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  • NEWS BRIEF: SHIFTING MARKETS

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    News Brief: Shifting Markets

     

     
     
    International Trade Forum - Issue 2/2010

    UNECA Economic Report on Africa recommends Strategies for Growth

    The 2010 Economic Report on Africa, compiled by the United Nations Economic Commission for Africa (UNECA) and the African Union Commission, has provided African States with strategies to promote growth and alleviate economic vulnerability.

    The report challenges Africa, which relies traditionally upon commodities, foreign investment and aid, to diversify and embrace economic growth through human capital and a galvanized private sector.

    'Together with liberal market mechanisms, we need to build up States with strong institutions that can create enabling environments for business, economic growth and economic recovery to take hold,' said Supachai Panitchpakdi, Secretary-General of the United Nations Conference on Trade and Development.

    The report also highlights increased investment in infrastructure and the informal sector as imperative building blocks to attaining sustainable economic stability.

    For more information, visit www.uneca.org/era2010.

    IMF-World Global Monitoring Report 2010

    A joint report by the World Bank and the International Monetary Fund (IMF) has indicated that global output is projected to increase to 4.2% in 2010, reversing a decline of 0.6% in 2009.

    Spurred by recent strong performance in emerging economies and the recovery of global trade, gross domestic product (GDP) growth in developing countries is projected to accelerate to 6.3% in 2010, up from 2.4% in 2009, according to new IMF projections contained in the report.

    But the recovery is still fragile, with implications for the Millennium Development Goals. 'The financial crisis was a severe external shock that hit poor countries hard,' said Murilo Portugal, IMF Deputy Managing Director. He added that the effects of the crisis could have been far worse, had developing countries not put in place better policies and institutions over the past 15 years.

    For more information, visit www.worldbank.org/gmr2010.

    ITC Trade Map Factsheet highlights Impact of Global Crisis on LDCs

    The latest ITC Trade Map Factsheet indicates that the terms of trade between least developed countries (LDCs) and their developed counterparts are in steep decline.

    While evidence shows that terms of trade improved significantly between 2004 and 2008, 2009 was disastrous for LDCs.

    'This important analysis of the trends in terms of trade for LDCs demonstrates how they are suffering from the fall-out of the global economic crisis. It is particularly disconcerting that South-South trade has not resulted in better terms of trade for the group,' said ITC Executive Director, Patricia Francis.

    On the positive side, the factsheet highlighted that LDCs continued to do better than the world average for exports. In the final quarter of 2009, non-oil exports from the group showed a 2% year-on-year increase, while world exports showed a small decline of 0.2% in volume compared to the same quarter in 2008.

    For further information, visit www.intracen.org/docman/PRSR15593.pdf.

    Developing Countries on the Rise: OECD Report

    The Development Centre of the Organisation for Economic Co-operation and Development (OECD) has found that developing countries will account for 60% of the world's GDP by 2030, with South-South relationships, based on trade and investment between developing economies, having increased tenfold since 1990. 2010 Perspectives on Global Development: Shifting Wealth focuses on the structural shift in wealth accelerated by the recent global economic crisis.

    According to OECD, developing countries have become the most important actors in the global economy, a development that has occurred over the past 20 years, a period which has seen what the OECD describes as 'shifting wealth'.

    To download a copy of the report, visit www.oecd.org/publications.

    World Economic and Social Survey 2010

    The World Economic and Social Survey 2010 has called for major reforms to the international finance, trade and aid apparatus in the wake of the global economic crisis.

    'This year's report looks at the prospects for post-crisis global development and concludes that a major rebalancing of the global economy is needed to make it sustainable,' said Rob Vos, a director at the United Nations Department of Economic and Social Affairs.

    'To that end, it argues for much more effective mechanisms of global economic governance, requiring a major overhaul of the existing ones.'

    The survey points out promising directions for reform, including strengthening government capacities for formulating and implementing national development strategies. It also highlights the need for a strong mechanism for global economic coordination that establishes coherence across all areas of global economic governance.

    For more information, visit www.un.org/esa/policy/wess/wess2010files/wess2010.pdf.