The Trade and Development Board heard a series of national delegations express opinions on whether accelerating global economic growth was doing enough to help poor countries and poor populations. The topic of the Board´s "high-level segment," held the afternoon of Oct. 1, was "globalization and inclusive development."
Globalization
Several delegations welcomed the fact that, since 2000, many developing countries - including several least developed and African countries, which had often shown erratic growth performance in the past - had been growing at much faster rates than in the late 1990s. The growing importance of the South was reflected in the world economy and was shaping the emerging new geography of international trade. Despite these achievements, several delegates cautioned against complacency in development policies at both the national and international levels. Inclusive development was a moral imperative, and diversification and a broadening of the foundations of global growth were necessary if the Millennium Development Goals, particularly those concerning poverty reduction, were to be met. Lack of resources and productive capacities, lack of access to technology and knowledge, lack of appropriate infrastructure, and inadequate access to transportation and communications services continued to prevent many developing countries from reaping the full benefits of globalization.
There was a need to preserve policy space for developing countries to enable them to address the social impacts of globalization and to spread the benefits of economic growth to marginalized parts of their populations. International action should not result in the shrinking of that policy space.
Favourable prices for commodities were a major reason for improved growth in developing countries, but concerns were expressed about the long-term sustainability of commodity prices and about price volatility. Developed countries that exported agricultural commodities while subsidizing domestic production were urged to reform so as not to jeopardize the export opportunities of developing countries. There was a need for a successful conclusion to the Doha round of trade negotiations that takes into account the concerns of developing countries on trade-distorting measures and non-tariff barriers. Furthermore, not all developing countries had benefited from higher commodity prices. Climbing prices were a problem for net food importers and for those dependent on energy imports.
Inclusive development
Distributing the benefits of globalization more widely and fairly required proactive, development-oriented States, several delegates said. Developing countries should strengthen their institutional capacities for policy formulation and implementation, focusing on the poor. Several delegates said high growth over the long-term could only be driven by a vibrant private sector. Governments had an important role to play in promoting local entrepreneurship through polices that were conducive to creating productive capacities and to attracting foreign direct investment.
The integration of developing countries into the world economy was uneven: some benefited, others were left out or even marginalized. Several factors that could promote economic and social inclusion and help developing countries participate in globalization were highlighted: climate change, for example, was seen as both a challenge and an opportunity. Access to clean technology and the use and export of renewable energy could help mitigate the adverse effects of climate change on such countries. In addition, international labour migration could benefit both sending and receiving countries if workforce constraints were moderated and migrants´ remittances continued to grow.
The way forward
The upcoming UNCTAD XII was termed an ideal opportunity for further advancing discussion of the opportunities and challenges of globalization for development. However, promoting inclusive development, as well as policies and measures aimed at making it sustainable, required a new approach to global economic governance and a new focus for national policies. Several delegates stressed the need to concentrate on substantive, practical and prioritized solutions within UNCTAD´s established mandates.
