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The Role of International and Regional Cooperation in Agricultural Commodity Development
12th Meeting of the COMCEC Agriculture Working Group
20 September 2018
Ankara, Turkey
Stefan Csordás
Commodities Branch, UNCTAD
Agriculture accounts for large shares of employment and GDP in developing countries
01020304050607080
Highincome
Middleincome
Lowincome
Leastdevelopedcountries
Employment in agriculture (2012-16 average, % of total employment)
0
5
10
15
20
25
30
35
Highincome
Middleincome
Lowincome
Leastdevelopedcountries
Share of agriculture in GDP (2012-16 average, %)
There are large differences in agricultural labor productivity
Agricultural development is crucial for the SDGs
• Poverty reduction
• Food security
• Rural development
• Structural transformation
Promoting value addition and productivity in agriculture
• Horizontal: economy-wide policies– Ensure macroeconomic stability
– Invest in human capital
– Improve infrastructure
• Targeted: measures directed at specific sector or issue– Strengthen market access for smallholders
– Support innovation
– Facilitate access to finance
Regional and international cooperation
• Reduce trade barriers
• Lower transaction costs
• Strengthen regional value chains
Intra-African agricultural trade
2017
22.5
20002000
2017
14.7
-
2'000
4'000
6'000
8'000
10'000
12'000
14'000
16'000
2000 2017
Intra-African agricultural exports (million USD)
SITC 0 + 1 + 2 + 4, less 27 and 28
8.3
Share of intra-African exports excl. agriculture (%)
16.3
Share of intra-African agricultural exports (%)
Intra-African agricultural trade
0
5
10
15
20
25
30
35
AMU CEN-SAD COMESA EAC ECCAS ECOWAS IGAD SADC
Share of intra-REC agricultural exports (%)
2000 2016
African Continental Free Trade Area
• Establish single continental market
• Boost intra-African trade
• Consolidate regional FTAs
• Promote regional integration
Intra-African regional cooperation
• Create regional market places: e.g. Mombasa Tea Auction
• Strengthen regional infrastructure: e.g. Maputo Development Corridor
• Develop cross-border mobile payment systems: e.g. Burkina Faso-Cote d'Ivoire, Tanzania-Rwanda mobile-to-mobile service
Summary
• Agricultural development is a crucial aspect of the sustainable development agenda
• Horizontal and targeted policies can promote value addition and productivity in agriculture
• Regional and international cooperation can play an important role
