VI Projects Approved Under the New Guidelines Grants Miscellaneous including Intergovernmental Organisations Identifying Growth Opportunities & Supporting Measures to Facilitate Investment in Value Chains in Landlocked Countries - CFC/ILZSG/267 Submitting Institution UN Office of the High Commissioner for LLDC’s Location Global Commodity Miscellaneous Total Cost USD 418,000 CFC Financing USD 335,000 (Grant) Co-financing USD 83,000 Project Description The project brings the matter of commodity sector contribution in the international support programmes for sustained structural transformation of Land Locked Developing Countries (LLDC’s). Studies undertaken by UNCTAD reveal the significance of commodity dependence in Landlocked Developing Countries (LLDC’s). In a series of Ministerial and expert meetings, UNCTAD, CFC and UN-OHRLLS lead the highlevel dialogue on commodities which started in the Second United Nations Conference on Landlocked Developing Countries held in Vienna, Austria in 2014. The working paper on “Turning Commodity Dependence into Sustainable and Inclusive Growth” in particular looked at the policies and strategies necessary to enhance the role of commodities in the development of LLDC’s. The study points at the importance of commodities in LLDC’s, especially in
terms of share of exports, Foreign Direct Investment (FDI) and employment. For instance, the study found that from 2011 to 2013, more than half of all exports from 27 out of 32 LLDC’s were primary commodities. Resource-based goods (i.e. primary goods and resource-based manufactures) accounted for some threequarters of all exports from LLDC’s as a group. These and other findings clearly indicate that the commodity sector provides an essential link between LLDC’s and the global economy. Current Status Transforming commodity dependence in LLDC’s into sustainable, inclusive and equitable economic growth requires action at the regional, national and international level. At the regional level, the study identified transit system improvement as the key priority. Nationally, LLDC’s must link the export commodity sector with domestic sectors as part of their national
development strategies. This includes, among other things, putting commodity issues at the heart of domestic development policies, facilitating investment flows to commodities sector, effective participation of LLDC’s in regional and global value chains, promoting (non-) traditional exports and acquiring technologies that improve productivity. International support should include transfer of technology and related knowhow, as well as forms of financing that encourage commodity diversification and value addition. The outcomes of the project have been integrated into the updates on the Vienna Programme of Action (VPoA). Collaboration in follow-up on the recommendations of VPoA is envisioned with specialist institutions participating in the Inter-Agency Working Group (IAG) preparing the review. This includes UN-OHRLLS, UNCTAD, UNDP, UNECA, and the World Bank.
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