IN THIS ISSUEInterview

THE TASK OF UNCTAD XII: EXTENDING THE BENEFITSOF GLOBALIZATIONInterview with Taffere Tesfachew 1

HOST COUNTRYOF UNCTAD XII: GHANA 3

GHANAIAN TRADITIONALSYMBOLS 4

THE UNCTAD XIIPOSTER 4

OFFICIAL THEME ANDSUBTHEMES OF UNCTAD XII, ACCRA, GHANA,20-25 APRIL 2008 5

REPORTS RECENTLY ISSUEDLeast Developed CountriesReport 2007 6Report on UNCTAD Assistance to the Palestinian People 2007 6Report on Economic Developmentin Africa 2007 7UNCTAD Handbook of Statistics2006-07 7Trade and DevelopmentReport 2007 7

UPCOMING REPORTWorld Investment Report 2007 7

UPCOMINGMEETINGS 8

TAFFERE TESFACHEW,Chief, Office of

the Secretary-General, and UNCTAD Spokesperson

THE TASK OF UNCTAD XII:EXTENDING THE BENEFITSOF GLOBALIZATION

The encouraging trends in global economic progress must be carefully managed so that they continue, and so that the benefits are extended to the poorest people and the poorest nations, urges a report setting the stage for the UNCTAD XII conference, to be held 20-25 April 2008, in Accra, Ghana.

governmental meeting with representa-tives at the highest levels -- it can potentially agree on ways to address some of these problems. Growth in recent years has also beenassociated with a large and unsustainable trade imbalance between China and the US; indeed, between the US and the rest of the world. This raises many concerns for global trade and the global financial system which can be addressed at the meeting. And finally, or perhaps I should have said this first, the meeting will be held in Africa, which is particu-larly appropriate because the continent epitomizes the two extremes of the current economic boom. As Africa is home to some of the world’s greatestriches, and also some of its mostoppressive poverty, it is very timely to hold a meeting like UNCTAD XII in Africa.

UNCTADnews - 1

Issue n° 13 - October 2007

The Report of the Secretary-General of UNCTAD, Dr. Supachai Panitchpakdi, says the globaleconomic situation has been remarkably good in recent years. What can another big international meeting do to help the world’s poor that global economic growth isn’t already doing?

You are right to say that there has been unprecedented growth in the last five years, but that does not mean that the world’s development needs have been met. Many countries, and people within countries, have missed out on the benefitsof the global boom, and a large inter-national meeting such as UNCTAD XII can highlight this fact. It can also examine the causes of the unequal distributions of benefits, and --because it is an inter-

The report says the current global economic situation has generated a commodities boom with positive implications for many developing countries. But the report also calls for caution. What is the danger, and what should be done?

First, we need to recognize that the current commodities boom has been driven by a surge in demand from the industrializing Asian developing countries. If this should plateau or slow down, then the boom would also likely deflate. Second, while the boom has generated significant surpluses for many commodity-exporting countries, most of which are developing countries, it has also created a rapid rise in costs for countries that import commodities-- many of which are also developingcountries. So there are significant deve-lopment concerns amid the apparent prosperity.

Third, let’s not forget that commodity booms are usually followed by a bust -- this is the historical experience of commo-dities, quite independent of the current Asian-demand conditions I mentioned earlier.So we should not assume that high prices will be with us forever. And fourth, in viewof that, it is important that the surpluses that are currently being enjoyed byexporting countries should be invested wisely -- used, for example, to helpdiversify, to build infrastructure, and to help boost domestic productive capacity-- so that countries can have moreoptions than simply to be dependent on commodities.

UNCTAD XII will address ways toapproach some of these pitfalls anddangers, and, most importantly, it will allow the sharing of experiences. For example, one of the lessons that the poorer coun-tries can learn from those economies that have grown spectacularly in Asia in recent years is that policy diversity is important for meeting the needs of specific coun-tries. Countries really need to think hard about what to do, what set of policiesis most appropriate for them. This ismoving away from what has been the standard of the last 30 years, moving awayfrom the one-size-fits-all approach to policy-making. At this conference, if itis used properly, people will share theirexperiences.

What has to occur for the rapidly expanding global economy to benefit those who are extremely poor in Asia, Latin America, and especially Africa -- people who don’t have Internet connections, or electricity, or much education, or much chance of finding jobs outside farming?

Beginning at the international level, it is essential to remove the constraints that continue to impede developing countries’meaningful participation in the global economy. By this I mean that marketaccess to their products needs to be mademore equitable and also that in certain cases developing countries, and particu-larly the least developed among them, are given the special and differentialtreatment that is needed to help them“level the playing field”. A rules-based multi-lateral trade regime can offer us a powerfultool to encourage economic growth and human and social development, as long as we can ensure that it is sufficientlyflexible and development oriented.

But actually, although market access is theissue that generates the most publicity,it is not in itself the solution. Access alone is not enough, because countries also need to have the capacity to produce and to deliver goods and services to the market. This can include national and regional markets as well as international markets. So this means that there needs to be concerted international support to boost productive capacities (for example, through such initiatives as Aid for Trade). We also need national and regional efforts to put in place the kinds of policies that will help boost investment, skills, technologytransfer, infrastructure (including, as you mention, telecommunications and Internet connections), a stable macro-environment,and so on -- all part of what is beingcalled “an enabling environment”. This will help boost job creation, which will lead to increased production and exports. Of course, these industrial policies also need to be complemented by the appro-priate social policies, including education,for example, and national poverty-reduction strategies to spread the benefitsof development more equitably and morewidely.

According to the report, trade between developing countries, so-called “South-South” trade, tripled -- from US$577 billion to $1.7 trillion -- between 1995 and 2005. Why is that significant?

It’s significant because this is a new phe-nomenon with global implications. South-South trade simply did not happen much before, as most trade was between the North and the South. It is very encoura-ging that developing countries are now trading both with one another and with developed nations. This means there are new doors being opened and new choices of markets being created for many south-ern exporters, and this is particularly im-portant because it is not only about trade, but also about investment and technology flows, and movement of skilled persons. This is enabling the poorer countries to acquire skills and technologies that are different from those obtained from the traditional sources. There is evidence that such transactions are more applicable to local conditions and needs; but equally importantly, they are increasing the rangeand diversity of available goods andservices, and knowledge. A final reason why South-South trade is so significant is that it is changing the wider geopolitical and economic landscape. Developing countries are accounting for an increasingly significant share of global trade and capital flows, and with this they are also increasing their “voice” in globalpolitical fora. These are new and poten-tially very significant changes in the world,and UNCTAD XII will offer an arena in which to consider some of the implications.

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This West African democracy of 238,000 square kilometres, with a population of 20 million, celebrated 50 years of independence on 6 March 2007. Current President John Agyekum Kufuor was elected in 2001 and re-elected in 2004. The nation’s principal exports are cocoa, gold and timber.

English is the official language. Severallocal languages are also spoken, including Akan, Ga, Ewe, Dagbani, and Hausa. The capital city of Accra, where UNCTAD XII will be held from 20-25 April 2008, has a population of 1 million and is located on the coast of the Gulf of Guinea.

The government has pledged to do everything possible to ensure that UNCTAD XII has suitable international prominence.

It considers the conference an excep-tional occasion for placing the spotlight on Africa, where development issues have such crucial importance.

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HOST COUNTRYOF UNCTAD XII: GHANA

The official poster of UNCTAD XII blends Ghanaian and African symbols and art with the international themes of the organization. The upper background includes a map of the globe, pointing to the universality of the conference; it also incorporates part of the United Nations logo. Across the bottom are drawings of the round-headed statuettes represent-ing fertility and health ; these stand for the importance of women in the develop-

THE UNCTAD XII POSTER

GHANAIAN TRADITIONAL SYMBOLSAfrican symbols known as Adinkra are used throughout Ghana and carry great meaning.Some of the symbols used in communications materials for UNCTAD XII are shown and explained below:

DAME-DAMEName of a board game,symbol of intelligence and ingenuity.

DENKYEM“Crocodile”, symbol of adaptability.The crocodile lives in the water, yet breathes the air, demonstrating an ability to adapt to circumstances.

ESE NE TEKREMA“The teeth and the tongue”, symbolof friendship and interdependence.The teeth and the tongue play interdependent roles in the mouth. They may come into conflict, but they need to work together.

FUNTUNFUNEFU-DENKYEMFUNEFU “Siamese crocodiles”, symbol of democracy and unity.The Siamese crocodiles share one stomach, yet they fight over food. This popular symbolis a reminder that infighting and tribalism are harmful to all who engage in them.

NKONSONKONSON“Chain link”, symbol of unity and human relations.A reminder to contribute to the community,that in unity lies strength.

AKOMA NTOSO“Linked hearts”,symbol of understanding and agreement.

ANANSE NTONTAN “Spider’s web”, symbol of wisdom,creativity and the complexities of life.Ananse the spider is a well-knowncharacter in African folktales.

BOA ME NA ME MMOA WO“Help me and let me help you”, symbolof cooperation and interdependence. Source: “Cloth as Metaphor”,by G.F. Kojo Arthur.

NKYINKYIM“Twisting”, symbol of initiative, dynamism and versatility.

SANKOFA“Return and get it”, symbol of the importance of learning from the past.

ment process and for the human aspect of the topics to be discussed. Traditional African Adinkra symbols (see above)echo the nature of UNCTAD’s work andrepresent such themes as interdepen-dence, cooperation, adaptability, and thelinking of countries and peoples. The yellow, orange, and brown earth tonesof the poster reflect the warm, positive,welcoming character of Africa.

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economic structure. There is a great deal of cumulative causation between them. Reflecting this, an enabling environmentneeds to operate simultaneously at theglobal level -- through policies that pro-mote an open and equitable environment-- and at the national level, throughpolicies that foster growth, investment andentrepreneurship, as well as technology,innovation and employment. Criticalinternational issues here include theglobal finance and trade systems (including the intellectual property rights systems); the rise of South-South cooperation and integration; and the role of Foreign Direct Investment (FDI) and international invest-ment agreements. National level policy issues include macroeconomic policy and the complementary trade and industrial policies that can help to boost competiti-veness, technological upgrading, anddomestic value-added.

Strengthening UNCTAD: enhancing its development role, impact, and institutional effectiveness

As the world changes and globalization becomes a more powerful force, UNCTADmust constantly refine its efforts to helpdeveloping countries. As the United Nationsfocal point for trade and development, and the interrelated issues of finance, investment, technology and sustainable development, it brings more than four decades of experience to the service of development. UNCTAD’s 12th ministerial conference offers a forum to discuss ways of improving the organization’s working methods. It will also help ensure that it delivers high-quality and sharply focused research and analysis; that the intergovern-mental machinery is action-oriented and effective; and that UNCTAD’s technical cooperation activities help create beneficialsynergies and add greater value, forexample by contributing to the “One UN”concept.

most vulnerable to external shocks are in great need of financing to develop and toreduce poverty. Regulating private capital flows and speculation while also raising the funds that developing countries need to stabilize their economies requirescoherence – coherence, or agreement, between developing and developed countries and among developing countries themselves.

Key trade and development issues and the new realities in thegeography of the world economy

Over the past 15 years or so, developing countries have accounted for a growing share of world trade and investment, and that share continues to soar. Theresult is a totally new landscape for world economic relations, one in which the countries of the South are not only doing more business with one another, but are increasingly trading with and investing in developed countries. Rising demand and prices for oil, gas and other commodities mean booms for some countries, but eco-nomic hardship for others. The continu-ing exploitation and consumption of fossil fuels is devastating the climate, requiring the development of alternative energy sources, such as biofuels. All of these reali-ties will have huge ramifications for trade and development. Issues to be addressed at UNCTAD XII include how developing countries that are prospering from the boom can better translate their revenues into long-term development gains.

Enhancing an enabling environment at all levels to strengthenproductive capacity, trade and investment: mobilizing resources and harnessing knowledgefor development

Productive capacities, trade and investment are interlinked and mutually reinforcing elements of the national and international

OFFICIAL THEME AND SUBTHEMESOF UNCTAD XII,ACCRA, GHANA, 20-25 APRIL 2008

THEMEAddressing the opportunities and challenges of globalization for developmentBy now it is widely acknowledged that globalization has generated remarkable wealth and prosperity for particular coun-tries and particular industries. But those benefits have not reached large swathes of the world population; in numerous de-veloping countries, and even within some of the more prosperous countries, there are many people who have not benefitedor who are even worse off. Given that globalization will continue for the fore-seeable future, the conference will exploreways to harness globalization to raise livingstandards, reduce poverty and ensure sustainable development.

SUBTHEMESEnhancing coherence at all levels for sustainable economic development and poverty reduction in global policy-making, including thecontribution of regional approachesCoherence is about making sure that international policies work in tandem towards our common goals. This there-fore includes ensuring that the multilate-ral, rules-based trading regime is better aligned to help find solutions to key issues on agricultural market access, domestic support in agriculture, industrial tariffs and services. It may also require the adjust-ment of regional integration agreements, to ensure that they help rather than hin-der the international trading system and its development objectives. Coherence may also include the global financial sys-tem, which by comparison with the trade system is far less regulated, and has failed in the past to protect some economies from the disastrous impacts of exter-nal economic shocks that can overturn years of careful planning and austerity. At the same time, many of the countries

UNCTAD’s 192 member countries have chosen the following topicsas the focus of the organization’s quadrennial conference:

GHANAIAN TRADITIONAL SYMBOLS

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the problem, either: annual aid for research and advanced skills in LDCs amounted to only 3.6% of total official aid disbursements to LDCs from 2003 to 2005. In addition, stringent rules on intellectual property rights often mean that businesses in the world’s poorest countries can’t affordthe technology and knowledge that could help them expand. The report recom-mends that rules on intellectual property be selectively adapted to give a break to LDCs.

And the lack of economic opportunity in these countries means a severe “brain drain”. For example, five LDCs -- Cape Verde, Gambia, Haiti, Samoa, and Somalia -- have lost more than half their university-educated professionals in recent yearsto industrialized countries where oppor-tunities are greater and salaries higher.

The challenge of transferring technology and knowledge to LDCs is national and international, the report argues. It must be faced quickly and effectively.

The Knowledge Divide and the Poverty DivideThe front cover of the Least Developed Countries Report 2007

The front cover of the Least Developed Countries Report 2007, subtitled “Know-ledge, Technological Learning and Inno-vation for Development”, shows two maps of the world in which countries are not

Knowledge, Technological Learning and Innovation for Development

Recent impressive economic growth in many of the world’s 50 poorest nations -- the least developed countries, or LDCs -- is based largely on higher global prices for commodities: not just for oil, but for basic agricultural products. Such growth is not enough to reduce poverty significantly,the report says. And commodities booms are usually followed by crashes.

Unless businesses and farmers in LDCs canacquire the knowledge and technology they need to catch up with the rest of the world, the report warns, these countrieswill be unable to achieve the sustained growth needed to lift their populations out of poverty. Most LDCs have not been able to take advantage of recent prospe-rity to develop, to establish the ability to manufacture and export more sophisti-cated products. With that ability will come higher profits, more jobs, and long-term economic stability.

Links with international markets are not transferring the needed technology to LDCs, the report says. Even where LDCs are increasing exports and attractingforeign investment, most are not climbing the economic and technological ladder; their economies remain locked into low value-added commodity production and low-skill manufacturing. International aidprogrammes are not sufficiently addressing

REPORTS RECENTLY ISSUEDLeast Developed Countries Report 2007:

shown according to their surface area, as is usually done. Rather, in the top map, countries are “sized” according to the commercial knowledge they generate; and in the bottom map, they are “sized” according to the number of poor in their populations.

The two maps show that the globalknowledge divide is almost a mirror imageof the global poverty divide. Reducingpoverty requires that poor countriesachieve technological upgrading; thatthey master and produce knowledge; and that they invest in innovation. The report shows why this is so and explains how to reach these goals.

The Report on UNCTAD Assistanceto the Palestinian People 2007

and living conditions and on the impact within the territories of internationaland national policies during 2006. It also reviews UNCTAD activities in support of Palestinian development.

The Report on UNCTAD Assistance to the Palestinian People 2007 highlights the economic state of affairs in the occupied Palestinian territories. It focuses on the deterioration of economic performance

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UPCOMING REPORT

The World Investment Report 2007The World Investment Report 2007, to be published on 16 October, will focus on foreign direct investment (FDI) in “extractive industries” such as oil drilling and the mining of metals and minerals.

After reviewing current trends, the report will examine the development effects of the activities of transnational corporations in the extractive industries.

It will also discuss what can be done to ensure that such activities result in tangible, long-term economic growth in developing countries.

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UNCTADHandbook of Statistics 2006-07A 470-page collection of statistics on trade and development, including international merchandise trade and internationalfinance data.

The Tradeand DevelopmentReport 2007The Trade and Development Report 2007 is subtitled “The role of regionalcooperation in development”.

It analyses to what extent, and how,regional cooperation among developing countries can support national develop-ment plans. It draws lessons from past experience and makes policy recommenda-tions, taking into account the specificconditions and circumstances of different regions.

The Report onEconomic Development in Africa 2007The Report on Economic Development in Africa 2007 discusses how to harness domestic resources to spur economic growth and poverty reduction in African countries.

It analyses how African countries canincrease these resources and channel them into productive investments.

1-11 October 2007Trade and Development Board, 54th session. High-level segment: Globaliza-tion and inclusive development. Thisgathering of high-ranking government officials will discuss the kinds of policies required to ensure that all developing countries, and all segments of their populations, benefit from increased international trade and economic growth.

15 October 2007Preparatory process for UNCTAD XII.

16-17 October 2007Expert meeting on participation of deve-loping countries in new and dynamic sectors of world trade: the South–South dimension.

18-19 October 2007Expert meeting on increasing the partici-pation of developing countries’ small- and medium-sized enterprises (SMEs) in global value chains.

30 October - 1 November 2007Intergovernmental Working Group of Ex-perts on International Standards of Accoun-ting and Reporting, 24th session.

19-23 November 2007UNCTAD’s sixth interregional debt mana-gement conference.

UPCOMING MEETINGS

FOR MORE INFORMATION:UNCTAD Communication and Information UnitE-7091 - Palais des Nations - 8-14, Av. de la Paix1211 Geneva 10 - SwitzerlandTel: +41 22 917 5828 - Fax: +41 22 917 0051 Email: unctadpress@unctad.org

UNCTAD WEBSITE:http://www.unctad.orgPress release and publications are available online:http://www.unctad.org/Templates/Page.asp?intItemID=1528&lang=1and http://www.unctad.org/Templates/Page.asp?intItemID=1717&lang=1

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Photo creditPage 1: WHIB/P. Virot - Page 3: Guiseppe Di Capua, Muriel Scibilia - Page 8: Jean-Philippe Escard