Showing posts with label 2014. Show all posts
Showing posts with label 2014. Show all posts

Wednesday, November 26, 2014

The “UNCTAD Effect”

The “UNCTAD Effect”: Statement at the closure of the UNCTAD training to the delegations of Colombian universities




By: Juan Fernando Palacio* (juanfernandopalacio@gmail.com
Universidad EAFIT – University of St. Gallen




Hi, everyone. Eveliina, thank you very much for giving me the floor for a couple of minutes. I’m sorry about using some notes to read in this moment, but time is short, my memory is faulty, I’m still kind of bad at improvised public speaking, and I wouldn’t forgive myself of I forget some of the ideas that I want to share with you now, before this amazing week is over.

On Wednesday I talked to Eveliina and proposed her a deal. I asked her to take the floor today for at least five minutes, and told her that I would bribe her with a bright, big box of yummy Swiss chocolates for every additional minute she could give me to talk. As she finally allowed me to speak during TEN minutes, that means she will have, by the end of this talk, full home-stock of chocolates for Christmas and winter season. I definitely had a productive night yesterday so now I’m sure that she will become chocolate-rich today! Thank you again for this, Eveliina. I owe you one. Some among you wouldn’t believe me what I say, but actually I feel way more comfortable listening than speaking. I am a listener by nature. In comparison, I find speaking much less necessary, especially as you grow older and you become more aware of all the important stories that other colleagues have for you to tell. And let me insist in that I wasn’t meant to make any statement in the official program of this training; I wrote this small text between Wednesday and today morning (I finished it at 5:47 AM, Swiss timezone, just a few hours ago; fresh stuff then; the bread is still hot at the bakery, no time for proofreading); and I wrote it because you inspired me to do it. Simply, my sense of responsibility – and also my sense of gratitude – compelled me to say a few words at the closure of this event, a few words about what has happened to us throughout this week. This is the first time of my life that I’m taking the floor in a building of the United Nations, and as it might be the last time too, so I’d better do it well. And after the super hard simulation we just had, as the atmosphere perhaps got a bit tense, we really need to turn that page in the best of ways, so we can make an adequate assessment for our lives of what has happened here.

As we only have but five fingers in every hand, I want to divide my words into five, very brief finger-points. This will make things easier for me to tell, easier for you to retain and, who knows – one can always dream – it may even inspire the UN about the power of simplicity, so you decide perhaps to adjust your narrative about the Sustainable Development Goals (remember the presentation we had on Tuesday), to adjust it before their big meeting in September 2015, if not to reduce the the goals from 17 to a smaller number, at least to group the existing 17 goals into four or five categories or topics, which would be easier to retain and comprehend by every single citizen and policy-maker in the world. A delegation of Colombian students inspiring the discussion about the post-2015 UN development agenda? Well… why not… let’s hope so.

My five finger-points are as simple as this: one ‘congratulations’, and four ‘thanks’.

And let’s start first with my congratulations. Naturally, my congratulations go to you, to all the Colombian students who were part of this event. Bravo! You decided to invest a huge amount of your time in coming here and you made a big budgetary effort to do so. This way you showed commitment in the development of your professional careers and you showed there is no doubt about how much you want to contribute to the sustainable development and prosperity of our country. And what is more, you have engaged with this training in a good, constructive attitude. Proof of this is the respect you have showed to one another, to our speakers and to all the UNCTAD staff. Proof is also the quantity and quality of your questions and comments in every session of this event, and the rich reflexions you produced in the simulation activity you made today. Again, bravo!

Naturally, then, my first ‘thanks’ also goes to you guys. You give me a lot of inspiration and you make me believe in a brighter future for our country. It’s nice to join a visit to the Geneva organizations of such a bunch of brilliant fellow nationals. Our constant conversations and your constant positive attitude renew my motivation to keep working harder and harder for the future of our society. Thus I’m very grateful with you.

Not less important than this, my second and third ‘thanks’ go to two persons that have been crucial for this event to be such a success. All of you know of who I’m talking about. The work of coordination made by Maria Alejandra, from the Colombian team, and by Eveliina, from the UNCTAD team, has been outstanding and we all have benefited from it. I don’t know how many of you have organized conferences and this kind of events. I’ve done it a few of times and I can tell it is a terribly difficult thing to do. It takes so much time; it involves a lot of initiative; and it is a kind of ‘invisible’ work that is never rewarded enough. Hey ladies, what a great job you have done for us. You both deserve our highest appreciation. We must thank you a thousand times. I beg to all of you guys to join me with a big, big applause for them!

[Applause]

Maria Alejandra, I particularly acknowledge that you have helped the group to achieve a good level of self-organization, and your efforts to make us follow the protocols we needed for the event to be successful. Some of you might think Maria Alejandra is a bit strict with us; she indeed has a ‘though-mom’ mode and is always ready to argue with us when we’re not following the rules. I know sometimes this is not easy to digest, but what is good to see is that there is no rule she proposes without cleverness and rationality behind it. That’s why you Aleja deserve all our shoulder-to-shoulder support on this issue. Look at the simple rule of sitting in the same place during the whole conference: that helps all of us to remember our faces and associate them with the comments and questions we make during the presentations, while we get to know each other better. Or look at the rule of being punctual in the mornings. That has guaranteed we’ve been able talk and to do some networking with one another while we wait for the presentations to start. That’s why I thank you so much for the work you were doing with us; and I was very glad to see that the more things were working well, like on Wednesday at the WTO, the more relaxed you were behaving, showing us more and more the super-great ‘nice-mom’ mode of yours. You care for us and that’s so good to see. Personally speaking, I also thank you Aleja because it was YOU who had the initiative to invite me to join this training once again. It’s true that now I’ll have one more week of delay in submitting my doctoral thesis next year, but this is a good price to pay as you saved me during these days from the monotony of reading minutes of the WTO meetings, allowing me to have so much fun with all of you here. That is totally fair trade! Thank you.

Now let me turn to Eveliina. Not only she helped us organize the awesome agenda we had throughout the week but she has also given us daily support, professionalism, always a smile and the best of attitudes. But please let me be emphatic in this: When you guys take the plane back to Colombia, during your flight I beg you to think a lot on Eveliina, and to try to remember not only all what she made for us during this week. Please, try to remember also ALL THE THINGS SHE NEVER DID. What I mean is: think about her discretion and professionalism in the conduction of her work; think about the room and time she always gave to the speakers, never competing against them for protagonism; and think about the interest and attention that her face and gestures were reflecting not only when she was taking notes during the presentations, but also in every single moment of the week. All of you already know that I’m writing a PhD thesis about multilateral diplomacy in Geneva, and some know that part of my thesis consisted in making a big ethnography, conducting dozens of interviews to diplomats and officials of the UN and the WTO. The fieldwork I made allows me to say that there is a sort of “Geneva ethos” of excellence and professionalism in this city. AND my fieldwork allows me to say that there is no better incarnation of this ‘Geneva ethos’ than OUR Eveliina. In fact, at the end of the day – and, please, at the end of your flight back to Bogota – I’m totally sure that we will learn from Evelina AS MUCH as what we have learned from each one of our speakers of this week. Eveliina, from my hearth, thank you very much for all the support you gave us this week. You are more than a model to follow.

Finally, as last point of my words – and I beg for your patience here, because I really need to make this last point a little bit longer –, on behalf of the Colombian delegation, I want to say ‘thanks’ to UNCTAD as institution for the wonderful GIFT you have given us by bringing this week-long training to our country, instead of choosing someone else. And I know well that many countries in the world are imploring you to enjoy this privilege as well, and I know that you work with very limited resources.

First, I thank you UNCTAD because of what is obvious. I think that in the world there is no better concentrated, espresso-like introduction to the universe of International Geneva (la Genève Internationale) than the amazing training you have given us this week. Wow! It has been just as exciting as it has been unbelievable. What a privilege we had! I strongly believe that it is almost impossible – almost – to come to this training and not to grow up both as a professional AND as a person. You’re helping us to compare ourselves at higher standards and therefore to reframe our goals so to improve our individual competences. You’re smart, UNCTAD: you know well that by training us to become better professionals, at the same time you’re helping Colombia as a whole to achieve economic development. I imagine you’ve noticed that some of us in the delegation are ‘old-school’ now: Estella had come to the training before; and Catalina, Nico, Andrés and I – and maybe someone else – were here last year. Let us think the four of us on this: how much have we grown up, as professionals and as persons during the past twelve months! Our change has been big and has been for the better. And if UNCTAD hasn’t been the only ‘influencer’ of that change of ours, it’s 100% sure that YOU have been an important part of it. Vous avez été des complices. So I would dare to say that there is an “UNCTAD effect” in people. And I believe that in this year’s training the UNCTAD effect has hit us stronger. Don’t you think, Nico? Don’t you think, Andrés, Cata?

Let me enumerate what you’ve done for us, UNCTAD: you made us visit the key IOs in the city, AND you brought us outstanding speakers from your house AND, particularly, you brought us here three of our diplomats who represent us in this city. We saw how great they are. We all can tell that they are not only among the finest leaders of our country, but – and I can tell this with certainty – they are among the finest diplomats in the world (Andrés number two, what a privilege you have in working as intern here with them!). Often at home we ignore the competence of our envoys here, so for us Colombians attending their speeches is a great thing to see. It’s the best illustration of all the human potential we have as a society. We know at home that Colombia, our country, is famous for being ‘the country of passion’; and it is true. We are full of passion. Passion is never missing in our equation and that is a good thing to have. But that is not enough. The true is that when we give the best of our potential IS WHEN we let that the ‘Colombian professionalism’ finds its way to join the Colombian passion! We have ‘passion’ ‘made in Colombia’. But more and more we need to produce professionalism ‘Colombia made’ as well, to join and to add to our wonderful passion. Moreover, our ambassadors not only showed us what we are capable of when we study hard and when we work hard, but they have also taught us VERY WELL what we can call ‘the spirit of multilateralism’. Let me quote the words of Ambassador Quintana on Monday. When he was explaining the engagement of Colombian foreign policy in the multilateral system, he said: be present; participate; add value with your statements in such a way that when the group is discussing about certain issue, people want to turn their backs to look at you because they want to take your opinion into account. Nothing else, but nothing more. I don’t know a better and more beautiful explanation about the spirit of multilateralism that that one by ambassador Quintana. It’s not about dictating to others what you know; it’s not about forcing others to do the things your way, it’s not about struggling for power. It’s as simple as being present, and making your participation constructive so that the rest is willing to take them into account. No less, no more. We all should learn from this spirit and we should apply it more and more back in our country. We need more of this spirit in our universities, in our government, in our companies, and even in our homes.

One of you guys asked me yesterday after the ambassador’s talk, “hey, tell me, how do you achieve that people don’t forget you, Juan?” Oh God, that is a tricky topic! My first reaction is “Oh boy, you are entering into dark waters. You’d better stop there!” What can I say? Questions that flatter our egos are very dangerous to answer, because we all have an ego, and I believe we need to contain this ego as if it were a rabid dog! What is more: this guy here in front of you is not any rockstar. To be sure: lots of people forget me, and lots of people dislike me and I’m totally unable to do anything about it. But let me tell you this: if there’s really something special in what I did during this training when interacting with you guys – warning, I’m still not sure about that and I don’t really wanna believe it – that especial “something” is nothing different that my deliberate will to apply the spirit of multilateralism that I’m learning in Geneva thanks to my doctoral thesis into my life. So let me insist, this spirit is very simple: one, try to add value to the teams you make part of, two, don’t talk much, rather be concrete and try to never monopolize conversations, three, don’t force people to think or act your way, and four, respect EVERYONE because every single person has feelings and has an ego to take care of, just like you and me. Do nothing less; do nothing more. I know this doesn’t work all the time, and no matter how smart we are, we are never as intuitive as we need to be in every context. But this ‘multilateral spirit’ does help a lot. As long as we are ready to really pay some attention to Geneva and to its peoples, that is the simple lesson that this city is ready to teach us all. And, yes, let me be optimistic: I believe this UNCTAD training is helping all of us to MOVE more and more toward that direction. I definitely hope so!

Okay, I was saying that, in this week, UNCTAD has done all that for us, but I just talked about quite obvious things. HOWEVER, I MUST tell that you UNCTAD have done MORE and I’m not sure if you are totally aware of these additional, positive externalities that you produce when bringing us here and which are less evident, so I NEED to mention them. To say it in a single expression, by offering us this training, you UNCTAD are helping us to close geographical and social gaps in us participants, and therefore you’re helping us in strengthening the social tissue of our country, and this – I’m sure – will have important effects in our societies when we get back home. Let me explain

Colombia is a country that suffers from two huge fractures. We should not hide them; we must make them visible. We need to identify them well because otherwise we will never overcome them.

The fracture number one is our geographical fracture
. Colombia is a big country even if we tend to forget it. I come from Antioquia, which is just a chunk of the national territory; and I don’t know if you recall that Antioquia alone is bigger than Switzerland. Moreover, Colombia is full of mountain ranges that divide our territory and we lack the transport infrastructure that could help us connect our regions better, the way a mountainous country such as Switzerland does it. Thus we Colombians don’t know each other well and often have more emotional ties with the region and city where we live than with the country as a whole. To prove it let me give you this example: we Paisas maybe can feel that San Andrés or Amazonas belong to us because they are Colombian territory. But, do we also feel that we BELONG to San Andrés or to Amazonas? No, we Paisas tend to believe that we belong to Antioquia only. Again: you Bogotanos might feel that Chocó or Nariño belongs to you as it is part of the country. But what about the other way around? Do you also BELONG to those territories? Do you feel that you also belong, let’s say, to Quibdó? Do you also wanna ‘spend’ energies and and time – and love – in your life for the sake of the peoples of those territories? About two years ago I was having lunch with Paula Moreno. I’m sure you remember who she is; she is a former minister of culture and she was the first Afro-Colombian woman to become member of the government cabinet in all our history, and, surprise, I’m not mentioning her randomly, it turns out she lived in the city of Geneva for a while, so she benefitted from Geneva a little bit the same way we are doing it! Paula Moreno’s appointment as minister was of course part of the ‘Obama effect’ in our country, this renewed and so much needed ‘black empowerment’ (and there are still skeptics who believe that no positive things come to Colombia from the U.S.!). Anyway, having lunch with Paula in Bogotá near la Plaza de Toros, she was laughing at me when I was telling her that me being a Paisa it was difficult to feel myself a Colombian… but it is true! It takes us a while, often years, to REALLY broaden our sense of belonging. It takes us traveling, meeting people, abandoning unfair and absurd prejudices… and it takes us coming to UNCTAD! Indeed, here we have people from Cali, Medellín and Bogota. By joining this training together and meshing the way we are doing it, we are overcoming our traditionally excessive regionalisms, we are building bridges and making a new, more integrated Colombia. Thank you UNCTAD for that.

The fracture number two is – and I promise I’m about to end – the fracture number two is our social fracture. Being Colombia one of the top countries in the world in terms of economic inequality, it is no surprise that it suffers from huge, heavy, painful social discrimination. Our social atmosphere can be so heavy at times that we often forget that life IS LESS about status and competition and more about cooperation. And historical roots of discrimination are so old and practices are so embedded in our society that, to some extent, we can say that no one is guilty of this discrimination, nor even the ones that discriminate you. Discrimination is just so embedded that you barely notice it in your everyday interactions. It’s like fish. Fish only live under the water, so they might never know that water exists. They just don’t see it because they don’t have any other point of reference. That’s why going abroad for a while is so useful for us Colombians in order to gain perspective and to see the country how it really is. Andrés can tell from his experience in Berlin; Andrés number two from his experience in Geneva; Sara can tell from hers in Lausanne; Eddy from hers in Singapore; and so on and so forth. Why am I saying this? Discrimination is terrible for everyone that suffers from it, and, moreover, discrimination is tremendously expensive for our societies. It costs us money because it prevent us from being more effective when working in teams. And as discrimination happens in every sphere of the Colombian society, it also happens within universities. It happens between students and between professors. And discrimination also happens between universities (you know it guys; I’m not lying here; we all know it). So one additional good thing about this UNCTAD training is that even if the universities present in this delegation are all private (sadly there is no representation of public ones) they are very diverse indeed. Here we have delegations from the capital as well as from the province. We have delegations from historically well-established universities, and we also have from younger ones that are doing things well and that are working hard to build a good reputation. We have delegations from universities with big as well as with modest budgets. So, UNCTAD, you bring us here, you help us know each other better, and you help discover that there are lots of talented people, NO MATTER the social background where we come from. Sara Arroyo, please allow me to use your case, because you are an excellent example of what I’m talking about here, (and Maria Alejandra, because of the small conversation we had on Tuesday, I know you are following me 100% in this comment). Some of us here have African descent, which is natural in a country in which about one out of every five people is black. But you, Sara, perhaps you are the most Afro-Colombian member of our delegation. It’s so great to see how much Colombia is advancing in terms of social inclusion. Not only have you been an equal here, but we all have enjoyed and learned from your brilliance and from the quality of the comments and questions you have asked. When I see YOU being the way you are, and when I see the spontaneous acceptance that everybody has showed for you, I say to myself, “hey, that is the Colombia where I want to live in.” And let me tell you this: do you remember the presentation by Ambassador Gabriel Duque Mildenberg yesterday? I took ten pages of notes from his presentation the way I always do it but, funny enough, what touched me the most was at the same time the simplest part of his presentation, when he was explaining the golden rule of the WTO. Funny, because you and I have studied trade for years, and well, I’m writing a thesis about the WTO so I should know it well, right? But what was striking to me was the simplicity of Ambassador Duque’s formulation of the golden rule: “Tú no me discriminas, yo no te discrimino”; “you don’t discriminate me, I don’t discriminate you.” Wow. What a simple and yet perfect formulation! Don’t you think guys that we Colombians should ‘steal’ this beautiful golden rule out of the WTO, and use it as the slogan of the new, more inclusive society that we’re struggling to forge in our country? Oh, yes, I think we must steal that rule today!

Do you see it, dear UNCTAD staff? You’re brining us here, you’re proposing us to work and interact with one another and therefore you’re pushing us to create social bonds. I know it’s subtle, almost invisible, but this kind of actions is exactly what our country needs, and a great present you give us and we take with us back home. So you UNCTAD are helping us Colombians in more ways than what you are imagining! For this group of us, UNCTAD won’t be simply a fancy acronym or simply a prestigious organization anymore. UNCTAD has also become a meaningful life experience for us, an experience whose flavor and lessons will last for years in our memories. These memories will keep bringing us inspiration for our careers in the time to come. Thank you, UNCTAD. We are grateful with you. We love you so much. ;)

Now, guys, the rest is up to us. As a final thing to say, let me recall you guys that we are in a cinema now. As Kalman and the other speakers we had on Monday morning were telling us, we have been lucky enough to be hosted in the cinema of Palais des Nations for our UNCTAD training. In order that words match circumstances, let me quote… a movie. Do you remember V for Vendetta, that wonderful movie made by Andy and Lana Wachowski in 2005? “Remember, remember, the 5th of November.” I’m sure most of you have enjoyed that movie as much as me. Well, in a crucial scene of that film, the masked hero “V” tells to the so-far fragile (but subsequently brave) heroine Evey Hammond: “Evey, seize this moment”. Hey, that is exactly the same thing we should do at this closure of the UNCTAD training. This has been a week of important revelations to us, about who we are, about where we come from, about what we are capable of, and about HOW we want to be (I’m thinking here about the professionalism of the UNCTAD staff and of the three Colombian diplomats we had the pleasure to hear, plus the brilliance of all our speakers). So, guys, let’s seize this moment of important revelations, and let’s take the best of it for our careers and for our lives.

Remember, remember… 21st of November…” Remember today.


Juan Fernando Palacio

Geneva, November 21st, 2014.



Tuesday, October 28, 2014

Some views on the Trade and Development Report, 2014

Opinion by: Verónica Velásquez Zuluaga*
Law student at Universidad EAFIT, Colombia

On a post 2015 development agenda, the transformative and sustainable approach to development will be a key role in the setting of new goals and targets for policymakers.

UN Open Working Group on sustainable development presents 17 goals. But we will talk about 3 of them that international community regards them as major. The first is organizing any new goals and targets to a policy paradigm that can help raise productivity, generate enough jobs, and establish a stable international financial system that increase productivity investment and deliver reliable public services that leave no one behind; the second challenge is to formulate a new developing agenda to decrease the inequality which has accompanied the spread of market liberalism. This is relevant because the inequity could damage the well-being and threaten the economic, progress and stability; and the third is restoring a development model that favors the real economy over financial interests and ensures that the policy instruments are available to countries to enable them and advance the development agenda.

About natural resources for public revenue, in some cases, the developing countries need collecting them for the financing of development. The principal contribution to the development of these activities is the payment of the government revenues. However, the mining companies make the prices of commodities increase for their own benefit, that’s why the public gains were falling behind. As a result, many governments, both from developed and developing countries, have begun to revise their policies relating to the extractive industries. This has included renegotiation or cancellation of existing contracts, increases in tax or royalty rates, introduction of new taxes and changes in the degree of State ownership of the extractive projects. However, these changing market conditions should not obscure the wider policy challenges faced by producing countries in making the most of industries for development.

A comprehensive policy aimed at improving revenues from natural resources incorporated this element. First, governments should retain their right to review the tax regimes and ownership structures. Second, governments should have mechanism to enforce the rules to control the MNC's. Third, governments should be allowed to the MNC's transfer pricing manoeuvres and underreporting of export volumes with threats of legal punishment. This topic has to be included in the post-2015 development agenda.

According to UNCTAD international trade grew 2 per cent in the first period of the 2014. All regions have experienced a deceleration in their volume of trade in varying degrees, the greatest slowdown being in the developed countries, the transition economies and Latin America. Trade in developing and transition economies also decelerated. Talking about Latin America and the Caribbean, the trade volume slowed down to a growth rate of around 2 per cent. Slow GDP growth in its major markets (including U.S.) and real exchange rate appreciation affected the regions exports.

The way to expand trade globally is through a domestic-demand-let output recovery; not the other way round. However if a country want to try an exit from the crisis through net exports, this strategy would create a fallacy of composition if followed by many trading partners. But demand must also be geographically distributed in a way that is consistent with the reduction of global imbalances. This requires that developed countries take the lead in expanding domestic demand so as to enable an expansionary adjustment in contrast with the recessionary bias of balance-of-payments adjustments, which place the entire burden on deficit countries.

In conclusion: developed countries need to adopt a balanced approach that gives a larger role to domestic and regional demand and to South-South trade than in the past. Trading partners should encourage domestic demand simultaneously, they would also be supporting each other’s exports and the recovery of international trade and production capacities should be expanded and adjust to the new demand pattern through appropriate, proactive industrial policies.





Monday, October 20, 2014

La Necesidad de Reconsiderar las Políticas Económicas

Por: Laura Jaramillo Echeverri
Estudiante de Derecho, Universidad EAFIT, Colombia

Afirman algunos analistas, que la economía mundial se esta recuperando tras la devastadora crisis financiera del 2009, pues sostienen que a través de las políticas económicas de recorte en el presupuesto estatal y recorte salarial que han implementado países de la Euro zona y Estados Unidos se puede estimar que la economía mundial va a crecer de 2.5 a 3% en el 2014, dato que resulta positivo tras varios años de crisis. Pero no todo es color de rosa, pues estas políticas implementadas, también pueden llegar a resultar nocivas para la economía interna de los países, tanto desarrollados como en vía de desarrollo. 

Las políticas económicas que se están implementando actualmente en varios países, son claramente el resultado del mal manejo de las instituciones financieras, lo que derivaron en la crisis financiera. Como consecuencia la reducción en el gasto de los gobiernos es una de las políticas implementadas, como es el caso de Europa, donde la austeridad fiscal es más notoria, por que los gobiernos tuvieron que asumir los costos de la crisis por la “indisciplina económica” de las instituciones financieras, llevando esto a reducir gastos gubernamentales y recorte en el presupuesto publico, tales como los casos de Grecia, Italia, Portugal y España entre otros. 

Asimismo la implementación de políticas estructurales para incrementar la competitividad comercial, como la reducción del pago de la mano de obra para aumentar las exportaciones. Pero estas políticas resultan claramente problemáticas para un país pues se debe cuestionar, cual es el limite del recorte de salarios para amentar la competitividad, sin afectar la estabilidad social y la productividad. Además el salario de los individuos afecta a corto plazo las exportaciones del país, pues es por medio del salario y la percepción que se tenga de este, por medio del cual se estimula al gasto, al consumo y a la demanda, lo que eventualmente afecta las importaciones del propio país y las exportaciones de un diverso grupo de países. UNCTAD en muchas ocasiones ha insistido en la necesidad de los países con superávit de incrementar la demanda interna y aumentar sus importaciones a un ritmo mucho mayor que las exportaciones, en vez de forzar a los países con déficit, a ajustarse o a apoyarse en la reducción de costos laborales con la esperanza que esto lleve a una recuperación de sus exportaciones. Pues el verdadero aumento en el PIB se logra a través de la demanda interna no mediante exportaciones. (TDR 2004. Pg.24) 

De las políticas que se están implementando actualmente, UNCTAD ha analizado que a raíz de esta combinación es posible resaltar los errores estructurales que pueden desatarse eventualmente en una crisis, pero no es posible determinar por adelantado el tiempo de una crisis por su naturaleza, las medias concretas de las implicaciones a nivel marco y global, y el período de recuperación que le sigue. Esto debido, a que una crisis normalmente es detonada por un cambio repentino en la confianza que se tiene en el mercado, como resultado de una notica, o un rumor proveniente de los cambios en el sistema financiero o las perdidas de una institución importante. De este modo la recuperación de una crisis, es el resultado de una combinación compleja de estrategias para mejorar el estado de confianza de nuevo en el mercado. (TDR 2014. Pg. 30) 

Por lo tanto el TRD 2014 (30-31) en sus primeros tres capítulos señala como se puede ver que la economía efectivamente se esta recuperando, pero cuestiona las políticas que se implementan pues considera que son políticas muy parecidas a las que encaminaron la crisis financiera del 2009. De este modo propone 5 políticas para un crecimiento balanceado de la económica: 
  1. Políticas de ingresos para soportar el crecimiento de la demanda en bases sostenibles. 
  2. Crecimiento intensificado de las políticas fiscales. 
  3. Políticas industriales para promover la inversión privada y la transformación estructural. 
  4. Regulación de controles financieros y de capitales para estabilizar los mercados financieros a nivel mundial. 
  5. Tratados comerciales orientados al desarrollo. 

Referencias


UNCTAD (2014) Trade and Developing Report. Global Governance and Policy Space for Development Publicación de las Naciones Unidas, Nº de venta: E.14.II.D.4, Ginebra y Nueva York.

Tuesday, October 7, 2014

Lanzamiento: Trade and Development Report 2014


El instituto virtual de la UNCTAD y el Observatorio en Comercio, Inversión y Desarrollo de la Universidad EAFIT invita al lanzamiento del reporte de la Conferencia de Naciones Unidas para el Comercio y el Desarrollo (UNCTAD):

Reporte Mundial sobre Comercio y Desarrollo 2014: Gobernabilidad Global y Espacio Público para el Desarrollo (Trade and Development Report 2014: Global Governance and Policy Space for Development)

A cargo de:
Alfredo Calcagno (Ph.D), Director de Políticas Macroeconómicas y del Desarrollo de la División de Globalización y Estrategias de Desarrollo de la UNCTAD
  • Fecha: Lunes 10 de noviembre, 2014
  • Hora: 9 a.m.
  • Lugar: Universidad EAFIT, Bl. 19-806, Medellín
  • Idioma: Español
Entrada libre y disponible conexión para transmisión en directo.

Mayores informes:

Maria Alejandra Gonzalez-Perez
Departamento de Organización y Gerencia
Teléfono: (57 4) 261 9500, ext. 9431
​Email: mgonza40@eafit.edu.co



Sunday, August 24, 2014

A view on UNCTAD's World Investment Report 2014

By: Veronica Velásquez Zuluaga* vvelasq5@eafit.edu.co
Law student at Universidad EAFIT, Colombia


According to the UNCTAD, the foreign direct investment (FDI) has increased all types of economic groups, developed, developing and transition. One of the points of the agenda of the countries is to create or elaborate policies to attract investment in their own country regardless of their economic group.

Recently, an investment promotion agency mentioned that the main objective of investment incentives is job creation, followed by technology transfer and export promotion. To achieve this objective, it has to take into account four key challenges: The first one is leadership, this key propose setting guiding principles ensuring policy coherence; the second is mobilization and propose to reorient markets towards investment in SDGs; the third is channeling and pose the promoting and facilitating investment into SDGs sector; and the last one is impact and express the maximization of the development benefits and minimizing risks.

There is an important aspect and is related to the investment of the private sector in all countries. The private sector cannot supplant the big public sector push needed to move investment in the SDGs in the right direction. But an associated big push in private investment can build on the complementarity and potential synergies in the two sectors to accelerate the pace in realizing the SDGs and meeting crucial targets. Private sector contributions often depend on facilitating investments by the public sector. In some sectors such as food security, health or energy sustainability, publicly supported research and technological development (R&D) investments are needed as a prelude to large-scale SDG-related investments.

SDG investment has some approach: the first is economic infrastructure in developing countries, included power, transport, telecommunications and water and sanitation, we can say private sector has a good participation in these topics; another approach is food security and the corporate sector contribution in the agricultural sector as a whole is already high at 75 per cent in developing countries, and is likely to be higher in the future; the third one is Social infrastructure is related to education and health, is a prerequisite for effective sustainable development, and therefore an important component of the SDGs; and the last one is environmental sustainability, including stewardship of global commons, the investment gap is largely captured through estimates for climate change, especially mitigation, and under ecosystems/biodiversity (including forests, oceans, etc.).

We can say private sector intervenes so much in the economy and all their movements can change other sectors such as economy, environment, infrastructure, transport etc.

Reference


UNCTAD (2014) World Investment Report 2014. Available online at: http://unctad.org/en/PublicationsLibrary/wir2014_en.pdf

Monday, July 14, 2014

UNCTAD World Investment Report 2014 Review

Opinion Article by Juan Gonzalo Perez* (jperezg@eafit.edu.co)
* International Business Student, Universidad EAFIT, Medellin, Colombia


As the world’s Foreign Direct Investment (FDI) flows have shifted in recent years from developed to developing economies due to economic downturns, in 2013 global investment inflows rose significantly and the signs of recovery are expected to continue in the upcoming years. Developing economies are attracting the largest share of investments and are also becoming more prominent in terms of capital outflows. In spite of the fact that in previous years a lot of the FDI growth was driven by South American Countries, in 2013 flows to this sub region declined.

According to the 2014 World Investment Report released by the United Nations Conference on Trade and Development (UNCTAD), global FDI inflows increased by 9% in 2013 reaching a total of U$1,4 trillion with an expected steady increase for the next 3 years. These expectations are based on the signs of recovery of the world's 36 developed economies, which accounted for 61% of the total outflows but only 39 percent of the inflows of FDI.

On the other hand developing economies are maintaining a dominant share of the FDI inflows with 54% of the overall global investment. As stated in the report, this represents the equivalent to U$778 billion, with Asia being the major recipient. As positive economic news appear to be spreading in developed countries and as the weight of developing ones increases in the global economy, transnational corporations’ executives are more confident in readjusting their focus to answer the growing potential of emerging markets.

As for Latin America and the Caribbean the report shows an uneven growth in terms of FDI inflows. Overall investment in the region had an increased of 6% in 2013 in relation to 2012, however, the report reveals that Central America and the Caribbean had a positive increase but with a 6% decline in South America.

Decline of FDI into the mining sector was the major reason for investments to decrease, especially in Chile, Argentina, Peru and Brazil. Yet, investments in the primary sector presented an important increase as well as industries like automobiles, electronics and beverages. In contrast, FDI inflows into Colombia increased by 8%, mainly to investment in the electricity and banking industries through Mergers and Acquisitions (M&A).

In conclusion, the global investment trends presented in the 2014 World Investment Report shows a positive sign of economic recovery in the developed economies and an important increase of FDI flows to all major developing regions. As for Latin America and the Caribbean prospects are optimistic caused by new opportunities arising in oil and gas, and Transnational Corporations investment plans in manufacturing.

Reference


UNCTAD. (2013).World Investment Report 2103. Ginebra y Nueva York: Naciones Unidas.

Wednesday, June 4, 2014

Ports, and Logistics in Colombian Development

By: David Ricardo Murcia
Political Sciences student at Universidad EAFIT, Colombia

When one is willing to analyse and explore the topic of development, several areas of study comes to mind. Among them: chain value participation, market analysis, and state support to some productive sectors through public policy. These are subjects that have previously been studied in the different articles of this Observatory, but I am willing to undertake a new one –maybe a very important one- in this concise dissertation. No further introduction, I will explore the logistic infrastructure, more specifically, the port administration of Colombia, and its consequences in international trade.

All the firstly appointed subjects in the above paragraph concentrate in the production capacity of a certain State and its participation in the international market, and, as it has been the goal of most of previous posts, the revenue in it. Although, the consideration of the commercial logistics has a crucial influence in the competitiveness of a national market as it can change the value of a product according to the connectivity and storage capacity that the infrastructure can provide to possible investors (DNP, 2008). Nevertheless, that opens a wide range of problems that cannot be discussed in this brief writing, such as the variety of intervention levels that the National Logistic Policy of Colombia contain (Vid. BID, 2011). Now, this text will focus on a specific area of the preceding policy: the port administration.

Colombia has a long history of reforms attempting to make its ports more competitive in the Latin American region. This was especially evident since the promulgation of the 1991 1st law that liberalised the sector, by permitting private capital to administrate the national infrastructure through concession. Before the remarked law, the Colombian ports were managed by the State, and had little competitiveness in the international market. But this was not a huge problem, as the Colombian market was a highly close by that time, even though the nation started a slow opening process since de 1950’s (Vid. Estrada, 2004).

The liberalization process of the Colombian State concentrated their efforts in attracting foreign direct investment, by making a lax legal control on inversion. Those arrangements set aside the preoccupation over logistics, and consequently national plans did not have significant budget to come into reality. An example of this situation is the constant desire to build a train transport system, which came especially since the presidency of Carlos Lleras Restrepo (1966 – 1970).

Although, since 1991 with a new constitution and a package of laws, the government made bigger efforts to increase its participation in international markets. The problem began after the first five years of the 2000’s that brought a rapid growth in the nation’s foreign trade, due to the poor effects that the 1rst law of 1991 for improving the efficiency of the port sector had (DNP, 2009; DNP, 2013). Then, the ports problems started being taken as important issues, mainly with the port expansion plans of 2009 and 2013 (Conpes 3611 of 2009 and 3744 of 2013). But unfortunately, the impact capacities of the 2009 plan were reduced because the importance that arose in 2005 benefited only the traditional ports, and left the strategic ones with nothing more than a bunch of plans in paper with no funding, as it is the case of de Urabá or the Morrosquillo Gulf ports in the West Caribbean Coast of Colombia or the Tribugá port in the Northern Pacific Coast.

As a conclusion, the previous dissertation developed a discussion over the repercussions that logistics have in the country capacities of improving its participation in a global market. More importantly, it is presented the lack of preoccupation that the government has put in the port sector and the collateral consequences that they have in the costs of trade.

References


BID. (2011). BID apoya Política Nacional Logística de Colombia. BID. Available at: http://www.iadb.org/es/noticias/comunicados-de-prensa/2011-06-29/politica-nacional-logistica-de-colombia,9445.html

DNP. (2008). Conpes 3547. Bogotá: DNP.

DNP. (2009). Documento CONPES 3611. Bogotá: DNP.

DNP. (2013). Documento CONPES 3744. Bogotá: DNP.

Estrada Álvarez, J. (2004). Construcción del modelo neoliberal en Colombia 1970-2004. Bogotá: Ediciones Aurora.



Wednesday, May 28, 2014

Bio-agricultura urbana: ¿cómo producir alimentos en escenarios de cambio climático?

Articulo de opinión por: Adriana María Gallego Rúa* (adriana.gallego.02@gmail.com)
Laboratorio de Biotecnología, Universidad de Antioquia, Colombia


Hoy en día reconocemos que el cambio climático es una realidad inminente. Son muchos los pronósticos que se plantean de cómo se verá el globo terrestre dentro de unos años con el calentamiento global… el derretimiento de los polos, la inundación de las costas, el efecto negativo en los cultivos… son noticias que a diario nos invaden.
Apagar las bombillas, usar más la bicicleta y menos el carro, ahorrar agua… son todos paños de agua tibia. Falta una mayor conciencia sobre varias preguntas inquietantes pero necesarias...
¿Cómo nos alimentaremos en el futuro bajo los evidentes pronósticos de cambio climático? ¿Cómo hacer de la seguridad alimentaria y energética una realidad sustentable en el tiempo?. Sin duda son más las preguntas que las soluciones tangibles.
Transformar la agricultura tradicional a una agricultura de policultivos es una de las soluciones propuestas y es válido… sin embargo ¿si la transformación toma más tiempo que los efectos del cambio climático en recrudecerse? ¿Cuál será nuestro as bajo la manga?
Pensar que el campo va a desaparecer es una utopía, pero creer que estará eternamente disponible para la agricultura mundial si lo es. Si seguimos pensando en depender 100% del campo para la alimentación y recurso energético considero, vamos por el camino equivocado. Surge aquí el concepto de Bioagricultura urbana. Pensar que podemos producir alimentos que no dependan del campo, que se establezcan en espacios pequeños, que sean independientes de factores climáticos externos, libres de patógenos y agroquímicos, sin estacionalidad… suena como un cuento sacado de la ciencia ficción. Sin embargo es posible. Actualmente hay unos esfuerzos investigativos en hacer esta idea tangible y se han obtenido resultados positivos. Bien decía Albert Einstein “No podemos esperar un cambio si seguimos haciendo lo mismo”. Es por esto que la Bioagricultura Urbana se constituye actualmente como un cambio de paradigma.

Monday, March 24, 2014

Colombian elections 2014 and economic prospective

By: David Ricardo Murcia Sanchez
Political Sciences Student at Universidad EAFIT, Colombia

After a few days since the past legislative elections in Colombia, I feel the calm necessary to make an analysis of the scenarios it sketched for the nation’s forthcoming years. That calm can gain stronger basis now, after the official release of the Colombian economic growth in 2013 (4,3% (Portafilio, 2014)). But, before starting the argument, it is crucial to announce that the following analysis will be speculative, due to the fact that Registraduría Nacional have not published yet the official conformation of the congress, even though the pre-counting can be taken as a trustful outline.

The pre-counting of the national register agency of Colombia shows a scenario of continuity to the current government coalition[1], for the sum of 23.76 % of the votes (Registraduría Nacional, 2014) in Senate, and a steady 37.84% in the chamber of representatives. This trust backup to the current government, whose focus has centered in the stabilization of the economy, and the improvement of the Nation’s international relations (both economic and political), could drag to the country more investment, due to the government’s efforts to maintain a stable economy.

The present national government had had to face many economic instabilities. First, by receiving an economy just getting out from a decrease of 5.2 perceptual points between 2007 and 2009, managing to get up since its entrance in office (2010) 2.6 points. Second, the 2012 deceleration, due the various internal problems of the agro strike, and the dependency on commodities of the extractive industry. In 2012, the stronger sector was mining, with a 5,9 % share (Dinero, 2013). But mining was also the strongest one in 2011 with a share of 14,3 %, and then it was the principal cause of a high overall growth up to 6.6 % (see Table I).

Fortunately, the 2013 growth goes out of that dependence, bringing with it, construction as the leading sector (a share of 9,8 %), followed by social services, and agro (5,3 % and 5,2 % respectively). Then, mining comes just fourth (4,9 %) (Portafolio, 20014), and perhaps, it is the first step towards a new economic tendency. But I am not referring to construction as the sector in which the national economy should be focus (that could turn into a real sate bubble).

The interventions of the current government have been able to construct a stable economic structure that has sketched a good forthcoming for development. It could be foreseen in how the composition of the former year economic growth opens the doors to a more diversified economy, which central sector are intensive in the productions of labor, and therefore the split of the wealth.


[1] Which parties are Unidad Nacional, Partido Liberal, and Cambio Radical. It is important to say that part of the Partido Consevador is aligned with the government, but for the present analysis it is better to left them out, because the number of conservative congressman that will join the ruling alliance is still uncertain.



References


Dinero (2012) Economía colombiana creció 4% en 2012. (21 de Marzo de 2013). Dinero. Recuperado de: http://www.dinero.com/actualidad/economia/articulo/economia-colombiana-crecio-4-2012/172092

Portafolio (2013) La Economía Colombia creció 4,3 en el 2013 (20 de Marzo de 2014). Recuperado de: http://www.portafolio.co/economia/pib-colombia-2013

Registraduría Nacional del Estado Civil. (9 marzo de 2014). Elecciones de Congreso y Parlamento Andino. Recuperado de: http://congreso2014.registraduria.gov.co/99CA/DCA9999999_L1.htm