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Research Paper 46, July 2012 Whilst the first steps towards Asian trade cooperation stated in 1970s, it was the Asian Financial Crisis of 1997 that triggered Asian efforts at monetary and financial integration. This paper argues that the conditions for Asian monetary integration are not conducive but that efforts at monetary cooperation should proceed at three fronts – exchange rate cooperation, coordination of capital flows control, and strengthening of regional financial liquidity management as in the Chiang Mai Initiative and regional surveillance. Research Paper 45, June 2012 The new research paper discusses on contexts and recent negotiations in Technology Transfer, Sustainable Development and Climate Change. In terms of proprietary rights, the author categories technologies and related products into three domains: the Public Technologies; Patented Technologies and Future Technologies. After revealing the Effects of Patents on Access to Climate-Related Technologies, a number of measures are discussed to address problems arising should patents become a barrier to the transfer of climate related technologies. Research Paper 44, March 2012 This paper argues that the unprecedented acceleration of growth in the developing world in the new millennium in comparison with advanced economies is due not so much to improvements in underlying fundamentals as to exceptionally favourable global economic conditions, shaped mainly by unsustainable policies in advanced economies. The only developing economy which has had a major impact on global conditions, notably on commodity prices, is China. However, growth in China has been driven first by a rapid expansion of exports to advanced economies and more recently, after the global crisis, by an investment boom, neither of which is replicable or sustainable over the longer term. To maintain a rapid growth, export-led Asian economies need to reduce their dependence on foreign markets. For Latin American and African commodity exporters, gaining greater autonomy and achieving rapid and stable growth depend on their success in reducing reliance on capital flows and commodity earnings – the two key determinants of their growth which are largely beyond national control. Research Paper 43, March 2012 This paper examines possible modalities of collaboration for research and development (R&D), understood as comprehensive of scientific studies and of activities for the generation of new processes and products and the improvement of existing ones . It briefly discusses, first, the various sources of technology for adaptation to and mitigation of climate change. Second, the paper examines different elements relevant for fostering cooperation in R&D and the modalities that such cooperation may adopt, having in view experiences made in other areas of science and technology. Finally, an analysis of the cooperative model used to promote the development and diffusion of seeds in the ‘green revolution’ is presented, with the aim of exploring its possible applicability to the case of environmentally sound technologies. Documento de investigación número 42, enero de 2012 Este documento de investigación del Centro del Sur es una contribución al debate y el proceso de reforma de la Organización Mundial de la Salud (OMS) para que ésta pueda responder a los desafíos de la salud y la política de salud del siglo XXI. Más específicamente, este trabajo aborda el sistema de innovación farmacéutica desde la perspectiva del acceso a los medicamentos, y explora posibles cambios estructurales en el sistema actual. Para ello, aborda cómo los poderes constitucionales de la OMS, a menudo ignorados por la propia Organización, pueden contribuir positivamente a un cambio de paradigma en la estimulación de la investigación biomédica. Documento de investigación número 41, septiembre de 2011 A pesar de la caída en el número de descubrimientos de nuevas entidades químicas para uso farmacéutico, hay una importante proliferación de patentes sobre productos y procesos que cubren innovaciones menores e incrementales. Un estudio que se llevó a cabo en cinco países en desarrollo - Argentina, Brasil, Colombia, India y Sudáfrica- mostró un incremento significativo de “evergreening” (reverdecimiento) de patentes farmacéuticas, que puede obstaculizar la competencia de productos genéricos y, así, limitar el acceso a los medicamentos. También demostró que, cuando se utilizan rigurosos estándares de paso inventivo en la concesión de patentes, se puede dar respuesta tanto a las necesidades de la innovación farmacéutica como al interés de la salud pública. Research Paper 40, July 2011 There are many challenges and obstacles facing developing countries in moving their economies to more environmentally friendly paths. On one hand this should not prevent the attempt to urgently incorporate environmental elements into economic development. On the other hand, the various obstacles should be identified and recognised and international cooperation measures should be taken to enable and support the sustainable development efforts. The conditions must be established that make it possible for countries, especially developing countries, to move towards a “green economy.” Documento de investigación número 39 (Resumen), mayo de 2011 Las Partes en la Convención Marco de las Naciones Unidas sobre el Cambio Climático (CMNUCC) han reconocido la necesidad de “mejorar urgentemente la aplicación de la Convención para lograr su objetivo fundamental de plena conformidad con sus principios y compromisos” (Preámbulo del Plan de Acción de Bali). Documento de investigación número 38, mayo de 2011 Se habla mucho actualmente de los Objetivos de Desarrollo del Milenio (ODM). Hace ya diez años que fueron aprobados por las Naciones Unidas y a finales de septiembre de 2010 varios líderes políticos mundiales acudieron a Nueva York para una reunión de la Asamblea General con el fin de evaluar su cumplimiento durante el último decenio y formular estrategias para los cinco años siguientes, periodo de vida de los ODM. Las razones de preocupación son diversas. Algunos analizan los progresos con relación al pasado; otros se centran más bien en el presente para analizar las consecuencias de la crisis financiera y de la gran recesión de la economía mundial; y otros, en cambio, piensan en el futuro y en cómo recorrer el tramo que falta. El objetivo de este documento de investigación es reflexionar sobre las posibilidades y las opciones que se presentarán después del año 2015. Research Paper 36, April 2011
As is common knowledge, the Nagoya Protocol was rushed through in the final hours of COP10 in an attempt to secure a binding instrument on ABS. As a result the Protocol represents, at best, a partially negotiated instrument. In the process, transparency, legal certainty and balance seem to have been sacrificed. The silver lining, however, is that the generalised provisions, crafted in an attempt to accommodate seemingly polarised positions, provide considerable flexibility. It is for developing countries to exercise the options open to them as a result, as outlined in this article, through national law as well as through COP/MOP at the crucial implementation stage after the Protocol is ratified. Hopefully, this will finally provide the world with an instrument truly supportive of national ABS laws and policies to end biopiracy and restore fairness and equity in the exchange of genetic resources across the globe. For, ultimately, only on the basis of fair and equitable sharing of benefits can the conservation and sustainable use objectives of the CBD be finally realized. Documento de investigación número 37, marzo de 2011 (Introducción y conclusiones únicamente) La historia de la posguerra ha sido testigo recientemente de tres ciclos generalizados de auge y colapso en las corrientes de capital privado hacia las EDE que han infligido grandes reveses al desarrollo. Una característica común de estos ciclos es que todos comenzaron en situaciones de rápida expansión de la liquidez y bajos tipos de interés en los principales países emisores de monedas de reserva, en especial en los Estados Unidos. Sin embargo, los auges terminaron de manera algo diferente en episodios distintos.Documento de investigación número 35, enero de 2011 La negociación del grupo ínter-países conocido con la sigla inglesa de "IGWG"llevada a cabo por los países Miembros de la OMS fue el resultado de un impasse en la Asamblea Mundial de la Salud del año 2006 donde los Estados Miembros de la OMS no llegaron a un acuerdo sobre qué hacer con las sesenta recomendaciones del informe sobre la "Salud Publica, la innovación y la propiedad intelectual"sometido a la Asamblea del mismo año, por un grupo de expertos nombrado por el Director General de la OMS. El resultado de esta negociación fue la "Estrategia mundial y plan de acción sobre la salud publica, la innovación y la propiedad intelectual" aprobada por la Asamblea Mundial de la Salud. Documento de investigación número 34 (resumen únicamente) noviembre de 2010 Este documento señala la importancia de las obligaciones internacionales en materia de derechos humanos a la luz de las numerosas restricciones que el cambio climático impone al desarrollo sostenible en los países en desarrollo. Estas obligaciones jurídicamente vinculantes han sido convenidas por los Estados desde la creación de la Organización de las Naciones Unidas (ONU) y han sido incorporadas en tratados relacionados con los derechos humanos ratificados por un gran número de países. Research Paper 33, November 2010
This South Centre Research Paper aims to contribute to the discussion on the issues of environment, development and equity that are at the centre of the climate, development and equity nexus. Documento de investigación número 32 (resumen únicamente), noviembre de 2010 La turbulenta situación actual de la economía mundial ha vuelto a demostrar que el sistema internacional carece de mecanismos para evitar las crisis financieras con repercusiones mundiales. No solamente hacen falta normas y reglamentaciones eficaces para controlar los mercados financieros y las corrientes de capital de por sí inestables, sino que tampoco hay una disciplina multilateral en torno a las políticas monetarias, financieras y cambiarias equivocadas de países importantes desde un punto de vista sistémico, pese a sus profundos efectos adversos en el plano internacional. A los responsables de la formulación de políticas nacionales e internacionales les preocupa principalmente resolver las crisis abriendo el grifo para ayudar a los responsables de éstas, en lugar de introducir dispositivos institucionales para reducir las posibilidades de que vuelvan a producirse. El sistema monetario y financiero internacional necesita reformas profundas. El principal objetivo debería ser el suministro del “bien público mundial de la estabilidad financiera”.
Research Paper 31, July 2010 This Research Paper is a legal analysis of the EC-Cariforum Services and Investment Chapter. It demystifies the many complex technical details in the EPA text and illustrates where this services and investment template goes beyond the WTO's GATS. The paper highlights implications for other developing countries embarking on similar negotiations with the EU. Research Paper 30, May 2010, Updated in February 2012 This paper discusses the principles and scope of activities of the world trade organization, addresses the imbalances in the existing rules and the problems faced by developing countries. Then it elaborated on various specific issues such as, the “Singapore issues”, labour and environmental standards, the “development issues”, market access negotiations and, at last, its functioning in decision-making system. Documento de investigación número 29 (introducción y conclusión únicamente) mayo de 2010 El objetivo de este documento es examinar algunos aspectos importantes de la interrelación existente entre las problemáticas sobre el cambio climático y aquellas relacionadas con el comercio. En concreto, el Documento de investigación número 29 analiza el desarrollo de las políticas adoptadas por los gobiernos y los procesos intergubernamentales para hacer frente a la crisis en materia de cambio climático, en especial en el marco del régimen internacional en materia de cambio climático y de la Convención Marco de las Naciones Unidas sobre el Cambio Climático (CMNUCC), y sus interrelaciones con el régimen comercial multilateral, en particular con la OMC. Documento de investigación, (resumen) mayo de 2010 La crisis económica mundial es una llamada de atención a los PMA para que reconsideren sus estrategias de industrialización y desarrollo a largo plazo. No hay un modelo único de estrategia de desarrollo para estos países. Sin embargo, algunas directrices comunes en materia de políticas deberían aplicarse a todos. Este informe presenta propuestas para el desarrollo industrial en este sentido. Los PMA aún tienen cierto margen de maniobra pese a la considerable pérdida de espacio normativo. Sin embargo, a fin de evitar una tragedia humana, especialmente en los países del África subsahariana, son necesarios también cambios en las reglas de la Organización Mundial del Comercio (OMC), un cambio fundamental de las políticas de las instituciones financieras internacionales en relación con los PMA y una reformulación de la base de los acuerdos de asociación económica. Descargar
Research Paper 27, April 2010 The South Centre has published a research paper by its Special Economic Advisor and Chief Economist Yilmaz Akyuz, addressing export dependence and their contribution to growth in China and its supplier developing economies in East Asia, in the context of re-examining their growth strategies in light of the global economic crisis and medium term global growth prospects. Documento de investigación 26 – abril de 2010 Tras una contracción económica profunda y generalizada y una considerable disminución de la producción y del empleo, los responsables de la formulación de políticas, analistas financieros y expertos de los medios de comunicación parecen ilusionados por las noticias provenientes de varias partes del mundo que indican que lo peor ha pasado. La preocupación principal ahora es la forma y el ritmo de la recuperación. La economía mundial hace frente ahora a un serio dilema: la consolidación financiera y la compresión fiscal en países con déficit podría revivir el espectro del estancamiento económico, mientras que el regreso a las burbujas financieras y a las expansiones impulsadas por el endeudamiento supondría que la próxima crisis podría ser incluso peor y el Estado podría estar en una situación financiera mucho más frágil para responder de manera eficaz. Es necesario, por lo tanto, que se lleven a cabo ajustes en las cuatro principales economías: Alemania, China, los Estados Unidos y el Japón, a fin de corregir los desequilibrios y garantizar una adecuada demanda mundial sin que se repitan las burbujas financieras ni el consumo impulsado por el endeudamiento.
La CMNUCC es un régimen de política bien equilibrado, que incorpora un conjunto de obligaciones y compromisos que tienen en cuenta las responsabilidades comunes pero diferenciadas y capacidades respectivas de los países desarrollados y los países en desarrollo en relación con el cambio climático. Sin embargo, los países desarrollados no han logrado, por lo general, aplicar plenamente y de manera eficaz sus compromisos específicos en el marco de la CMNUCC para tomar la iniciativa en materia de mitigación de los efectos del cambio climático y proveer financiación y tecnología a los países en desarrollo. Informe del Centro del Sur En el presente documento se analizan las limitaciones a las que hacen frente las EDE para responder a los impulsos desestabilizadores y deflacionarios de la crisis y se evalúan las iniciativas internacionales para prestar ayuda que se han puesto en marcha hasta el momento. Asimismo, se analiza la reforma de la arquitectura financiera internacional y se abordarán dos asuntos importantes: prevención de la crisis e intervención y solución de la crisis. Estos análisis se centran en las cuestiones que revisten particular importancia para la estabilidad y el crecimiento de las EDE y no en cada una de las cuestiones que plantea la crisis actual. Documento de Investigación 23, diciembre de 2009 El presente documento se centra principalmente en explorar los beneficios económicos que pueden obtener los titulares de conocimientos tradicionales de las innovaciones biotecnológicas. El objetivo principal de este documento es mostrar que los titulares de conocimientos tradicionales pueden desarrollar sus conocimientos tradicionales a través de la innovación basada en la biotecnología y que los titulares de los conocimientos tradicionales pueden usar la biotecnología para mejorar su posición económica.
South Centre Research Paper 22, July 2009 This paper examines the scope of policy space available to integrate economic, social and environmental concerns under the World Trade Organization’s (WTO) Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). By comparing the amount of discretion available for domestic public interest measures in two other core areas of WTO regulation, i.e. trade in goods and services, the paper concludes that the notion of general exceptions under the General Agreement on Tariffs and Trade (GATT) and under the General Agreement on Trade in Services (GATS) finds no equivalence in TRIPS. South Centre Research Paper 21, June 2009 Standards cover nearly all fields, including pharmaceuticals, food production, the environment, energy, information and telecommunications. Problems arise when IPRs are included in standards and a balance cannot be struck between the private interests of IPR owners and the integrity of standardization. This paper illuminates the manipulation on the part of IPR holders in the context of standardization resulting in a severely distorted market. It further examines the limits and failure of current 'solutions' related to the exclusionary effects of IPRs in international standards and attempts to expound the importance of this theme around the following questions: South Centre Research Paper 20 - May 2009 The importance of industrialisation as an engine of economic growth and development cannot be overstated. Industrial production creates job opportunities at higher skill levels, facilitates denser links across the services and agricultural sectors, between rural and urban economies and between consumer, intermediate and capital goods industries. Given the importance of industrialisation and the pressure weighing on industrial policies, it is thus useful to survey the extent to which industrialisation is a policy priority and is being pursued. Documento de Investigación No. 19, diciembre de 2008 El presente Documento de Investigación tiene por objeto extraer las enseñanzas del proceso de negociación de las normas SECURE, una iniciativa para fomentar las normas de observancia de la propiedad intelectual que trascienden las disposiciones del Acuerdo sobre los ADPIC en la OMA, y ayudar a los países en desarrollo a hacer frente a los desafíos mundiales que representan las iniciativas de observancia de la propiedad intelectual. A pesar de que los defensores de las normas SECURE habían adoptado un enfoque acelerado para llegar a una rápida conclusión, una eficaz coordinación entre los países en desarrollo frustró el intento de aprobación de la versión preliminar de las normas SECURE en la reunión del Consejo de la OMA de junio de 2008, lo que provocó la suspensión de la labor del Grupo de Trabajo sobre las normas SECURE en el Comité sobre Políticas de la OMA en Argentina, en diciembre de 2008. Esta batalla nos confirma la necesidad de reflexionar en profundidad sobre la totalidad del proceso de negociación y plantear con visión de futuro los planes para hacer frente a las luchas y los desafíos venideros por el bien del propio desarrollo sostenible a largo plazo de los países en desarrollo. Documento de Investigación Nº 18, diciembre de 2008 En este documento se cuestiona la utilización del recuento de patentes, a modo de base conceptual, como indicador de la innovación para evaluar el desempeño innovador de los países y comprender la geografía de la innovación. Se aduce que la conclusión del informe sobre patentes de la OMPI respecto del cambio de la geografía de la innovación, basado en un acusado aumento del número de patentes concedidas en Asia nororiental, en particular en China, debe interpretarse con precaución. El inconveniente de la comparación internacional que se realiza en el informe no sólo está relacionado con la necesidad de realizar una interpretación adecuada de la cantidad de solicitudes de patentes que reciben las oficinas y de las “solicitudes presentadas por residentes” sino también con la gran heterogeneidad en el valor de las patentes concedidas. South Centre Research Paper 17 - July 2008 The experience of developing countries, individually and collectively, during the more recent period of globalization has only confirmed that developing countries need to be consistent and united in promoting their views and interests, and that to succeed it is also essential for them to join forces and pursue group action in most domains on the development agenda. With a number of developing countries having made important progress and strides in development and economic growth, the collective weight of the South should be used for launching major policy initiatives, as well as to counter the systemic economic and political imbalances that favor the developed countries. Documento de Investigación N° 16 RESUMENLa salud es un derecho humano. Este derecho es conferido a los seres humanos a través de Constituciones nacionales y diversos instrumentos jurídicos internacionales que muchos gobiernos del mundo –por no decir todos– han firmado y ratificado. Inherente al presente Documento de Investigación resulta el derecho de acceder a los servicios básicos de salud, lo cual impone a los Estados la obligación de garantizar que dichos servicios sean de acceso universal a todos sus mandantes. Más allá del elemento obligatorio, el acceso universal a los servicios básicos de salud también constituye una meta de desarrollo que muchos gobiernos se esfuerzan por alcanzar. En los casos en que el sector de la salud en muchas partes del mundo en desarrollo, particularmente en el África subsahariana, se encuentra en una situación muy débil, los gobiernos afrontan muchos desafíos al intentar cumplir con esta obligación. Un fenómeno cada vez más importante de la globalización es el movimiento de proveedores de servicios de salud para brindar dichos servicios. Si bien gran parte de este movimiento se produce dentro de los países desarrollados o entre ellos, la tendencia de un movimiento entre países en desarrollo y países desarrollados constituye un asunto de particular interés. Mientras que el VIH/SIDA, la malaria, la tuberculosis y otras enfermedades tratables se cobran un número incalculable de vidas en el continente africano, el éxodo de proveedores de servicios de salud plantea graves problemas y se ha convertido en el tema central de debate de diversos foros internacionales. Documento de Investigación No. 15, agosto de 2008 RESUMENEn 1995 el Acuerdo sobre los ADPIC entró en vigor y estableció normas básicas de protección y observancia de la propiedad intelectual en el plano internacional. Si bien las obligaciones sustantivas que se derivan del Acuerdo sobre los ADPIC han sido ampliamente aplicadas en las legislaciones nacionales, los países en desarrollo se enfrentan a una presión creciente que les impone reforzar la observancia de la propiedad intelectual. Los Estados Unidos, el Japón y la Unión Europea han emprendido nuevos esfuerzos para reforzar y armonizar, en el plano internacional, los diferentes instrumentos mediante los que los países procuran exigir la observancia de los derechos de propiedad intelectual. Con el fin de reforzar su programa, estos países han anunciado de forma conjunta su intención de negociar un nuevo tratado internacional contra la falsificación independientemente de la OMPI y han identificado la observancia de la propiedad intelectual como una cuestión prioritaria para el G8.
RES esearch Papers 13 - August 2007 by Dalindyebo Shabalala EXECUTIVE SUMMARY (excerpt)The last two decades of the 20th century saw a revolution in the nature of information and the way that it can be created, used and transmitted. Vast opportunities have been opened up. Developing countries, that have insufficient capacity to generate, disseminate and effectively utilize educational information and knowledge, may finally be in a position to accelerate their development. Digital and internet content is the key to these opportunities. With it, the cost of producing, copying and disseminating any piece of information approaches zero, and any person with access to a computer and the internet can be as powerful a distributor of information as a major company. The major content industries have had their primacy over production and distribution channels challenged. Many developing countries have not fully analyzed the policy implications of access to, and control over, digital and internet content. This paper analyzes the implications of digital and internet content policy for access to knowledge in developing countries and makes some initial recommendations for developing countries. By bringing together several different strands of discussions and analyses ongoing at national and international levels, it aims to provide a direction for further research and policy analysis, by laying the groundwork and creating awareness of the relevance and scope of digital and internet content for developing country policymakers. click here to downloadResearch Papers 12 EXECUTIVE SUMMARYHorticultural trade, especially fresh fruits and vegetables from Sub-Saharan African to European market, has received a great deal of attention over the past decade due to the rapid and sustained growth of its exports to Europe. This impressive growth has undoubtedly contributed to increased national incomes and has reduced rural poverty in Sub-Saharan Africa. Good examples in this respect are Kenya, South Africa and, to some extent, Zimbabwe. Despite this growth, the inclusion and proportion of the rent obtained from this lucrative business for smallholder farmers, who in the past used to be the major players, have been worsening over the span of the horticultural trade. One of the major contributing factors is the recent changes and dynamism of the global governance of fresh fruits and vegetables value chain. The changes of governance of global value chains for FFV from the market based coordination to the explicit vertically integrated coordination, coupled with other factors such as stringent phytosanitary measures, private standards like EurepGAP, and the increased consumers’ demand and choices, have led to the exclusion of smallholder farmers in the value chain because of their failure to comply with different requirements and standards. This poses a potential threat to the efforts of addressing chronic poverty and well being of the rural poor in the region. Thus, the purpose and scope of this paper were: to investigate, compile and analyze concrete evidence regarding the nature of changes in the governance of fresh fruits and vegetables value chain and their causes; to identify the opportunities and challenges stemming from these changes and what determine success and failure in the new future governance and architecture; to see how the competitive advantage of FFV producers is affected by the changes in the governance of FFV value chains; to discuss the implication of the changes for the aspirations of economic diversification of commodity dependent developing countries. Finally, the paper provides recommendations on copping mechanisms, private sector strategies, and public policy responses that would enable developing countries’ producers, taking into account ownership and equity considerations, to appropriate a fair share of the rents in the FFV value chains.
Documento de Investigación No 9 junio de 2007 Por Viviana Muñoz Tellez y Andrew Chege Waitara Desde 1998, los Estados miembros de la Organización Mundial de la Propiedad Intelectual (OMPI) debaten sobre la creación de un nuevo instrumento internacional para la protección de los organismos de radiodifusión. Es posible que las negociaciones finales sobre un tratado relativo a la protección de los organismos de radiodifusión, incluidos los organismos de difusión por cable, comiencen y concluyan en 2007. Research Papers 10 EXECUTIVE SUMMARY (excerpt)There has been widespread concern for many years over the very abstract nature of orthodox economic theory, especially that of the neo-classical school which has dominated the profession since the late 19th century. Such disquiet is frequently felt among non-economists, but a great many dissident economists have also expressed their disquiet over the years. A large part of the difficulty centres on the concept of “perfect competition”, not least the explicit removal from the basic theory of economics of the notion of market power. This is of importance for development today for two reasons. Firstly, the pressure placed on developing countries since the 1980s has been to liberalise, deregulate and open up markets in all areas of their economies; that pressure continues in spite of extensively reported evidence of its damaging effects. Secondly, there is specific concern in areas of trade which are vitally important to developing countries, and the poorest countries in particular - agrarian in economic structure and commoditydependent in international trade as they are. In recent years, many people who have investigated the crisis of commodity prices have linked it closely with declining market power among agricultural producers, combined with excessive power at the buyers’ end of international supply chains. This paper argues that the bias of conventional economics needs to be replaced with a more realistic theoretical basis, which will hold market power at its core. It can be divided into three parts. First of all the paper discusses the challenges to the basis of economic theory that have been posed over a long period, and especially challenges to the fundamental concepts of perfect competition and general equilibrium. Along the way, it notes the astonishing number and variety of leading economists who have themselves commented on their discipline’s failure to explain adequately how markets work and how prices are formed, although one might have thought that those were at the very heart of its subject matter. Research Papers 5 INTRODUCTION“There is on the question of commodities a sort of conspiracy of silence. The solutions are not simple… But nothing justifies the present indifference.” President Jacques Chirac of France, in his address to the Twenty-Second Summit of the Heads of State of Africa and France, 20 February 2003(As quoted in UNCTAD, 2003a) Although the structure of International Trade has changed significantly in favour of manufactures, primary commodities remain extremely important for several developing as well as Least Developed Countries. A large number are still dependent on a limited basket of primary commodities for their exports. For example, Nigeria is predominantly dependent on petroleum and cocoa; whereas 95%of Ugandan exports consist of coffee and 95% of Zambian exports consist of copper and zinc. Due to their inherent peculiarities, primary commodities face extreme price volatility in the short run and secular decline in the long run. This adversely affects primary commodity growers directly, and severely hampers the ability of the Governments of these countries to improve the welfare of their impoverished populace. More than a billion people are still dependent on the production and export of primary commodities in these countries, especially in the Highly Indebted Poor Countries (HIPC), African, Caribbean and Pacific (ACP) countries and the Sub-Saharan African countries (SSA). Even today a major portion of these populations earns less than USD 1 a day. Therefore no strategy aimed at attaining the ‘Millennium Development Goals’1, especially that of halving the number of extremely poor people by 2015, will succeed without a conscious effort to address the issues of primary commodities2. Several attempts have been made in the past towards ensuring commodity price stabilization commencing with the Havana Charter. They include, among others, International Commodity Agreements, Marketing Boards and International Compensatory Financing Mechanisms. Unfortunately, none of them proved to be satisfactory and primary commodities remain an area of concern. Commodities, today, are plagued by several issues, and just a few are quoted here: a) market access, b) value chain, c) subsidies, d) price volatility and e) a long-term secular decline in prices. This paper is an endeavour to explore the Export Earning Instability experienced by the Commodity Dependent Developing Countries (CDDCs) originating from price volatility and its associated issues which “...constrain the ability of many developing countries to attain a path of stable and sustained growth and employment creation that could benefit all segments of their population and allow them to reach the [Millennium Development Goals] MDGs” (UNCTAD, 2005). It also attempts to suggest better policy options keeping in mind the lessons learnt from past efforts. Research Papers 2 EXECUTIVE SUMMARYThe past few decades have seen a huge surge in international trade that has affected developing countries as well as the world’s largest economies. However, while some countries have seen an associated increase in wealth, others seem to have been left behind. One of the key reasons for this seems to be that least developed countries have specialized in those parts of the production chain that do not generate large profits. Resource constraints have prevented developing country producers from participating in activities that require a large amount of investment. In commodity markets, these activities (such as processing and marketing) tend to be undertaken by large multinational companies based in developed countries. Due to their size, such companies have considerable market power as buyers, and can ensure that input prices remain low. This, coupled with the low responsiveness of demand to changes in income and price, has led to a long-term decline in the price of primary commodities. Hence, concerted measures must be taken to improve the welfare of rural farmers in the poorest countries in the world. Policy measures may help to improve this situation by: (a) attempting to address the asymmetry in bargaining power between producers and their large vertically-integrated customers; and (b) assisting developing countries in diversifying into sectors where larger profits may be made. At the national level, solutions might include: (a) implementing competition law according to the needs of developing countries (i.e. the protection of all powerless groups, including producers in commodity markets) so that claims related to buyer power can be addressed; (b) redesigning and improving the operation of producer groups (perhaps involving a role for State Trading Enterprises) in order to organize production and ensure compliance with quality and safety standards; (c) developing a comprehensive strategy such that the competition component in each type of government policy (industrial, trade, macroeconomic, etc) is focused towards overcoming the problems arising from concentration. At the multilateral level, there are further possibilities: (a) any discussion of competition law at the international level should be framed according to the needs of developing countries and the development agenda and not in terms of market access; (b) international commodity agreements could be an alternative to the problem of asymmetry. However, it would be necessary to restructure their design and operation such that some of the shortcomings observed in the past are overcome; (c) there is an urgent need to keep pressing for a fair trade of the use of subsidies and tariff escalation in agricultural markets; (d) developing countries may find important support at the multilateral level to help them overcome problems of scarce resources and expertise. At the regional level, suggestions include: (a) coordination of competition policy among smaller groups of countries; (b) cooperation to allow synergies which could contribute to solving the problem of the lack of resources faced by certain countries; (c) developing a regional competition law in order to increase developing countries’ leverage in negotiating cooperation agreements with antitrust authorities from large countries. Documento de Investigación N° 3 RESUMENEl presente documento se ocupa de la crisis que afecta a los mercados de café, cacao y té; de las condiciones en las que se producen y se comercializan estos tres cultivos para bebidas y del bienestar de los hombres y mujeres que los producen. Existe una idea muy generalizada que considera que la única razón principal por la cual los sectores agrícolas de los países en desarrollo no han prosperado se debe a la falta de acceso a los principales mercados de consumidores. En el caso de estos tres cultivos, no se han impuesto barreras arancelarias para impedir su acceso a estos mercados. Al igual que con muchos otros productos básicos agrícolas, los mercados de estos productos se encuentran en crisis debido a la superproducción. Hasta hace poco, la comunidad internacional no había analizado detenidamente el impacto negativo que los cambios en las normas comerciales internacionales, la condicionalidad de la asistencia y la política de desarrollo agrícola tienen sobre las economías de muchos de los países más pobres del mundo que dependen de la agricultura. La consecuencia más grave de esta omisión ha sido la caída de los precios que perciben los agricultores de países en desarrollo que cultivan estos productos básicos. En el caso del café y del cacao, el precio mundial ha disminuido a menos de un cuarto de su valor en 1980 y el precio del té se ha reducido a más de la mitad durante ese período. Se considera que la disminución de los precios de los productos básicos agrícolas constituye la causa principal del aumento de los niveles de pobreza en las comunidades rurales, en otras palabras, la mayor parte de la población de los países en desarrollo. Los que han sufrido en mayor medida la caída de precios son los pequeños productores de café, cacao y té y las personas que trabajan en las plantaciones donde se producen estos tres cultivos para bebidas. Los agricultores que dependen de la venta de estos productos básicos se vieron forzados a reducir los gastos destinados a la educación de sus hijos, a la adquisición de medicamentos y atención médica y a la mejora de la explotación agrícola. Se han reducido los salarios de los trabajadores de las plantaciones y las condiciones en las que trabajan se han vuelto más duras. Es probable que dicho empobrecimiento genere graves consecuencias a largo plazo. Documento de Investigación N° 4 RESUMENPara la mayoría de países en desarrollo, la producción de productos básicos es la columna vertebral de su economía. La dependencia de los productos básicos y la pobreza están estrechamente ligadas. Los productos básicos representan la principal fuente de ingresos para las poblaciones pobres de las zonas rurales del Sur. En 95 de los 141 países en desarrollo, como mínimo el 50 % de sus ingresos por exportaciones depende de los productos básicos, y en 46 de los países en desarrollo, más de la mitad del total de sus ingresos por exportaciones depende de tres o un número menor de productos básicos.1 Los desafíos que la dependencia de los productos básicos plantea son múltiples y complejos. La característica distintiva de la dependencia de los productos básicos es un alto grado de vulnerabilidad económica debida, principalmente, a los problemas persistentes en el descenso y la volatilidad de los precios, las subvenciones que distorsionan el comercio, los obstáculos al comercio y un alto grado de concentración de mercados. Históricamente, los avances de la ciencia y la tecnología también han tenido fuertes repercusiones en la producción y el comercio de productos básicos. Un rápido cambio tecnológico puede comportar grandes trastornos, un proceso al que algunos economistas se refieren como destrucción creativa. En general, los cambios desencadenados por la tecnología en la producción y demanda de productos básicos han sido veloces e impredecibles. Los creadores de nuevas tecnologías están mejor preparados para los cambios repentinos en la oferta y la demanda, mientras que los productores de productos básicos no son conscientes de los cambios inminentes y están menos capacitados para realizar ajustes frente a mercados rápidamente cambiantes. Los historiadores de la ciencia y los economistas suelen describir la introducción de nuevas e importantes tecnologías como olas que presentan fases relativamente predecibles de ascenso y descenso. Hoy en día, los rápidos avances de la ciencia y las tecnologías de nanoescala plantean desafíos adicionales para los países en desarrollo que dependen de los productos básicos. La nanotecnología consiste en la manipulación de la materia a escala de átomos y moléculas, en la que el tamaño se mide en millonésimas de milímetro. Las repercusiones del potencial de la nanotecnología en la economía mundial son increíbles. A causa de su amplitud y escala sin precedentes, la introducción de la nanotecnología se ha descrito metafóricamente no como una ola, sino como un tsunami tecnológico. La introducción de la nanotecnología se compara con un tsunami porque se propaga a gran velocidad, permanece bajo la superficie y pasa virtualmente desapercibida antes de su impacto. Cuando la ola nanotecnológica toque tierra, provocará un cambio rápido, monumental, inevitable y potencialmente devastador. La nanotecnología es una tecnología de plataforma en el sentido de que cuenta con el potencial para alterar o transformar por completo el estado más actual de la técnica en todos los grandes sectores industriales, y no en uno solo (por ejemplo, en la medicina, la alimentación y la agricultura, la electrónica y la informática, los materiales y la fabricación). En los años próximos, las tecnologías convergentes en la nanoescala revolucionarán el diseño y la fabricación de nuevos materiales en todos los sectores industriales. Un informe, elaborado en 2004 por los analistas industriales Lux Research, Inc., destaca el potencial de la nanotecnología para «transformar cuotas de mercado, cadenas de suministro y empleos en casi todos los sectores industriales». Research Papers 1 INTRODUCTIONA number of developing countries,1 and especially least developed countries (LDCs), rely on agriculture for their food security, export earnings and rural development. It has been estimated that the agricultural sector accounts for between 30 per cent and 60 per cent of gross domestic product (GDP) for many of these countries, and is the major source of foreign exchange. The Food and Agriculture Organization of the United Nations (FAO) (2002) noted that the economies of many developing countries depend on the exports of one or a few commodity exports, making them particularly vulnerable to price variations on specific commodities. It noted that single commodity-dependence is more pronounced in tropical regions, and notably so for specific tropical products including sugar, coffee, bananas, cotton lint and cocoa beans. The variability and decline of commodity prices is well documented (FAO, 2005). It erodes the competitiveness of commodities exported from non-subsidizing developing countries, discourages investment and expansion of their food exporting sectors and, in the event that developing countries depend heavily on agricultural exports, worsen their terms of trade. According to the FAO’s State of Agricultural Commodity Markets (2005), the variability and decline in international agricultural commodity prices has serious implications for developing countries that are highly dependent on commodity export earnings, especially from traditional tropical crops. Since tariff escalation in agricultural markets is regarded as one of the major factors hindering the processing of traditional products for export, analysts have explored the potential for exporting non - traditional fresh fruits and vegetables to QUAD countries (Canada, the EU, Japan and the United States). These are valid alternatives because first, tropical fruits and vegetables are not usually cultivated in QUAD countries and therefore, their trade is not distorted by domestic producer support measures. Secondly, consumer tastes in QUAD countries are diversifying into ‘exotic’ tropical fruits and vegetables. The FAO for example, is currently helping market players to develop international trade for organic mangoes and pineapples produced in Sub-Saharan Africa. T.R.A.D.E. Working Papers 25 EXECUTIVE SUMMARYWith the increasing political and economic integration that accompanies globalisation, a growing number of international agreements now restrict the national ‘policy space’ of developed and developing countries alike. In order to assess the impact of international agreements on policy space, it is instructive to examine national policy space as a sub-space of the universe of policy options available to a country in an ideal world without policy constraints. From such an examination, this paper illustrates how domestic ‘endogenous’ constraints and international ‘exogenous’ constraints may significantly restrict a country’s access to national policy space for development. Sources of endogenous and exogenous constraints are reviewed, and ways that international environmental, social and economic agreements can both reduce and extend national policy space are outlined. The paper demonstrates how developing countries’ national policy space is affected by agreements comprising the Multilateral Trading System (MTS) under the World Trade Organization (WTO). Focus is given to examining the narrowing range of policy options permissible under international trade and finance agreements, and the adverse effects this can have on countries in earlier stages of economic development. This contraction of policy space has recently been identified as a concern in international trade negotiations. In particular, agreements within the WTO contain provisions, and economic assistance arrangements of international financial institutions include conditionalities, that prohibit developing countries from implementing a range policy interventions designed to stimulate the growth, industrial development and diversification of their national economies. These effects are reviewed with the finding that the playing field resulting from international trade agreements that have ostensibly equivalent rules for all contracting parties, may provide a much smaller policy space for developing than developed countries because of differences in initial conditions and national policy implementation capacities. Efforts to establish a level playing field for international trade must recognise and address this disparity. After assessing the scope of policy space accessible to developing countries, the paper suggests what can be done at national and international levels to ensure that available policy space is effectively utilised, and when existing space is insufficient to advance national development objectives, it examines ways to expand policy space in a manner that is consistent with developing countries’ existing WTO commitments. It is argued that special and differential treatment (S&DT) for developing countries under the MTS needs to be enhanced and made more actionable and effective in order to provide developing countries with essential national policy space for development. Finally, general areas where improved S&DT is needed, and should be pursued by developing countries in the ongoing Doha Round of WTO negotiations, are summarised. T.R.A.D.E. Working Papers 22 INTRODUCTION (excerpt)At the turn of the twenty-first century, the development of economic globalization is accelerating and the interdependent relationship between nations is deepening. The World Trade Organization (WTO), the so-called Economic United Nations, has been in operation for more than ten years. In this context, the world trading system of global multilateralism is further strengthening. However, strong unilateralism, the adversary of global multilateralism, originating from the contemporary sole superpower, the United States, has not been ready to concede voluntarily to the WTO multilateralism. During the latest decade, this superpower has been persistently, and by hook or by crook, imposing obstacles to impede the solidifying and strengthening of global multilateralism in the hope of maintaining its economic hegemonic status of unilateralism. Usually such unilateral behaviour is conducted under the camouflage of defending U.S. sovereignty, safeguarding U.S. interests, and enforcing U.S. law. New evidence of this is the mighty disturbance of the U.S. Trade Act’s Section 201 and the chain of disputes ignited by the United States in March of 2002 within the WTO, specifically in the area of the international steel trade. These disputes were collectively decided by the WTO Panel in United States – Definitive Safeguard Measures on Imports of Certain Steel Products. Taking a macro view, the recent disputes concerning the U.S. Trade Act’s Section 201 (Section 201 Disputes) are nothing but the third big round of confrontations between U.S. unilateralism and WTO multilateralism during the last decade. Its occurrence is never occasional or isolated. It has been closely connected with, and continues from, the first and second big rounds of the same confrontation: “The Great 1994 Sovereignty Debate” in the United States, and the disputes over the U.S. Trade Act’s Section 301 (Section 301 Disputes) that occurred in the WTO during 1998-2000.
T.R.A.D.E. Working Papers 3 INTRODUCTION: THE ROLE OF STANDARDS AND REGULATIONS (excerpt)Countries require that domestically produced and imported goods conform to regulations and possibly adhere to standards. The number of standards and regulations is constantly increasing in most countries because of the expansion in volume, variety and technical sophistication of products manufactured and traded. Nowadays, standards and regulations aim at complying with a variety of aims and tasks. Some of them are traditional -- such as minimizing risks, providing information to consumers about the characteristics of products, providing information to producers about market needs and expectations, facilitating market transactions, raising efficiency and contributing to economies of scale. Other are less traditional -- such as serving as benchmarks for technological capability and network compatibility and enhancing technology diffusion. Standards and regulations respond also to growing public demand, often voiced by consumer associations and environmental groups, to have in the market products which have minimum detrimental effect on the environment, display clear information regarding their possible impact on health and respond to high quality requirements. Because the tasks that standards and regulations aim to fulfil have expanded and deepened, the number of interested parties involved in setting-up standards and regulations is also increasing, with the participation of groups such as consumer and environmental organizations, which were not previously involved in these activities. T.R.A.D.E. Working Papers 2 INTRODUCTIONOne of the major issues in multilateral trade negotiations and in the implementation of multilateral trade rules is the extent to which the rights and obligations of developing countries, on account of their lower levels of development, should differ from those of developed countries and how this should be achieved. The manner in which countries at different levels of development are treated in world trade has been a major, often controversial issue. Special and differential (S&D) treatment, which addresses the requirements and special needs of the weaker member states, is of fundamental importance for the developing countries. Over the years, first in the framework of the General Agreement on Tariffs and Trade (GATT), and currently in the World Trade Organization (WTO) as the liberalization commitments of developing countries have deepened and the multilateral trade agenda broadened, the issue of S&D treatment has grown in importance. For example, agreements have been concluded in a number of new areas critical for national development, including trade in services, the protection of intellectual property rights and agricultural trade, as a result of which developing countries have assumed important new commitments, as they have in other areas, such as market access, technical barriers to trade, and sanitary and phytosanitary measures. T.R.A.D.E. Working Papers 1 INTRODUCTIONThe Decision on the Application and Review of the Understanding on Rules and Procedures Governing the Settlement of Disputes, adopted by the Trade Negotiations Committee on 15 December 1993, in part reads as follows: “Ministers ... invite the Ministerial Conference to complete a full review of dispute settlement rules and procedures under the World Trade Organization within four years after the entry into force of the Agreement Establishing the World Trade Organization, and to take a decision on the occasion of its first meeting after the completion of the review, whether to continue, modify or terminate such dispute settlement rules and procedures.” Under this Decision, WTO Members were mandated to complete a review of the operation of the current Dispute Settlement Understanding (DSU) by the end of 19981, allowing the Third WTO Ministerial Conference, to be held in the United States in late 1999, to take a decision on whether to continue, modify or terminate the DSU. A number of informal consultations have been held at the WTO Dispute Settlement Body (DSB) for this purpose, but no consensus has emerged so far regarding whether or, if at all, to what extent the current DSU should be modified. This paper is an attempt to analyse problems that have been encountered by developing countries in relation to the operation of the DSU. It is important to note however, that the analysis of substantive issues, raised and decided upon in the context of disputes that have been brought to the WTO dispute settlement mechanism so far, is beyond the scope of this paper. While the focus of the present paper is on issues of process related to the operation of the DSU, this should not diminish the importance of the issues of substance addressed in the panel/Appellate Body decisions which may be the subject of a follow-up paper in the future. Before engaging in the analysis of the current DSU, it is useful to review the experience of developing countries under GATT 1947 in respect of the dispute settlement system, in order to highlight the difference and similarities between the past and the present situations. |