Trade monitoring

La economía mundial creció en 2004 el 4 por ciento, la tasa anual de crecimiento más elevada en más de un decenio. Por otra parte, el PIB mundial tuvo el año pasado una base regional más amplia que en los tres años anteriores, lo que constituyó una base sólida para la aceleración del crecimiento del comercio mundial. El comercio mundial de mercancías aumentó en 2004 el 9 por ciento en términos reales (el mejor resultado anual desde 2000) y más del doble que la producción mundial (PIB medido a los tipos del mercado). Además, el crecimiento del comercio superó con creces el promedio del crecimiento registrado durante el último decenio (véase el gráfico 1 y el cuadro 1).

The Trade Policy Review Mechanism (TPRM) was first established on a trial basis by the GATT CONTRACTING PARTIES in April 1989. The Mechanism became a permanent feature of the World Trade Organization under the Marrakesh Agreement which established the WTO in January 1995.

The East African Community (EAC) consists of Burundi, Kenya, Rwanda, Tanzania, Uganda, and South Sudan (which is not yet a WTO Member). Agriculture remains the key driver of the economies of the EAC countries but the services sector is the main contributor to their GDP. In fact, most of the populations (about 80%) live in rural areas and depend on agriculture for their livelihood. High costs of doing business limit the importance of manufacturing to these economies, while recent oil discoveries, mainly in Kenya and Uganda, are expected to boost the economic development of the countries. Nonetheless, EAC countries face various socioeconomic challenges despite their favourable conditions for agriculture, their important sources of renewable energy, and their total population of over 168.2 million. With the exception of Kenya, they all remain least developed countries (LDCs) and are yet to significantly diversify their economies.

“Development” is a far-reaching term, and the subjects of the reviewed literature vary by geographical and organisational coverage, stage of socioeconomic development under study, and perspective adopted. More specifically and substantively addressed is increased participation in global value chains, including upgrading, as applied to firms, industries, and regions. This is driven by both the business practitioner’s and policy maker’s perspectives, and is addressed through the global value chain framework. In contrast to supply chains, value chains provide a better macro-scale perspective on matters such as distribution of income and power across firm networks, and the interlinkages between firms and their socioeconomic environments. Operationalisable typologies of upgrading and value chain governance reviewed here will be of interest to the business practitioner and policy maker. Our literature search also yields a niche body of literature on the subject of rural development and agriculture, which is reviewed near the end of the chapter.