Regional integration does not ensure production in value chains
By Renato Baumann, Co-ordinator, International Co-operation, IPEA, Brazil
Developing economies often face a common challenge: after a period of rapid growth they experience a slowdown in both growth and productivity, falling into what has come to be known as the ‘middle-income trap’. Signing preferential trade agreements and participating in global value chains are two common recommendations presented to countries facing the middle-income trap, and are often seen as intertwining processes. Moreover, regional integration is gaining momentum as an enabler of value chains. However, although regional movement of goods facilitated by regional integration might be necessary, it is not the only condition to ensure production in value chains.
Continue reading “Regional integration does not ensure production in value chains”
African countries trade much more with countries outside the continent than with each other within the continent. According to the United Nations Economic Council for Africa, trade between African countries stands at about 16% of the continent’s total trade, the lowest intra-regional trade globally. Compare this with 19% intra-regional trade in Latin America and 51% in Asia.
The global approach to migration and development is typically framed at the national level, whereby policies are conceived by national governments and mostly implemented with national fiscal resources and by national actors. This is in line with the common perception that migration is subject to national sovereignty, involving country to country agreements and adherence to international conventions. Yet, this national level approach fails to acknowledge the diversity of development and migratory contexts that exist within countries. Indeed, persisting inequalities, one of the identified drivers of migration, exist not only among different countries, but also within countries. Migrants tend to move between specific territories, creating varied local migratory contexts within countries themselves. This is why the links between migration and development need an integral and bottom-up approach from the often overlooked local level. Increasing evidence supports migration as a local development tool that can enhance the dynamism of territories receiving and sending migrants.