Africa’s Development Dynamics

By Mario Pezzini, Director of the OECD Development Centre and Special Advisor to the OECD Secretary-General on Development

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The launch this week in Addis Ababa of the new flagship joint report Africa’s Development Dynamics 2018 alongside the African Union Commission reflects a fundamental commitment to an ongoing conversation on Africa, with Africa and for Africa. Thus, we did more than unveil a report on paper about the challenges of growth, jobs and inequalities. What we are also doing is strengthening an inclusive platform for policy dialogue on how best to turn Africa’s own vision and strategy for its development as captured in the African Union’s ambitious Agenda 2063 into reality and practice. And it is a platform in which we envision engaging with and involving more and more diverse actors to tap their expertise and add their perspectives to drafting future editions of our joint analysis.

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Towards sustainable cocoa: financial solutions for smallholders in Côte d’Ivoire

By Adeline Dontenville, Land-use and Finance Expert, EU REDD Facility, European Forest Institute

cocoa-1529742When you buy a chocolate bar, it’s quite likely that the cocoa in it came from Côte d’Ivoire, the world’s top producer. If so, it is almost certain that the cocoa plants were grown where dense rainforest once stood.

Expansion of cocoa production into new areas is amongst the main drivers of deforestation in Côte d’Ivoire. At current rates, the country will lose all its forest cover by 2034. Decoupling cocoa production from deforestation is therefore crucial if Côte d’Ivoire is to achieve its goals of producing zero-deforestation cocoa and restoring forest cover to 20% of its territory by 2030.

One solution for the Ivoirian government is agroforestry, a type of land management in which farmers grow not only crops but also a variety of trees for multiple purposes, like firewood, fruit and timber. It’s a way to produce cocoa while restoring forest cover, improving soil fertility and diversifying the income of producers.

But how can Côte d’Ivoire’s smallholders invest in agroforestry when they live below the poverty line and have limited access to finance? And how can large chocolate manufacturers that buy cocoa from smallholders help?
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Charting a different future for social protection: Kyrgyzstan’s opportunity

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By Alexander Pick , Fiscal economist, OECD Development Centre


This blog is part of an ongoing series evaluating various facets of Development in Transition. The 2019 “Perspectives on Global Development” on “Rethinking Development Strategies” will add to this discussion


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Women in Kemin, Kyrgyzstan. Photo: Radiokafka/Shutterstock.com

A voice in Svetlana Alexievich’s Secondhand time, a chronicle of post-Communist disillusion in the former Soviet Union, declares that “the future is… not where it ought to be.” This despair at what constitutes progress neatly captures something we increasingly appreciate – that development is neither a linear process nor one with a clear end goal. Few countries understand this better than the former republics of the Soviet Union, where the geopolitical and economic aftershocks of the USSR’s fall continue to be felt today.

Kyrgyzstan embraced the move to a market economy quicker than any of them. Nonetheless, gross national income per capita in 2015 was below its level in 1990, and industry’s contribution to output and employment has shrunk dramatically. Moreover, large holes have appeared in the social safety net that once covered the entire population. This might be a surprise given that Kyrgyzstan spent 10.7% of gross domestic product (GDP) — a high rate for a country at its income level — on social protection in 2015, more than on health and education combined. In 1990, however, social protection spending was equivalent to 17% of GDP.
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The future of manufacturing and development: three things to remember

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By Annalisa Primi, Head, Structural Policies and Innovation, OECD Development Centre 


To learn more about countries’ strategies for economic transformation, follow the 10th Plenary and High-Level Meeting of the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development in Paris, France on 27-28 June 2018


shutterstock_444327613Not all factories are the same. Today, their differences are bigger, more impressive and carry far-reaching implications for development in developing economies. Since the 1970s, industrial production has been organised in complex, multi-country networks of suppliers and providers. The conventional expectation was that this trend would be conducive to growing homogeneity, with converging techniques of production, salaries, standards and business organisation in the “world factory” system. However, as things do not often go “by the book”, manufacturing today encompasses far different realities. China has become the world’s leading manufacturing country. Early industrialisers have built complex value chains, delocalising non-core manufacturing activities to developing economies with relatively lower labour costs and growing domestic markets. The result: manufacturing is a collection of deeply different systems. And differences exist even within the same sector. Just look at the textiles industrial parks in Ethiopia that manufacture for and export fast fashion brands, such as Spain’s Zara. Or look at the robot-powered, fully automated smart factory of Adidas in Germany, which has been making customised mass production of textiles a reality in Europe since 2016. Consider the artisanal, luxury, on-demand, tailor-made production of Lamborghinis in Emilia Romagna, the highly automated export-oriented Audi production in Mexico, and the vertically integrated, only partially automated, domestic market-oriented BYD electric vehicle factory in Shenzhen, China. Continue reading

Turning a commitment into actions

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By Mario Cerutti, Chief Institutional Relations & Sustainability Officer, Lavazza Group


To learn more about countries’ strategies for economic transformation, follow the 10th  Plenary Meeting and High-Level Meeting of the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Developmentin Paris, France on 27-28 June 2018.


logo TOward2030At the beginning of 2017, Lavazza launched ‘’Goal Zero’’ – a call to collective action amongst our many stakeholders to pursue the 17 Global Goals of Agenda 2030 for Sustainable Development. The company decided that co-operation, instead of going it alone, is fundamental for any significant results. Still, we faced the question of how to engage different stakeholders in one all-encompassing plan. For Lavazza, answering this means engaging our different stakeholders – employees, youth, suppliers and the surrounding community – using tailored communications tools. We believe that only a strong commitment originating from within Lavazza can, in turn, fuel external communications. So, here’s how we are proceeding:
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The Transition from Least Developed Country Status

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By Dr Jodie Keane, Economic Adviser, and Dr Howard Haughton, Quantitative Analyst, Commonwealth Secretariat[1]


This blog is part of an ongoing series evaluating various facets of Development in Transition. The 2019 “Perspectives on Global Development” on “Rethinking Development Strategies” will add to this discussion.

To learn more about countries’ strategies for economic transformation, including a session on Least Developed Countries (LDCs), follow the 10th Plenary Meeting and High-Level Meeting of the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development in Paris, France on 27-28 June 2018.


 

The Least Developed Countries (LDCs) are an internationally defined group of highly vulnerable and structurally constrained economies with extreme levels of poverty. The Committee for Development Policy (CDP) is a subsidiary body of the United Nations Economic and Social Council (ECOSOC). Every three years, the CDP advises ECOSOC and the United Nations (UN) General Assembly on which countries should either enter or leave the LDC category. Since the category was created in 1971, only five countries have graduated and the number of LDCs has doubled on the basis of selected indicators (income, human assets, economic vulnerability). And when countries graduate they lose international support measures provided by the international community.

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Lessons learned from structural transformation in least developed countries

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By Daniel Gay[1], Inter-Regional Adviser on LDCs, UN Department of Economic and Social Affairs

To learn more about countries’ strategies for economic transformation, including a session on Least Developed Countries (LDCs), follow the 10th Plenary and High-Level Meeting of the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development in Paris, France on 27-28 June 2018 

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Bangladeshi garments workers in Dhaka, Bangladesh. Photo: Shutterstock.com

At Leather Wings, a small shoe-making outfit based in central Kathmandu, four women sit in a small room cutting up bright red cowhide imported from India. Next door, a dozen of their colleagues stitch the shapes together on sewing machines. The owner Samrat Dahal says the boots, designed by a German expat, sell via the Internet in India, China and Italy.

The company, founded in 1985, sums up some of the issues facing the Nepalese economy: entrepreneurial leaders at the helm of a committed workforce making a competitive and quality product for which overseas demand is ample. The problem isn’t finding buyers; it’s scaling up production to meet that demand. Exports by the handful of players in Nepal’s shoe industry totalled only USD 23 million in 2015. The task of boosting production in Nepal is doubly pressing given that the country already meets the criteria to graduate from the least developed country (LDC) category, something that the government wants to happen as soon as 2022. Nepal’s productive capacity predicament is typical of many LDCs. Moving onto a path of long-term prosperity requires structural transformation that expands production via manufacturing, services and higher-productivity agriculture.

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