Globalisation Trends: Challenges for Policy Coherence John Humphrey

Transcription

1 Globalisation Trends: Challenges for Policy Coherence John Humphrey OECD Workshop: More Coherent Policies for More Inclusive Growth and Development Paris, November 2007

2 the pursuit of development objectives through the systematic promotion of mutually reinforcing policy actions on the part of both OECD and developing countries OECD Development Centre, Policy Brief 26, Migration, aid and trade Globalisation and the consequences of increasing global regulation and global harmonisation New policy actors in the global economy: China and India

3 The Basel Committee on Banking Supervision: Banking Regulation and Finance for Development What is the Basel Committee and what are Basel 1 and 2 all about?

4 The Basel Committee on Banking Supervision: Banking Regulation and Finance for Development Impact Conflicts with 1. Makes lending more procyclical. 2. Could inhibit banking finance to developing countries 3. Could reduce lending to small and medium enterprises 1. Smooth capital flows 2. Finance for development 3. Promote SMEs and finance for SMEs

5 Food safety, trade and livelihoods Year Event Country 1987/1988 Beef hormone scare Italy/EU 1988 Poultry salmonella outbreak/scandal UK 1989 Growth regulator (alar) scare for apples United States 1993 E. coli outbreak in fast-food hamburgers United States 1996 BSE links to human brain disease UK 1996/1997 Microbiological contamination, berries United States, Canada Avian flu spreads to humans Hong Kong, Taiwan Province of China 1999 Dioxins in animal feed Belgium 2000 Large-scale food poisoning, dairy Japan 2001 Contaminated olive oil Spain Source: Jaffee, Food Safety and Agricultural Health Standards: Challenge and Opportunities for Developing Country Exports, World Bank, PREM, 2005, p. 16

6 The EU Response to Food Safety Scares: Direct Effects in Developing Countries Tighten up on product safety Lower maximum pesticides residue levels in fruit and vegetables Tighter controls on antibiotic residues Many substances banned European Food Safety Law new philosophy Equivalent national food safety systems in exporting countries Competent Authority must be competent

7 The EU Response to Food Safety Scares: Indirect Effects in Developing Countries Whole chain approach to food safety Risk-based approach control processes at source Food Business Operators primary legal responsibility for food safety Defensive strategies by food businesses particularly supermarkets in Northern Europe. EurepGAP Farm-level controls through certification, audit, paper trails

8

9 Stages in Production of Produce Covered by EUREPGAP CPCC Crop Produce N/A answers allowed when no Produce Handled 3 4 Seed, Nursery Site Selection 5, 6 7 & 8 Crop Production 9 10 Harvest and Transport Storage, Washing, Treatment & 13 Environment, Waste & Pollution, Operator Health, Safety and Welfare 1. 2 & 14 Documentation, Traceability and Quality System Requirements Additional Quality Management Systems required for Farmer Groups

10

11

12

13 New Global Actors: China and India Policy coherence the pursuit of development objectives through the systematic promotion of mutually reinforcing policy actions on the part of both OECD and developing countries. OECD Development Centre, Policy Brief 26, Migration, aid and trade

14 GDP Projections, 2050 Germany Japan United States India China US $ Trillions at 2003 Prices) Source: Wilson, D. and Purushothaman, R. (2003) Dreaming with BRICs: The Path to 2050, Global Economics Paper 99: Goldman Sachs Financial Workbench

15 Distribution of Increase in Glohbal GDP, , by Region/Country (PPP, %) Rest of Dev Asia India USA China USA China India Rest of Developing Asia Japan Other OECD MENA LAC ECA Source: David Dollar, presentation to GDN, Beijing,Jan 2007

16 Challenge for OECD Countries China and India as economic powers trade and investment Working with China and India: global public goods financial stability trade reform climate change health, security, etc. Working towards the MDGs: new powers policies matter As a model for other countries Through trade investment and migration As aid donors

17 Controversial Role of China for OECD Countries Richard Manning, DAC, on non-dac donors inappropriate lending debt low conditionality, slows reform unproductive investment Western anxieties and anger about new donors. Rogue aid. Bad stories. Zimbabwe, Sudan, Myanmar. India, too, increasing involvement in Africa: targeting trade expansion looking for oil, including in the Sudan investment in agriculture and manufacturing

18 Policy coherence challenges New donors and new priorities Conflicting advice what is considered to work how relationships are managed the donors own strategic objectives

19 The policy coherence burden on developing countries Difficult to bring incorporate new donors into existing donor coordination mechanisms Differences on broader development-related policies Two challenges for developing countries: managing potential policy conflicts developing mechanisms for dialogue with the new global powers

20 Challenges will increase Range and complexity of issues Increasing interaction with regional governance behind the border issues harmonisation of standards to facilitate deep integration New actors at multiple levels: clamour for voice Seen in public and private sectors Actors will be held to account for their decisions