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Peace, Justice and Strong Institutions
Facilitating Access to Opensource Technologies
Oct 2021
Working Paper
Ensuring easy and affordable access by developing countries to appropriate technologies is critical in achieving the 2030 Agenda for Sustainable Development. Open-source technologies can provide a means of effective technology transfer. Countless open-source designs and technologies are shared by innovators worldwide yet there is currently no central repository of such technologies and this makes it difficult for producers or consumers in developing countries to locate and access them. The Economic and Social Council of the United Nations recently adopted resolution 2021/30 on open-source technologies for sustainable development. In this policy brief an explanation of why developing countries need access to such technologies and proposals of ways to move forward in implementing the resolution are provided.
Implementing Supportive Policies to Build a Vibrant Private Sector as a Driver of Structural Transformation
Sep 2021
Working Paper
The private sector – one of the eight categories of the UNCTAD Productive Capacities Index – can be a catalyst for productive capacity development and structural transformation required to achieve sustainable development. Fostering entrepreneurship and stimulating private sector development and competitiveness through supportive policies and strategic actions should be a priority in the least developed countries (LDCs) to catch up with other country groups. Building on the private sector category of the Index which reports on cross-border trade facilitation access to finance and business support this policy brief looks at how the private sector contributes to the development of productive capacities and at the policies that can be used to support its growth.
Strengthening International Response and Cooperation to Address the Seafarer Crisis and Keep Global Supply Chains Open During the Ongoing COVID-19 Pandemic
Dec 2021
Working Paper
Border closures restrictions and other measures taken by countries to contain the spread of the coronavirus disease (COVID-19) have caused large numbers of seafarers – peaking at an estimated 400000 in September 2020 – to remain stranded at sea far beyond contract expiration dates and the 11-month maximum period of continuous service on board ships. This has caused a humanitarian crew change crisis and brought working conditions in the shipping sector into the spotlight. Governments and industry should continue to collaborate with all other relevant stakeholders to address the crew change crisis and ensure that seafarers are designated as key workers and are prioritized for vaccinations.
We are the First Spark: The Quest of Women Peacebuilders in Iraq for a More Peaceful and Equal Society
Jul 2023
Working Paper
This brief examines how the women members of peace groups established through a UNDP initiative in Iraq overcame traditional barriers to play the role of peacemakers and social developers in their communities. From their perspective the brief highlights the opportunities made available in post-conflict Iraq and identifies three realms that remained key in assuming their new roles in society: family dynamics interactions with male community members and the media. Thus it provides an understanding of the pathways through which women in traditional and conflict-affected societies like Iraq assumed the responsibility to rebuild their communities and initiate a structural shift in gender equality and social norms.
Financial Services: Unlocking the Potential for Export Diversification
Jan 2023
Working Paper
The services sector presents an opportunity for African countries to diversify their exports through two key facets: (a) the use of innovation and technology in the services sector can strengthen productive capacities leading to high-quality and more diversified exports of goods; and (b) African countries can diversify exports through intensifying forward and backward linkages with services sectors and increasing export of services. This policy brief based on the EDAR 2022 presents recommendations on how the roles of financial services and private businesses can be leveraged to strengthen productive capacity and diversify into high-quality exports.
Tackling Debt and Climate Challenges in Tandem: A Policy Agenda
Nov 2022
Working Paper
Climate-related shocks are growing in intensity and frequency while the ability of developing countries to address mounting climate challenges is heavily impaired by unsustainable debt burdens. Achieving climate-resilient structural transformation will require many of them to take on more debt. This policy brief highlights the growing overlap between debt and climate vulnerabilities in developing countries and the urgent need for improved access by vulnerable countries to financing on terms consistent with both long-term sustainable development and debt sustainability. It proposes a policy agenda that focuses on a reform of the international debt architecture and on scaling-up public-led and affordable development financing for climate investments.
Formulating Strategic Policy Responses to Open Green Windows of Opportunity
May 2023
Working Paper
The depth and speed of green development vary across different environmental technology domains. Accordingly sectoral and policy responses must be tailored to the “green window of opportunity” in question. Many developing economies have embraced renewable energy sources such as solar power and biofuels with supportive policies in place to enhance domestic demand. However the adoption of new and less mature technologies such as green hydrogen necessitates considerable investments in research and development infrastructure and regulatory frameworks to establish economic feasibility and competitiveness. An overview of renewable energy markets is presented in this policy brief and four scenarios of green windows of opportunity are highlighted based on individual responses and preconditions. An “identify-assess-sustain” approach is recommended to facilitate the transition to green energy.
Adding Fuel to the Fire? Inequality and the Spread of COVID-19
Jul 2022
Working Paper
The pandemic has progressed differently across the world. Using monthly data on COVID-19 cases and fatalities we evaluate whether income inequality is an important factor in explaining cross-country differences in the spread and mortality of the virus. The results show that income inequality is positively correlated with the number of COVID-19 cases. Higher income inequality is associated with a more rapid spread of the virus and an increase in the number of cases indirectly increasing mortality rates as well. Also higher levels of inequality are associated with reduced effectiveness of social distancing measures in containing new infections. Thus elevated inequalities place societies in a more vulnerable position to confront this pandemic and more unequal countries would need more robust public responses to contain the spread of the virus.
Trade Policies for the Low-carbon Transition Need to Take Into Account Least Developed Country Structural Features
Jan 2023
Working Paper
Increasing the share of manufactured goods in total exports would be beneficial to least developed countries (LDCs) but achieving industrial growth remains elusive. This goal can be jeopardized by the increasing use of trade policy measures to achieve climate or environmental goals. While these goals are legitimate uncoordinated measures by systemically important traders can have adverse consequences for LDCs. To attenuate them these traders should adopt special measures to help LDCs adapt to the evolving international regulatory scene. LDCs should invest more on upgrading their productive capacities and intensify trade with regional markets.
Expanding Sustainable Infrastructure Investment Opportunities: Guidance for Governments and International Organizations
May 2022
Working Paper
As developing countries pursue infrastructure projects they should aim to address a combination of the pandemic climate inequality and other crises with the right mix of economic and social infrastructure. To do this governments must invest in a national infrastructure planning process align planning with the SDGs and prioritize sustainable infrastructure over infrastructure that does not put people and the planet first. There is no silver bullet for all the challenges; however incremental changes based on innovative precedents can potentially make a difference on the ground. This paper proposes an analytical framework to consider these challenges and concludes with possible solutions.
Twin Transition for Global Value Chains: Green and Digital
Jul 2023
Working Paper
The green and digital transitions have developed in parallel to date especially in latecomer countries but green and digital technologies are increasingly becoming intertwined. In this policy brief greening and digitalizing options for latecomer countries are examined along with opportunities for benefiting from this twin transition in global value chains. The focus is on environmental and technological upgrading and on how global value chains can become greener by switching to the use of digital frontier technologies associated with smart manufacturing often referred to as industry 4.0 technologies.
The Cost of Doing Too Little Too Late: How Cryptocurrencies Can Undermine Domestic Resource Mobilization in Developing Countries
Jul 2022
Working Paper
Financing for development requires that countries simultaneously mobilize resources from various sources while tackling financial leakages. This policy brief discusses how cryptocurrencies have become a new channel undermining domestic resource mobilization in developing countries. While cryptocurrencies can facilitate remittances these same digital technologies may also enable tax evasion or avoidance through offshore flows whose ownership is not easily identifiable. In this way they may curb the effectiveness of capital controls a key instrument for developing countries to preserve their policy and fiscal space and macroeconomic stability. This policy brief recommends policies to reduce the financial leakages from cryptocurrencies. Given the global nature of cryptocurrencies it highlights the importance and urgency of international cooperation regarding cryptocurrency tax treatments regulation and information sharing as well as of redesigning capital controls to take account of the decentralized borderless and pseudonymous features of cryptocurrencies.
All That Glitters is Not Gold: The High Cost of Leaving Cryptocurrencies Unregulated
Jun 2022
Working Paper
The global use of cryptocurrencies increased exponentially during the coronavirus disease (COVID-19) pandemic. Such private digital currencies have become particularly prevalent in developing countries entailing considerable risks and costs regarding national monetary sovereignty policy space and macroeconomic stability. In this policy brief UNCTAD examines such risks and costs reasons for the uptake of cryptocurrencies in developing countries and the current regulatory landscape. Three policy recommendations that developing countries may consider in this regard are ensuring financial regulation; restricting advertisements related to cryptocurrencies; and providing a safe reliable and affordable public payment system adapted to the digital era such as a central bank digital currency or fast retail payment system.
Harnessing the Potential of Human-in-the-loop Artificial Intelligence for Risk Anticipation and Violence Prevention
Aug 2023
Working Paper
Development organizations and conflict experts struggle to manage the magnitude complexity and persistent volatility that characterize contemporary crises. Conflicts evolve at such a rapid pace that the amount of data produced by conflict or crisis situations is simply overwhelming. Because of the sheer amount of data and the pace at which they are being produced human beings are unable to track crisis evolutions and manage effective decision-making processes. Under these radically changing circumstances artificial intelligence (AI) can help us understand and even anticipate the outbreak and evolution of a crisis. Human-in-the-loop (HITL) AI combines the power of machine learning with human intelligence to address complex issues. This brief presents examples from Afghanistan and Ukraine to showcase applications of HILT artificial intelligence in the sphere of conflict resolution particularly emphasizing risk anticipation and violence prevention.
Public Payment Systems in the Digital Era: Responding to the Financial Stability and Security-related Risks of Cryptocurrencies
Jun 2022
Working Paper
The digital era is leading to many changes in the payment system landscape some of which threaten monetary stability and security in developing countries. To ensure that payment systems function as a public good monetary authorities should carefully consider the implementation of a central bank digital currency. Depending on national capabilities and needs and the challenges of creating such a currency authorities could alternatively create a fast retail payment system. Moreover given the risk of accentuating the digital divide in developing countries authorities should maintain the issuance and distribution of cash.
Industrial Hemp: An Old Crop in a Modern Era
Jun 2023
Working Paper
Climate change and its impacts on the daily lives of billions of people require innovative actions. One potential component of such initiatives could be to advocate for and foster an industrial hemp sector for exploitation and valorization based on a “whole plant” approach that uses all parts of the plant. Such exploitation could be achieved in most regions of the world and the whole plant approach would help promote the establishment of various production chains. As discussed in this policy brief industrial hemp value chains have the potential to be carbon negative and ecologically sustainable and can therefore effectively supplement strategies for sustainable development and the transition to clean energy. Practical experiences worldwide highlight the need for Governments to establish a regulatory and institutional framework supporting the exploitation of all parts of the industrial hemp plant. In this regard the categorization of industrial hemp as an agricultural commodity subject to regulatory oversight by an agricultural department as in many member countries of the European Union rather than a controlled substance as in Malawi and the United Kingdom of Great Britain and Northern Ireland is of paramount importance.
Moving Fast With Frontier Technologies
Jun 2023
Working Paper
In the last two decades the use of frontier technologies such as artificial intelligence the Internet of things and energy from renewable sources has undergone significant growth and this trend is expected to continue. However there is still considerable concentration in these markets. The leading frontier technology providers are mostly firms from China the United States of America and a few other developed countries with little participation from developing countries. The same pattern is observed with regard to knowledge generation and trade. Governments of developing countries should take proactive action to increase preparedness to use adopt and adapt such technologies and to take up the economic opportunities linked to them. Some of the challenges associated with the adoption of new technologies in developing countries are addressed in this policy brief and some policy recommendations are proposed.
African Continental Free Trade Area: Design of Dispute Settlement Mechanism Should Reflect Preferences and Realities of All Its Member States
Jan 2023
Working Paper
The African Continental Free Trade Area is set to promote structural transformation in States parties in addition to strengthening sustainable and inclusive socioeconomic development and improving gender equality. However to achieve the desired outcomes and maximize benefits it is imperative for implementation to be undertaken carefully with strong and appropriate institutions underpinning the process. A key aspect of any trade agreement involving different parties is the dispute settlement mechanism aimed at fostering trust accountability and the rule of law in operationalizing the agreement. UNCTAD in this policy brief analyses the framework of the dispute settlement mechanism under the African Continental Free Trade Area Agreement by comparing it with other dispute settlement mechanisms under regional economic communities and the World Trade Organization with a focus on challenges. In addition recommendations are made for enhancing the dispute settlement mechanism to ensure that it is more accessible and aligned with the preferences of member States of the African Continental Free Trade Area.
Climate-resilience of Seaports: Adequate Finance is Critical for Developing Countries but Remains a Major Challenge
Jul 2022
Working Paper
Climate change impacts on seaports can result in significant and costly damage operational disruption and delay across global supply chains with important implications for international trade and the sustainable development prospects of the most vulnerable countries. Timely and effective action on adaptation is a matter of growing urgency. Major scaling up of capacity-building and finance will be critical for developing countries and time is of the essence.
Durable Transformation and Structural Changes for Gender Equality Through PFMS and Budgetary Circles
Jun 2023
Working Paper
This paper showcases how a model that uses gender-responsive budgeting as a tool to promote gender equality developed in the context of the Programme for Consolidating Economic Governance and PFMS in the PALOP-TL countries Pro PALOP-TL SAI leads to transformational and structural changes in PFMS and consequently results in more gender-equal economies and gender equality in the referenced countries (and could also be applied to other countries or at regional/global levels).
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