth and diversification, this should not be at the expense of seizing opportunities to attract additional FDI, especially in terms of managerial, technical and professional skills, hard and soft technologies, and access to export markets.
The purpose of this glossary is to provide brief explanatory commentaries on the main terms and concepts used in international investment agreements (IIAs). These terms and concepts have mainly a legal connotation and have been selected because they provide a broad coverage of the principal issues that are dealt with in IIAs.
This paper, part of a series on issues in international investment agreements (IIAs), examines how competition issues are addressed in IIAs and other instruments, including key policy aspects related to the definition of restrictive business practices, extraterritoriality and international co-operation in procedural issues, and harmonisation measures; as well as different approaches to competition policy for economic development in individual countries, and options available when drafting competition provisions.
Reservations in International Investment Agreements are a key technique for balancing flexibility of national authorities with international commitments in the field of investment, especially for developing countries. This paper studies the use of such reservations at two levels. First, it assesses the various means that signatories have at their disposal when attempting to preserve flexibility and regulatory autonomy. Second, it explores the revealed preferences for flexibility emerging from the reservation lists of eight International Investment Agreements employing a negative list approach to scheduling nonconforming measures. Publishing Agency: United Nations (UN).
The number of international investment agreements (IIAs) among developing countries has increased significantly in the last decade, and there is scope for further expansion in such co-operation focusing on ways of facilitating investment flows by developing countries in other developing countries to achieve developmental goals. This report examines emerging trends in South-South IIAs in terms of objectives and content, geographical coverage and related issues.