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Publication
Trade facilitation and concentration: evidence from Sub-Saharan Africa
Published by: ODI
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This paper uses night-light emissions captured by satellites to explore the relationship between trade facilitation and the location of economic activity in Sub-Saharan Africa. We identify an ‘iron-curtain’ effect whereby light diminishes, on average, as one gets closer to Africa’s land borders. We also show that while the iron-curtain effect has reinforced itself over time, showing increasing agglomeration away from borders, it is dampened by improved trade facilitation (as proxied by the World Bank’s Logistics Performance Index score on customs clearance efficiency). Our results suggest that trade facilitation projects contribute not only to more trade, and therefore to more aggregate growth, but also to a more balanced spatial distribution of economic activity.
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General Information
| SDGs |   |
|---|---|
| Published | 2015 |
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Reduce inequality within and among countries
It is well documented that income inequality is on the rise, with the richest 10 percent earning up to 40 percent of total global income. The poorest 10 percent earn only between 2 and 7 percent of total global income. In developing countries, inequality has increased by 11 percent if we take into account the growth of population.
These widening disparities are a call for action that require the adoption of sound policies to empower the bottom percentile of income earners and promote economic inclusion of all regardless of sex, race or ethnicity.
Income inequality is a global problem that requires global solutions. This involves improving the regulation and monitoring of financial markets and institutions, encouraging development assistance and foreign direct investment to regions where the need is greatest. Facilitating the safe migration and mobility of people is also key to bridging the widening divide.
Reducing inequalities is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.
Learn more about the targets for Goal 10.
Reduce inequality within and among countries
It is well documented that income inequality is on the rise, with the richest 10 percent earning up to 40 percent of total global income. The poorest 10 percent earn only between 2 and 7 percent of total global income. In developing countries, inequality has increased by 11 percent if we take into account the growth of population.
These widening disparities are a call for action that require the adoption of sound policies to empower the bottom percentile of income earners and promote economic inclusion of all regardless of sex, race or ethnicity.
Income inequality is a global problem that requires global solutions. This involves improving the regulation and monitoring of financial markets and institutions, encouraging development assistance and foreign direct investment to regions where the need is greatest. Facilitating the safe migration and mobility of people is also key to bridging the widening divide.
Reducing inequalities is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.
Learn more about the targets for Goal 10.
The SDG Fund response
The SDG Fund programmes undertake situation analysis to understand what inequalities underpin the challenges in the communities and countries where we work. By doing this, the programmes pay special attention to inequalities suffered by women, girls, indigenous people, older people, youth, and those living in geographical isolated communities. Our initiatives take inequalities into account and put into practice solutions to address them, responding to the 2030 Agenda’s mandate of leaving no one behind.
For example,
- In Tanzania, the SDG Fund is working with the national government to scale-up one of its existing national programmes to reach all the extreme poor living below the food poverty line. In particular, it’s targeting women, children, youth, elderly, people living with disabilities and people living with HIV and AIDS. The programme employs conditional cash transfers, promoting employment through public works programmes, family planning awareness and primary and secondary school education.
- In Bangladesh, the SDG Fund is working with ultra-poor women, particularly with those who are widowed, divorced or abandoned. The programme is supporting the most vulnerable households to move out of poverty through public works jobs, education and financial literacy.
- In Paraguay, the SDG Fund is supporting the government’s efforts to find integrated solutions to undernutrition and to address other health problems faced by indigenous and vulnerable rural households, particularly female-headed ones, to produce nutritious and diversified food production.
The SDG Fund response
The SDG Fund programmes undertake situation analysis to understand what inequalities underpin the challenges in the communities and countries where we work. By doing this, the programmes pay special attention to inequalities suffered by women, girls, indigenous people, older people, youth, and those living in geographical isolated communities. Our initiatives take inequalities into account and put into practice solutions to address them, responding to the 2030 Agenda’s mandate of leaving no one behind.
For example,
- In Tanzania, the SDG Fund is working with the national government to scale-up one of its existing national programmes to reach all the extreme poor living below the food poverty line. In particular, it’s targeting women, children, youth, elderly, people living with disabilities and people living with HIV and AIDS. The programme employs conditional cash transfers, promoting employment through public works programmes, family planning awareness and primary and secondary school education.
- In Bangladesh, the SDG Fund is working with ultra-poor women, particularly with those who are widowed, divorced or abandoned. The programme is supporting the most vulnerable households to move out of poverty through public works jobs, education and financial literacy.
- In Paraguay, the SDG Fund is supporting the government’s efforts to find integrated solutions to undernutrition and to address other health problems faced by indigenous and vulnerable rural households, particularly female-headed ones, to produce nutritious and diversified food production.
- By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average
- By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
- Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard
- Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality
- Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations
- Ensure enhanced representation and voice for developing countries in decision-making in global international economic and financial institutions in order to deliver more effective, credible, accountable and legitimate institutions
- Facilitate orderly, safe, regular and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies
- Implement the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with World Trade Organization agreements
- Encourage official development assistance and financial flows, including foreign direct investment, to States where the need is greatest, in particular least developed countries, African countries, small island developing States and landlocked developing countries, in accordance with their national plans and programmes
- By 2030, reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 per cent
- By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average
- By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
- Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard
- Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality
- Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations
- Ensure enhanced representation and voice for developing countries in decision-making in global international economic and financial institutions in order to deliver more effective, credible, accountable and legitimate institutions
- Facilitate orderly, safe, regular and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies
- Implement the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with World Trade Organization agreements
- Encourage official development assistance and financial flows, including foreign direct investment, to States where the need is greatest, in particular least developed countries, African countries, small island developing States and landlocked developing countries, in accordance with their national plans and programmes
- By 2030, reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 per cent
Revitalize the global partnership for sustainable development
The Sustainable Development Goals (SDGs) can only be realized with a strong commitment to global partnership and cooperation. While official development assistance from developed countries increased by 66 percent between 2000 and 2014, humanitarian crises brought on by conflict or natural disasters continue to demand financial resources and aid. Many countries also require Official Development Assistance to encourage growth and trade.
The world today is more interconnected than ever before. Improving access to technology and knowledge is an important way to share ideas and foster innovation. Coordinating policies to help developing countries manage their debt, as well as promoting investment for the least developed, is vital to achieve sustainable growth and development.
The goals aim to enhance North-South and South-South cooperation by supporting national plans to achieve all the targets. Promoting international trade, and helping developing countries increase their exports, is all part of achieving a universal rules-based and equitable trading system that is fair and open, and benefits all.
Strengthening global solidarity is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.
Learn more about the targets for Goal 17.
Revitalize the global partnership for sustainable development
The Sustainable Development Goals (SDGs) can only be realized with a strong commitment to global partnership and cooperation. While official development assistance from developed countries increased by 66 percent between 2000 and 2014, humanitarian crises brought on by conflict or natural disasters continue to demand financial resources and aid. Many countries also require Official Development Assistance to encourage growth and trade.
The world today is more interconnected than ever before. Improving access to technology and knowledge is an important way to share ideas and foster innovation. Coordinating policies to help developing countries manage their debt, as well as promoting investment for the least developed, is vital to achieve sustainable growth and development.
The goals aim to enhance North-South and South-South cooperation by supporting national plans to achieve all the targets. Promoting international trade, and helping developing countries increase their exports, is all part of achieving a universal rules-based and equitable trading system that is fair and open, and benefits all.
Strengthening global solidarity is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development. An integrated approach is crucial for progress across the multiple goals.
Learn more about the targets for Goal 17.
The SDG Fund response
SDG Fund bridges the efforts of different development partners such as UN agencies, national and local governments, businesses, civil society, and academia.
All SDG Fund programmes are cooperative or joint in nature, which means UN agencies coordinate with one another and their national partners to establish integrated responses that address community-wide issues such as poor access to potable water, child nutrition, income generation for vulnerable populations, and gender parity at the institutional level.
Sustainable development must be inclusive and people-centered. Efforts to increase the effectiveness of development cooperation should be based on basic principles of country ownership, inclusive partnerships, transparency and accountability.
For example,
- The SDG Fund has introduced the use of matching funds that are provided by national and local governments, international donors and the private sector. This increases sustainability, impact, national ownership and the potential to scale up. 55% of the overall SDG Fund programme budget comes from matching funds.
- To contribute to developing strong public-private partnerships, the SDG-F established a Private Sector Advisory Group formed by business leaders of major companies from various industries worldwide. These leaders are helping the SDG Fund build a roadmap for how public-private alliances can provide large-scale solutions for achieving the SDGs. Its aim is to collaborate and discuss practical solutions pertaining to the common challenges of contemporary sustainability. The Advisory Group is committed to identifying areas of common interest and deciphering the best methods of UN-private sector engagement, as well as offering suggestions for how to work more effectively at the country level.
- A clear interest in South-South Collaboration is being incorporated from the inception of programmes. For example, in Paraguay the SDG-F is supporting the creation of a national observatory on the Right to Food in order to improve food security, nutrition policy-making and implementation. The initiative is promoting the exchange of experiences with countries that have already established similar mechanisms. In Tanzania, the SDG-F is supporting the national government to build and scale-up a pro-poor and child-sensitive national social protection system. The programme is promoting South-South Cooperation among countries that have implemented similar schemes in order to build the capacities of the Minister of Finance.
The SDG Fund response
SDG Fund bridges the efforts of different development partners such as UN agencies, national and local governments, businesses, civil society, and academia.
All SDG Fund programmes are cooperative or joint in nature, which means UN agencies coordinate with one another and their national partners to establish integrated responses that address community-wide issues such as poor access to potable water, child nutrition, income generation for vulnerable populations, and gender parity at the institutional level.
Sustainable development must be inclusive and people-centered. Efforts to increase the effectiveness of development cooperation should be based on basic principles of country ownership, inclusive partnerships, transparency and accountability.
For example,
- The SDG Fund has introduced the use of matching funds that are provided by national and local governments, international donors and the private sector. This increases sustainability, impact, national ownership and the potential to scale up. 55% of the overall SDG Fund programme budget comes from matching funds.
- To contribute to developing strong public-private partnerships, the SDG-F established a Private Sector Advisory Group formed by business leaders of major companies from various industries worldwide. These leaders are helping the SDG Fund build a roadmap for how public-private alliances can provide large-scale solutions for achieving the SDGs. Its aim is to collaborate and discuss practical solutions pertaining to the common challenges of contemporary sustainability. The Advisory Group is committed to identifying areas of common interest and deciphering the best methods of UN-private sector engagement, as well as offering suggestions for how to work more effectively at the country level.
- A clear interest in South-South Collaboration is being incorporated from the inception of programmes. For example, in Paraguay the SDG-F is supporting the creation of a national observatory on the Right to Food in order to improve food security, nutrition policy-making and implementation. The initiative is promoting the exchange of experiences with countries that have already established similar mechanisms. In Tanzania, the SDG-F is supporting the national government to build and scale-up a pro-poor and child-sensitive national social protection system. The programme is promoting South-South Cooperation among countries that have implemented similar schemes in order to build the capacities of the Minister of Finance.
Finance
- Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection
- Developed countries to implement fully their official development assistance commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of ODA/GNI to developing countries and 0.15 to 0.20 per cent of ODA/GNI to least developed countries ODA providers are encouraged to consider setting a target to provide at least 0.20 per cent of ODA/GNI to least developed countries
- Mobilize additional financial resources for developing countries from multiple sources
- Assist developing countries in attaining long-term debt sustainability through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries to reduce debt distress
- Adopt and implement investment promotion regimes for least developed countries
Technology
- Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism
- Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as mutually agreed
- Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology
Capacity building
- Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South and triangular cooperation
Trade
- Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda
- Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020
- Realize timely implementation of duty-free and quota-free market access on a lasting basis for all least developed countries, consistent with World Trade Organization decisions, including by ensuring that preferential rules of origin applicable to imports from least developed countries are transparent and simple, and contribute to facilitating market access
Systemic issues
Policy and institutional coherence
- Enhance global macroeconomic stability, including through policy coordination and policy coherence
- Enhance policy coherence for sustainable development
- Respect each country’s policy space and leadership to establish and implement policies for poverty eradication and sustainable development
Multi-stakeholder partnerships
- Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries
- Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships
Data, monitoring and accountability
- By 2020, enhance capacity-building support to developing countries, including for least developed countries and small island developing States, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts
- By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries
Finance
- Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection
- Developed countries to implement fully their official development assistance commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of ODA/GNI to developing countries and 0.15 to 0.20 per cent of ODA/GNI to least developed countries ODA providers are encouraged to consider setting a target to provide at least 0.20 per cent of ODA/GNI to least developed countries
- Mobilize additional financial resources for developing countries from multiple sources
- Assist developing countries in attaining long-term debt sustainability through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries to reduce debt distress
- Adopt and implement investment promotion regimes for least developed countries
Technology
- Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism
- Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as mutually agreed
- Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology
Capacity building
- Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South and triangular cooperation
Trade
- Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda
- Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020
- Realize timely implementation of duty-free and quota-free market access on a lasting basis for all least developed countries, consistent with World Trade Organization decisions, including by ensuring that preferential rules of origin applicable to imports from least developed countries are transparent and simple, and contribute to facilitating market access
Systemic issues
Policy and institutional coherence
- Enhance global macroeconomic stability, including through policy coordination and policy coherence
- Enhance policy coherence for sustainable development
- Respect each country’s policy space and leadership to establish and implement policies for poverty eradication and sustainable development
Multi-stakeholder partnerships
- Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries
- Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships
Data, monitoring and accountability
- By 2020, enhance capacity-building support to developing countries, including for least developed countries and small island developing States, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts
- By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries
