Five key emerging market economies, commonly termed the BRICS (Brazil, Russia, India, China and South Africa), have been lauded for their stellar economic growth and resilience through the 2008/09 financial crisis. According to this paper, they are becoming models of development for development practitioners, researchers and other emerging economies. However, not all people in these countries have benefited equally from growth. Some countries have seen enormous increases in income inequality – specifically China, India and South Africa – while Brazil has enjoyed a reduction. What can be learnt, in terms of the challenges and successes of reconciling growth and equity, from the BRICS’ recent growth? The authors examine the experiences of four of the BRICS – Brazil, China, India and South Africa – and identify four key factors shaping the countries’ pattern of growth: access to assets, above all skills, to enable people to participate in activities that generate income, and ensuring access to land; investment in productive activities that generate jobs and opportunities for the majority; social transfers to guarantee minimum incomes to those who cannot work or cannot find work; and a political-economic context that has inclusion as a priority.
Health equity in economic and trade policies
Africa’s ability to leverage its increasing visibility and preference for South-South economic partnerships will significantly depend on how well it is equipped to manage the intellectual property complements and components of the contemporary economic transformations, according to this article. The continent suffers from a lack of IP manpower in the judiciary and academia, as the development of capacity and expertise has not kept pace with the expansion and sophistication of intellectual property. That state of affairs depicts a structural fault line in Africa’s ability to optimise on-going economic and social transformations. The author argues that Africa needs need expertise in IP such as patent rights, especially in biotechnology at large, including health, food, agriculture, chemistry, pharmaceuticals. He recommends stronger collaboration between members of the Africa diaspora and those back home in Africa as a way forward. Strong local institutional commitment is needed to buy into this vision. To achieve this, countries will require a culture of transparency, accountability and efficiency in the management of collaborative research funds and other forms of assistance and partnership.
Private Chinese outbound investment, not as well-known as government-led investment, offers both opportunities and challenges for Africa, according to this paper. The significance of Chinese private-sector investment is already visible in the burgeoning manufacturing sector in some parts of Africa, and the trend will continue to grow in the near future. The underlying force behind this trend is the increased pressure of industrial restructuring in coastal China, a force that drives some labour-intensive firms to relocate to other parts of the developing world, including Africa. The author argues that African host country governments can respond to this phenomenon with proactive development policies and strategies to maximise private Chinese investment for the benefit of their own economies.
In this new report, Eurodad reports that hidden ownership of companies and other legal structures facilitate tax evasion, and argues that better information about who owns and controls companies and other set-ups is key to bringing trillions of dollars of offshore wealth back into the tax net and to help prevent future capital flight. The authors call for governments to create publicly available registers of the owners and controllers of companies, trusts and other legal structures and to improve compliance with, enforcement of and sanctions for anti-money laundering rules.
Pierre Laporte, Minister of Finance for the Seychelles, revealed government’s new plans for a Corporate Social Responsibility (CSR) Fund in his budget speech in December 2012. Businesses now have four options to contribute to social development, namely sponsorship, donations, direct funding of community projects, or contribute to the new Fund. All businesses that make a turnover of SR 1 million and above will be expected to contribute to the Fund a rate of 0.5% of their turnover. The Minister clarified that Government will continue to fund infrastructure projects in districts, and CSR funds would be expected to go to areas such as environment, beach and coastal management projects, health and wellness including sports, renewable energy and others to be decided upon. Supporters of the Fund are hoping it will become a sustainable funding mechanism for civil society groups.
Senior delegates from 63 of the 79 African, Caribbean and Pacific (ACP) countries, including some 15 Heads of State, attended the ACP Summit in December 2012. This summit declaration highlights members’ determination to “stay united as a Group” and retain relevance by “enhancing the ACP-European Union (EU) relationship as a unique North-South development cooperation model, while developing South-South and other partnerships. A new working group will reflect on the response of the ACP Group to global challenges. Officials also decided to set up a high-level panel to advance trade negotiations with the EU.
African Union ministers of trade and agriculture gathered in early December 2012 at a joint conference in Addis Ababa to discuss their growing and increasingly overlapping work agendas. Agriculture remains the key source of income and employment for most Africans, while efforts intensify across the continent to liberalise intra-regional trade. In this blog, the authors summarise the main resolutions from the summit, while the final outcomes document is being drafted. Ministers agreed to accelerate implementation of the Plan of Action for Boosting Intra-Africa Trade in both agricultural commodities and processed food products. This is hoped to lead to an early deal to liberalise key regional food staples markets, as part of the continental free trade area. They also identified the national and regional compacts and investment plans of the Comprehensive Africa Agriculture Development Programme (CAADP) as the main instruments to define and operationalise trade-agriculture collaboration, while strengthening the capacity of relevant institutions and producers to effectively participate in these innovative practices and monitor their impact at country level. While they acknowledged the need to work at national, regional and continental levels to remove trade barriers in agricultural commodities, they emphasised that without immediate follow-up, food security will remain uncertain.
This book presents a detailed account of South-South collaboration in the health biotechnology sector. In particular, it casts light on the factors that guide effective scientific partnerships and exchanges. The authors explore these issues by combining a wide range of quantitative and qualitative methodologies, including co-publications analyses, in-depth surveys of biotechnology firms and interviews with around 350 researchers, entrepreneurs and policy-makers in developing countries. The key findings indicate that the level of South-South collaboration among researchers in health biotechnology remains low but is slowly increasing and that entrepreneurial collaboration seems to be more prevalent. Collaboration has helped to extend capacity in health biotechnology research, manufacturing and innovation to an increasing number of developing countries and thereby lessened the divide between them. Such collaboration has strongly focused on shared health needs and has helped to increase the availability of more affordable health products and services. Governments and non-governmental organisations have also been able to foster closer ties between researchers by establishing programmes and extending funding for collaboration. Nevertheless there is still a lack of dedicated resources.
Many developing countries have entered into bilateral investment treaties (BITs) to protect foreign direct investment (FDI), which entail substantial restrictions on the sovereignty of recipient countries. At the end of 2011, 2,833 BITs had been signed worldwide. The granting of legal protection to foreign investors under BITs and other agreements (such as chapters in free trade agreements negotiated with developed countries) has often been seen as necessary to attract FDI. However, the author of this article argues that it is doubtful whether they have actually been effective in generating investment flows and promoting development gains. Moreover, many low or middle income countries that have signed BITs have been sentenced by international arbitral tribunals to pay millions of dollars as a result of alleged violations to these treaties. The authors caution that awards by tribunals have been based on overbroad definitions in the agreements and ambiguous legal standards such as “fair and equitable treatment” that have led to negative court outcomes for policies adopted in the public interest. The author presents a case study of Uruguay, where the government is being sued by a major tobacco manufacturer for issuing stricter packaging and labelling requirements for cigarettes to reduce tobacco consumption.
Least developed countries (LDCs) that are members of the World Trade Organisation (WTO) have submitted a request to the TRIPS Council for an extension of the transition period for them to comply with the TRIPS Agreement for as long as they are classified as LDCs. The request was submitted by Haiti, on behalf of the LDCs, at a meeting of the TRIPS Council on 6-7 November 2012. The exemption will continue to allow LDCs to access affordable medicines without the risk of violating patents on the medicines. Haiti argued that because of their extreme poverty, LDCs need the policy space to access various technologies, educational resources, and other tools necessary for development. Furthermore, LDCs have such small economies that they do not represent a significant loss of profits for pharmaceutical patent owners. Most intellectual property-protected commodities are simply priced beyond the purchasing power of these countries’ governments and their nationals, the spokesperson for Haiti added. Haiti has asked for this issue to be put on the agenda of the next TRIPS Council meeting, scheduled to take place in March 2013.