Latest news with #UNCTAD
Bangkok Post
19 hours ago
- Business
- Bangkok Post
Global banking rules need review
In an era of shrinking resources for development finance, global policymakers must shift their focus to making better use of existing funds. Identifying and removing regulatory barriers that hinder the efficient deployment of capital to emerging markets and developing economies (EMDEs) is a good place to start. The Basel III framework, developed in response to the 2008 global financial crisis, has played a crucial role in preventing another systemic collapse. But it has also inadvertently discouraged banks from financing infrastructure projects in EMDEs. At the same time, advanced economies, with debt-to-GDP ratios at historic highs, face mounting fiscal pressures. Servicing these debts consumes a growing share of public budgets just as governments must ramp up defence spending and boost economic competitiveness, resulting in cuts to foreign aid. Together, these pressures underscore the urgent need to mobilise more private capital for investment in EMDEs. Building resilient and sustainable economies will require transformational investments across the developing world in infrastructure, technology, health, and education. According to the United Nations Conference on Trade and Development (UNCTAD), EMDEs must raise more than $3 trillion annually beyond what they can raise through public revenues to meet critical development and climate targets. Amid these challenges, prudential regulation impedes the ability of EMDEs to raise private capital. This issue can be traced back to the global financial crisis, which wiped out $15 trillion in global GDP between 2008 and 2011. Since the crisis stemmed from weak capital and liquidity controls, as well as the unchecked growth of innovative and opaque financial products, Basel III was designed to close regulatory loopholes and bolster oversight, particularly in response to the rise of the non-bank financial sector. While the revised framework addresses the vulnerabilities that triggered the 2008 crisis, its focus on advanced economies and systemically important financial institutions inadvertently imposes several requirements that restrict capital flows to EMDEs. For example, Basel III requires banks to hold disproportionately high levels of capital to cover the perceived risks of financing infrastructure projects in EMDEs. But these risks are often overestimated. In fact, the data suggest that by year five, the marginal default rates for development loans are lower than those for corporate loans extended to investment-grade borrowers. But despite the lower risk profile, banks are required to hold more capital against development-finance loans than they do against loans to unrated companies over the life of the project. Insurers encounter similar regulatory barriers. Under the European Union's Solvency II framework, an insurer investing in an EMDE infrastructure project faces a capital charge of 49% -- nearly double the 25% required for a comparable project in an OECD country. Historical data show that infrastructure loans in EMDEs perform just as well as those in advanced economies. The significantly higher capital costs that banks incur when making infrastructure loans to EMDEs deter them from supporting transformative, high-impact projects, steering capital toward safer, low-impact investments. Multilateral Development Banks (MDBs) -- international financial institutions, backed by guarantees from developed-economy shareholders and AAA credit ratings, can help reduce capital costs by co-financing EMDE projects and providing lenders with additional assurances. But even when MDBs share the risk, the resulting exposures often remain subject to a 100% capital charge, undermining the very benefits that multilateral engagement is meant to provide. To be sure, Basel III's foundational principles are sound. Capital buffers and liquidity ratios that reflect institutional risk profiles are essential for maintaining financial stability. But several rules within the otherwise well-designed Basel III framework limit EMDEs' ability to pursue sustainable development while doing little to mitigate systemic risk. To improve the regulatory framework for EMDEs, the G20 must take four key actions, using this week's meeting of G20 finance ministers and central-bank governors in Durban, South Africa as a platform for cooperative leadership. First, recalibrate capital requirements for infrastructure project finance to reflect real-world default performance, particularly in the post-construction phase. Second, expand the list of MDBs eligible for 0% risk-weighting under Basel III to include high-performing regional institutions, such as the Africa Finance Corporation, that have investment-grade ratings. Third, clarify the definition of "unconditional guarantees" so that more MDB-backed risk-sharing instruments can qualify for favourable regulatory treatment. And lastly, introduce capital-charge discounts for blended finance structures co-financed by A-rated institutions, with the level of discount varying by rating. These reforms do not require new taxpayer commitments; they simply align regulation with actual risk. Implementing them would crowd in more private investment, reduce borrowing costs for developing countries, and accelerate progress toward transformative development that creates much-needed jobs. The G20 must address these regulatory roadblocks so that capital can flow to where it delivers the greatest value. Reaching consensus on how to lower capital costs for emerging-market economies is one of the top priorities at the meeting of G20 finance chiefs. Reforming the Basel III framework would be a relatively low-cost, high-impact way to mobilise investment, drive job creation, and support sustainable growth in emerging markets. ©2025 Project Syndicate. Vera Songwe, is a non-resident senior fellow at the Brookings Institution. Jendayi Frazer, is a visiting fellow at the Hoover Institution. Peter Blair Henry is the Class of 1984 Senior Fellow at the Hoover Institution.
Zawya
5 days ago
- Business
- Zawya
The Economic Community of West African States (ECOWAS) Champions Women-Led Digital Trade in West Africa
The Economic Community of West African States (ECOWAS), in collaboration with the United Nations Conference on Trade and Development (UNCTAD) and with the support of the Western Africa Regional Digital Integration Program (WARDIP) funded by World Bank, convened an eTrade for Women Joint Workshop in Lagos, on Friday July 17th, 2025, to spotlight and strengthen the role of women-led digital businesses in regional trade. This event was held as part of a broader regional agenda to build a more inclusive, connected, and digitally enabled West Africa. In his statement on behalf of Madame Massandjé TOURE-LITSE, Commissioner for Economic Affairs and Agriculture, Mr. Kolawole SOFOLA, Director of Trade at the ECOWAS Commission, welcomed participants and noted the event's importance in advancing inclusive digital transformation. He highlighted that the ECOWAS E-Commerce Strategy, adopted by the ECOWAS Council of Ministers in July 2023, places women, youth, and small-scale producers at the centre of digital trade reforms to promote regional integration and inclusive development. Through platforms and dialogues such as the workshop, ECOWAS reaffirms its commitment to gender-responsive policymaking and sustainable digital trade development in West Africa. In her opening remarks, Madam Sonia NNAGOZIE, the representative of the United Nations Conference on Trade and Development (UNCTAD) highlighted the role of digital trade in unlocking new opportunities for women entrepreneurs across West Africa. She echoed the importance of the workshop in delivering actionable recommendations to improve women's participation in digital trade. She went on to commend ECOWAS for leading the way in building an enabling digital ecosystem that supports women and appreciated the ongoing partnership between UNCTAD and ECOWAS. The workshop served as a platform for dialogue, policy coordination, and knowledge sharing. Participants discussed the structural and policy barriers women face in participating in the digital economy, and shared practical solutions and good practices that promote women's digital empowerment. The event also showcased ECOWAS-led initiatives such as the ECOWAS Trade and Gender Action Plan, export readiness trainings, and platforms like the 50 Million African Women Speak (50MAWS) and the Business-to-Business matchmaking platform of the West Africa Competitiveness Observatory. The Workshop was attended by a cross-section of stakeholders including women entrepreneurs, representatives of Ministries responsible for trade in ECOWAS, and development partners. Distributed by APO Group on behalf of Economic Community of West African States (ECOWAS).
Hans India
20-07-2025
- Entertainment
- Hans India
Performing arts in the creative economy
The performing arts encompasses dance, theatre, music, puppetry, and folk expression. From the vedic era Bharat has experienced a dynamic mode of communication which was more than entertainment. These were instruments of education, social change, political expression, and cultural continuity. Today, these traditional forms are finding new relevance within the framework of the creative economy, integrating with technology and innovation to open up expansive opportunities for enterprise. What is Creative Economy? The creative economy has created a niche space in new economics which covers interdisciplinary sectors of culture, creativity, and knowledge-based intellectual capital. According to the UNCTAD's Creative Economy Outlook 2024 there is a varied economic contributions of the creative economy across different countries, ranging from 0.5% to 7.3% of GDP and employing between 0.5% to 12.5% of the workforce. The Creative services exports marked 29% increase from 2017 surging to $1.4 trillion in 2022. It's interesting to note that over the past decade (from 2002), the share of creative goods' exports has remained steady around 3% and the creative services' share rose from 12% to 19%. Though the export of creative goods exports reached $713 billion with a 19% increase, the analytics are captivating. The primary export of developing countries is creative goods, while developed countries dominate creative services exports. However, developing countries have significantly increased their share from 10% in 2010 to 20% in 2022. The analysis indicates that the creative economy is driving growth and employment. It includes arts, media, design, film, publishing, fashion, advertising, heritage, and digital innovation. The Performing arts sit at the heart of this ecosystem bridging tradition with technology, emotion with storytelling, and heritage with innovation. Communication Tool From Ancient Times to Airlines The performing arts has been a powerful mode of mass communication. From temple dancers narrating epics through Bharatanatyam or Kathak, to the use of Nautanki and Jatra in rural awareness campaigns, performing arts have served as living newspapers, educators, and catalysts for collective consciousness. A brilliant contemporary example is the Indian Airlines safety demo, choreographed in the classical Bharatanatyam style. This innovative step has communicated safety protocols effectively but celebrated Bharatiya culture in a modern context by demonstrating how performing arts can be meaningfully woven into even the most unexpected sectors. Education and Skill Development The modern pedagogy is increasingly embracing performing arts to enhance comprehension, empathy, and creativity. The concepts in subjects like history, science, language, and even mathematics can be internalised effectively through performance-based learning. For instance: •Puppetry has been used to teach environmental conservation and sanitation in schools. •Street theatre (Nukkad Natak) is used in public health campaigns for behavior change. •Role-play and improvisation are effective in soft skills training, language acquisition, and even corporate leadership modules. This creates scope for enterprising individuals by creating a niche market with high demand to offer experiential learning solutions, workshops, and educational content blending performance with curriculum. Performing Arts as Enterprise Performing arts in the digital age are evolving with new entrepreneurial avenues, particularly when integrated with technology, design, and digital tools. For instance, Classical dance helps logical thinking and also time management by synchronising with the rhythm. Digital Content & Streaming: Artists now use platforms like YouTube, Instagram, and OTT services to create folk-based web series, host virtual performances, and engage audiences through tutorials and storytelling. For instance, Raja Kumari blends Indian classical dance with hip-hop for global reach. VR & AR Integration: Immersive technologies enable virtual performances, AR-based dance tutorials, and interactive theatre. Startups can recreate classics like Shakuntalam or Ramleela using VR for global audiences. Edutainment & Curriculum Integration: Ed-tech ventures are using performing arts to develop school modules, train teachers, and build apps/games rooted in traditional forms. Example: Kahaani Box simplifies learning through theatre. Cultural Tourism & Event Curation: Entrepreneurs curate festivals, community theatre, and cultural cafés to offer immersive cultural experiences. Therapeutic & Wellness Applications: Performing arts are used in mental health, therapy for neurodivergent children, and wellness programs combining dance, music, and yoga. Reviving Traditional Forms with Innovation: Indigenous arts like Baul, Yakshagana, and Therukoothu are being revived through digitisation, AI, animation, and online courses. Youth can become cultural entrepreneurs by fusing tradition with technology and storytelling for global appeal. Performing arts are gaining policy support as a tool for job creation and cultural diplomacy. Schemes like Startup India and UNESCO's Creative Cities offer funding, while institutions can scale arts education. Challenges like digital access and market gaps need public-private partnerships, mentorship, and targeted skill development to unlock full potential. Many artists in the country especially woman dedicated years of energy in learning the art should reimagine as a Creator, Educator, and Innovator. Repurposing performing arts with innovation and technology empowers artists, drives the creative economy, and strengthens Bharat's cultural and economic identity. (The writer is a Creative Economy Expert)
Indian Express
19-07-2025
- Business
- Indian Express
India-EU FTA talks: Why resolving differences in services is a significant step forward
In the 12th round of negotiations that concluded earlier this month, India and the European Union managed to close the digital trade chapter 'in principle' and made substantial progress on the text dealing with 'services and investment', marking a significant step forward in concluding the Free Trade Agreement (FTA) that both sides aim to sign by the end of this year. The digital trade chapter of the FTA discussions covers crucial segments such as cross-border data flows, where trade partners decide on commitments to regulate movement of data across borders, which is important for e-commerce and global services. To be sure, the textual positions taken by both sides have not yet been made public. However, bridging the regulatory gap in services between India and the EU would open the door for the Indian services sector to integrate more deeply, scale up, and attract greater investment. This is important since the EU is the largest investor globally, and services represent over 70 per cent of the EU's foreign direct investment (FDI) abroad. According to a 2021 European Parliament report, the EU aimed to remove all 'discriminatory and disproportionate obstacles to establishment in both the services sector, as well as to the supply of cross-border services, in order to ensure a level playing field between EU and Indian service providers'. India has a fast growing IT and financial service sectors that has acted as a cushion for the economy as goods trade remained modest compared to the size of the economy. Regulations on cross-border data flows are among the most contentious topics in trade agreements with the Western countries, especially with the rise of artificial intelligence (AI). Effective AI systems — seen as the cornerstone of the Fourth Industrial Revolution — require diverse datasets from multiple countries. This has sparked a fierce race for data among Silicon Valley firms. India has traditionally resisted altering its stance on data localisation under any plurilateral agreements at the World Trade Organization (WTO) to preserve policy space. It has also tightened norms, notably in April 2018, when the Reserve Bank of India (RBI) made it mandatory for payment system providers such as Mastercard and Visa to store payment data of Indian residents within the country. A 2018 UNCTAD report, Power, Platforms, and the Free Trade Delusion, highlighted the importance of data for innovation. It noted that control over data creates 'market power and barriers to entry for new players'. The UN Conference on Trade and Development (UNCTAD) also highlighted the potential benefits of data localisation, including encouragement to foreign investment in domestic digital infrastructure, enabling enforcement of national laws, as well as safeguarding privacy and cyber sovereignty. Countries such as Vietnam and the Philippines have implemented such measures to promote local capabilities and protect infant industries. The EU status report on the trade talks also stated that negotiators made substantial progress on the investment text. The negotiators had made very good progress on rules for state-to-state mediation, it added. Movement on dispute settlement is significant since it suggests a breakthrough on long-standing EU concerns regarding investment protection in India. A European Parliament report had previously expressed regret that 'uncertainties remain for EU investors, notably as a result of India's decision to unilaterally terminate all its bilateral investment treaties (BITs) in 2016'. However, India has since begun to address the issue by negotiating new investment treaties under a revised framework. While India has shown flexibility in its position, favouring resolution of investor-state disputes under domestic laws, the EU has stated that an investment protection agreement could serve as an 'adequate stepping stone for further strengthening bilateral trade relations,' as it encourages negotiators to work towards establishing a multilateral investment court. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
CNBC
16-07-2025
- Business
- CNBC
Expect tariff 'cascade' effect across slowing global economy, top UN official warns
The leading arm of the United Nations focused on trade and development, UNCTAD, says President Trump's tariff policies are already creating new costs and disruptions in the global supply chain, and for less developed nations that trade with the U.S., the worst economic fallout hasn't hit yet. "We already see a disruption in the global supply chain," said Rebeca Grynspan, Secretary General of UNCTAD. "Many of the CEOs sit and wait, because if there is no predictability, and what you need for trade and investment is predictability and trust," she added. Earlier this year, UNCTAD released data showing global investment back at financial crisis era levels. The UN arm is also forecasting one-half a percentage point to be shaved off of global growth this year. "We are worried the high level of uncertainty is paralyzing business decisions, which is impacting trade, resulting in trade being revised downward," Grynspan said of the lowered global GDP forecast of 2.3%, down from 2.8%. "This is a lot," she said. "This is already much lower than the growth we experienced in the last decade," she added. U.S. consumer inflation increased in June, a spike attributed to higher prices on consumer goods imported from foreign countries, though the Trump administration says tariffs do not cause inflation. Vietnam, Cambodia, and Malaysia, three Asian countries that benefited from the "China Plus One" supply chain strategy that saw more manufacturing move to these countries, are seeing an impact as supply chains shift again, Grynspan said. Trump has threatened to add a 40% tariff onto any good that uses what is known as transshipment, with a product's journey starting in China but then moving to nations such as Vietnam to avoid Chinese tariffs. The layering of tariffs will cause the most economic pain for the least developed nations globally, according to the UN official, with a combination of existing tariffs and Trump tariff threats resulting in a stacking up of trade taxes that could lead to a reduction in exports of over 50%. "This is a cascade," she said. "It will affect jobs, and it will affect the stability in many countries, where even growth will be lower than the average in the world," Grynspan said. "If you take the least developed countries of the world, 46 countries that are the most vulnerable, we project that their exports could be impacted, as much as 54% down, if the tariffs are put on them," she added. Cambodia's exports to the U.S. represent more than 10% of its GDP, according to the Center for Global Development. Tariffs imposed by the Trump administration could erase over $4.5 billion in Cambodian exports over the next four years, with garments and travel goods suffering the largest blows, according to research firm Datawheel, with increasing risk to Cambodia's economic and social stability. Grynspan said while it is a good sign that the Trump administration wants to negotiate trade agreements, these deals are complex and take time to complete, and the current uncertainty is impacting economic growth and investment. At the same time, another inflationary challenge for the global supply chain has picked up again, with increasing aggression of Houthis towards freight vessels in the Red Sea. Two vessels were attacked in recent weeks, resulting in the sinking of one containership. "These choke points are very important (to trade)," Grynspan said. "When they are disrupted, the whole system suffers." She said the latest attack in the Red Sea raised the war premium in marine insurance by 1% above the value of the ship, or as much as $1 million. Added fuel costs as a result of ocean carriers traversing longer routes to avoid the Red Sea adds to inflationary pressures. She said the Red Sea situation alone could add 0.6% to global prices.
