Multi-year Expert Meeting on Commodities and Development, fifteenth session
Excellencies,
Distinguished delegates and experts,
Colleagues,
Ladies and Gentlemen, Dear Friends,
It is an honor for me to welcome you to our 15th Session of the Multi-Year Expert Meeting on Commodities and Development.
This meeting comes at a pivotal moment, as we stand at the crossroads of multiple global challenges, such as climate change, geopolitics, and persistent inequalities.
Yet, underlying all of this, is the persistent, and indeed critical issue of commodity dependence.
Before going on the agenda of this meeting, I would like to share with you just one thought.
And this is that we must wake up to the fact that commodity dependence is getting worse, not better. Over the past 15 years, 15 additional countries have become classified as commodity-dependent.
Today, there are 95 commodity-dependent developing countries – nearly half of the entire UN membership. These countries span continents, from South America to the Pacific, the Middle East to Sub-Saharan Africa. They include 66% of all Small Island Developing States (SIDS), 83% of all Least Developed Countries (LDCs), and 85% of all Landlocked Developing Countries (LLDCs).
The impact of this dependence goes far beyond economics, into human development and climate vulnerability.
Of the 32 countries with the lowest Human Development Index (HDI) scores, 29 are commodity-dependent. And a staggering 95% of the 20 countries most vulnerable to climate change are also commodity-dependent.
These statistics reflect a reality which we must all confront. Commodity dependence limits countries capacity to build resilience, and leaves them vulnerable and exposed to global shocks.
In our increasingly shock-prone world, being commodity dependent is dangerous. And that, your excellencies, is why we are here.
Ladies and gentlemen,
Over the next three days, we will explore the latest developments in commodity markets and examine how developing countries can diversify their production and export patterns by adding domestic value to their commodity sectors.
Today, we will focus on agricultural commodities, discussing key products such as coffee, cereals, rubber, cocoa, palm oil, and cotton, as well as fertilizer markets. We are privileged to hear from esteemed speakers, including the heads of two major international commodity organizations—the International Coffee Organization and the International Rubber Study Group.
On day two, our discussions will shift to minerals, ores, and metal commodities, particularly those critical for the energy transition. We will explore how value addition can enhance these sectors, and how we can ensure that new forms of commodity wealth do not lead to new forms of commodity dependence. These discussions will be guided by input from experts and members of the Secretary General’s Panel on Critical Energy Transition Minerals.
On the final day, we will discuss natural gas, oil, and renewable energy markets, again with a focus on value addition. As part of this meeting, we will host a side event showcasing a study on the economic complexity of Brazil’s Suape Industrial Port Complex. This study is the result of an UNCTAD project in collaboration with SENAI Pernambuco, which is breaking exciting new ground in the application of complexity theory into the measurement and promotion of productive capacities.
This expert meeting focus on value addition builds up on recent UNCTAD reserach. Our latest report on “Structural transformation through domestic value addition in commodity-producing developing countries” highlights important cases in emerging new fields.
Indonesia is one notable example that we highlight in the report. Indonesia has dramatically increased the value addition of its nickel exports. Between 2012 and 2022, Indonesia reduced its raw nickel ore exports from 38 million metric tons to just 1 million, while boosting its export of processed products like ferronickel from less than 1 million metric tons to 5.6 million.
Indonesia's value addition in the minerals sector surged from $1.1 billion to $20.8 billion in 2021, and tax revenue from nickel downstream activities increased from $266 million in 2019 to $1.3 billion in 2022. The Indonesian mining sector contributed 9.2% of GDP in 2022, up from 4.3% in 2020, with nickel playing a substantial role in that increase. This dramatic value addition happened in just a couple of years, the blink of an eye in economic terms.
There are several other success stories from various regions highlighted in the report, and I strongly encourage you to explore them. Though not all of them can be replicated, it is clear that there are indeed opportunities to leverage new commodities, promote structural diversification, and turn the tide of commodity dependence once and for all.
Your excellencies,
As we proceed with the discussions over the next three days, I encourage all of you to think about value addition not only as a means for countries increase export earnings, but as a shield against the volatile tides of globalization, as a way to transform dependence and danger into opportunity and resilience. Let us not just add value to commodities, but add value to the very idea of development.
With that, I wish you all a very engaging, purposeful, and—above all—impactful meeting ahead.
Thank you.