- March 29, 2023
- Posted by: AITRC 2
- Category: News
The Commodities and Development Report 2021 by the United Nations Conference on Trade and Development (UNCTAD) focuses on the impacts of the COVID-19 pandemic on commodity-dependent developing countries and the measures that these countries can take to recover and build resilience.
The report highlights that the pandemic has exacerbated existing vulnerabilities and exposed the structural weaknesses of commodity-dependent developing countries. These countries are facing a severe economic downturn due to the collapse in demand for commodities and disruptions in supply chains. Moreover, the pandemic has exposed the limited diversification of their economies and the overreliance on a few primary commodities, leading to significant revenue losses and fiscal pressures.
The report proposes a set of policy measures that can help commodity-dependent developing countries recover from the pandemic and build resilience to future shocks. These measures include:
- Investing in productive capacity: Commodity-dependent countries need to invest in productive capacity to diversify their economies and reduce their dependence on primary commodities. This includes investing in infrastructure, human capital, and technology to support the development of manufacturing and other value-added industries.
- Strengthening domestic resource mobilization: Commodity-dependent countries need to strengthen their tax systems and improve their ability to mobilize domestic resources to finance development. This includes reforming tax policies, reducing tax evasion and avoidance, and improving the effectiveness of tax administration.
- Improving commodity value chains: Commodity-dependent countries need to improve their commodity value chains to capture a greater share of the value-added and reduce their exposure to commodity price volatility. This includes promoting local processing and upgrading of commodities, enhancing transparency and accountability in commodity trading, and promoting responsible and sustainable commodity production.
- Strengthening social protection systems: Commodity-dependent countries need to strengthen their social protection systems to support vulnerable populations and mitigate the impacts of economic shocks. This includes expanding access to health care, education, and social safety nets, and promoting inclusive growth and development.
- Strengthening international cooperation: Commodity-dependent countries need to strengthen international cooperation to promote sustainable development and build resilience to external shocks. This includes promoting fair trade, technology transfer, and knowledge sharing, and enhancing international support for development.
Overall, the Commodities and Development Report 2021 provides a comprehensive analysis of the challenges and opportunities facing commodity-dependent developing countries in the wake of the COVID-19 pandemic. By highlighting the measures that these countries can take to recover and build resilience, the report provides a roadmap for policymakers, businesses, and international partners to support the sustainable development of these countries. To download the report, click here
