Intent is to shape commodity policy for action for decade 2011-2020
Istanbul, 8 May 2011 - Ministers, development economists, senior government officials and other experts will meet on 8 May to draw up a strategy to help least developed countries (LDCs) wean themselves from excessive dependence on exports of basic foods and raw industrial materials - a dependency that has left them vulnerable to multiple global shocks such as the recent food, fuel and financial crises.
The Special Event on Commodity Dependence and the Impact of the Multiple Global Crises on LDCs will take place from 2 to 6 p.m., 8 May. It is a side event to the fourth United Nations Conference on Least Developed Countries and is co-organized by UNCTAD and the Common Fund for Commodities. Based in Amsterdam, the Common Fund finances commodity development projects for smallholder farmers, as well as small and medium-sized enterprises in commodity production, processing and trade in developing and least developed countries.
The event is subtitled "Mapping the exposure to market volatility and building resilience to future crises".
During the session, UNCTAD will present case studies commissioned by the Common Fund on the impact of the food, energy and financial crises on some LDCs, namely Benin, Burundi, Cambodia, the United Republic of Tanzania and Zambia. Then a consultant will present a report on enhancing food security through agricultural development.
The special event will end with round-table discussions on the current role that commodities play in LDCs, and on what should be done to build on this relationship for the decade 2011-2020.
Crises, commodity dependence and LDCs
Shocks in commodity markets - coupled with the global financial crisis - have reduced what had been high rates of economic progress for LDCs. From 2002 to 2008, their economies experienced an average growth of 7 per cent per year, spurred in great part by a global boom in commodities demand. But this fell to 4.7 per cent in 2009. UNCTAD economists have stressed that economic expansion in LDCs remains fragile, as it is highly dependent on commodity prices, which have been historically volatile.
The food crisis triggered a rise of more than 250 per cent in the food import bills of LDCs between 2002 and 2008. The higher food prices, which put greater strain on household resources, have been considered as one of the chief causes of the food riots that took place in eight LDCs between 2007 and the first half of 2008. In 2011, the food security of LDCs remains precarious, with 44 of the 48 LDCs classified as low-income food-deficit countries.
The purpose of the special event is to put forward a tangible and actionable strategy and recommendations for reducing these risks and for ushering in more stable, inclusive and sustainable economic growth.
Speakers will include selected government ministers from LDCs; Cheick Sidi Diarra, United Nations Special Advisor on Africa and High Representative for Least Developed Countries, Landlocked Developing Countries and Small Island Developing States; Ali Mchumo, Managing Director of the Common Fund for Commodities; Jo Elizabeth Butler, Officer in Charge and Deputy Director of the Division for Africa, Least Developed Countries and Special Programmes of UNCTAD; and a series of national and international consultants and experts who have carried out case studies on the effects of recent crises on LDCs. Also addressing the meeting will be the heads of several other commodity-based agencies.
