Post 2015: Global Action for an Inclusive and Sustainable Future

CHApTER EIgHT
8
A major limitation
of the MDGs is
that they failed
to include
dimensions
of structural
economic
transformation
or to integrate
the development
of productive
capacities in poor
countries.
138
gOODS: TRADE AnD InvESTmEnT
8.1 Introduction
This chapter discusses the role of trade
and investment policies in a post-2015
development framework. as discussed in
chapter 1, a major limitation of the mDGs
is that they failed to include dimensions of
structural economic transformation or to integrate
the development of productive capacities in poor
countries. this means that while the mDGs address
some of the social aspects of development, they do not
pay sufficient attention to economic development.
as a result, the long-term sustainability of the social
achievements remains questionable.
the discussion is situated in the changing
landscape of trade and investment and the
challenges faced by marginalised, vulnerable
economies, namely low-income and least developed
countries (lIcs and lDcs). the chapter argues that
the important shifts that are taking place will shape
the context for any post-2015 global framework.
For instance, emerging economies now account
for an increasing share of the trade and investment
portfolios of lIcs and lDcs. asia has emerged
as a manufacturing hub with the evolution of
global value chains (Gvcs) and global production
networks (Gpns). this evolving global context
presents both opportunities and challenges for
marginalised and vulnerable economies.
Few of these economic challenges are new: the lack
of production and trade diversification, dependence
on commodities, small and underdeveloped
EuropEan rEport on DEvElopmEnt 2013
markets, poor infrastructure inhibiting regional
and global connectivity, shallow trade integration
and weak institutional capacities, are all familiar
and yet remain key issues for marginalised and
vulnerable economies. the chapter argues that
the lack of an effective economic dimension in the
mDG framework allowed many of these challenges
to persist, which in turn undermines the mDG
achievements in the social sector. the overwhelming
need, therefore, is for any post-2015 framework to
address these existing problems in the light of the
changing global economic landscape and pressing
environmental challenges. the chapter calls for
such an agenda to focus on helping lIcs and lDcs
to gain productive capacity and achieve structural
economic transformation by leveraging trade and
investment policies.
notwithstanding the increasing role of emerging
economies in lIcs and lDcs, particularly via SSc,
the Eu continues to be important for them – as a
market for their exports, as a source of investment
and as a major donor. It therefore matters both what
the Eu has done to date and what it decides to do
after 2015. Important Eu policy changes will have
major implications for lIcs and lDcs and need to
be factored into the discussions on the Eu’s role in
any post-2015 development agenda. these changes
relate to Economic partnership agreements (Epas),
reform to Eu’s Generalised System of preferences
(GSp), policies on commodities and investment,
and climate change.