Browsing the blog archives for March, 2010.

Value Chain Finance: an introduction to the debate


The winds of real change are blowing across the trade and poverty debate. We need to understand this change in order to be able to develop an approach that responds to contemporary needs.

First, the debate is changing because the nature of trade has changed. The ways in which new entrants and producers engage with trade have altered as a result of the increased integration of economies into the global trading system – and the fragmentation of stages of production across countries.

Second, since most developing countries have reformed their trade policies to become more liberal, the trade and poverty debate is characterised less by the battle of ideologies between liberalisers and non-liberalisers and more by the urgent need to find development solutions that work in practice.

In Africa, trade liberalisation has resulted in increased trade flows, but this has yet to contribute to significantly faster growth and poverty reduction. The  African experience is not an anomaly. In other developing regions and countries too, trade policy reforms have frequently not delivered the growth and poverty reduction benefits anticipated.

As a result, the key policy challenge lies no longer in whether to participate in global trade, but in how to do so in a manner that augments the productive capabilities and incomes of producers in general, and the poor in particular.

This is the goal of the Partnership for Making Finance Work for Africa, a major initiative to support the efforts of African countries to boost economic growth and fight poverty by encouraging and facilitating development of the financial sector.  RBE is committed to this partnership and is bringing its contribution to the global value chain analysis to the trade, growth and poverty reduction debate.

Claude Guillemain

32, rue du Maroc
2070. LA MARSA  Tunisie
Tel : + 216 71 982 304
GSM: + 216 21 83 53 59
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Skype: klaodgillamaen

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