Global Commodities Forum 2012
UNCTAD’s Global Commodities Forum is back. The theme of this third meeting (23-24 January, 2012) is “Harnessing development gains from commodities production and trade”. Participants are to discuss the debt crisis and analyse the trade-related innovations developed in response to it.
This year, the Forum will focus on ways to spur development through commodity production and trade, and on practical approaches to developing supply markets in commodity-dependent developing countries. Participants are also expected to discuss the sovereign debt crisis and analyse the trade-related innovations developed in response to the credit crunch. A special session is going to be dedicated to identifying opportunities for applying existing private-sector solutions to the challenges faced by developing countries.
The third GCF is divided into two parallel streams: the Plenary A stream treats the Forum’s overall theme of harnessing development gains from commodities production and trade; the Parallel B stream examines the development of supply markets in commodity-dependent countries.
Plenary A: Recent developments in international commodities trade, their impacts and implications (Joint A1/B1); The sovereign debt crisis and its impacts on commodities production and trade (A2); Trade-related financial innovations developed in response to the post-2008 credit crunch (A3); Key challenges facing commodity-dependent developing countries (A4/5); Identifying emerging opportunities in the changing global energy mix (A6); Practical examples of supply chain development in developing countries (A7).
Parallel B: Recent developments in international commodities trade, their impacts and implications (Joint A1/B1); In practice: Financing commodity-based development in developing countries (B2/3); Expanding access to markets and trade-enabling tools (B4/5); Identifying potential opportunities for collaboration (B6/7).
From the concept note: Many developing countries are heavily dependent on exports of commodities. Throughout most of the 1980s and 1990s, prices for these goods remained low, but since 2002 they have risen considerably. Despite the resulting increase in the value of their chief exports, most commodity-dependent developing countries (CDDCs) have been unable to convert the additional revenue into a diversification of their export industries. Since 2002, the number of countries whose commodity exports represent more than 60% of merchandise exports has risen from 85 to 91.
Their persistent dependence on commodities exports has been particularly poignant for CDDCs as the fallout from the 2008 global economic crisis continues. Many of these nations are dependent on imports of food, oil, and manufactured goods. Poverty and food security are often pressing concerns. As the global crisis has squeezed government and household budgets, CDDCs find themselves less able to confront these major challenges. It is vital for them to realize greater lasting value from their commodities exports.
Over the past year, the pressure on CDDCs has increased with the worsening of the sovereign debt crisis, which threatens to reduce the amount of credit available to commodities producers and to increase the amount of speculative capital that flows from financial markets into commodities in search of profitable investments. Continued price volatility in commodities markets has prompted high-level collaborative international action, including most recently by the UN High Level Task Force (UN HLTF) and the G-20 grouping of major economies. This year’s UNCTAD Global Commodities Forum (GCF) will focus on what CDDCs can do to reverse the pattern. The event’s theme is ‘Harnessing development gains from commodities production and trade.’