International Trade and Finance
Sri Lanka sweetens its offerings of fruits, vegetables for export
On any given day, rain or shine, Ruwan Hemage tends to his farm in Loluwagoda, Sri Lanka, about 70 kilometres outside the capital city of Colombo. Hemage, his wife and two hired workers cultivate a variety of crops on the six-hectare farm including coconuts, bananas, papayas and ginger. The main focus, however, is on pineapples, which are intercropped with or grown in close proximity to coconuts to produce a greater yield on the land. About 90% of the pineapples are exported to the Middle East.
Making e-commerce work for all
The rise of affordable and accessible technology has transformed consumer behaviour in recent years. Engaging in online transactions is today commonplace across the world. From checking your bank account balance to paying bills and ordering groceries, e-commerce has transformed the way consumers and businesses engage with each other. For the citizens of developed countries e-commerce is becoming business as usual. Online retail is estimated by the Centre for Retail Research to account for 13% of consumer spending in the United States of America, around 10% in Europe and much more in some countries. Business-to-business sales are estimated to be as much as fifteen times as large.
Are special economic zones in emerging countries a catalyst for the growth of surrounding areas?
What is the impact of special economic zones (SEZs) in emerging countries on the economy of surrounding areas? Despite the popularity of SEZs as a policy tool in virtually all developing countries around the world, there is little evidence to date which systematically analyses this question. This paper sheds light on this topic by examining the economic growth spillovers generated by 346 SEZs in 22 emerging countries. The analysis uses night light data as a proxy for SEZ performance as well as the economic performance of the surrounding area in order to overcome the lack of reliable economic indicators when measuring SEZ performance. It also relies on a novel data set on SEZ characteristics in order to understand how far they impinge on the economic fortunes of the surrounding areas. The results indicate that SEZs have a positive impact on the economic performance of the areas surrounding the zones. However, the growth spillovers are limited in area and display a strong distance decay effect: the magnitude of the impact decreases continuously up to 50 km. Furthermore, zones located in more remote areas seem to have less of an impact on neighbouring areas. Moreover, factors assumed to have a facilitating effect, such as the manufacturing base in the country and political stability, do not seem to matter on a structural basis.
No country is an Island
At a time of globalization and rapidly changing economies, the European Union (EU) can only be as strong as its partners, which is why well-founded trade relationships are of crucial importance. However, if we want to continue to alleviate poverty, eliminate hunger, improve working conditions and boost economic growth worldwide, we need to direct our focus to developing countries.
Harnessing the forces of e-commerce for development
Since its creation 20 years ago eBay has been a significant force in promoting small businesses and entrepreneurship across the United States of America and Europe. Today there are 25 million active sellers on eBay, many of them making a living selling online. During a recent visit to Africa I had the chance to meet with two Rwandan-based eBay sellers and was able to experience first-hand how online trade creates sales opportunities.
Digital economy unlocks doors for women entrepreneurs in Africa
SawaSawa means ‘fine and dandy’ in Swahili and the women-led custom software-solutions provider bearing that name is doing ever-increasing business, thanks in large part to electronic commerce and the development of digital tools.
Using special economic zones to facilitate development: Policy implications
Volume 26 number 2 of the Transnational Corporations journal is a special issue dedicated to special economic zones (SEZs) and their potential as vehicles for development. The issue grew out of research and background papers that fed into UNCTAD’s World Investment Report 2019, the thematic focus of which was SEZs. In compiling this issue, we sought to contextualize the emergence of SEZs, their evolution, and the associated policy trajectories that underpin them. This introductory paper amalgamates observations from the broader academic literature, as well as the findings of the World Investment Report 2019 and its associated background papers. A common theme is that a well-designed zone will evolve with the changing comparative advantages and development level of the underlying economy, in what is described as the “SEZ development ladder”. As the locational advantages change, the emphasis and the objectives of the SEZ must also change. Reliance on “generic” locational advantages must necessarily diminish, and greater emphasis needs to be placed on developing “specialized” locational advantages. Another key finding is that the benefits of an SEZ must intentionally “leak” beyond the perimeter of the zone. The pervasiveness of the direct, indirect, and induced extra-SEZ effects beyond the geographically bounded space of the SEZ determines its success or failure. Scope remains for future research on SEZs, focusing on their sustainability, the impact of the digital economy and industry 4.0, and the involvement of new financing partners for SEZ development.
Agenda from 30 June 2016
In line with going online: Using e-commerce to tap new markets
To sell more goods online, sell them in person. That’s what Syrian entrepreneur Rania Kinge did to expand her online market while offering handmade products ranging from bracelets and bags to scarves to soaps at a pop-up store in Geneva earlier this year.
Entretien: Ibrahim Thiaw, conseiller spécial pour le Sahel, Transformer le Sahel en une terre d’opportunités
D’originaire mauritanienne, Ibrahim Thiaw a récemment été nommé conseiller spécial du Secrétaire Général des Nations Unies pour le Sahel. Ancien directeur exécutif adjoint de ONU-Environnement, M. Thiaw est notamment chargé de mobiliser un soutien national et international pour le développement socio-économique de la région du Sahel, qui couvre 10 pays africains. M. Thiaw s’est entretenu avec Minielle Baro du Centre d’information des Nations Unies à Dakar sur sa vision, le sentiment d’urgence et les opportunités d’investissement au Sahel.
Vêtements d’intérieur: Le luxe africain s’exporte
Depuis des siècles, des matériaux non finis destinés à la fabrication de vêtements — soie, coton, peaux — sont vendus et expédiés d’Afrique vers les capitales occidentales de la mode, notamment Londres, Paris et New York. En contrepartie, un petit nombre de vêtements prêt-à-porter, de chaussures bon marché et de vêtements d’occasion retrouvent le chemin de l’Afrique — à des prix largement majorés ou sous forme de dons caritatifs.
La ‘Petite Afrique’ perd de son attrait
Dans la chaleur étouffante d’une après-midi tropicale à Guangzhou, une ville au sud-est de la Chine, un groupe d’Africains d’âge-moyen à l’affût de clients potentiels était en vadrouille à l’entrée d’une rue bordée de boutiques tandis qu’un autre groupe de trois femmes et un homme berçant un enfant dans ses bras attendaient auprès de leurs ballots de marchandises dans une rue adjacente.
Des guichets uniques aux postes-frontières
Responsable du marketing chez Dairibord Zimbabwe, une entreprise d’export alimentaire et de boissons régionale cotée en bourse, Tracy Mutaviri espère gagner des parts de marchés grâce à la Zone de libreéchange continentale (ZLEC) africaine.
L’Afrique, prête pour le nucléaire?
L’énergie nucléaire était auparavant une option sophistiquée réservée au monde industrialisé. Mais, elle pourrait être une source d’énergie pour la plupart des pays africains. Actuellement, seule l’Afrique du Sud possède une centrale.
Is Africa ready for nuclear energy?
Years back, nuclear energy was a fancy option limited to the industrialized world. In due course, nuclear could be an energy source for much of Africa, where only South Africa currently has a nuclear power plant.
Interview: Dr. Mukhisa Kituyi, UNCTAD Secretary-General, Africa has phenomenal potential for intra-continental trade
Forty-nine of Africa’s 55 countries have signed the framework for the African Continental Free Trade Agreement (AfCFTA) to create a single continental market for goods and services, with free and unfettered movement of businesspeople and investments. When at least 22 countries ratify it, the AfCFTA will officially come into force, potentially making the continent the largest trading bloc in the world. Africa Renewal’s Zipporah Musau spoke with Dr. Mukhisa Kituyi, the secretary-general of the United Nations Conference on Trade and Development (UNCTAD), on what countries stand to gain and what challenges to expect. Excerpts.
Africa set for a massive free trade area
The shelves of Choithrams Supermarket in Freetown, Sierra Leone, boast a plethora of imported products, including toothpicks from China, toilet paper and milk from Holland, sugar from France, chocolates from Switzerland and matchboxes from Sweden.
Interview: Ibrahim Thiaw, Special Adviser for the Sahel, Turning dry Sahel into land of opportunity
Ibrahim Thiaw of Mauritania was recently appointed the UN Secretary-General’s special adviser for the Sahel. A former deputy executive director for UN Environment, Mr. Thiaw is now charged with, among other responsibilities, mobilising domestic and international support for the socioeconomic development of the Sahel region, which covers 10 African countries, according to the UN. In this interview for Africa Renewal, Mr. Thiaw spoke with Minielle Baro of the UN Information Centre in Dakar on his vision, the need for urgency and the significant investment opportunities in the Sahel. These are excerpts.
Gender: Women-led tech startups on the rise in Africa
On the surface, sub-Saharan Africa boasts the world’s highest rate of women entrepreneurs, at 27%. The MasterCard Index of Women Entrepreneurs 2017 listed two African countries, Uganda (34.8%) and Botswana (34.6%), as having the highest percentage of women entrepreneurs globally.