UNCTAD sets out pathways to ease commodity dependence for greener, inclusive growth

Commodity-dependent Developing Countries and Sustainable Development Goals

Introduction

The UN Conference on Trade and Development (UNCTAD) has emphasized the importance of sustainable and inclusive economic growth for commodity-dependent developing countries. To achieve this, these countries need to diversify their economic structures, build resilience, and prepare for a low-carbon future.

Call for Support for Green Industrial Policies

UNCTAD calls on the global community to provide support for green industrial policies in commodity-dependent developing countries. These policies aim to transform and diversify their economies, reduce commodity dependence, and promote economic, social, and environmental goals.

Commodities and Development Report 2023

UNCTAD’s Commodities and Development Report 2023 highlights the actions needed to address the challenges of commodity dependence, inequality, and climate change. The report outlines a holistic approach that can drive sustainable development, protect vulnerable populations, and contribute to global climate goals.

Economic Diversification in Commodity-Dependent Countries

UNCTAD calls for increased efforts towards economic diversification in countries where 60% or more of merchandise export revenues come from primary commodities. The report emphasizes the vulnerability of commodity-dependent countries to economic and political shocks, as seen during the COVID-19 pandemic and the war in Ukraine.

Impact of Commodity Dependence on Development

The report finds that commodity dependence is more prevalent in the developing world. Many commodity-dependent developing countries rely on a narrow range of commodities or even a single commodity, which reinforces their vulnerability. This dependence is associated with lower levels of human and social development, slow productivity growth, income volatility, and political instability.

Need for Greener and Diversified Economies

UNCTAD urges the global community to support economic diversification and value upgrading in commodity-dependent countries. This will help fortify them against shocks and volatility in global markets. The report emphasizes the importance of moving up global value chains, especially in critical minerals for the energy transition, to increase resilience and contribute to climate change mitigation.

Inclusive Policies for a Just Transition

The report highlights the importance of inclusive policies to reduce income inequality and ensure that diversification and energy transition have positive effects. Social measures should be implemented to support vulnerable groups as part of an inclusive diversification strategy. Comprehensive national plans are also needed to improve access to energy and opportunities for human capital development.

Strong Leadership and Political Will

UNCTAD emphasizes the need for strong leadership and political will in commodity-dependent developing countries. A whole-of-government strategy covering various policy areas is crucial for achieving inclusive diversification and energy transition. Governments should build national consensus on economic diversification and ensure its implementation beyond political cycles.

Global Support for Inclusive and Low-Carbon Diversification

The global community plays a vital role in providing support for green industrial policies in commodity-dependent developing countries. These countries need access to affordable and sufficient investment, financial services, and technologies to implement productive policies and mitigate climate-related risks.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth – The article discusses the need for economic diversification and value upgrading in commodity-dependent developing countries to create high-quality employment opportunities and promote economic growth.
• SDG 9: Industry, Innovation, and Infrastructure – The article emphasizes the importance of developing productive and technological capabilities, as well as establishing special economic zones, to support economic diversification and integration into regional and global supply chains.
• SDG 10: Reduced Inequalities – The article highlights the risk of deepening inequality within countries due to varying productivity levels in different sectors. It calls for inclusive policies and social measures to support vulnerable groups as part of an inclusive diversification strategy.
• SDG 13: Climate Action – The article emphasizes the need for a low-carbon future and the transition to green products and energy markets. It calls for green industrial policies to mitigate climate-related risks and contribute to climate change mitigation.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
• SDG 9.2: Promote inclusive and sustainable industrialization and foster innovation.
• SDG 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality.
• SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for SDG 8.2: Economic productivity growth rate, diversification index.
• Indicator for SDG 9.2: Technological innovation index, industrialization rate.
• Indicator for SDG 10.4: Gini coefficient (measure of income inequality), poverty rate.
• Indicator for SDG 13.2: Greenhouse gas emissions reduction, renewable energy adoption rate.

Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: unctad.org

Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.