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This project under implementation by UNCTAD in 2000 and 2001 is
financed from the United Nations Development Account.
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Rationale
The project aims (i) to promote the horizontal, vertical and geographical
diversification of production and trade structures; (ii) to improve
government's capacities to formulate focused, effective and sequenced
policies in this respect; (iii) to increase the competence of enterprises
in adapting their business strategies and supplies to the Post-Uruguay
Round trading framework; and (iv) to strengthen positive linkages
between the commodity sector and the rest of the economy.
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Background
World trade is rapidly growing for high value commodities. These
include, in particular, foodstuffs that could easily be supplied
by commodity dependent developing countries, and processed forms
of many products currently exported by them in an unprocessed stage.
Industrialised countries and a small number of developing countries
have been generally successful in exploiting these dynamic and lucrative
markets, while others, particularly LDCs and African countries,
have been left behind. The enterprise sector in this second group
of countries has been unable to adapt itself to the liberalised
and more exigent trading environment, and its needs for support
are not effectively prioritised. Government policies also need to
be reviewed in the current trading framework, and support that could
be provided with the meagre resources of the governments need to
be selective and focused. The civil society and institutions also
have a crucial facilitating role in the diversification process.
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Objectives
The implementation of the project will contribute to: · enabling
enterprises in commodity dependent countries to adapt their export
diversification strategies and business practices to modern market
exigencies, e.g., by adopting appropriate communication, information,
and partnership channels, identifying opportunities for niche products
and processed items, and providing supplies that meet specific market
requirements; · enabling enterprises to build effective partnerships
with banks and other finance providers for using structured commodity
finance and modern risk management instruments, as well as to prioritise
and communicate their needs to governments; · enabling governments
to design and implement focused and sequenced policies and measures
that deal with the most important bottlenecks experienced by their
enterprises, and that facilitate, wherever possible, the provision
of necessary support services by the enterprise sector; · increasing
the effectiveness of local institutions and civil society in ensuring
that the more disadvantaged segments of the population are involved
in the diversification process with a view to reducing poverty;
and · increasing food self-sufficiency, besides export diversification,
in net food importing developing countries.
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Activities
The activities are focused on capacity building in regional and
subregional workshops and some country specific training sessions.
Training material is under preparation for these activities.
Contact: Mr. M. Arda
Officier in Charge Commodities Branch
United Nations Conference on Trade and Development (UNCTAD)
e-mail: mehmet.arda@unctad.org
tel: +41 22 917 57 90 fax: +41 22 917 05 09
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