On 31 May 2023 the WTO member states discussed a number of initiatives that aim to strengthening the economic output of less developed countries. The meeting of the Sub-Committee on Least-Developed Countries (LDCs) heard from Angola, Rwanda and international organizations about work undertaken to increase productive capacity. The meeting was interested in considering how good practices in this area could be scaled up. Various speakers noted that trade policy and trade facilitation reforms are considered by business to be high priorities.
UNCTAD project with Angola
A presentation from Angola described a project carried out with the European Union and the United Nations Conference on Trade and Development (UNCTAD) to support economic diversification, strengthen the capacity of institutions and increase integration of Angola into regional and global trade.
The specific areas of the project are trade policy and negotiations; trade facilitation and transport logistics; examination of Angola’s investment policy; the development of small and medium-sized enterprises (SMEs) and the promotion of green exports; definition of opportunities and diversification of non-oil trade; and creative economies.
Productive Capacities Index
UNCTAD presented its Productive Capacities Index (PCI). The Index is a practical tool to assess the status of productive capacity and look at how it could be improved. Productive capacities are productive resources, entrepreneurial capabilities and production linkages such as the flow of information, technology and human resources between firms producing goods and services. These are essential for promoting sustained economic growth and thereby achieving sustainable development.
The PCI can help countries to assess the areas where they are leading or falling behind, highlighting the sectors where policies are working and those where further efforts are needed to correct the issues. The PCI can produce a roadmap for future policy actions in the eight areas covered which are human capital, natural capital, energy, ICTs, structural change, transport, institutions and the private sector.
UNIDO
The United Nations Industrial Development Organization (UNIDO) is working to promote structural transformation in LDCs. An example of its work is the West Africa Competitiveness Programme (WACOMP) . This aims to improve the performance of certain value chains and improve the business climate at national and regional level. The technical support will facilitate integration of countries into the regional and international trading systems.
OECD
The OECD presented work undertaken with Bangladesh and Togo, to bring about reforms to production and trade. The projects also concerned the promotion of renewable energy, increasing digitalisation and boosting regional and continental integration.
World Bank
The World Bank noted the significance of its Aid-For-Trade initiatives in the LDCs which include strengthening institutions; budget support for trade policy reforms; and investment lending for productive capacity.
Rwanda
Rwanda’s Director General for Trade and Investment noted that cooperation with the World Bank aims to improve connectivity, promote export diversification, increase services trade, optimise the benefit of belonging to regional economic blocs and attract foreign direct investment. A presentation on the Great Lakes Trade Facilitation and Integration Project looked at the efforts to improve border management.
