Without policy change, commodity-dependent developing countries (CDDCs) risk falling short of achieving sustainable development by 2030, a new United Nations (UN) report has warned.
“Without a renewed commitment to policy change, CDDCs are by 2030 set to lag behind countries with more diverse economies in their social and economic achievements,” said a UN spokesperson.
This as global food and non-food commodity prices, except oil, are expected to remain at 2010 levels.
The report pointed out that while the 2003-2011 commodity price boom had driven up export revenues and economic growth rates for CDDCs, this trend had slowed down or, in some cases, completely reversed as global commodity prices stabilised at a lower level.
According to the UN, this highlights the importance of investment in human capital, social protection and redistributive properties while pursuing structural transformation for CDDCs.
“Policies that can promote inclusive growth over the next 15 years include economic diversification, expanding the linkages between the commodity sector and the national economy and adding value to raw commodities,” added the spokesperson.
