Post 2015: Global Action for an Inclusive and Sustainable Future
Post 2015: Global Action for an Inclusive and Sustainable Future
Post 2015: Global Action for an Inclusive and Sustainable Future
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CHApTER EIgHT<br />
An import<strong>an</strong>t<br />
element of <strong>an</strong>y<br />
post-<strong>2015</strong><br />
framework should<br />
be to reduce<br />
vulnerabilities to<br />
external shocks<br />
since these c<strong>an</strong><br />
retard structural<br />
tr<strong>an</strong>s<strong>for</strong>mation,<br />
while macroeconomic<br />
instability c<strong>an</strong><br />
undermine<br />
exportdiversification<br />
strategies more<br />
broadly.<br />
164<br />
8.5, the Eu’s assist<strong>an</strong>ce could also address issues<br />
behind the border that could contribute to<br />
promoting inclusive <strong>an</strong>d sustainable development.<br />
this would me<strong>an</strong> a shift in the current approach<br />
that relies on, <strong>for</strong> example, businesses’ adherence<br />
to voluntary initiatives, such as the EItI, towards<br />
ensuring <strong>an</strong> appropriate domestic regulatory<br />
framework. the Eu attempts to bring indirect<br />
influence to bear on ch<strong>an</strong>ges in the domestic<br />
regulatory framework across trading partners<br />
through the sustainability impact assessments<br />
(SIas) it undertakes as part of the process of Fta<br />
negotiations. at present, the SIa process often<br />
stops as negotiations conclude. better aligning<br />
these processes may help to more clearly identify<br />
needs <strong>an</strong>d situate these within a credible trade <strong>an</strong>d<br />
development strategy, given the dem<strong>an</strong>d-driven<br />
nature of the provision of aft.<br />
the process of undertaking SIas as negotiations<br />
begin should continue as negotiations proceed <strong>an</strong>d<br />
beyond their conclusion, as the basis of a continued<br />
dialogue with trading partners, including those,<br />
such as lIcs, with the most severe capacity<br />
constraints. Ensuring that this process ch<strong>an</strong>ges<br />
in a post-<strong>2015</strong> framework, including in relation<br />
to current negotiations with the acp countries<br />
(as discussed in Section 8.5) is one way in which<br />
the Eu could influence sustainable <strong>an</strong>d inclusive<br />
growth. the Eu could help to mitigate <strong>an</strong>y adverse<br />
consequences <strong>for</strong> lIcs as a result of new Ftas, <strong>an</strong>d<br />
to take steps to reduce <strong>an</strong>d mitigate vulnerabilities<br />
that may arise from closer trading relations, as well<br />
as exogenous shocks more broadly.<br />
8.6.2 Reducing vulnerabilities<br />
to external shocks<br />
the post-<strong>2015</strong> environment facing lIcs will include<br />
not only new opportunities related to expected shifts<br />
in trade <strong>an</strong>d investment patterns but also challenges<br />
related to new uncertainties <strong>an</strong>d potential scarcities.<br />
In this sense, <strong>an</strong> import<strong>an</strong>t element of <strong>an</strong>y post-<strong>2015</strong><br />
framework should be to reduce vulnerabilities to<br />
EuropE<strong>an</strong> rEport on DEvElopmEnt 2013<br />
external shocks since these c<strong>an</strong> retard structural<br />
tr<strong>an</strong>s<strong>for</strong>mation, while macroeconomic instability<br />
c<strong>an</strong> undermine export-diversification strategies<br />
more broadly.<br />
owing to the ch<strong>an</strong>ges in the way in which<br />
commodities are traded there is a need to focus policy<br />
interventions on preventing the vulnerabilities<br />
associated with rapid ch<strong>an</strong>ges in commoditygenerated<br />
incomes (or expenditures) (niss<strong>an</strong>ke <strong>an</strong>d<br />
Kuleshov, 2012; niss<strong>an</strong>ke, 2011). this would entail<br />
more macro-level <strong>an</strong>d differentiated interventions.<br />
this is because the multitude of problems <strong>an</strong>d<br />
issues related to commodities across the acp group<br />
necessarily leads to the fragmentation of individual<br />
actions, <strong>an</strong>d calls <strong>for</strong> greater differentiation among<br />
different types of commodity exporters <strong>an</strong>d<br />
importers. In this sense, the fragmentation of the<br />
acp group as discussed in Section 8.5 is viewed<br />
rather more positively.<br />
In this section we identify <strong>an</strong>d discuss three<br />
policy areas where action could be taken to reduce<br />
the vulnerability of lIcs to external shocks <strong>an</strong>d<br />
there<strong>for</strong>e assist in the process of achieving the<br />
structural tr<strong>an</strong>s<strong>for</strong>mation of their economies.<br />
again, the Eu is used simply to illustrate how these<br />
measures might be implemented.<br />
(a) Moving towards targeted interventions<br />
a focus on the specific challenges producers face<br />
within particular countries, as opposed to more<br />
generally across the acp group, will necessarily<br />
entail movement from generic policies towards<br />
more targeted interventions. It is in this sense<br />
there is a need to reconsider existing instruments<br />
such as the Eu’s raw materials Initiative (rmI),<br />
which proposes bl<strong>an</strong>ket-type policy coverage across<br />
commodity exporters, as discussed in Section 8.5.<br />
this is because the rmI focuses on a list of 14 critical<br />
mineral commodities, where the policy towards<br />
third countries is aimed at securing a ‘level playing<br />
field’ in access to raw materials. this is based on the<br />
assumption that the current global trade system offers
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