Trade monitoring
Report by the WTO Secretariat
Since 2006, the Plurinational State of Bolivia (Bolivia) has pursued an economic policy whose objective is the structural transformation of the country. The policy is based on the socalled economic, social, communitarian and productive model (MESCP) in which the State plays a vital role by steering and controlling the strategic sectors and participating directly in the economy. According to the authorities, this model seeks to redistribute income and reduce poverty by transferring resources from the strategic sectors that generate surpluses (above all mining and hydrocarbons) to other sectors that promote income and employment. The measures adopted to implement the MESCP include the nationalization of hydrocarbons in 2006 and the consolidation of the role of State enterprises in the Bolivian economy. The model aims to satisfy domestic consumption first, followed by exports, and this priority is reflected in a number of policies adopted (see below). Bolivia’s trade policy has developed in the light of these objectives, adapting to an increased presence of the State in economic activities and the prioritization of the domestic market.
Trade facilitation and foreign direct investment flows in Kenya
This chapter examines the effects of trade facilitation on foreign direct investment (FDI) in Kenya. Using bilateral FDI data for the period 2001–2012, a fixed effects Poisson pseudo maximum likelihood estimation of the gravity model was used in the analysis. The results indicate that improvements of indicators related to the business environment, the quality of port infrastructure, the number of days required for enforcement of contracts and the activities that improve logistics performance, are essential drivers of FDI flows in Kenya. Kenya should therefore enhance efforts to implement trade facilitation measures with a view to deepening integration in global trade and production networks, in order to increase FDI.
Conclusions
Economic progress involves economic disruption, and there has always been an inherent and unavoidable trade-off between the benefits of growth, on the one hand, and the cost of adjustment, on the other. Today is no exception. The expansion of the global economy – spurred by technological advances and market opening – is enhancing the welfare and improving the living conditions of billions of people around the world. But it is also resulting in economic change, displacement and disruption – creating enormous pressure for individuals and societies to adjust and adapt if they are to keep up with, and share in the benefits of, economic progress.