Statement by H.E. Mrs. Mar\u00eda Fernanda Espinosa Garc\u00e9s, President of the 73rd<\/sup> Session of the UN General Assembly<\/h3>\n15 May 2019<\/span><\/strong><\/p>\n![\"\"](\"https:\/\/www.un.org\/pga\/73\/wp-content\/uploads\/sites\/53\/2019\/05\/9-1-300x160.png\")
<\/p>\n
Distinguished Permanent Representatives,<\/p>\n
Mrs. Pamela Coke-Hamilton, Director of the Division on International Trade and Commodities, UNCTAD,<\/p>\n
Mrs. Carla Mucavi, Director of FAO Liaison Office in New York,<\/p>\n
Excellencies, Delegates:<\/p>\n
It is my pleasure to give you a warm welcome to this interactive dialogue organized in the framework of this \u201cProsperity\u201d week, which started yesterday with the high level event on Inclusive development and inequality<\/em>, and which will continue tomorrow with the event on Illicit financial flows<\/em>.\u00a0<\/p>\nEach of these events offers us an opportunity to analyze, in a consecutive and integrated manner, three issues that are fundamental to continue moving forward in the path of sustainability and inclusive economic growth which is the aspiration of the 2030 Agenda.<\/p>\n
Excellencies,<\/p>\n
Today I will refer to three aspects that make the discussion on commodities a critical matter to leave no country behind, particularly the developing countries that essentially depend on commodities.<\/p>\n
Firstly, I will refer to the consequence of the commodity markets volatility.<\/p>\n
It is paradoxical that many of the developing countries with the greatest abundance of natural resources and that depend on commodities are, at the same time the countries that are the furthest behind and most vulnerable to commodity price shocks.<\/p>\n
The fluctuations in the international prices of agricultural, energy, mineral and metal products inevitably affect the economic, social and environmental conditions of the countries that depend on them, with direct and immediate effects in persons.<\/p>\n
This link is clearly reflected in developing countries. 64% of them depend on the exports of commodities and 45% depend on imports.<\/p>\n
When the prices of these products come down or their demand decreases, the exporting countries, whose income comes mainly from this market, can suffer severely in their capacity to implement policies in education, health and other priority areas clearly marked by the 2030 Agenda.<\/p>\n
Although in a different way, the variations in prices also affect countries that depend on commodity imports, due to the inflationary effects when the prices go up.<\/p>\n
The impact is direct both for producers and in the everyday lives of consumers, with repercussions in their purchasing power and food and energy security.<\/p>\n
Also, the price crises of commodities can further worsen the tax conditions of countries with high levels of debt, such as Least Developed Countries and Small Island Developing States and can also affect their efforts to fight climate change.\u00a0<\/p>\n
Similarly, 26 out of the 32 Landlocked Developing Countries depend on commodities and their participation in total exports is 60%. These countries face additional challenges, such as elevated costs in the transportation of their products to reach the main international markets.<\/p>\n
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Excellencies,<\/p>\n
Under these conditions, the countries that depend on commodities find particularly difficult to implement the long-term investment plans that they need to transform their economic structures and escape from their dependence. Nevertheless, this is crucial is we are to achieve more resilient and inclusive economies.<\/p>\n
This leads me to my second point: we must support economic diversification toward sectors of more added value or services.<\/p>\n
This will allow improving the exchange terms and the entry of foreign currencies, creating a positive impact in economic growth and, with the adequate public policies, the reduction of poverty.<\/p>\n
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<\/p>\n
Distinguished Permanent Representatives,<\/p>\n
Mrs. Pamela Coke-Hamilton, Director of the Division on International Trade and Commodities, UNCTAD,<\/p>\n
Mrs. Carla Mucavi, Director of FAO Liaison Office in New York,<\/p>\n
Excellencies, Delegates:<\/p>\n
It is my pleasure to give you a warm welcome to this interactive dialogue organized in the framework of this \u201cProsperity\u201d week, which started yesterday with the high level event on Inclusive development and inequality<\/em>, and which will continue tomorrow with the event on Illicit financial flows<\/em>.\u00a0<\/p>\n Each of these events offers us an opportunity to analyze, in a consecutive and integrated manner, three issues that are fundamental to continue moving forward in the path of sustainability and inclusive economic growth which is the aspiration of the 2030 Agenda.<\/p>\n Excellencies,<\/p>\n Today I will refer to three aspects that make the discussion on commodities a critical matter to leave no country behind, particularly the developing countries that essentially depend on commodities.<\/p>\n Firstly, I will refer to the consequence of the commodity markets volatility.<\/p>\n It is paradoxical that many of the developing countries with the greatest abundance of natural resources and that depend on commodities are, at the same time the countries that are the furthest behind and most vulnerable to commodity price shocks.<\/p>\n The fluctuations in the international prices of agricultural, energy, mineral and metal products inevitably affect the economic, social and environmental conditions of the countries that depend on them, with direct and immediate effects in persons.<\/p>\n This link is clearly reflected in developing countries. 64% of them depend on the exports of commodities and 45% depend on imports.<\/p>\n When the prices of these products come down or their demand decreases, the exporting countries, whose income comes mainly from this market, can suffer severely in their capacity to implement policies in education, health and other priority areas clearly marked by the 2030 Agenda.<\/p>\n Although in a different way, the variations in prices also affect countries that depend on commodity imports, due to the inflationary effects when the prices go up.<\/p>\n The impact is direct both for producers and in the everyday lives of consumers, with repercussions in their purchasing power and food and energy security.<\/p>\n Also, the price crises of commodities can further worsen the tax conditions of countries with high levels of debt, such as Least Developed Countries and Small Island Developing States and can also affect their efforts to fight climate change.\u00a0<\/p>\n Similarly, 26 out of the 32 Landlocked Developing Countries depend on commodities and their participation in total exports is 60%. These countries face additional challenges, such as elevated costs in the transportation of their products to reach the main international markets.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row][et_pb_column type=”1_2″][et_pb_text _builder_version=”3.19.7″]<\/p>\n Excellencies,<\/p>\n Under these conditions, the countries that depend on commodities find particularly difficult to implement the long-term investment plans that they need to transform their economic structures and escape from their dependence. Nevertheless, this is crucial is we are to achieve more resilient and inclusive economies.<\/p>\n This leads me to my second point: we must support economic diversification toward sectors of more added value or services.<\/p>\n This will allow improving the exchange terms and the entry of foreign currencies, creating a positive impact in economic growth and, with the adequate public policies, the reduction of poverty.<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_2″][et_pb_code _builder_version=”3.19.7″]\n\n