Commonwealth Economic Paper Series – serie

In the eyes of the world, the Cancun Trade Ministerial Meeting will act as a litmus test of the major industrial countries' commitment to inclusive globalisation, to meeting the Millennium Development Goals (MDGs) and to a stable and peaceful world. Increased trade opportunities provide the best means of placing poor countries on a higher trajectory of growth and poverty reduction. The current system does not work for many developing countries and imposes burdens on the consumers of the developed world.The launching of the Doha Round gave a boost to the multilateral trading system. The lessons from Seattle and the unifying perspective that emerged after 9/11 led to the recognition of the need for a new approach. It is now important that Cancun delivers on the promises built into the Doha Development Agenda. Key areas where decisions at Cancun are seen as essential are: agriculture, TRIPS/health, non-agricultural market access, special and differential treatment/implementation issues, review of the dispute settlement understanding; and the Singapore issues. It will not be possible to transform the lives of the poor and attain the Millennium Development Goals without delivery on the Doha Development Agenda.This publication is a compilation of papers on the key issues for the Cancun Trade Ministerial meeting to be held in September 2003. It is intended primarily to assist policy-makers in Commonwealth developing countries, particularly small states and LDCs, in preparing their negotiating position for Cancun.

Taxation is a significant factor in determining the global distribution of economic activity, particularly in the financial services sector, one of the most rapidly growing components of the global economy. The participation of small and developing countries in this sector depends on creating a 'level playing field' between rich countries on the one hand, and small and developing countries on the other. It also requires mechanisms for removing the present and potential future discrimination against small and developing countries in this sector. Stoll-Davey analyses recent debates between the OECD and small and developing countries (represented through the International Trade and Investment Organisation), and suggests ways to ensure fairness in future international taxation matters.

This Economic Paper considers the likely effects on African, Caribbean and Pacific countries of the European Union’s Directive on Illegal, Unreported and Unregulated (IUU) Fishing, planned to be implemented from 2010. It will be difficult for developing countries to meet the requirements of the directive at time when many aspects of globalisation are supportive of IUU fishing. The authors argue that even though measures to combat IUU fishing are welcome, developing countries will require comprehensive technical and financial resources to effectively implement this directive, otherwise a disproportionate burden of global efforts to combat IUU fishing will fall on them.

Small states are vulnerable to the effects of the global financial crisis because of their high dependence on foreign direct investment, the importance for them of export earnings, and high levels of remittances and aid flows. The crisis thus also in turn affects investment and private sector development. This Economic Paper examines the effects of the crisis on three countries: Mauritius, St Lucia and Vanuatu. Only Vanuatu is relatively resilient so far, with the effects on investment in Mauritius and St Lucia being dramatic, though affecting different sectors in each country. The policy responses followed also differ markedly. The authors demonstrate once again the vulnerability of small states to shocks, and emphasise that they are often at the receiving end of global policies, particularly so in the context of the global financial crisis. They argue that more could be done to clarify and address the greater vulnerability of many small states.

This Economic Paper presents the first analyses of the use and effectiveness of Aid for Trade (AfT), the initiative to help developing countries boost their involvement in the global economy, for small and vulnerable economies (SVEs). It examines in detail the extent to which SVEs have been able to access AfT funds and to what extent this assistance has helped them to improve their trade performance.Well designed trade-related assistance will help SVEs face the challenges posed by their characteristics, particularly when the prospects for small states have been deteriorating further due to preference erosion and the emergence of new and large competitors.

An increase in external shocks, international terrorism and natural disasters over the past two decades has led to unsustainable debt burdens in small and vulnerable states, resulting in debt restructuring programmes.This paper highlights the concerns of Commonwealth small states about their growing debt burden and the emerging challenges to their overall debt sustainability. It pinpoints the factors that lead to debt, the hurdles involved with debt restructuring and the weaknesses involved in debt management. It offers key lessons learned based on the experiences of seven small Commonwealth countries that have restructured their debts: Antigua and Barbuda, Belize, Dominica, Grenada, Jamaica, St Kitts and Nevis, and Seychelles.

The global financial crisis of 2007–08 triggered a plethora of regulatory reforms under the auspices of international bodies such as the G20 and Financial Stability Board. Yet the implementation of these reforms remains a task for individual countries. This paper presents a risk-based framework for implementing international financial regulation within national economies, in particular in small states. It shows how these countries can navigate the standard setting processes used by the relevant international bodies. It includes case studies to illustrate how the framework can be integrated with standard setting processes to improve outcomes for small states.

Public policies in taxation and revenue management are key to ensuring natural resource wealth results in economic development. Tax policy and systems should ensure that whenever natural resources are extracted, the host state receives a fair share of revenue. Revenue management policies are required to ensure that government revenues from natural resources are wiselyused to finance sustainable economic development.This Economic Paper analyses key issues in natural resource taxation and revenue management and recommends policies that can improve countries’ economic performance. The discussion draws on economic theory, empirical evidence and the work of the Commonwealth Secretariat.

‘Extreme uncertainty’ is a Brexit catchphrase that applies fully to the UK’s future trade relationship with developing countries - which includes many Commonwealth member countries - as well as with the remaining EU members.This compilation of essays offers timely and expert commentary on how a new UK trade policy towards the EU and developing countries could be designed and implemented. The essays unbundle complex issues and offer a context for the current debate, as well as providing a framework within which to assess and discuss the ongoing negotiations.The collection is based on a workshop that was held at the Commonwealth Secretariat in London in early 2017, as part of the Economic and Social Research Council-funded project entitled 'Governance and Economic Integration through Free Trade Agreements'.