UNCTAD urges govt to align trade, investment

BabuK · 2013-07-11T16:28:28+00:00

Manuela Tortora, UNCTAD's Chief of Technical Cooperation United Nations Conference on Trade Development (UNCTAD) has advised the government to undertake major initiatives aimed at mitigating the risk involved in Global Value Chain (GVC) participation. The GVC is a full range of activities involved in creating, producing and delivering a product, when divided among several companies and spread. The advice was given in Dar es Salaam by UNCTADs Chief of Technical Cooperation, Manuela Tortora at the launch of 2013 World Investment Report (WIR 2013) focusing on Global Value Chains: Investment and Trade for Development. Tortora cited review of synergetic trade and development policies and institutions as one of the initiatives the government needs to embark on, if it is to avoid risks in GVC. Under this initiative, policy makers with the help of international organisations should carefully review those policy instruments that simultaneously affect investment and trade in GVC, trade measures affecting investment and vice-versa. .This is to avoid unintended and counterproductive reciprocal effects which may arise, she explained. Another initiative proposed by UNCTAD was development of sustainable export processing zones (EPZs) whereby policymakers could set up relevant services, including technical assistance for certification and reporting, support on occupational safety and health issues, and recycling or alternative energy facilities, transforming EPZs into centres of excellence for sustainable business. Tortora suggested that international organisations can help through establishment of benchmarks, exchange of the best practice and capacity building programmes. She stressed the importance of forming Regional Industrial Development Compacts (RIDC) which would focus on liberalisation and facilitation of trade and investment and also establish joint investment promotion mechanisms and institutions. She added that other policies which are vital for GVC development include harmonisation of regulatory standards and consolidation of private standards on environmental, social and governance issues. Such compacts could aim to create cross border industrial clusters through joint investments in GVC-enabling infrastructure and productive capacity building, she said. However, she emphasised that governments in the region should foster a solid partnership to harmonise trade investment regulations and jointly promote trade and investment. WIR 2013, which examines trends in Foreign Direct Investment (FDI), indicates that in 2012 developing economies absorbed more FDI than the developed ones whereby they generated almost one third of the global FDI outflows. Contrary to the global fall in FDI flows by 18 per cent in 2012 as compared to 2011, the flow to Tanzania saw a significant rise from USD 1,229.4 million(2011) to USD 1,706.0 million(2012), which is 38.77 per cent. SOURCE: THE GUARDIAN

Thread starter BabuK
Start date Jul 11, 2013

BabuK

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UNCTAD urges govt to align trade, investment

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