Trade

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The Commonwealth believes that access to international markets presents tremendous opportunities for poor countries to trade their way out of poverty. It also believes that an open trading system will help increase income levels and reduce poverty. The Commonwealth Secretariat is at the forefront of advocating the conclusion of a forward looking international trading regime that is open, free and development oriented. It does this through assisting developing member countries to gain skills to improve their understanding of trading rules and regulations. It also helps them to strengthen their effectiveness in participation in WTO negotiations, providing policy advice, research, advocacy, and other forms of technical assistance.

For example, the Hub and Spokes Project promotes the effective participation of African, Caribbean and Pacific (ACP) countries in international trade negotiations and works to strengthen their capacity to formulate and implement trade policies. It does this through placing trade experts in selected ACP countries to provide this expertise.

What are the Secretariat’s goals in this area?

Our goals are to contribute towards:

• Ensuring Commonwealth countries are in a better position to attract capital flows and manage increased levels of investment, including for private sector development.
  
• Increasing understanding by governments of macro-economic and global financial issues and the impact of global changes on national economic and social development, including different impacts on women and men
  
• Helping countries improve their ability to negotiate on trade and to formulate, manage and implement trade policies which ensure gender equality.
  
• Assisting countries who are negotiating support and advancing international trade and the economic agenda in international settings.
  
• Helping countries participate effectively in the international trading system
  
• Working with member countries to help them promote viable competitive enterprises that generate employment, income and reduce poverty
  
• Assisting countries in managing debt – whether that of the government and public entities or of the private sector.
  
• Helping countries establish maritime boundaries on the basis of international law
  
• Improving the management and development of natural resources – including mining, oil and gas – by Commonwealth countries.
  
• Helping small states concerns to be given greater international attention

How do we measure progress?

Projects are designed in close collaboration with countries and local stakeholders. We measure progress using a set of previously-agreed performance indicators.

If you would like to request assistance from the Secretariat what should you do?

Requests for assistance from our Special Advisory Services Division (SASD) should be sent to:

The Director
Special Advisory Services Division
Commonwealth Secretariat, Marlborough House
Pall Mall, London SW1Y 5HX

Fax: +44 (0)20 7747 6307

Requests for assistance from our Economic Affairs Division (EAD) should be sent to:

The Director
Economic Affairs Division
Commonwealth Secretariat, Marlborough House
Pall Mall, London SW1Y 5HX

Fax: +44 (0)20 7747 6250

Where can I buy publications on debt management, economic affairs and the economics of small states?

Click here: http://publications.thecommonwealth.org/economics-19-c.aspx

Where can I buy publications from our economic paper series?

Click here: http://publications.thecommonwealth.org/economic-paper-series-20-c.aspx

What is macro-economics?

Macroeconomics is the study of the relationships across the whole of an economy such as national production, inflation and employment. It is also the analysis of the causes of changes in aggregate economic performance including economic structure and economic institutions which helps understand differences in growth amongst countries.

What is micro-economics?

Microeconomics is the study of the causes and effects of the behaviour of the individual entitites which exist within an economy such as consumers, producers and firms and their impact on the markets in which they interact.

What is development economics?

Development must be conceived of as a multidimensional process of involving major changes in social structures, popular attitudes, and national institutions, as well as the acceleration of economic growth, the reduction of inequality and the eradication of poverty. The three objectives of development are: To increase the availability and widen the distribution of basic life sustaining goods such as food, shelter, health and protection; to raise levels of living; and to expand the range of economic and social choices available to individuals and nations. The adoption of these objectives by policy makers would lead them to implement policies that place greater access to food, health, shelter, social protection, education and jobs by the populace.

In strictly economic terms, development has traditionally meant the capacity of a national economy, whose initial economic condition has been more or less static for a long time, to generate and sustain an annual increase in its gross national income (GNI) at rates of 5 percent to 7 percent or more. This GNI growth would either ‘trickle down’ to the masses in the form of jobs and other economic opportunities or create the necessary condition for wider distribution of the economic and social benefits of growth. Empirical analysis shows that while developing countries achieved high rates of growth in 1950s, 1960s and 1970s, the levels of living of the masses of people remained for the most part unchanged. {This is Optional information on why there is a new definition of development economics. (Source: Todaro, Michael P. And Smith, Stephen C. (2009) – Economic development (10th edition), Pearson Education: London.

What are international capital flows?

International capital flows are the transfer of money across national borders whether in the form of lending to government, firms and individuals; investment in firms including the purchase of equity or remittances from abroad to individuals.

What are the Millennium Development Goals?

The Millennium Development Goals (MDGs) are eight goals to be achieved by 2015 that respond to the world's main development challenges. The MDGs are drawn from the actions and targets contained in the Millennium Declaration that was adopted by 189 nations-and signed by 147 heads of state and governments during the UN Millennium Summit in September 2000. (Source: UN Development programme)

The eight Goals are:

• Eradicate extreme poverty and hunger
• Achieve universal primary education 
• Promote gender equality and empower women 
• Reduce child mortality 
• Improve maternal health 
• Combat HIV/AIDS, Malaria, and other diseases 
• Ensure environmental sustainability 
• Develop a global partnership for development

What is international aid architecture?

The international aid architecture refers to the processes and procedures surrounding the provision of Overseas Development Assistance – aid – to developing countries.

What is globalisation?

Globalization refers to a multidimensional set of social processes that create, multiply, stretch, and intensify worldwide social interdependencies and exchanges while at the same time fostering in people a growing awareness of deepening connections between the local and the distant. (Source: Globalization – A very short introduction, by Manfred B Steger)

What is globalism?

‘Globalism’ is different from ‘globalisation’: it is an actively pursued mindset, which sees the world as one, and forges collective responses in shared situations. - Kamalesh Sharma

What do we mean by pro-poor?

Pro poor development orients attention towards those people most in need. It concerns those policies that are specifically designed to enhance the quality of the lives of the poor. One of the Secretariat’s strategic goals is to support pro-poor policies for economic growth and sustainable development in member countries.

What is inclusive growth?

Inclusive growth is the counterpart to pro poor growth. It requires that the opportunities created by growth should be available to all – particularly the poor – to the maximum possible extent.

What is a ‘Hub’?

A ‘Hub’ is a Trade Advisor usually based in a regional integration organisation, like the Secretariat of the Southern African Development Community.

What is a ‘Spoke’?

‘Spokes’ are also advisors, normally stationed in Trade ministries and/or regional integration organisations in countries.

What are Economic Partnership Agreements?

Economic Partnership Agreements are regional trade agreements between the African, Caribbean and Pacific Group of countries and the European Union which aim to sustain their development and reduce poverty.

What is export competitiveness?

The World Bank defines export competitiveness as the ability of a country to produce and sell goods and services in foreign markets at prices and quality that ensure long-term viability and sustainability.

What is the Doha round?

‘The Doha Round of World Trade Organization talks is aimed at liberalising global trade to make importing and exporting cheaper and easier, with a special emphasis on improving the economies of developing countries.’ (Source: timesonline)

What is our definition of a small state?

We define small states as countries with a population of 1.5 million or less. These countries posses unique special development challenges – limited diversification, limited capacity, poverty, susceptibility to natural disasters and environmental change, remoteness and isolation, openness, and income volatility. Our grouping of Small States also includes the larger member countries of Jamaica, Lesotho, Namibia and Papua New Guinea because they share many of the same characteristics of smallness.

How many Commonwealth countries are small states?

Thirty-two of the Commonwealth's 53 member countries are small states. They range in size from micro-states such as St Kitts and Nevis, Nauru, Niue, and Tuvalu with less than 50,000 people each, to countries like Botswana, The Gambia and Mauritius

What is Bretton Woods?

Bretton Woods is an area in New Hampshire in the United States where an international conference establishing the International Monetary Fund and World Bank took place in 1944. The Bretton Woods system of international monetary management was characterised by fixed exchange rates and rules to maintain the stability of this system. The system broke down in the early 1970s.

More about the Commonwealth's work on Economics and Trade
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