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Building knowledge for trade and development

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        The 2008 Food Price Crisis: Rethinking Food Security Policies (English)
        Discussion paper by Mittal, Anuradha/UNCTAD, 2009, 40 pages
        Categories: Commodities, Trade and Environment

        This paper examines the 2008 global food price crisis, identifying long- and short-term causes as well as the two factors which distinguish the 2008 food price increases from earlier episodes – speculation and diversion of food crops to biofuels. The paper contends that while most attention has been focused on factors including higher energy costs, decline in growth of agricultural production and increased demand from emerging economies, it is essential to examine the structural causes of growing food insecurity to understand what is really behind the food price crisis. It then explores the impact of several factors including systemic decline in investment in agricultural productivity; state’s reduced regulatory role in agricultural production and trade; indiscriminate opening of agricultural markets which has resulted in import surges, and emphasis on cash crops, on food security of developing nations. The\\n paper also examines both national and international responses to the crisis and goes on to propose several short-term and long-term measures to address the crisis. The implementation of the proposed policies, the paper argues, however depends on several prerequisites based on the principle of food sovereignty which would allow policy space for developing countries to protect their agriculture, markets, and livelihoods of farmers.

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        African Governance Report Ii (English)
        Report by UNECA, 2009, 290 pages
        Categories: Globalization and Development Strategies, Policy Reviews and Briefs

        The report assesses and monitors the progress on governance in Africa, identifies capacity gaps in governance institutions and proposes policy interventions to promote good governance. It combines three research instruments: a national expert opinion panel, a scientific sample household survey and desk research. The report covers 35 countries.

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        African Women’s Report: Measuring Gender Inequalities in Africa - Experiences and Lessons from the African Gender and Development Index (English)
        Report by UNECA, 2009, 262 pages
        Categories: Trade and Gender

        The report aims to accelerate gender equality in the social, economic and political fields highlighting difficulties that African countries are facing with respect to the full realisation of women’s rights due, among other things, to the persistence of negative cultural and religious beliefs and attitudes towards women. It also demonstrates the different and changing dimensions of gender inequality being experienced in some countries. The report is based on the use of the African Gender and Development Index.

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        Agricultural Subsidies in the WTO Green Box: Ensuring Coherence with Sustainable Development Goals (English)
        Report by Meléndez-Ortiz, Ricardo; Bellmann, Christophe; Hepburn, Jonathan/ICTSD, 2009, 16 pages
        Categories: Commodities, WTO Issues/Multilateral Trading System

        Current WTO requirements set no ceiling on the amount of green box subsidies that governments can provide, on the basis that these payments cause only minimal trade distortion. Governments are thus increasingly shifting their subsidy spending into this category, as they come under pressure to reduce subsidies that are more directly linked to production. However, growing evidence suggests that green box payments can affect production and trade, harm farmers in developing countries and cause environmental damage. This information note summarises some of the findings.

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        Aid for Trade at a Glance 2009: Maintaining Momentum (English)
        Report by WTO / OECD, 2009, 318 pages
        Categories: Finance for Development, Trade Related Capacity Building

        The report presents the results of the second monitoring exercise of the Aid-for-Trade Initiative and documents its success so far. It examines trends and developments, and presents a comprehensive analysis of donor and partner country engagement. In addition, it addresses the regional dimension of aid for trade and showcases three cross-border infrastructure projects. Moreover, the report provides country factsheets that help assess the outcomes and impacts of aid for trade. The outlook is clearly affected by the current global economic crisis. However, aid for trade must remain an essential component of development assistance.

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        Assessing the Impact of Political Economy Factors on Rules of Origin Under NAFTA (English)
        Working paper by Portugal-Perez, Alberto /World Bank, 2009, 38 pages
        Categories: Regional and Bilateral Trade Agreements

        Rules of origin are legitimate policy instruments to prevent trade deflection in a preferential trade agreement short of a customs union. Trade deflection takes place when a product imported into the preferential trade agreement through the member with the lowest external tariff is transhipped to a higher-tariff member, while yielding a benefit for the re-exporter. Yet, when captured by special interest groups, rules of origin can restrict trade beyond what is needed to prevent trade deflection. By how much do political economy factors account for the stringency of rules of origin? This study quantifies the impact of both determinants - those considered "justifiable" because they prevent trade deflection and those deemed to arise from "political economy" forces - on the restrictiveness of rules of origin under the North American Free Trade Agreement, approximated by a restrictiveness index. The main finding is that political economy forces, especially from the United States, raised significantly the restrictiveness of the rules of origin. Indeed, in industries where political-economy forces were strong prior to the North American Free Trade Agreement, as when the U.S. Most Favored Nation tariff was high or the revealed comparative advantage of Mexico (the United States) was strong (weak), more stringent rules of origin were introduced. Thus, stricter rules of origin are associated with higher production costs reducing the potential benefits of enhanced market access that is initially pursued by this type of agreement.

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        Assessing the Impact of the Current Financial and Economic Crisis on Global FDI Flows (English)
        Study by UNCTAD, 2009, 72 pages
        Categories: International Financial System, Investment

        The year 2008 marked the end of a growth cycle in international investment that started in 2004 and saw world foreign direct investment (FDI) inflows reach a historic record of $1.9 trillion in 2007. Due to the impact of the ongoing worldwide financial and economic crisis, FDI flows are estimated to have declined by 15 per cent in 2008. A further decrease in FDI flows can be expected in 2009, as the full consequences of the crisis on transnational corporations’ (TNCs) investment expenditures continue to unfold. The fall in global FDI in 2008–2009 is the result of two major factors affecting domestic as well as international investment. First, the capability of firms to invest has been reduced by a fall in access to financial resources, both internally – due to a decline in corporate profits – and externally – due to the lower availability and higher cost of finance. Second, the propensity to invest has been affected negatively by economic prospects, especially in developed countries that are hit by the most severe recession of the post-war era. The impact of both factors is compounded by the fact that, as of early 2009, a very high level of risk perception is leading companies to extensively curtail their costs and investment programmes in order to become more resilient to any further deterioration of their business environment. All of the three major types of FDI (market-seeking, efficiency-seeking and resources-seeking) will be impacted by these factors, although with different magnitudes and consequences on location patterns. For dealing effectively with the crisis and its economic aftermath, it is important for policymakers to resist the temptation of “quick fix” solutions or protectionism, and to maintain a favourable business and investment climate overall. Recent announcements and commitments made at the London Group of Twenty (G-20) Summit in April 2009 have reconfirmed this policy stance.

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        Best Practices in Investment for Development. How Post-conflict Countries Can Attract and Benefit from Fdi: Lessons from Croatia and Mozambique
        Study by UNCTAD, 2009, 139 pages
        Categories: Globalization and Development Strategies, Investment

        The Investment Advisory Series provides practical advice and casestudies of best policy practice for attracting and benefiting from foreign direct investment (FDI), in line with national development strategies. The series draws on the experiences gained in, and lessons learned through, UNCTAD’s capacity-building and institution-building work in developing countries and countries with economies in transition.

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        Biofuel Production, Trade and Sustainable Development (English)
        Discussion paper by ICTSD, 2009, 102 pages
        Categories: Commodities, Trade and Environment

        Unstable oil prices, the challenge of climate-change mitigation, and growing concerns over energy security are driving a growth in global production of bioenergy, particularly liquid biofuels such as ethanol and biodiesel, with implications for agriculture, energy, environment, development and trade. Biofuels could offer countries the potential to curb carbon dioxide emissions, reduce dependence on imported fuels, and maintain production and generate new employment in the agricultural sector. For many countries, the potential of biofuels is contemplated in terms of supplying domestic energy needs and exports. Although international trade in biofuels is still limited - it is estimated that currently only one-tenth of global production worldwide is traded internationally - international trade in biofuels is expected to grow considerably given the divide between countries with comparatively lower production costs and countries with the greatest demand for biofuels. Clearly, social, economic and environmental opportunities abound…

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        Biofuels Certification and the Law of the World Trade Organization (English)
        Report by Echols, Marsha A./ICTSD, 2009, 68 pages
        Categories: Trade and Environment, WTO Issues/Multilateral Trading System

        This report places biofuels certification in an international trade context. It assesses certification through the World Trade Organization (WTO) lens and develops the requirements for trade compliance. This paper identifies a number of issues for policymakers to consider, including the following: - compliance with a variety of standards and incentives related to their encouragement of the switch to biofuels from fossil fuels - the General Agreement on Tariffs and Trade (GATT) and other WTO agreements - the issues, steps and unsettled areas that must be faced by when planning a biofuels-certification programme

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        The Biofuels Market: Current Situation and Alternative Scenarios (English)
        Report by UNCTAD, 2009, 118 pages
        Categories: Trade and Environment

        The term biofuels is commonly used with reference to liquid transportation fuels - i.e., ethanol and biodiesel - derived from agricultural, forest or any other organic material (feedstock). Current global concerns about fossil fuel prices and availability, a renewed quest by many countries for energy independence and widespread awareness of the need to reduce greenhouse gas (GHG) emissions have been the main reasons for many countries – developed and developing alike – to look for alternative energy sources. Biofuels have captured considerable attention because of the relative abundance of feedstocks in all regions, their easy utilization in combustion engines for transportation and compatibility with existing fuel distribution infrastructure and because they can provide a new end market for agricultural commodities, therefore revitalizing rural areas.

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        Biofuels Subsidies and The Law of the WTO (English)
        Report by Harmer, Toni/ICTSD, 2009, 50 pages
        Categories: Trade and Environment, WTO Issues/Multilateral Trading System

        This paper reviews biofuel measures that are commonly used in major producing countries against WTO subsidies disciplines. These measures are found in a range of laws and policies relating to energy, the environment and agriculture. There is little evidence that domestic policymakers have taken into account WTO disciplines when crafting these measures. This paper identifies a number of issues for policymakers to consider, including the following: - WTO subsidy disciplines do not prohibit all subsidies or support to biofuels. Rather, the WTO rules concern themselves with subsidies that have a trade-distorting effect. - Although often cited in discussions about the WTO and biofuel subsidies, the green box provisions of the WTO Agreement on Agriculture (AoA) do not provide a broad category sheltering measures on the basis that they offer some environmental benefits. To qualify as green box support, specific requirements must be met. For example, payments under environmental programmes must be limited to the costs of compliance with the programme.

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        Capping Unusually High Tariffs: The WTO Doha Round and ‘Tariff Peaks’ (English)
        Report by ICTSD, 2009, 12 pages
        Categories: WTO Issues/Multilateral Trading System

        This information note examines the proposed tariff cap and what this would mean for countries with extremely high tariffs. The tariff peaks of Iceland, Japan, Norway and Switzerland are examined in closer detail.

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        Central Banking, Financial Institutions and Credit Creation in Developing Countries (English)
        Discussion paper by Dullien, Sebastian/UNCTAD, 2009, 42 pages
        Categories: Globalization and Development Strategies, Macroeconomic Policy, VI Members Research

        This paper examines how developing countries can embark on a sustained path of strong investment, capital accumulation and economic growth without capital imports. It is argued that the key lies in the Keynesian-Schumpeterian credit-investment nexus: Given certain preconditions, the central bank can allow a credit expansion which finances new investment and creates the savings necessary to balance the national accounts. It is further argued and confirmed in empirical data that one of the biggest impediments to such a process is formal or informal dollarization which limits the policy scope of the central bank. Moreover, a stable banking system with a broad outreach as well as a low degree of pass-through between the exchange rate and domestic prices seem to be a necessary condition for this process to work.

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        The Challenge of Establishing World-Class Universities (English)
        Report by Salmi, Jamil / World Bank, 2009, 136 pages
        Categories: Trade Related Capacity Building

        This new report examines the power of tertiary education for development from the perspective of excellence in research and scholarship at its most competitive levels. It concludes that the highest-ranked universities are the ones that make significant contributions to the advancement of knowledge through research, teach with the most innovative curricula and pedagogical methods under the most conducive circumstances, make research an integral component of undergraduate teaching, and produce graduates who stand out because of their success in intensely competitive arenas during their education and (more important) after graduation.

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        The Clean Development Mechanism - Guide 2009
        Report by Frondizi, Isaura/UNCTAD, 2009, 128 pages
        Categories: Science and Technology, Trade and Environment

        This revised and expanded version of the Guide to the Clean Development Mechanism (CDM) was commissioned by the Ministry of Science and Technology and drawn up under the sponsorship of the United Nations Development Programme (UNDP). The contents were revised with the direct assistance of the MCT and UNCTAD. Publication was sponsored by the Brazilian Social and Economic Development Bank (BNDES). The CDM is the sole mechanism through which industrialized countries with quantified emission reduction and limitation commitments (commonly known as “targets”), established by the Kyoto Protocol, can offset part of these targets by acquiring Certified Emission Reductions (CERs) generated by CDM projects in developing countries. Given that the first commitment period defined by the Kyoto Protocol (2008-2012) began on January 1, 2008, the window of opportunity in relation to the CDM is still open. In addition, during the ongoing negotiations, the Parties to the Protocol have manifested their interest in its continuation after 2012, more specifically in the second commitment period. This Guide has three main objectives: i) to provide information to all those interested in CDM project activities; ii) to detail the specific regulations governing the submission of CDM project activities in Brazil; and iii) to facilitate an understanding of the process and, consequently, promote the development of CDM projects in the country.

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        Climate Change and Developing Country Agriculture: An Overview of Expected Impacts, Adaptation and Mitigation Challenges, and Funding Requirements (English)
        Article by Keane, Jodie; Page, Sheila; Kergna, Alpha and Kennan, Jane/UNCTAD, 2009, 61 pages
        Categories: Commodities, Finance for Development, Trade and Environment

        Agricultural trade flows depend on the interaction between trade policy and inherent comparative advantage. Not only is the agricultural sector highly vulnerable to climate change, it is also one of the sectors most distorted and heavily influenced by a wide range of local, regional, national and international trade policies. The increased stress to the system brought about by climate change makes reform in global agricultural policies arguably even more important. Even if the most ambitious climate change mitigation measures are adopted, global temperatures are likely to increase by at least 2 degree C since pre-industrial levels by the end of this century, if not sooner; the intensity and frequency of extreme climatic conditions are expected to increase and the predictability of normal rainy seasons, decrease.6 Poor countries with a large rural economy depend on agricultural exports for their fiscal and socio-political stability; climate change could potentially jeopardise agricultural export earnings unless alternatives can be sought or climate proof investments are made. But what are the alternative sources of export earnings? Given the potential impact of climate change on agricultural production, this document sets out to assess how producers might adapt, particularly in relation to new markets for agricultural products and services related to climate change mitigation efforts.

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        Climate Change: Turning Costs into Income Opportunities (English)
        Policy brief by UNCTAD, 2009, 2 pages
        Categories: Policy Reviews and Briefs, Trade and Environment

        Concerns about the high costs of climate change mitigation dominate the global debate to be resumed at Copenhagen. The question of who is to pay for the investments that will undoubtedly be needed receives far greater attention than the corollary question of who is to gain from them. From a macroeconomic perspective, one economic agent’s cost is always another agent’s income. But as this policy brief argues, the concept of cost is misleading in the context of climate change mitigation. Once the process of structural change necessitated by climate change mitigation is in full swing, there will be huge new market opportunities. The policy issue is: how will costs and incomes be distributed in this process? UNCTAD believes that developing countries, although they face considerable costs, can also generate new income if they adapt their development strategies to the requirements of climate change mitigation. This policy brief also stresses the role of government in facilitating the process of structural change, not only by fostering “green” consumer preferences, but also by implementing pro-active industrial policies that support the production of climate-friendly equipment and appliances. In short: The world can move to a low-carbon economy without feeling paralysed by the costs – and can do so without sacrificing growth in the developing world.

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        Coffee, Cooperation and Competition: A Comparative Study of Colombia and Vietnam (English)
        Study by Adriana Roldán-Pérez, Maria-Alejandra Gonzalez-Perez, Pham Thu Huong, Dao Ngoc Tien, 2009
        Categories: Commodities, Competitiveness, VI Members Research

        This Virtual Institute Joint Project between Vi members EAFIT University and Foreign Trade University identifies links and dynamics in the value chain in both Colombia and Vietnam that have been developed in their respective coffee industries in order to improve competitiveness, increase sustainability and respond to market demands.

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        Comparing Safeguard Measures in Regional and Bilateral Agreements (English)
        Report by Kruger, Paul; Denner, Willemien; and Cronje, JB/ICTSD, 2009, 72 pages
        Categories: Regional and Bilateral Trade Agreements

        This study provides trade negotiators, policy-makers and other stakeholders with a clear, practical comparative analysis of the advantages and disadvantages of the various safeguard clauses included in bilateral and regional free trade agreements (FTAs). It groups together regional agreements on the basis of shared characteristics, examines the extent to which various safeguard clauses have been used in practice, and makes a number of recommendations that policy-makers and negotiators could take into consideration when negotiating safeguard clauses in trade agreements.

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        Compendium on Debt Sustainability and Development (English)
        Report by UNCTAD, 2009, 223 pages
        Categories: Finance for Development

        Debt sustainability, which concerns the feasibility for a country of meeting its debt related financial obligations during a period beginning with the present, has proved an elusive concept This is not surprising in view of its dependence on an intrinsically uncertain future Interest in the conditions for debt sustainability builds on an earlier tradition of work on debt management where the focus was on country risk and on the likelihood and consequences of debt default.

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        A Composite Index of Market Access for the Export of Rice from Thailand
        Report by Dechachete, Thawatchai/ICTSD, 2009, 19 pages
        Categories: Competition Policy, Trade and Environment

        This study of the Composite Index of Market Access (CIMA) of the rice industry of Thailand is part of the International Centre for Trade and Sustainable Development (ICTSD) pilot project on market access for three selected countries (Uruguay, the United States and Thailand). The objective of this project is to build an indicator of market access of main rice importing countries that would include not only tariffs but also other barriers affecting market access for agricultural product such as sanitary and phytosanitary (SPS) measures, technical barriers to trade (TBT), private standards, excise taxes in importing countries and other non-tariff barriers. This tool should be of assistance in trade negotiation and giving a clear indication of whether any particular negotiated outcome result in a real liberalization. In Thailand’s case the three import markets which are the US, the Philippines and South Africa have been selected. These countries are major markets for three major types of rice that Thailand exports to the International market.

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        Constructing a Composite Index of Market Access (English)
        Report by Josling, Timothy/ICTSD, 2009, 40 pages
        Categories: Trade Facilitation, WTO Issues/Multilateral Trading System

        Trade barriers are often opaque and difficult to compare. All too often, an exporter faces costs well in excess of a simple tariff when seeking entry to a market. However, to date, there exist few tools to measure the changes in market access that will takeplace at the conclusion of the Doha Round, or those that may result from any other trade agreement. The Composite Index of Market Access (CIMA) has been conceived as a tool to help trade policy-makers and other stakeholders to address this challenge. This study provides a methdology and country study guide to illustrate the actual costs faced by exporters of selected tropical products when trying to penetrate markets of interest. While liberalisation through tariff reduction may partially achieve the aim of facilitating access for tropical products, the CIMA project highlights the fact that tariff reductions are only a part of the puzzle that trade policy has to solve.

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        The Contemporary Reform of Global Financial Governance: Implications of and Lessons from the Past (English)
        Discussion paper by Eric Helleiner (University of Waterloo, Canada) / UNCTAD, 2009, 32 pages
        Categories: International Financial System

        As the world experiences its worst financial crisis since the 1930s, there is a widespread call for global financial reforms similar to the Bretton Woods Agreements of 1944. This paper argues that officials will need to think more creatively and ambitiously about international financial reform than they have done so far. Policymakers seeking to move beyond the present agenda could consider initiatives in each of the three issue areas identified at Bretton Woods. These include: - innovations to regulate international financial markets more tightly - innovations to address global imbalances - innovations to promote international development. However, the contemporary agenda must consider new mechanisms and address an even broader range of topics than in 1944. Therefore, it should take into account the reserve currency status of the dollar, the currency composition of borrowing by developing countries, sovereign wealth funds and the role of regional cooperation, among others.

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        Developing Countries and Their Natural Resources. From the Elaboration of the Principle of Permanent Sovereignty over Natural Resources to the Creation of Sovereign Wealth Funds (English)
        Article by Barbieri, Michele, 2009
        Categories: International Economic Law, Investment, VI Members Research

        The paper will study, mainly under the point of view of international law, the relation between natural resources, foreign investments and economic development in third world countries, focusing on the role the principle of permanent sovereignty over natural resources has played, and still can play, in this context. It will try to propose a notion of the right of peoples over natural resources which takes into account the recent developments of international environmental law and of international investment law (the latter being represented in particular by the increase of bilateral investment treaties in force). It will finally prove that the creation of sovereign wealth funds by developing countries can represent a new tool to ensure the promotion of the right of peoples to sovereignty over natural resources and it will investigate the importance that transparency of sovereign wealth funds might have to this purpose.

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        Developing Country Interests in Climate Change Action and the Implications for a Post-2012 Climate Change Regime (English)
        Discussion paper by Cosbey, Aaron/IISD, 2009, 52 pages
        Categories: Globalization and Development Strategies, Trade and Environment

        The paper focuses on the cross-cutting objective of advancing development goals in a sustainable way, making the case that there are strategic interests for developing countries in addressing climate change while simultaneously addressing nationally defined development priorities. The paper argues for international support for such efforts, and suggests elements that might feature in an international approach. The paper finishes by speculating on what those sorts of elements might mean for the shape of a post-2012 climate regime and the carbon market that might accompany it.

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        Development Dimensions of Intellectual Property in Uganda: Transfer of Technology, Acces to Medicines and Textbooks (English)
        Report by UNCTAD, 2009, 105 pages
        Categories: Competitiveness, International Economic Law

        Intellectual property rights (IPRs) have never been more economically and politically important or controversial than they are today. Considerable increases in royalty payments and licensing fees in most areas of the world and the inclusion of intellectual property provisions in regional and bilateral trade and investment agreements over the past few years illustrate the fact that IPRs have become a major economic, trade and investment issue. The UNCTAD secretariat is implementing a work programme on the development dimensions of IPRs.

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        Development Impacts of Commodity Exchanges in Emerging Markets (English)
        Report by UNCTAD, 2009, 232 pages
        Categories: Commodities

        The study suggests that a commodity exchange – and specific commodity contracts – can be successfully established under a broad range of market conditions. Exchanges have functioned in economies that are open, but also in economies that are restricted. They have been established in the context of economic reform, political transition, and as a function of ongoing market development. Exchanges have developed in countries where smallholder production is the predominant mode, and in others where there is a duality between smallholder and commercial production. Contracts have been developed for commodities that are grown mainly for consumption in the domestic market, and also for commodities that are mainly exported to international markets. While many exchanges operate in countries where market infrastructure, institutions and procedures are highly developed and national markets are integrated, the study shows that they have also been successfully established in countries where markets are in need of substantial further development and integration.

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        Doing Business 2010: Reforming Through Difficult Times (English)
        Report by World Bank; International Finance Corporation., 2009, 231 pages
        Categories: Enterprise Development, Trade Facilitation

        Doing Business 2010 is the seventh in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies--from Afghanistan to Zimbabwe--and over time. Regulations affecting 10 stages of a business's life are measured: starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. Data in Doing Business 2010 are current as of June 1, 2009. The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why.

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        Do Trade And Investment Agreements Lead To More Fdi? Accounting For Key Provisions Inside The Black Box (English)
        Working paper by Berger, Axel, Busse, Matthias, Nunnenkamp, Peter, Roy, Martin, 2009, 29 pages
        Categories: Investment, Regional and Bilateral Trade Agreements, Trade Policy Analysis and Trade Data Sources

        The previous literature provides a highly ambiguous picture on the impact of trade and investment agreements on FDI. Most empirical studies ignore the actual content of BITs and RTAs, treating them as "black boxes", despite the diversity of investment provisions constituting the essence of these agreements. We overcome this serious limitation by analyzing the impact of modalities on the admission of FDI and dispute settlement mechanisms in both RTAs and BITs on bilateral FDI flows between 1978 and 2004. We find that FDI reacts positively to RTAs only if they offer liberal admission rules. Dispute settlement provisions play a minor role. While RTAs without strong investment provisions may even discourage FDI, the reactions to BITs are less discriminate with foreign investors responding favourably to the mere existence of BITs.

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        Economic Development in Africa Report 2009 - Strengthening Regional Economic Integration for Africa's Development (English)
        Report by UNCTAD, 2009, 126 pages
        Categories: Regional and Bilateral Trade Agreements

        The global financial crisis requires the re-examination of current approaches to international development. One area which is important for Africa is the role of regional integration in addressing the long-standing structural weaknesses which have lowered the long-term growth performance of most countries on the continent, increased their economic vulnerability and undermined efforts to reduce poverty. The Economic Development in Africa Report 2009 focuses on ways of strengthening regional economic integration for Africa’s development. It complements existing institutional analyses of regional integration in Africa with an economic analysis of trade in goods and services, migration and investment. The report surveys recent trends in these flows and assesses the potential for increasing them in ways that will support economic development. The report finds that — when designed and implemented within a broader development strategy to promote economic diversification, structural changes and technological development — regional integration could help enhance productive capacities of African economies, realize economies of scale, improve competitiveness and serve as a launching pad for African economies’ effective participation in the global economy.

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        The Economics Of Trade Agreements In The Linear Cournot Delocation Model (English)
        Working paper by Bagwell, Kyle, Staiger, Robert W., 2009, 36 pages
        Categories: Trade Policy Analysis and Trade Data Sources, WTO Issues/Multilateral Trading System

        Existing theories of trade agreements suggest that GATT/WTO efforts to reign in export subsidies represent an inefficient victory for exporting governments that comes at the expense of importing governments. Building from the Cournot delocation model …first introduced by Venables (1985), we demonstrate that it is possible to develop a formal treatment of export subsidies in trade agreements in which a more benign interpretation of efforts to restrain export subsidies emerges. And we suggest that the gradual tightening of restraints on export subsidies that has occurred in the GATT/WTO may be interpreted as deriving naturally from the gradual reduction in import barriers that member countries have negotiated. Together with existing theories, the Cournot delocation model may help to provide a more nuanced and complete understanding of the treatment of export subsidies in trade agreements.

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        Enhancing the Role of Domestic Financial Resources in Africa's Development (English)
        Book by UNCTAD, 2009, 68 pages
        Categories: Competitiveness, Finance for Development

        Apart from the limited reforms to liberalize the financial sector and some attempts to increase public revenue through the introduction of consumption taxes such as VAT (value added tax), many African countries have not considered domestic resource mobilization as an important vehicle for increasing development finance. This handbook is expected to help fill this lacuna. It has been prepared as part of the United Nations Conference on Trade and Development (UNCTAD) secretariat’s project on “Developing local capacities for the identification of growth opportunities through resource mobilization”, financed by the United Nations Development Account (Fifth Tranche). The objective of the project is to strengthen the capacity of African countries to identify and utilize efficiently non-debt-creating domestic resources in order to meet the Millennium Development Goals (MDGs), especially the first goal of halving poverty rates by 2015.

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        Ensuring EU Farm Policy Supports the Millennium Development Goals (English)
        Note by ICTSD, 2009, 12 pages
        Categories: WTO Issues/Multilateral Trading System

        This short information note addresses how aid that governments provide to developing countries can often be undermined by their counteractive domestic agricultural policies. The EU’s Common Agricultural Policy (CAP), originally intended to address post-war food shortages, now causes overproduction at home while undermining some development efforts abroad. Developing country farmers are not only unable to compete in the international market with subsidized European products, but are also denied access to the European market due to high tariff barriers. Although a series of reforms have taken place aimed at reducing overproduction and waste, more substantial reforms are needed in order to align EU farm policy with its policies on development.

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        Ensuring Trade Policy Supports Food Security Goals (English)
        Policy brief by ICTSD, 2009, 13 pages
        Categories: Commodities, Policy Reviews and Briefs, WTO Issues/Multilateral Trading System

        While analysts, negotiators and policy-makers have long been aware of the trade barriers and distortions facing developing country agriculture, the renewed attention to food insecurity has yet to spark concrete action on trade policy reform. Indeed, if progress is to be achieved towards achieving food security goals, action to tackle the trade-related causes of hunger has to be an integral part of a broader set of development-oriented reforms in both the developed and developing world. This short analytical note attempts to summarise some of the relationships between trade policy and food security, and pinpoint some of the changes that might be required if governments are to achieve their goals in this area.

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        EU-ACP Economic Partnership Agreements: Empirical Evidence for Sub-saharan Africa (English)
        Case study by Vollmer S.; Martinez-Zarzoso I.;Nowak-Lehmann D.; Klann N., 2009, 29 pages
        Categories: Regional and Bilateral Trade Agreements, Trade Policy Analysis and Trade Data Sources

        The study estimates the welfare effects of the interim agreements for nine African countries: Botswana, Cameroon, Cote d'Ivoire, Ghana, Kenya, Mozambique, Namibia, Tanzania, and Uganda. The analysis is based on highly disaggregated data for trade and tariffs (HS six digit level) and follows a simple analytical model by to quantify the welfare effects of trade liberalization.

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        EU Support for Biofuels and Bioenergy, Environmental Sustainability Criteria, and Trade Policy (English)
        Report by Swinbank, Alan/UNCTAD, 2009, 54 pages
        Categories: Science and Technology, Trade and Environment

        This paper provides a description of the EU’s biofuel policies, set in the context of its overall policy framework on renewable and bioenergy, and their interface with the WTO legal system. Although undoubtedly influenced by concerns about security of energy supplies, and a wish to find alternative market outlets for European farmers, the EU’s policy for biofuels (defined in EU legislation as liquid and gaseous fuels for transport use) is associated closely with its more generic policies to promote bioenergy, which in legislative terms is embedded in its policy on renewable energy, part of its strategy to reduce greenhouse gas emissions. The EU’s strategy, and its implementation by the Member States, has been evolving for a number of years; but its current ambition is that by 2020 some 20 percent of its primary energy supplies should come from renewable resources (including bioenergy) and that, in each Member State, renewables (largely biofuels) should provide 10 percent of energy use for transport. It is up to the Member States to deliver on these obligations, in the framework of EU rules …

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        An Evaluation of Tanzania’s EPZ Programme – Challenges and Prospects (English)
        Case study by Charles T L T Domician, 2009
        Categories: Competitiveness, Investment, VI Members Research

        This study employs OECD-DAC criteria to evaluate the Tanzania Export Processing Zones programme over the 2006 to May 2009 period. It finds that the programme is relevant for the country and global developmental orientations, although some respondents had a misguided opinion. On the other hand, the programme remains largely ineffective and inefficient due to the prevailing risks, including heavy hard and soft infrastructural challenges as well as the existing burden of the fiscal incentive regime. The study notes, however, that if properly handled, the discovery of uranium is potentially key to transforming the country’s energy and industrial sectors for domestic and international competitiveness. It is further suggested that unless necessary socioeconomic interventions are made well in time, the identified weaknesses stand to threaten the programme’s envisaged developmental impact and sustainability. Therefore, it is recommended that the government (through the Export Processing Zones Authority), in collaboration with all relevant EPZ stakeholders, devise an efficient and effective mechanism for financing export-enhancing infrastructures; and that special purpose vehicles in public-private partnership arrangements provide one such option. Other policy measures should include a review for streamlining the incentive regime, addressing inefficiencies at the Dar es Salaam port, financial empowerment for domestic export-oriented SMEs, enhanced stakeholder awareness of EPZ legislation and practices, and regional and global marketing of the programme’s production/exports.

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        Export Promotion and the WTO: A Brief Guide (English)
        Book by ITC, 2009, 50 pages
        Categories: WTO Issues/Multilateral Trading System

        Study looking at export promotion schemes which are consistent with international rules on subsidies, and are most frequently used by developing countries – examines the rules contained in the WTO Agreement on Subsidies and Countervailing Measures (ASCM), covering manufactured goods; highlights rules in the WTO Agreement on Agriculture (AoA) on subsidies, covering certain primary or agricultural products; outlines tools such as duty drawback, export credits and export guarantees, which are at the disposal of countries wishing to promote exports; presents and analyses examples of schemes in place in selected countries in Asia, Africa and Latin America.

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        Exposure to External Country Specific Shocks and Income Volatility (English)
        Working paper by Jansen, Marion, Lennon, Carolina, Piermartini, Roberta, 2009, 23 pages
        Categories: Trade Policy Analysis and Trade Data Sources

        Using a dataset of 138 countries over a period from 1966 to 2004, this paper analyses the relevance of country specific shocks for income volatility in open economies. We show that exposure to country specific shocks has a positive and significant impact on GDP volatility. In particular, we find that the degree to which the cycles of different trading partners are correlated is more important in explaining exporters’ GDP volatility than the volatility of demand in individual export market. We also show that geographical diversification is a significant determinant of countries' exposure to country specific shocks.

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        Financing the Climate Mitigation and Adaptation Measures in Developing Countries (English)
        Discussion paper by UNCTAD, 2009, 26 pages
        Categories: Finance for Development, Investment, Trade and Environment

        Climate funding currently available under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol is less than $10 billion per year, most of it through Clean Development Mechanism (CDM). Additional funding is provided by the World Bank and by bilateral aid programmes, but the annual total of all existing multilateral and bilateral climate funding is less than $15 billion. This is too small, by an order of magnitude, to meet the needs for climate investments in developing countries. Streamlined and improved institutional arrangements, such as a much-simplified replacement for CDM, will be needed.

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        Food Security and Agricultural Development in Times of High Commodity Prices
        Report by Herrmann, Michael/UNCTAD, 2009, 40 pages
        Categories: Commodities, Globalization and Development Strategies

        The paper provides a new perspective on rising food prices by out mapping the many complex ways in which higher food prices are affecting developing countries, in particular the poorest. The analysis presented herein develops important and differentiated policy implications by distinguishing not only between implications in the shot run and medium run, and challenges on the supply side and demand side, but also between countries with agricultural potential and countries without such potential. Although globally food security is a challenge on both the demand side and the supply side, the paper argues that not all countries can effectively address this challenge from both angles. Furthermore, while higher food prices can provide important stimulus for agricultural development, it should not be expected that agricultural output will automatically rise in response to price changes, as higher prices in international markets are frequently not passed through to producers, and as many producers lack the capacity to respond to positive price signals where they are passed on. Both failures bear important implications for policies to address the dual challenge of food security and agricultural development.

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        Global Economic Crisis: Implications for Trade and Development (English)
        Report by UNCTAD secretariat, 2009, 42 pages
        Categories: International Financial System, Trade and Poverty

        The current global financial and economic crisis has the potential to seriously undermine all countries’ process of economic growth and transformation, and to jeopardize the efforts taken by developing and developed countries alike to promote the achievement of internationally agreed development goals. In addition to the ongoing global food crisis, volatile energy prices, and climate-change challenges, the current crises creates the most significant challenge facing the global community today – how to focus on buttressing development and poverty-reduction efforts globally and in developing countries, and on setting in place the conditions that will avert future crises and facilitate a sustainable process of economic transformation for all countries. This report by UNCTAD is an effort to contribute to consideration of this major challenge, with a view to identifying policies and strategies that can serve as the bulwark on which to restore confidence, build recovery, and promote inclusive development.

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        The Global Economic Crisis: Systemic Failures and Multilateral Remedies (English)
        Report by UNCTAD, 2009, 80 pages
        Categories: International Financial System, Macroeconomic Policy

        The report highlights three specific areas (financial deregulation, large-scale financial investors, currency speculation)in which the global economy experienced systemic failures and proposes measures to address them. While there are many more facets to the crisis, UNCTAD examines here some of those that it considers to be the core areas to be tackled immediately by international economic policy-makers because they can only be addressed through recognition of their multilateral dimensions.

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        The Global Economic Crisis: Systemic Failures and Multilateral Remedies - Executive Summary (English)
        Report by UNCTAD, 2009, 18 pages
        Categories: International Financial System, Macroeconomic Policy

        The report highlights three specific areas (financial deregulation, large-scale financial investors, currency speculation)in which the global economy experienced systemic failures and proposes measures to address them. While there are many more facets to the crisis, UNCTAD examines here some of those that it considers to be the core areas to be tackled immediately by international economic policy-makers because they can only be addressed through recognition of their multilateral dimensions.

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        Global Economic Prospects 2009: Commodities at the Crossroads - Full Report (English)
        Book by World Bank, 2009, 196 pages
        Categories: Commodities, Trade Policy Analysis and Trade Data Sources

        The release of this year's Global Economic Prospects finds the world economy at a crossroads. Markets all over the world are engulfed in a global economic crisis, with stock markets sharply down and volatile, almost all currencies having depreciated substantially against the dollar, and risk premiums on a wide range of debt having increased by 600 or more basis points. Commodity markets too have turned a corner. Following several years of increase, prices have plummeted, and although well above their 1990s levels, they have given up most of the increases of the past 24 months. This year's Global Economic Prospects analyzes the implications of the crisis for low- and middle-income countries, including an in-depth look at long-term prospects for global commodity markets and the policies of both commodity producing and consuming nations. The government responses to the recent price boom are also analyzed in this year's edition. Producing-country governments have been more prudent than during earlier booms, and because they have saved more of their windfall revenues, they are less likely to be forced to cut into spending now that prices have declined. The spike in food prices tipped more people into poverty, which led governments to expand social assistance programs. Ensuring such programs are better targeted toward the needs of the very poor in the future will help improve the capacity of governments to respond effectively the next time there is a crisis.

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        Global Economic Prospects 2009: Commodities at the Crossroads - Overview (English)
        Report by World Bank, 2009, 13 pages
        Categories: Commodities, Trade Policy Analysis and Trade Data Sources

        The release of this year's Global Economic Prospects finds the world economy at a crossroads. Markets all over the world are engulfed in a global economic crisis, with stock markets sharply down and volatile, almost all currencies having depreciated substantially against the dollar, and risk premiums on a wide range of debt having increased by 600 or more basis points. Commodity markets too have turned a corner. Following several years of increase, prices have plummeted, and although well above their 1990s levels, they have given up most of the increases of the past 24 months. This year's Global Economic Prospects analyzes the implications of the crisis for low- and middle-income countries, including an in-depth look at long-term prospects for global commodity markets and the policies of both commodity producing and consuming nations. The government responses to the recent price boom are also analyzed in this year's edition. Producing-country governments have been more prudent than during earlier booms, and because they have saved more of their windfall revenues, they are less likely to be forced to cut into spending now that prices have declined. The spike in food prices tipped more people into poverty, which led governments to expand social assistance programs. Ensuring such programs are better targeted toward the needs of the very poor in the future will help improve the capacity of governments to respond effectively the next time there is a crisis.

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        Global Inequality and the Global Inequality Extraction Ratio ; The Story of the Past Two Centuries (English)
        Working paper by Milanovic, Branko, 2009, 29 pages
        Categories: Trade and Poverty

        Using social tables, the author makes an estimate of global inequality (inequality among world citizens) in the early 19th century. The analysis shows that the level and composition of global inequality have changed over the past two centuries. The level has increased, reaching a high plateau around the 1950s, and the main determinants of global inequality have become differences in mean country incomes rather than inequalities within nations. The inequality extraction ratio (the percentage of total inequality that was extracted by global elites) has remained surprisingly stable, at around 70 percent of the maximum global Gini, during the past 100 years.

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        Greenhouse Gas Reduction Policies and Agriculture: Implications for Production Incentives and International Trade Disciplines (English)
        Report by Blandford, David; Josling, Tim/ICTSD, 2009, 32 pages
        Categories: Trade and Environment, WTO Issues/Multilateral Trading System

        Climate change and the instruments of policy that are emerging as a response to that phenomenon pose a multitude of challenges to the multilateral trade system. Both are likely to have an impact on agricultural production. There is also a potential for conflict with World Trade Organization (WTO) trade rules, both through the choice of policy instruments to address climate change and through the way in which governments react to pressures to avoid or deflect the costs of climate change mitigation and adaptation. We assess the implications of domestic policies designed to reduce greenhouse gas (GHG) emissions from agriculture and to enhance the role of agriculture in GHG mitigation in the context of existing and future WTO disciplines. The following types of policies are examined: (1) performance standards, (2) best-practice requirements, (3) subsidies, (4) carbon taxes, (5) cap and trade (CT) schemes and (6) public expenditure for research and extension.

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        The Growing Interdependence Between Financial and Commodity Markets (English)
        Discussion paper by Mayer, Jörg/UNCTAD, 2009, 34 pages
        Categories: Commodities, International Financial System

        Financial investment has become increasingly important on commodity exchanges. This paper distinguishes two types of financial investors and emphasizes differences in their position taking motivation and price impacts. Index traders follow a passive strategy holding virtually only long positions. Money managers trade on both sides of the market and attempt to maximize short-term returns. Regression analysis indicates that: (i) index trader positions are particularly influenced by roll returns, while money managers emphasize spot returns; and that: (ii) money managers moved from emphasizing diversification to a more speculative strategy by taking commodity positions that are positively, rather than negatively, related to developments in equity markets. Granger-causality tests indicate that these differences translate into different price impacts: (i) index trader positions have a causal price impact particularly for agricultural commodities; and (ii) money managers had a causal impact during the sharp increases in the prices for some non-agricultural commodities.

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        How Do Food Prices Affect Producers and Consumers in Developing Countries? (English)
        Study by ICTSD, 2009, 12 pages
        Categories: Commodities

        High food prices in 2008 brought global attention to the difficulties that producers and consumers in developing countries have faced for many years. This note examines trends in global agricultural production and surveys some of the newest information that has come to light to probe how food prices have affected agriculture.

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        How to Access Trade Finance: A Guide for Exporting SMEs (English)
        Manual by ITC, 2009, 149 pages
        Categories: Enterprise Development

        Guide dealing with the processes involved in obtaining finance for exporting SMEs – explains the credit process of financial institutions from pre-application to loan repayment; examines the SME sector and barriers to finance, as well as the risks in lending to the SME sector as perceived by financial institutions; addresses SMEs’ internal assessment of financial needs, determining the right financing instruments, and finding the appropriate lenders and service providers; discusses how to approach and negotiate with banks; tackles cash flow and risk management issues; includes examples of real-life business plans and loan requests; includes bibliography

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        How Would a Trade Deal on Sugar Affect Exporting and Importing Countries? (English)
        Report by Elobeid, Amani/ICTSD, 2009, 62 pages
        Categories: Commodities, WTO Issues/Multilateral Trading System

        This study examines how exporting and importing countries could be affected by a trade deal on sugar along the lines of that under discussion in the WTO’s Doha Round, as well as in bilateral and regional negotiations. The study takes into consideration the preferential access arrangements that currently exist, recent historical trends in sugar trade in different countries and geographical regions, and the internal market reforms in importing regions such as the EU.How would a trade deal on sugar affect exporting and importing countries?How would a trade deal on sugar affect exporting and importing countries?

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        How Would a WTO Agreement on Bananas Affect Exporting and Importing Countries? (English)
        Report by Anania, Giovanni/ICTSD, 2009, 49 pages
        Categories: Commodities, WTO Issues/Multilateral Trading System

        Bananas, an essential source of export revenue for many developing countries, have been an important source of disagreement in the Doha Round of trade talks. This study employs economic modeling to assess the implications of a deal on trade in bananas. The scenarios it uses focus on the role of Economic Partnership Agreements (EPAs) and a conclusion to the WTO Doha Round.

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        ICTSD-IPC Platform on Climate Change, Agriculture and Trade: Considerations for Policymakers (English)
        Report by UNCTAD, 2009, 14 pages
        Categories: Commodities, Trade and Environment

        Climate Change is expected to increase the likelihood of extreme weather events and contribute to longer-term changes in temperature and precipitation. Given agriculture’s reliance on the weather, the agricultural sector will be seriously impacted by climate change. The sector is also a significant contributor of greenhouse gasses and will need to play a role in mitigating climate change. At the same time, however, increased demands on the sector will require that agricultural production more than double by 2050. Given these challenges, global food security requires substantial adaptation efforts directed towards the agricultural sector. Emphasis must be placed on strengthening adaptive capacities in developing countries, with an eye toward also promoting socio-economic development and food security

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        The Impact of Foreign Direct Investment on Developing Economies and the Environment (English)
        Article by Luis Carlos Arango Vieira, 2009, 18 pages
        Categories: Trade and Environment, VI Members Research

        This article is about the impact of foreign direct investment on developing economies and the environment. All of us that are concerned about the environment should ask ourselves if the increase in capital mobility associated with the world-wide process of liberalization, deregulation and privatization, known as the Neo-liberal global regime, has contributed to the problems of higher emissions, ozone layer destruction, and pollution of water sources, as well as to create false economic bubbles that lead to increased consumption in these regions whilst forcing the destruction of the environment by the poor in order to survive and cope with the roles their society demands. Neo-liberal practices such as those enforced in developing countries like Colombia, while seeking to attract foreign investment to push their economies, tend to generate a false aggregated demand growth that in most cases is not sustainable in the long term, increases global unemployment, unleash destructive competitive processes and weaken government’s ability to regulate business in the citizens` best interests.

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        Impact of Qualifying Industrial Zones (QIZ) on Egypt and Jordan: A Critical Analysis (English)
        Case study by Ahmed Farouk Ghoneim and Taleb Awad, 2009
        Categories: Investment, Regional and Bilateral Trade Agreements, VI Members Research

        Paper presents a detailed outlook on the impact of qualifying industrial zones (QIZ)from the perspective of both Egypt and Jordan. It explains the objective and purpose of the QIZ, the performance of the QIZ (in terms of employment opportunities, gender and technology transfer) and it concludes with a comparative analysis between Egypt and Jordan.

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        The Impact of the Financial and Economic Crisis on Debt Sustainability in Developing Countries
        Note by UNCTAD, 2009, 24 pages
        Categories: Finance for Development, International Financial System

        This paper is prepared in response to a request by the former President of the General Assembly H.E. Miguel d´Escoto dated 6 July 2009 for UNCTAD to prepare a paper on the impact of the crisis on debt sustainability. Furthermore, this paper is a contribution to the follow up of the United Nations Conference on the World Financial and Economic Crisis and its Impact on Development held in June 2009. The paper is divided into three parts. The first part (Section 2) describes the impact of the crisis on developing countries. It shows that this crisis has demonstrated, once again, the vulnerability of developing countries to exogenous shocks and that the global downturn raises concerns with regard to the capacity of developing countries to weather the storm without laying the foundations for a debt crisis in the years to come. In this context, it is essential for policy makers to be aware of key determinants of debt sustainability and how they have evolved over the last two years. However, debt sustainability should not be viewed as simply the capacity to continue servicing debt obligations without taking into account the fact that higher debt serving costs necessarily mean fewer funds available for fighting poverty and meeting MDGs. The second part of the paper (Sections 3) shows that developing countries suffer debt crises with debt levels which, for the standard of the advanced economies, are relatively low (a phenomenon often referred to as debt-intolerance). The paper rejects the conventional wisdom that this phenomenon is due to poor policies or institutions and argues that the key determinants of debt intolerance are the economic and debt structure of developing countries. The third part of the paper (Section 4) discusses international and domestic long-term policies aimed at reducing the probability of debt crises. This section also points out that, even with better policies, debt crises and sovereign defaults are bound to happen and that the cost of such crises could be attenuated by putting in place an international debt resolution mechanism which would allow a speedy, equitable and transparent debt restructuring process.

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        Implications for China of the December 2008 Draft Agricultural Modalities (English)
        Report by Zhihong, Tian/ICTSD, 2009, 50 pages
        Categories: Commodities, Emerging Economies and South South Cooperation, WTO Issues/Multilateral Trading System

        With nearly 900 million people dependent on agriculture for income, China produces more wheat and paddy than any other country, yet it is a country dependent upon trade to both employ and feed its people. Moreover, China has some of the lowest agricultural tariffs of any WTO Member and yet subsidies that rival the EU’s in total. The ongoing Doha Round of trade negotiations at the WTO may significantly alter the relationship of Chinese agriculture with the world. This study explores the latest draft WTO agreement on agriculture and what it means for China.

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        Information Economy Report 2009: Trends and Outlook in Turbulent Times (English)
        Report by UNCTAD, 2009, 153 pages
        Categories: Enterprise Development, Science and Technology

        The Information Economy Report 2009 (IER 2009) offers a fresh assessment of the diffusion of key ICT applications between 2003 and 2008. While fixed telephone subscriptions are now in slight decline, mobile and Internet use continues to expand rapidly in most countries and regions. At the same time, there is a widening gap between high-income and low-income countries in broadband connectivity. Broadband penetration is now eight times higher in developed than in developing countries. The report explores policy options for countries seeking to improve broadband connectivity. The IER 2009 includes a chapter on the use of ICTs in the business sector. Drawing on unique data, it examines how ICT use differs both between and within countries, highlighting the rural-urban divide as well as that between large and small companies. The report recommends that governments in developing countries give more attention to ICT uptake and use by small- and medium-sized enterprises (SMEs), as they are lagging behind larger firms. And it discusses those aspects of ICT where government intervention can make a difference. A third chapter is devoted to the impact of the financial crisis on ICT trade. While a growing share of exports of ICT goods and services is accounted for by developing economies, especially in Asia, the crisis has affected goods and services quite differently. ICT goods are among the categories of trade most negatively affected by the recession, while IT and ICT-related services appear to be among the most resilient.

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        International Climate Change Negotiations and Agriculture (English)
        Policy brief by ICTSD, 2009, 14 pages
        Categories: Commodities, Policy Reviews and Briefs, Trade and Environment

        The purpose of this paper is to provide an overview of the existing international climate change agreements and the international negotiations underway and to point out the ways in which the agricultural sector - is - or may be - addressed in the international climate regulatory framework. In 2008 the International Food & Agricultural Trade Policy Council (IPC) and the International Centre for Trade and Sustainable Development (ICTSD) launched The ICTSD-IPC Platform on Climate Change, Agriculture and Trade: Promoting Policy Coherence. This paper is part of this initiative. This interdisciplinary platform of climate change, agricultural and trade experts seeks to promote increased policy coherence to ensure effective climate change mitigation and adaptation, food security and a more open and equitable global food system.

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        The International Regulation of Sovereign Wealth Funds. Which Role for the European Union? (English)
        Article by Michele Barbieri, 2009
        Categories: International Economic Law, VI Members Research

        The object of this paper is to review the existing international instruments providing for standards and principles applicable to SWFs, to their investments and to the policies adopted by recipient States. The analyse will be carried out from the point of view of the European Union (EU), i. e. paying particular attention to the participation of the EU in the works of the IMF and the OECD in the elaboration of such instruments.

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        International Trade and Real Transmission Channels of Financial Shocks in Globalized Production Networks (English)
        Working paper by Escaith, Hubert, Gonguet, Fabien, 2009, 33 pages
        Categories: International Financial System, Trade Policy Analysis and Trade Data Sources

        The article analyses the role of international supply chains as transmission channels of a financial shock. Because individual firms are interdependent and rely on each other, either as supplier of intermediate goods or client for their own production, an exogenous financial shock affecting a single firm, such as the termination of a line of credit, reverberates through the productive chain. The transmission of the initial financial shock through real channels is tracked by modelling input-output interactions. The paper indicates that when banks operate at the limit of their institutional capacity, defined by the capital adequacy ratio, and if assets are priced to market, then a resonance effect amplifies the back and forth transmission between real and monetary circuits. The paper illustrates the proposed methodology by computing a supply-driven indicator (IRSIC) and indirect demand-driven impacts on five interconnected economies of different characteristics: China, Japan, Malaysia, Thailand and the United States.

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        International Trade Statistics 2009
        Data by WTO, 2009, 262 pages
        Categories: Trade Policy Analysis and Trade Data Sources

        International Trade Statistics 2009 offers a comprehensive overview of the latest developments in world trade, covering the details of merchandise trade by product and trade in commercial services by category. Each chapter is introduced by a highlights section that identifies the most salient trends in the data and illustrates them with numerous charts and maps. There is also a methodological chapter that explains essential concepts and definitions used in compiling the statistics, and an appendix with detailed data on trade by region up to 2008. International Trade Statistics 2009 continues to serve as an invaluable reference for researchers, policy makers, and anyone interested in international trade.

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        The Investment Guide to the Silk Road (English)
        Report by UNCTAD, 2009, 78 pages
        Categories: Investment

        The Investment Guide to the Silk Road is an integral part of UNCTAD’s work in the Silk Road region, which comprises the States of Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and the Western Chinese provinces. The first phase of the project was part of the UNDPUNWTO- UNCTAD Silk Road Initiative. This Guide is intended to give readers comprehensive introductory information about the investment climate and opportunities in the Silk Road region, but its primary goal is to encourage potential investors to explore in more detail their own ideas for possible regional investment projects. The publication was jointly prepared with UNDP China in 2006 and was updated by UNCTAD in 2009, and includes an abstract from an UNCTAD report on an investment promotion strategy for the tourism sector of China’s Silk Road Provinces and Autonomous Regions.

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        Investment Policy Developments In G-20 Countries
        Report by UNCTAD, 2009, 9 pages
        Categories: Investment

        The report is in response to UNCTAD´s mandate to monitor investment policy developments and their implications for development. It is also meant to contribute to a joint effort by WTO, UNCTAD, OECD and IMF to respond to the 2 April 2009 G-20 Leaders’ request for quarterly reporting on their adherence to maintain an open trade and investment regime and to avoid a retreat into protectionism. The summit called upon international bodies to monitor and report publicly on G 20 members´ adherence to this pledge.

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        Investment Policy Monitor (English)
        Policy brief by UNCTAD, 2009, 8 pages
        Categories: Investment, Policy Reviews and Briefs

        This Monitor is the first of a new series launched by the UNCTAD Secretariat. Its objective is to provide policy-makers and the international investment community at large with up-to-date information about the latest developments in foreign investment policies at the national and international level. It also seeks to identify the overall trends and salient features of these developments. By doing so, the Monitor aims to assist policy makers and other interested stakeholders in their discussions of foreign investment policy issues, and contribute to preparing the ground for future policymaking in the interest of making foreign investment work for growth and development.

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        Investment Policy Review: Dominican Republic (English)
        Review by UNCTAD, 2009, 134 pages
        Categories: Investment, Policy Reviews and Briefs

        Over the last three decades, the Dominican Republic has adopted policies of greater openness to international trade and investment as part of its quest for economic and social progress. As a result, foreign direct investment (FDI) has played a prominent role in its economic development and in decisively shifting the export structure of the country to light manufacturing, thereby reducing commodity dependence. A new and more ambitious development goal has now been set. It focuses on making the country a regional leader in high-value-added manufacturing and services. To this end, the Dominican authorities have embarked on a number of policy initiatives to increase the international competitiveness of the economy. They acknowledge that FDI can again play a key role in promoting this second transition into higher-valueadded activities. In light of this ambitious objective, the Government of the Dominican Republic has requested that UNCTAD carry out a review of the country’s investment policies and of the national investment promotion effort. This investment policy review is the result of research and analysis carried out by UNCTAD in 2007.

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        Investment Policy Review: Nigeria (English)
        Review by UNCTAD, 2009, 154 pages
        Categories: Investment, Policy Reviews and Briefs

        The Review focussed on the objective of increasing non-oil foreign direct investment (FDI) inflows to Nigeria. Reforms carried out under Nigeria´s home-grown development strategy, NEEDs, are more advanced than generally appreciated outside Nigeria. These include measures addressing both macroeconomic and investment climate issues. Despite these accomplishments, Nigeria continues to attract low quality FDI in manufacturing. In this regard, there is little evidence of the participation of foreign affiliates in the country to the process of integration into the regional and global production networks of the transnational corporations that characterize more advanced strategic corporate response to globalization. Few and very basic linkages exist between foreign companies and local suppliers. Against this background, the UNCTAD investment policy review of Nigeria considers what needs to be done to enable FDI to make its full contribution to the orientation set by the Government.

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        Investment Policy Review: Republic of Belarus (English)
        Policy brief by UNCTAD, 2009, 126 pages
        Categories: Investment, Policy Reviews and Briefs

        The UNCTAD Investment Policy Reviews (IPRs) are intended to help countries improve their investment policies and to familiarize governments and the international private sector with an individual country's investment environment.The Investment Policy Review of Belarus, initiated at the request of the Belarusian Governement, assesses the suitablitly and effectiveness of the regulatory regime of the country against several related criteria: (a) whether the regulation adequately promotes and protects the public interest; (b) whether the regulation adequately promotes investment and sustainable socio-economic development; and (c) whether the policies employed are effective and well administered, given the public interest and development objectives and the legitimate concerns of investors that rules and procedures do not unduly burden their competitiveness.\\nIn addition, the report elaborates on a strategy to maximize the positive impact of foreign direct investment (FDI) on the development of a local small and medium-sized enterprise (SME) sector.

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        Is South–south Trade a Testing Ground for Structural Transformation?
        Report by Klinger, Bailey/UNCTAD, 2009, 37 pages
        Categories: Globalization and Development Strategies, Trade Facilitation

        The purpose of this paper is to analyse the composition of South–South as opposed to South– North trade in recent years, applying emerging methodologies and highly disaggregated trade data to consider whether the South as a market provides developing countries with greater opportunities to transform their productive structures and move to more sophisticated export sectors than the Northern market does. The results show that for a group of developing countries, primarily in Africa, Latin America and Central Asia, exports within the South are more sophisticated and better connected in the product space than exports to the North, whereas the opposite is true for the faster-growing economies of Asia and Eastern Europe (excluding the Commonwealth of Independent States). It is shown that the primary source of cross-country variation in export sophistication and connectedness is between Northbound rather than Southbound export baskets. And yet it is clear that for a large group of developing countries, current export flows to the North are not particularly growth-enhancing, nor do they offer learning opportunities to fuel structural transformation, and for these countries South–South trade flows may indeed be a testing ground for structural transformation. This paper focuses on clearly establishing the facts about export composition by market, and identifying promising avenues for further investigation.

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        Is South–South Trade a Testing Ground for Structural Transformation? (English)
        Discussion paper by Klinger, Bailey/UNCTAD, 2009, 37 pages
        Categories: Emerging Economies and South South Cooperation, Regional and Bilateral Trade Agreements

        The purpose of this paper is to analyse the composition of South–South as opposed to South– North trade in recent years, applying emerging methodologies and highly disaggregated trade data to consider whether the South as a market provides developing countries with greater opportunities to transform their productive structures and move to more sophisticated export sectors than the Northern market does. The results show that for a group of developing countries, primarily in Africa, Latin America and Central Asia, exports within the South are more sophisticated and better connected in the product space than exports to the North, whereas the opposite is true for the faster-growing economies of Asia and Eastern Europe (excluding the Commonwealth of Independent States). It is shown that the primary source of cross-country variation in export sophistication and connectedness is between Northbound rather than Southbound export baskets. And yet it is clear that for a large group of developing countries, current export flows to the North are not particularly growth-enhancing, nor do they offer learning opportunities to fuel structural transformation, and for these countries South–South trade flows may indeed be a testing ground for structural transformation. This paper focuses on clearly establishing the facts about export composition by market, and identifying promising avenues for further investigation.

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        The Least Developed Countries Report 2009: The State and Development Governance (English)
        Report by UNCTAD, 2009, 209 pages
        Categories: Globalization and Development Strategies, Finance for Development

        This year's report suggests LDCs should focus their macroeconomic policies long-term on boosting the productive capacities of their economies and on establishing the infrastructure -- such as roads, bridges and electricity supply -- that empowers such progress. It adds that they should nurture and steer their fledgling private banking sectors into investing in productive activities instead of government portfolios and real estate.

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        Lessons from European Union Policies for Regional Development (English)
        Working paper by Shankar, Raja; Shah, Anwar / The World Bank, 2009, 47 pages
        Categories: WTO Issues/Multilateral Trading System

        The neglect of regional disparities may create the potential for disunity and disintegration in any country. Hence, most countries aim at helping lagging regions catch up with faster growing regions. However, it is useful to discern what type of policies work and why. The experience of the European Union (EU) may be particularly instructive in this context. This paper reviews the impact of EU policies for regional development and draws lessons that can be of interest to other countries pursuing similar goals. The paper concludes that policies that serve to create an internal common market by creating a level playing field have the best potential to advance regional income convergence. In this context, the main policy priorities for regional development include the removal of barriers to trade and factor mobility, and providing enhanced access to information and technology to the lagging regions.

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        Low-Income Countries' Access to Private Debt Markets (English)
        Working paper by Hostland, Doug /World Bank, 2009, 34 pages
        Categories: Finance for Development

        Private debt flows to developing countries surged to record levels over the period 2003-07. A few low-income countries have gained access to the international bond market but the bulk of the flows have continued to go to just a few large middle-income countries. Most low-income countries still heavily depend on concessional loans and grants from the official sector to meet their financing needs. The paper provides an overview of low-income countries' access to cross-border bank lending and bond issuance in the international market over the past few decades. It highlights some stylized facts that characterize salient features of low-income countries' experience in external borrowing from the private sector and discusses the various factors that influence governments' and corporations' decisions to seek external financing along with creditors' decisions to provide the financing. The paper concludes by assessing the prospects for low-income countries' access to private debt markets over the medium term.

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        Making Data Meaningful Part 1: A Guide to Writing Stories About Numbers (English)
        Manual by UNECE, 2009, 28 pages
        Categories: Trade Policy Analysis and Trade Data Sources

        The first in a series from the United Nations Economic Commission for Europe, the guide is intended as a practical tool to help use text, tables, graphics and other information to bring statistics to life using effective writing techniques.

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        Making Data Meaningful Part 2: A Guide to Presenting Statistics (English)
        Manual by UNECE, 2009, 58 pages
        Categories: Trade Policy Analysis and Trade Data Sources

        The second in a series from the United Nations Economic Commission for Europe, this guide aims to help readers find the best way to get their\\nmessage across to non-specialists, using the most suitable set of tools and skills now available from an array of communication methods.

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        Manual for the Production of Statistics on the Information Economy (2009 Revised Edition) (English)
        Report by UNCTAD, 2009, 188 pages
        Categories: Science and Technology, Trade Policy Analysis and Trade Data Sources

        This is the second edition of the Manual for the Production of Statistics on the Information Economy. The Manual is a tool for staff of national statistical organizations responsible for measuring the information economy. It is intended to guide statisticians from developing countries in all steps involved in the production and dissemination of business ICT statistics. This second edition of the Manual is a valuable tool in our common efforts towards enhancing the availability of internationally comparable indicators of the information economy.

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        Mapping the Tariff Waters (English)
        Working paper by Diakantoni, Antonia, Escaith, Hubert, 2009, 31 pages
        Categories: Trade Policy Analysis and Trade Data Sources, WTO Issues/Multilateral Trading System

        Tariff water –the difference between bound and applied duties– provides relevant information on domestic trade policy and WTO trade negotiations. This paper examines the general and sectoral tariff structure of 120 economies, using exploratory data analysis.

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        Negotiating Services Free Trade Agreements (FTAs) with the European Union: Some Issues for Developing Countries to Consider (English)
        Note by South Centre, 2009, 31 pages
        Categories: Regional and Bilateral Trade Agreements

        This Analytical Note explores the options available to developing countries in negotiating agreements establishing Free Trade Areas (FTAs) involving a trade in services component with the European Union (EU). It examines the issues that are challenging for development in the EU proposals which include amongst other things the EU negotiating template, Mode 4 limitations, the domestic regulatory framework and the MFN clause. Secondly it identifies the options available to developing countries. These include cooperation arrangements with the EU, respect for regional initiatives, recognition of special treatment for LDCs and retaining the GATS architecture and flexibilities.

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        A "new" Trade Theory of GATT/WTO Negotiations (English)
        Working paper by Ossa, Ralph, 2009, 51 pages
        Categories: Macroeconomic Policy, Trade Policy Analysis and Trade Data Sources, WTO Issues/Multilateral Trading System

        A novel theory of GATT/WTO negotiations that provides new answers to two prominent questions in the trade policy literature: First, what is the purpose of trade negotiations? And second, what is the role played by the fundamental GATT/WTO principles of reciprocity and nondiscrimination? Relative to the standard terms-of-trade theory of GATT/WTO negotiations, my theory makes two main contributions: First, it builds on a "new trade" model rather than the neoclassical trade model and therefore sheds new light on GATT/WTO negotiations between similar countries. Second, it relies on a production relocation externality rather than the terms-of-trade externality and therefore demonstrates that the terms-of-trade externality is not the only trade policy externality, which can be internalized in GATT/WTO negotiations.

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        Policy Responses to the Global Financial Crisis: Key Issues for Developing Countries (English)
        Working paper by Akyüz, Yilmaz / South Centre, 2009, 34 pages
        Categories: International Financial System, Macroeconomic Policy

        This working paper discusses the two types of challenges that developing and developed economies face, due to the current economic and financial crisis: First, the need for immediate policy responses, that aim at stabilizing financial markets and the economy as such, and second, the need for a fundamental reform of the international financial system. The paper discusses the constraints developing and emerging economies (DEEs) are facing in responding to deflationary and destabilizing impulses from the crisis. It proposes that the reform of the international financial architecture should concentrate on crisis prevention and crisis intervention and resolution. The discussion focuses on issues that are viewed as of particular importance for stability and growth in DEEs. This paper was produced by the South Centre to contribute to the better participation of developing countries in international negotiations.

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        Report of the Commission of Experts of the President of the United Nations General Assembly on Reforms of the International Monetary and Financial System (Stiglitz Report) (English)
        Report by United Nations, 2009, 140 pages
        Categories: International Financial System

        The essential insight of the report is that our multiple crises are not the result of a failure or failures of the system. Rather, the system itself – its organization and principles, and its distorted and flawed institutional mechanisms – is the cause of many these failures. The major focus of this report is on short-term measures and the longer-term reforms of the international financial system that support the developing countries and their aspirations for development. This report thus calls for a substantial increase in resources available to developing countries, not just to undertake stimulus measures, but to cope with the negative impact of the crisis.

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        Restoring Trade Finance During A Period Of Financial Crisis : Stock-taking Of Recent Initiatives (English)
        Working paper by Auboin, Marc, 2009, 25 pages
        Categories: International Financial System

        While a number of public-institutions mobilized financial resources for trade finance in the fall of 2008, this has not been enough to bridge the gap between supply and demand of trade finance worldwide. As the market situation continued to deteriorate in the first quarter of 2009, G-20 leaders in London (April 2009) adopted a wider package for injecting additional liquidity and bringing public guarantees in support of $250 billion of trade transactions in 2009 and 2010. Ahead of the Pittsburgh Meetings, experts reported that more than the targeted amount had been mobilized. In the meantime, through the summer and the fall of 2009, the market situation seemed to have eased – although in many countries, access to trade finance by the smaller traders had become either significantly more expensive or had simply disappeared. One can expect the trade finance market to have its up and downs for some time, because lending for trade is a function of the general lending situation of commercial banks. The paper discusses longer-term initiatives aimed at improving the resilience of the trade finance market to short-term and longer-term shocks.

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        Review of Maritime Transport 2009
        Report by UNCTAD, 2009, 219 pages
        Categories: Trade Facilitation

        Description: The year 2008 marked a major turning point in the history of the world economy and trade. Growth in the world economy slowed abruptly in the last part of 2008, with the deepening of the global financial crisis. Growth in developing economies and countries with economies in transition has turned out to be less resilient than expected. In tandem with the global economic downturn and reduced trade, growth in international seaborne trade decelerated in 2008, expanding by 3.6 per cent as compared with 4.5 per cent in 2007. The volume of international seaborne trade in 2008 was estimated as 8.17 billion tons reflection a sharp decline in demand for consumption goods, as well as a fall in industrial production in major economies and reduced energy demand, the deceleration in seaborne volumes affected all shipping sectors. Existing forecasts suggest that the outlook for seaborne trade is uncertain and that some challenging times lie ahead for shipping and international seaborne trade. These challenges are further compounded by other developments, including maritime security at sea and the need to address the climate change challenge.

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        Risk Assessment in the International Food Safety Policy Arena - Can the Multilateral Institutions Encourage Unbiased Outcomes? (English)
        Working paper by Jackson, Lee Ann; Jansen, Marion / WTO, 2009, 25 pages
        Categories: Commodities, WTO Issues/Multilateral Trading System

        In this paper we provide a description of how food safety related scientific evidence is generated and how it is used in the context of risk assessment for international standard-setting at CODEX and in WTO trade disputes. In particular, we discuss the processes leading to policy conclusions on the basis of scientific evidence, with a focus on the interactions involved between private and public sector actors and those between “scientific experts” and others. We identify weaknesses in the current institutional set-up and provide suggestions on how to improve the interaction between different players at the national and international level so as to strengthen the existing system and increase its cost efficiency.

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        The Role of International Trade in Climate Change Adaptation (English)
        Note by Nelson, Gerald; Palazzo, Amanda; Ringler, Claudia; Sulser, Timothy; Batka, Miroslav/UNCTAD, 2009, 24 pages
        Categories: Policy Reviews and Briefs, Trade and Environment

        Early studies on the potential impacts of climate change indicated that agriculture was not likely to be severely affected, as carbon fertilization and trade flows were thought to be able to compensate for any productivity declines related to climate change. Recent work, however, has raised doubts about whether carbon fertilization laboratory test results can be replicated in the field. With the effects of carbon fertilization in question, the role of trade in the context of climate change becomes even more important. Climate change is anticipated to increase the incidence of food insecurity around the world, but trade has the potential to help counteract this effect by delivering agricultural goods to areas experiencing productivity declines. This ICTSD-IPC Platform on Climate Change, Agriculture and Trade paper by Gerald Nelson and his colleagues at the International Food Policy Research Institute (IFPRI) builds on IFPRI’s important work on estimating the costs of adaptation, and projects a significant increase in agricultural trade flows, in particular from developed to developing countries. In its\\n recommendations to policymakers released in October, the ICTSD-IPC Platform on Climate Change, Agriculture and Trade emphasized that an open and equitable agricultural trade system is necessary to address both climate change and food security concerns. Yet, as this paper also argues, it would be unwise to rely solely on trade to help us adjust to climate change. Alongside ongoing efforts to maintain an open and equitable global food system, the international community must also importantly commit to sustained investment in agricultural productivity. We are pleased to release this paper, trusting that it will enhance the Platform’s efforts to increase understanding of the linkages between climate change, agricultural production, trade and food security, which in turn will yield greater policy coherence among these issues.

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        Services Liberalization From a WTO/GATS Perspective : In Search Of Volunteers (English)
        Working paper by Adlung, Rudolf, 2009, 26 pages
        Categories: Trade Facilitation, WTO Issues/Multilateral Trading System

        There has been virtually no liberalization under the General Agreement on Trade in Services (GATS) to date. Most existing commitments are confined to guaranteeing the levels of access that existed in the mid-1990s, when the Agreement entered into force, in a limited number of sectors. The only significant exceptions are the accession schedules of recent WTO Members and the negotiating results in two sectors (financial services and, in particular, basic telecommunications) that were achieved after the Uruguay Round. The offers tabled so far in the ongoing Round would not add a lot of substance either. Apparently, negotiators are 'caught between a rock and a hard place'. For one thing, the traditional mercantilist paradigm, relying on reciprocal exchanges of concessions, seems to be provide less momentum than in the goods area. For another, there are additional - technical, economic and political - frictions that tend to render services negotiations more complicated, timeconsuming and resource-intensive. The no elty of the Agreement adds an additional element of legal uncertainty from a negotiator's perspective. This paper discusses various options that might help to overcome the ensuing reticence to engage. Few appear within reach at present, however. The bare minimum that would need to be achieved is to revive work on scheduling and classification issues with a view to putting both existing commitments and new offers on a safer footing, and to improve compliance with long-existing information/notification obligations.

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        Social Interactions of Migrants and Trade Outcomes (English)
        Working paper by Tai, Silvio H. T., 2009, 23 pages
        Categories: Migration and Development, Trade Policy Analysis and Trade Data Sources

        This paper investigates the social interactions performed by immigrants in France. A framework for immigrant’s choice of location is based on recent studies on non-market interactions which explains how migrants concentrate. Applying data on the distribution of immigrants in 95 French provinces, the social interactions are subsequently estimated. This “social component” of migration is then tested on international trade, providing a direct measure of the impact of social networks on the economy.

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        Statistics for International Trade in Banking Services: Requirements, Availability and Prospects (English)
        Discussion paper by Cornford, Andrew/UNCTAD, 2009, 34 pages
        Categories: Trade Policy Analysis and Trade Data Sources, WTO Issues/Multilateral Trading System

        This paper addresses the availability of statistical data for international trade in banking services. Such data are required for WTO negotiations and work on other aspects of the General Agreement on Trade in Services (GATS). Assessment exercises for trade in banking services, valuation of offers and commitments in negotiations, the proposed extension of GATS rules to cover emergency safeguard measures and subsidies, and decisions on compensation in dispute settlement for services under the WTO agreement are all currently handicapped by the lack of pertinent data. However, international initiatives directed at the development of statistics for international trade in services have so far failed to fill this gap. Following a discussion of areas of work for which data on international trade in banking services are required and of the outcome so far of international initiatives directed at the development of statistics for international trade in services, the availability of statistics relevant to the different GATS Modes of Supply is reviewed. These statistics include cross-border trade in financial services as classified in IMF balance-of-payments statistics, supply through the temporary presence of natural persons, local lending by international banks; FDI and cross-border mergers and acquisitions (M&A) in financial services, financial output and other indicators of aggregate financial activity in national accounts and FATS statistics, and numbers and assets of foreign banks in selected countries. None of the currently available statistics under these headings provides a satisfactory measure of trade in banking services under Mode of Delivery 1 of the GATS nor one corresponding to such trade under Mode of Supply 3. The remainder of the paper focuses on two other more promising categories of information, namely the income statements of banks, which depend on data already generated by private-sector entities and data on trading in financial markets. The paper shows how information in banks’ income statements can be approximately matched to the activities specified in the definition of financial services in the Annex on Financial Services of the GATS, and exemplifies the potential of this information with recent income statements of Jordanian banks. An advantage of these income statements (as well as of the trading data) is that the measurement would depend on pre-existing work by banks and other financial systems themselves.

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        Statistics for International Trade in Banking Services: Requirements, Availability and Prospects (English)
        Report by Cornford, Andrew/UNCTAD, 2009, 34 pages
        Categories: Trade Policy Analysis and Trade Data Sources

        This paper addresses the availability of statistical data for international trade in banking services. Such data are required for WTO negotiations and the General Agreement on Trade in Services (GATS). Following a discussion of areas of work for which data on international trade in banking services are required and of the outcome so far of international initiatives directed at the development of statistics for international trade in services, the availability of statistics relevant to the different GATS Modes of Supply of banking services of the GATS is reviewed. None of the currently available statistics under these headings provides a satisfactory measure of trade in banking services under Modes of Delivery 1 and 3 of the GATS. Thus the paper focuses on two other more promising categories of information, namely the income statements of banks, which depend on data already generated by private-sector entities, and data on trading in financial markets. In particular, the paper shows how information in the income statements can be approximately matched to the activities specified in the definition of financial services in the Annex on Financial Services of the GATS, exemplifying the argument with recent income statements of Jordanian banks.

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        STIP Review of Lesotho: An Implementation Strategy (English)
        Policy brief by UNCTAD, 2009, 104 pages
        Categories: Policy Reviews and Briefs, Science and Technology

        The present STIP Review has designed a mechanism that would proactively coordinate cross-sectoral linkages, priority setting and fund allocation. It is a mechanism for action that would have a systemic impact on the development of STI in Lesotho in that it would facilitate technology flow, ensure human capital development, engage institutions’ active contribution, promote networking and collaboration and build up the knowledge base. The expected benefits of such a mechanism correspond to the six major strategic priorities identified in a recent UNCTAD study1 for LDCs at the initial and earlier stages of technological catch-up. These are: (1) increasing agricultural productivity in basic staples; (2) promoting the formation and growth of domestic business firms; (3) increasing the absorptive capacity of domestic knowledge systems; (4) leveraging more learning from international trade and foreign direct investment (FDI); (5) fostering diversification through agricultural growth linkages and natural resource-based production clusters; and (6) upgrading export activities.

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        Synthèse De La CNUCED, No.6, Soutenir L'agriculture Biologique En Afrique (English)
        Policy brief by UNCTAD, 2009, 2 pages
        Categories: Commodities, Policy Reviews and Briefs, Trade and Environment

        Agriculture has returned to the centre of international policy debates. Years of declining investment, inadequate extension services and the availability of subsidized food exports from the developed world have undermined agricultural production in many developing countries, particularly in Africa. This Policy Brief examines the potential contribution of organic agriculture.

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        Trade and Climate Change (English)
        Report by WTO / UNEP, 2009, 194 pages
        Categories: Trade and Environment

        Mitigating global warming and adapting to its consequences will require major economic investment and, above all, unequivocal determination on the part of policy-makers. This joint report of the WTO Secretariat and the UNEP reviews how trade and climate change policies interact and how they can be mutually supportive. It examines the intersections between trade and climate change from four different but correlated perspectives: - the science of climate change, - trade theory, - multilateral efforts to tackle climate change, and - national climate change policies and their effect on trade. The report also reviews extensively two particular types of pricing mechanisms that have been used to reduce greenhouse gas emissions: taxes and emissions trading systems. Furthermore, it emphasises the need for a scientifically-credible and equitable deal at the UN Climate Change Conference in Copenhagen at the end of this year.

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        Trade and Development Report 2009 - Responding to the Global Crisis. Climate Change Mitigation and Development (English)
        Report by UNCTAD, 2009, 218 pages
        Categories: Globalization and Development Strategies, International Financial System, Trade and Environment

        The Trade and Development Report series explores current economic trends and major policy issues of international concern, and makes suggestions for addressing these issues at various levels. This year's report analyses the ongoing global financial and economic crisis. It looks at the channels through which the crisis is spreading from developed countries to developing and transition economies. It examines the short-term policy responses of governments and discusses their respective advantages and disadvantages. By conducting an in-depth analysis of the causes and contributing factors of the current crises it emphasizes the need for a reform of the monetary and financial system both on the national and the international level. Given the pressing preoccupation with global warming, the report also addresses the question of how forward-looking development strategies and rapid growth in developing countries can be reconciled with climate change mitigation.

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        Trade and Development Report 2009 - Responding to the Global Crisis. Climate Change Mitigation and Development - Overview English (English)
        Summary by UNCTAD, 2009, 22 pages
        Categories: Globalization and Development Strategies, International Financial System, Trade and Environment

        The Trade and Development Report series explores current economic trends and major policy issues of international concern, and makes suggestions for addressing these issues at various levels. This year's report analyses the ongoing global financial and economic crisis. It looks at the channels through which the crisis is spreading from developed countries to developing and transition economies. It examines the short-term policy responses of governments and discusses their respective advantages and disadvantages. By conducting an in-depth analysis of the causes and contributing factors of the current crises it emphasizes the need for a reform of the monetary and financial system both on the national and the international level. Given the pressing preoccupation with global warming, the report also addresses the question of how forward-looking development strategies and rapid growth in developing countries can be reconciled with climate change mitigation.

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        Trade In Healthcare And Health Insurance Services : The GATS As A Supporting Actor (English)
        Working paper by Adlung, Rudolf/WTO, 2009, 29 pages
        Categories: International Economic Law, WTO Issues/Multilateral Trading System

        The General Agreement on Trade in Services (GATS) is broader in policy coverage than conventional trade agreements for goods and, at the same time, offers governments more flexibility, in various dimensions, to tailor their obligations to sector- or country-specific needs. An overview of existing commitments on healthcare and health insurance services shows that WTO Members have made abundant use of these possibilities. While most participants elected not to undertake bindings on healthcare services at the end of the Uruguay Round, nor to make offers in the ongoing negotiations, insurance services have been among the most frequently committed sectors. If there is a common denominator, regardless of the Members concerned (except for recently acceded countries), it is the existence of a lot of 'water' between existing commitments and more open conditions of actual access in many sectors. This may also explain, in part, why there have been very few trade disputes under the GATS to date - far fewer than under the GATT in merchandise trade. Also,governments appear to be generally hesitant in politically and socially sensitive areas to take action in the WTO. There are indications, however, that the same 'players' have acted differently in other policy contexts. For example, it appears that under recent preferential trade agreements (PTAs) the European Communities has been even more cautious in committing on hospital services and protecting scope for (discriminatory) subsidies than under the GATS. Yet, this is not necessarily true for the obligations assumed by many countries, including individual EC Member States, under bilateral investment treaties (BITs). These treaties overlap with the GATS, as far as commercial presence is concerned, and may be used by aggrieved investors to challenge policy restrictions in host countries. However, though frequently invoked, BITs do not meet the same standards, in terms of transparency, open (consensual) rulemaking and legal certainty, as commitments under the GATS.

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        Trade Profiles 2008 (English)
        Report by WTO, 2009, 196 pages
        Categories: Trade Policy Analysis and Trade Data Sources

        This trade profile combines information on trade flows and trade policy measures of members, WTO observers and other selected economies. The information is derived from various WTO divisions and external sources and presented in standardized format for quick reference.

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        Trade Profiles 2009
        Report by WTO, 2009, 197 pages
        Categories: Trade Policy Analysis and Trade Data Sources

        Trade Profiles provides a country-by-country breakdown of trade flows and trade policy measures for WTO members and countries seeking to join the WTO. With information provided in a standardized format for each country, this publication is an invaluable quick reference tool for anyone looking for essential trade statistics. The data provided for each country includes basic economic indicators (such as GDP), trade policy indicators (such as tariffs and import duties), merchandise trade flows (broken down by broad product categories and major origins and destinations), commercial trade flows (with a breakdown by major components) and industrial property indicators (such as annual number of patents granted). Presented in a handy format, with one page devoted to each country, Trade Profiles offers a concise overview of global trade.

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        UNCTAD Handbook of Statistics 2009 (English)
        Manual by UNCTAD, 2009, 534 pages
        Categories: Trade Policy Analysis and Trade Data Sources

        The UNCTAD Handbook of Statistics provides essential data for analysing world trade, investment, international financial flows and development. In addition to collecting and checking data and calculating related indicators that facilitate the work of the secretariat’s economists, the UNCTAD Handbook of Statistics provides an opportunity to share a rich statistical database with decision-makers and research specialists – academics, officials from national Governments or international organizations, executive managers or members of nongovernmental organizations (NGOs) from developing, transition or developed countries. The Handbook further offers journalists comprehensive information in a presentation that meets their needs. This handbook consists of eight parts: International merchandise trade, International merchandise trade by region, International merchandise trade by product, International merchandise trade indicators, International trade in services, Commodities, International finance and Development indicators.

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        UNCTAD Policy Brief No.7/2009 , Keeping ODA Afloat: No Stone Unturned (English)
        Policy brief by UNCTAD, 2009, 2 pages
        Categories: Finance for Development, Policy Reviews and Briefs

        If past experience is anything to go by, today’s financial crisis will deal a hard blow to official development assistance flows. It could take ODA years to recover, dampening prospects for achieving the MDGs by 2015. Keeping aid afloat – ensuring that aid flows are sustainable and predictable – is critical to helping developing countries cope and also to stabilizing global demand. This is a tall order, given the scale of the crisis. Fresh new thinking is often the only way out of desperate situations such as this. UNCTAD puts one option on the table in this policy brief. The proposal may strike some as ambitious, naive, or otherwise unviable. But today especially, every possible solution deserves consideration.

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        UNCTAD Policy Brief No. 9/2009, Climate Change: Turning Costs into Income Opportunities
        Policy brief by UNCTAD, 2009, 2 pages
        Categories: Globalization and Development Strategies

        Concerns about the high costs of climate change mitigation dominate the global debate to be resumed at Copenhagen. The question of who is to pay for the investments that will undoubtedly be needed receives far greater attention than the corollary question of who is to gain from them. From a macroeconomic perspective, one economic agent’s cost is always another agent’s income. But as this policy brief argues, the concept of cost is misleading in the context of climate change mitigation. Once the process of structural change necessitated by climate change mitigation is in full swing, there will be huge new market opportunities. The policy issue is: how will costs and incomes be distributed in this process? UNCTAD believes that developing countries, although they face considerable costs, can also generate new income if they adapt their development strategies to the requirements of climate change mitigation. This policy brief also stresses the role of government in facilitating the process of structural change, not only by fostering “green” consumer preferences, but also by implementing pro-active industrial policies that support the production of climate-friendly equipment and appliances.

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        UNCTAD Policy Briefs, No.6, Sustaining African Agriculture - Organic Production (English)
        Policy brief by UNCTAD, 2009, 2 pages
        Categories: Commodities, Policy Reviews and Briefs, Trade and Environment

        Agriculture has returned to the centre of international policy debates. Years of declining investment, inadequate extension services and the availability of subsidized food exports from the developed world have undermined agricultural production in many developing countries, particularly in Africa. This Policy Brief examines the potential contribution of organic agriculture.

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        UNCTAD Training Manual on Statistics for FDI and the Operations of TNCs - Volume I: FDI Flows and Stocks (English)
        Manual by UNCTAD, 2009, 162 pages
        Categories: Investment, Trade Policy Analysis and Trade Data Sources

        This volume aims to assist developing countries to compile timely, accurate and internationally comparable statistics on foreign direct investment (FDI) and on the operations of transnational corporations (TNCs). The overall objective is to promote a better understanding of the FDI situation in their respective economies and to assist policymakers in formulating development-oriented FDI policies.

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        UNCTAD Training Manual on Statistics for FDI and the Operations of TNCs - Volume II: Statistics on the Operations of Transnational Corporations (English)
        Manual by UNCTAD, 2009, 138 pages
        Categories: Investment, Trade Policy Analysis and Trade Data Sources

        The purpose of this volume is to clarify concepts, definitions and methodologies needed to collect and compile information on the operations of transnational corporations (TNCs) – in their respective economies. Its aim is to provide practical guidance on collecting statistics on the operations of home-based as well as foreign-based TNCs. Concrete and useful examples are collected from various countries to illustrate key points.

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        UNCTAD Training Manual on Statistics for FDI and the Operations of Ts - Volume III: Collecting and Reporting FDI/TNC Statistics: Institutional Issues (English)
        Manual by UNCTAD, 2009, 104 pages
        Categories: Investment, Trade Policy Analysis and Trade Data Sources

        The third in a series, this volume provides an overview of the methodologies being used in the countries where FDI and TNC data are collected and reported. The aim is to examine how the surveys are actually conducted and how the work of various institutions is coordinated. Based on the findings, best practices of standard survey questionnaires are provided.

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        US Trade Policies on Biofuels and Sustainable Development (English)
        Report by Earley, Jane /Earley & White Consulting Group LLC, 2009, 54 pages
        Categories: Trade and Environment

        Biofuel in the United States of America (USA) is primarily ethanol produced from corn. Although new legislation in the form of a recent Farm Bill and an ambitious biofuels mandate looks toward increased production of other forms of bioenergy, such as cellulosic biofuels, there is little commercial production at this time. Without significant policy shifts, production of cellulosic biofuels on a commercial scale is unlikely to occur as rapidly as envisioned by the Renewable Fuels mandate in the face of current incentives to produce ethanol from corn. Without such shifts, increasing corn ethanol production will continue to contribute to increased stress on land and water resources, loss of wildlife habitat and conservation-dedicated land, and increased levels of hypoxia in water bodies from nitrate run-off. It will also continue to contribute to increased food and animal feed prices, low carry-over stocks and food price volatility.

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        The Value of Domestic Subsidy Rules in Trade Agreements (English)
        Working paper by Ruta, Michael, Brou, Daniel, Campanella, Edoardo, 2009, 19 pages
        Categories: WTO Issues/Multilateral Trading System

        This paper investigates the efficient design of rules on domestic subsidies in a trade agreement. A clear trade-off emerges from the economic literature. Weak rules may lead Member governments to inefficiently use domestic subsidies for redistributive purposes or to lower market access granted to trading partners once tariffs are bound. On the other hand, excessive rigidity may inhibit tariff negotiations or induce governments to set inefficiently high tariffs, as strict regulations would reduce policy makers' ability to use subsidies to offset domestic market distortions. Efficient subsidy rules are, therefore, the ones that strike the right balance between policy flexibility and rigidity. This economic approach provides a framework to interpret the provisions on domestic subsidies in the WTO.

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        World Economic Situation and Prospects 2009 - Executive Summary (English)
        Summary by DESA; UNCTAD; ECA; ECE; ECLAC; ESCAP; ESCWA, 2009, 15 pages
        Categories: Macroeconomic Policy

        World Economic Situation and Prospects (WESP) provides an overview of recent global economic performance and short-term prospects for the world economy and of some key global economic policy and development issues. One of its purposes is to serve as a point of reference for discussions on economic, social and related issues taking place in various United Nations entities during the year. The report of 2009 analyzes in detail the evolution of the global financial crisis during 2008 and the more fundamental factors that led to its build-up. It further assesses the impact on global economic activity, especially in developing countries. The report also reviews the policy actions so far taken worldwide in response to the global financial crisis. It recommends more forceful fiscal policy stimuli need to be taken in an internationally concerted manner in order to prevent the world economy from falling into a much deeper and more prolonged recession. The WESP further details a number of more fundamental reforms to the international financial system that are needed to reduce risks of a recurrence of such a devastating crisis in the future.

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        World Economic Situation and Prospects 2009 - Full Report (English)
        Report by DESA; UNCTAD; ECA; ECE; ECLAC; ESCAP; ESCWA, 2009, 188 pages
        Categories: Macroeconomic Policy

        World Economic Situation and Prospects (WESP) provides an overview of recent global economic performance and short-term prospects for the world economy and of some key global economic policy and development issues. One of its purposes is to serve as a point of reference for discussions on economic, social and related issues taking place in various United Nations entities during the year. The report of 2009 analyzes in detail the evolution of the global financial crisis during 2008 and the more fundamental factors that led to its build-up. It further assesses the impact on global economic activity, especially in developing countries. The report also reviews the policy actions so far taken worldwide in response to the global financial crisis. It recommends more forceful fiscal policy stimuli need to be taken in an internationally concerted manner in order to prevent the world economy from falling into a much deeper and more prolonged recession. The WESP further details a number of more fundamental reforms to the international financial system that are needed to reduce risks of a recurrence of such a devastating crisis in the future.

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        World Investment Prospects Survey 2009-2011 (English)
        Report by UNCTAD, 2009, 85 pages
        Categories: Investment

        The focus of this year's World Investment Prospects Survey is the global economic and financial crisis and its impact on the FDI plans of TNCs. UNCTAD surveyed a sample of 240 company executives from the largest non-financial TNCs about the effect of the crisis on their international investment strategies during the next three years. Chapter 1 provides an assessment of the global FDI outlook for 2009–2011. Chapters 2 and 3 offer insights into specific trends by home region and industry respectively, and chapter 4 focuses on prospects by host region and country.

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        World Investment Report 2009: Transnational Corporations, Agricultural Production and Development (English)
        Report by UNCTAD, 2009, 313 pages
        Categories: Commodities, Investment

        This year's World Investment Report (WIR) concentrates on the changes in the FDI landscape induced by the current economic and financial crisis. Global FDI flows have been severely affected, and investments to developing and transition economies, which surged in recent years, are expected to suffer from a decline in 2009. This poses challenges for many developing countries, as FDI has become their largest source of external financing. The impact is analysed in detail, and regional trends for developing and developed countries are identified in the first part of the WIR. The second part of the report looks at transnational corporations (TNCs), Agricultural Production and Development. Foreign participation can play a significant role in agricultural production in developing countries. Therefore, the report proposes that governments should formulate an integrated strategic policy and regulatory framework for TNC activities in agricultural production, considering business as well as social and environmental interests.

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        World Investment Report 2009: Transnational Corporations, Agricultural Production and Development - Overview Arabic
        Report by UNCTAD, 2009, 68 pages
        Categories: Investment

        This year's World Investment Report (WIR) concentrates on the changes in the FDI landscape induced by the current economic and financial crisis. Global FDI flows have been severely affected, and investments to developing and transition economies, which surged in recent years, are expected to suffer from a decline in 2009. This poses challenges for many developing countries, as FDI has become their largest source of external financing. The impact is analysed in detail, and regional trends for developing and developed countries are identified in the first part of the WIR. The second part of the report looks at transnational corporations (TNCs), Agricultural Production and Development. Foreign participation can play a significant role in agricultural production in developing countries. Therefore, the report proposes that governments should formulate an integrated strategic policy and regulatory framework for TNC activities in agricultural production, considering business as well as social and environmental interests.

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        World Investment Report 2009: Transnational Corporations, Agricultural Production and Development - Overview English (English)
        Summary by UNCTAD, 2009, 55 pages
        Categories: Commodities, Investment

        This year's World Investment Report (WIR) concentrates on the changes in the FDI landscape induced by the current economic and financial crisis. Global FDI flows have been severely affected, and investments to developing and transition economies, which surged in recent years, are expected to suffer from a decline in 2009. This poses challenges for many developing countries, as FDI has become their largest source of external financing. The impact is analysed in detail, and regional trends for developing and developed countries are identified in the first part of the WIR. The second part of the report looks at transnational corporations (TNCs), Agricultural Production and Development. Foreign participation can play a significant role in agricultural production in developing countries. Therefore, the report proposes that governments should formulate an integrated strategic policy and regulatory framework for TNC activities in agricultural production, considering business as well as social and environmental interests.

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        World Tariff Profiles 2009
        Report by WTO; UNCTAD; ITC, 2009, 205 pages
        Categories: Trade Policy Analysis and Trade Data Sources

        World Tariff Profiles 2009 provides invaluable information on market access. The listing of the tariffs imposed by each WTO member on its imports is complemented with an analysis of the market access conditions it faces in its major export markets. The publication provides a comprehensive picture of tariffs. Presented in a handy format, it offers both summary tables and country-by-country breakdowns, with one page devoted to each country. The standardized presentation allows for analyses and comparisons between countries and sectors and between bound and applied duties for WTO members. This joint publication of the World Trade Organization (WTO), the United Nations Conference on Trade and Development (UNCTAD) and the International Trade Centre (ITC) is aimed at both specialists and non-specialists alike.

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        World Trade Law and Renewable Energy: The Case of Non-tariff Barriers (English)
        Report by UNCTAD, 2009, 22 pages
        Categories: International Economic Law, WTO Issues/Multilateral Trading System

        The study is far from an exhaustive examination of these issues. For example, it does not deal with government procurement where plurilateral disciplines exist in the WTO, nor have the Trade Related Investment Measures (TRIMs) or Trade Related Intellectual Property Rights (TRIPs) agreements been considered. The omission of these matters should not be interpreted as a judgment that they are peripheral or secondary in importance. In many areas, the analysis is speculative, aimed at raising qquestions and suggesting areas where domestic and international policymakers may need to consider undertaking further analysis. Above all, it should be stressed that the study raises these matters at a very general level. Whether any given governmental measure is consistent with WTO rules is a highly contextual qquestion, that may well depend on the exact design features of that particular measure, and its broader context – regulatory, technological and commercial. Thus, nothing in this study should be considered as a judgment that any actual measure of any particular government violates WTO rules.

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        The WTO: Theory And Practice (English)
        Working paper by Bagwell, Kyle, Staiger, Robert W., 2009, 39 pages
        Categories: WTO Issues/Multilateral Trading System

        We consider the purpose and design of the World Trade Organization (WTO) and its predecessor, GATT. We review recent developments in the relevant theoretical and empirical literature. And we describe the GATT/WTO architecture and briefly trace its historical antecedents. We suggest that the existing literature provides a useful framework for understanding and interpreting central features of the design and practice of the GATT/WTO, and we identify key unresolved issues.

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