The Global Economic Governance (GEG) Africa programme is a policy research and stakeholder engagement programme to strengthen the influence of pro-poor African coalitions at global economic governance fora.

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pdf 2017 09 03 GEGAfrica Discussion Paper Draper and Krogman Popular

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2017 09 03 GEGAfrica Discussion Paper Draper and Krogman.pdf

Multinational enterprises (MNEs) can shift profits away from jurisdictions with comparatively high tax rates to jurisdictions with lower to no tax rates, and thus avoid paying their fair share of taxes without breaking any single jurisdiction’s laws. This is in part possible owing to the restricted exchange of information (EOI) between national tax authorities, which limits these authorities’ capacity to conduct accurate MNE audits. In response, the Organization for Economic Cooperation and Development (OECD), with support from the G20, drafted the ‘OECD/G20 Base Erosion and Profit Shifting (BEPS) Package’, a set of 13 reports with 15 action plans. One important aspect in addressing BEPS is to increase the reliability and comparability of tax information between tax jurisdictions. Implementation of Action 13 – ‘Transfer pricing documentation and country-by-country reporting (CbCR)’ – is seen as part of the solution. By creating a set of standard reporting templates and model legislation to collect an MNE’s relevant business information, which could impact its corporate income tax liability, and establishing multilateral agreements to facilitate EOI across jurisdictions between tax authorities, Action 13 takes an important step towards addressing the current tax disclosure and transparency gaps and limiting the extent to which MNEs can shift their taxable profits. However, the proposed set of recommendations has a limited scope and is technically onerous to implement in poor, particularly African, countries where revenue authorities are severely resource-constrained. These issues and dilemmas are reviewed in relation to African resource mobilisation needs, and with an eye to the 2020 review of CbCR implementation.

pdf Are Private Sustainability Standards Obstacles to, or enablers of, SME Participation in Value Chains? Insights from South Africa and Kenya Popular

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GA_Th2_DP ngarachu et al_20171013.pdf

This discussion paper examines the roles of South Africa and Kenya as regional gateways for global value chains (GVCs) coordinated by multinational corporations (MNCs), and the obstacles small and medium enterprises (SMEs) face in entering those value chains, owing to the voluntary sustainability standards (VSS) enacted by MNCs. As SMEs play a significant role in the formal and informal sector, both of which are crucial to the two countries’, and their neighbours’, economies, integrating them successfully holds developmental gains. However, standards can be a barrier to such integration, raising developmental challenges. Accordingly, the paper reviews the standards framework in each country, building on case studies to discern patterns of MNC incorporation of SMEs into their value chains and the constraints SMEs face in this regard. The paper focuses on sustainability standards, particularly in relation to environmental and social standards, and how these have developed into requirements for participating in cross-border value chains. Participation in these value chains is already stringent for SMEs, hence the legitimacy of these sustainability standards is examined to assess whether they are ultimately beneficial to SMEs or act as barriers to entry. The obstacles SMEs face in relation to sustainability standards are examined, particularly those regarding: lack of awareness, limited technical assistance and training, costly implementation and certification, lack of adequate financing, and changing VSS and the market structure that constitute the SME landscape. The support institutions available to assist SMEs to overcome the specified challenges are similarly reviewed. Insights from two case studies highlight the role MNCs can play to nurture sustainable supply chains and contribute to the development of both regional value chains and GVCs. The paper concludes with recommendations for the G20 to assist SMEs’ ability to participate in GVC development and advance South Africa and Kenya as regional gateways.

pdf Australia’s Policy Priorities in a Global Era Popular

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saia_spb_131_besson_20150331.pdf

Australia’s Policy Priorities in a Global Era

by Mark Beeson

Australian policymakers face competing economic and strategic priorities.
Increasingly, Australia’s economic future is closely tied to relations with
its East Asian neighbours. However, at a regional level it has simultaneously
found it difficult to achieve the policy outcomes it would like – largely because
of the growing competition among the regional forums, which are supported
by rival powers, in particular the US and China. For middle powers, like
Australia, the G-20 grouping may offer a platform to achieve greater influence
in the global economy.

pdf BRICS and the WTO - Introduction to book, translatedEN Popular

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BRICS_and_WTO_Introduction_translatedEN_20131127.pdf

pdf Creating Incentives for Green Economic Growth: Green Energy in South Africa (DRAFT ONLY) Popular

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OP 193 EDIP wentworth_PROOF 2_20140629.pdf

Creating Incentives for Green Economic Growth: Green Energy in South Africa (DRAFT ONLY)

Green economic growth is constructed around six main sectors: green or renewables
energies; green and energy-efficient buildings; clean transportation; water management
and conservation; waste management, including recycling; and land management, including
multiple land use.
Green energy, though, is at the heart of the green economy in the twenty-first century.
The threat of disruptive climate change has directed attention on the central role that
energy plays in shaping the future interaction between humans and the natural resources
on which they are dependent.
It is vital that renewable energy sources and green industries become more competitive
relative to the entrenched fossil fuels, thus enhancing the attractiveness of investing in the
green economy. When applied appropriately, economic incentives can accelerate the
turning point of the transition from a high-carbon, fossil fuel-based economy to a less
carbon-intensive one that encourages innovation and efficiency.
The vertically integrated power utility in South Africa has had a monopoly backed by
state-ownership of generation, distribution and supply of electricity. Owing to sunken costs
in its old technology, it has been anything but agile in responding to calls to move from
dirty-energy coal production. However, there are signs that government policy has finally
stirred this giant relic into competing with the new, especially foreign, entrants into the
renewables market.

pdf Deepening SACU Integration: The Potential Contribution of a Regional Development Fund Popular

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GA_Th3_PB7_ramkolowan_20170713.pdf

Member states of the Southern African Customs Union (SACU) are currently engaged in discussions on industrial policy and the need to develop regional value chains. Officials have been tasked to identify projects that could anchor cross-border trade and investment within SACU. If a SACU development fund were to be established, it could finance such projects. This policy briefing summarises the results of four case studies in Botswana, Lesotho, Namibia and Swaziland (BLNS). It describes the experiences of eight small firms3 in operating across SACU borders, and identifies opportunities for growing or diversifying their businesses within SACU. It also highlights a number of areas in which SACU member states could work together to improve the environment for cross-border trade and deepen regional integration.

pdf E-COMMERCE AND THE WTO A DEVELOPMENTAL AGENDA? Popular

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GA_Th3_ DP_ macleod_20171214.pdf

The rise of e-commerce presents both challenges and opportunities, leading to calls for multilateral trading rules at the WTO. Pressure at and in the run-up to the 11th WTO Ministerial Conference (MC11) will be aimed at producing a mandate for negotiations on rules for e-commerce. Emphasis will be placed on providing scope for the negotiation of relatively inoffensive new rules, such as those related to increased transparency and facilitative measures (eg, e-signatures and e-authorisation). These rules will not pose a significant threat to African and other developing countries, nor are they particularly in the offensive negotiating interests of these countries. Data suggests that it is the developed countries, as well as several in Asia, that are currently best poised to take advantage of a more facilitative environment for international e-commerce, although micro, small and medium enterprises would also benefit from the opportunities that such an expansion of e-commerce would provide. Certain countries will have an eye on eventually introducing more controversial rules, such as restrictions to cross-border data flows and data localisation requirements. Should negotiators wish to preserve this policy space for digital protectionism, they must appreciate that this allows their trading partners the same scope. They also need to consider the potential economic costs associated with data localisation and restrictions on cross-border data flows. It is therefore recommended that negotiators from African and other developing countries take a precautionary approach to rules on e-commerce at MC11. Even the more controversial rules concern largely unused policy space for policy tools that may nevertheless be ineffective and costly. As such, there may be some value in trading off concessions in e-commerce for interests elsewhere, especially in terms of the less controversial e-commerce proposals or Doha Development Agenda issues. Furthermore, there is scope for the digital economy to take a bigger role in both the national and regional development policies of developing countries. Regional strategies to support crossborder and intra-regional e-commerce are recommended, such as providing provisions on the alignment of e-transaction laws; streamlining consumer protection policies; harmonising data privacy and cybercrime policies; and creating platforms for cooperation in competition policy and the taxation of cross-border e-commerce enterprises.

pdf E-Commerce Country Case Study: South Africa Popular

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GA_Th3_DP_Budhree_20170901.pdf

South African small and medium-sized enterprises (SMEs) and larger organisations can benefit significantly from the enhanced exposure, both local and international, that e-commerce affords them. In order to fully exploit the opportunities that e-commerce offers, there is a need for collaborative support between the government and industry to bolster the growing field. E-commerce could also be key in addressing issues around economic inclusion in South Africa, in particular the empowerment of women and the poor. However, it is not without its limitations. E-commerce policy and interventions in terms of regulation, education and infrastructure are needed. In order to do so, data analysis of the current e-commerce market in South Africa using both public and private data sources is imperative. Policy interventions will go a long way to shape regulation around digital cross-border trade, increase digital inclusion through education and training, and provide better infrastructure that supports the e-commerce industry and its role in developing the South African economy. This discussion paper breaks down these areas, looks at a number of policy considerations and offers some possible solutions.

pdf E-commerce in Africa Definitions, Issues and the Evolving International Regulatory Landscape Popular

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GEG africa DP krogman & khumalo NOV 2016 FINAL WEB.pdf

GEG Discussion Paper, November 2016 E-commerce is becoming an integrated part of the global economy, with revenue in business-to-business and business-to-consumer e-commerce transactions rapidly increasing. This development has prompted countries to introduce regulations to address the challenges of e-commerce faced by consumers, producers, service providers and governments. Of particular interest is the opportunities e-commerce offers entrepreneurs as well as small, medium and micro enterprises to reach a wider market and potentially link into cross-border value chains and tap into foreign markets. Considering the developmental constraints faced by many developing and least-developed countries in Africa, e-commerce and the productive use of the information and communications technology sector could help to address some of the systemic issues. However, Africa currently lacks comprehensive legislation to address the challenges faced by the sector. While domestic legislation needs to be cognisant of consumer protection in relation to distance selling, electronic transactions, cybercrime, data protection and privacy, developed countries have started to address these issues in plurilateral and regional trade agreements. Considering that the majority of e-commerce companies are currently based in developed countries, these progressive regional agreements could become the benchmark for cross-border e-commerce transactions and divert investment and trade away from non-members. This paper considers the nature of e-commerce, the environmental factors that affect the sector’s development and uptake, the current state of negotiations in the World Trade Organization, and how regulation is being shaped by the so-called mega-regional trade agreements. Based on literature review, a framework is provided to guide further studies on the measurement of e-commerce, the barriers affecting e-commerce, and the regulations that should be considered in developing a comprehensive enabling environment for e-commerce.

pdf Fighting Base Erosion and Profit Shifting in Africa a Review of Country-By-Country Reporting Popular

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GA_Th2_DP6_draper & krogman_20170309.pdf

Multinational enterprises (MNEs) can shift profits away from jurisdictions with comparatively high tax rates to jurisdictions with lower to no tax rates, and thus avoid paying their fair share of taxes without breaking any single jurisdiction’s laws. This is in part possible owing to the restricted exchange of information (EOI) between national tax authorities, which limits these authorities’ capacity to conduct accurate MNE audits. In response, the Organization for Economic Cooperation and Development (OECD), with support from the G20, drafted the ‘OECD/G20 Base Erosion and Profit Shifting (BEPS) Package’, a set of 13 reports with 15 action plans. One important aspect in addressing BEPS is to increase the reliability and comparability of tax information between tax jurisdictions. Implementation of Action 13 – ‘Transfer pricing documentation and country-by-country reporting (CbCR)’ – is seen as part of the solution. By creating a set of standard reporting templates and model legislation to collect an MNE’s relevant business information, which could impact its corporate income tax liability, and establishing multilateral agreements to facilitate EOI across jurisdictions between tax authorities, Action 13 takes an important step towards addressing the current tax disclosure and transparency gaps and limiting the extent to which MNEs can shift their taxable profits. However, the proposed set of recommendations has a limited scope and is technically onerous to implement in poor, particularly African, countries where revenue authorities are severely resource-constrained. These issues and dilemmas are reviewed in relation to African resource mobilisation needs, and with an eye to the 2020 review of CbCR implementation.

pdf Fighting BEPS in Africa: A Review of Country-By-Country Reporting Popular

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170526 GEGAFRICA PB-5 draper-krogman MAY 2017-WEB.pdf

Multinational enterprises (MNEs) can shift profits away from jurisdictions with comparatively high tax rates to jurisdictions with lower to no tax rates, and so avoid paying their fair share of taxes without breaking any single jurisdiction’s laws. This is in part possible owing to the restricted exchange of information between national tax authorities, which limits these authorities’ capacity to conduct accurate MNE audits. By creating standard reporting templates and model legislation to collect MNEs’ relevant business information, Action 13 of the Organisation for Economic Co-operation and Development (OECD)/G20 Base Erosion and Profit Shifting Action Plan – Transfer Pricing Documentation and Country-By-Country Reporting – is seen as part of the solution to addressing MNE tax evasion. While representing a substantial step forward, the proposed set of recommendations has a limited scope and is technically onerous to implement in poor developing countries, where revenue authorities are severely resource-constrained. These issues are reviewed in relation to African resource mobilisation needs, and with an eye to the 2020 review of country-by-country reporting (CbCR) implementation.

pdf First Annual G20 Conference Report Popular

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2012_Annual_G20_Conference_Report_final.pdf

pdf GA Th3 DP kidane 20180129

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GA_Th3_DP kidane_20180129.pdf

The investor–state dispute settlement system (ISDS) has served as an alternative to domestic legal processes in the post-colonial era, particularly in less developed countries. Although the countries whose legal processes ISDS has supplanted have over the decades begrudgingly acquiesced, they have never appreciated the increasing interference in their policy spaces by arbitral tribunals constituted largely of a limited pool of specialised jurists from the Global North. As the excesses of these tribunals have begun to encroach on the policy spaces of the more advanced economies of the Global North, the foundations of their mandate and the nature of the legal constraints of their processes have increasingly come under closer and public scrutiny. That, in turn, has resulted in sovereign actions of renunciation and new proposals to modify or even replace the existing system. Many developing countries – ranging from India to South Africa – have taken dramatic measures in this regard. This paper evaluates current trends regarding the ISDS system and provides a summary of proposals that developing countries, particularly African countries, may consider in their reform efforts.

pdf GEGAfrica Discussion paper: SMEs and GVCs in the G20 Implications for Africa and Developing Countries Popular

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GA_Th3_DP1_draper pswarayi_20160822.pdf

Increasing the participation of developing countries in global value chains (GVCs) is now an accepted G20 priority that features prominently on the Chinese government’s agenda for the 2016 summit. However, there is disagreement over a simple question: how can multinational corporations (MNCs), which drive GVCs, be persuaded to incorporate small and medium enterprises (SMEs) from developing countries into the GVCs they co-ordinate?

pdf Illicit Financial Flows Estimating Trade Mispricing and Trade-Based Money Laundering For Five African Countries Popular

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GA_Th2_DP2_nicolaou & wu_20161123.pdf

GEGAfrica Discussion Paper, October 2016 This paper focuses on the commercial tax evasion component of illicit financial flows (IFFs), clarifying concepts often used interchangeably, namely transfer pricing, abusive transfer pricing, trade mispricing (or trade mis-invoicing), trade-based money laundering (TBML), tax evasion and tax avoidance. It also shows how they link to IFFs. It estimates the extent of trade mispricing by enhancing the model currently used by Global Financial Integrity, and by developing a TBML model as a means of quantifying IFFs between two developing countries. There are data challenges with this methodology, as it is an estimation of illegal or hidden activities, using the International Monetary FundÕs Direction of Trade methodology. The research points to declining trade mispricing in South Africa and Zambia for the period 2013Ð2 015, and Nigeria for the period 2013Ð2 014. Morocco and Egypt exhibit increasing trade mispricing from 2013 to 2014. The TBML model, which addresses the criticism regarding flows between two developing countries, points to increasing financial outflows for all five countries. These flows mean less revenue is available to the fiscus to invest in socio-economic infrastructure and pro-poor growth strategies, which would benefit women and the poor. Policy recommendations address commercial tax evasion as well as proposals to remedy the data anomalies.

pdf Improving Infrastructure Finance for Low-Income Countries: Recommendations for the ADF Popular

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GEGafrica PB-4 NOVEMBER 2016 markowitz FINAL WEB.pdf

GEGAfrica Policy Briefing, November 2016 Low-income countries (LICs) in sub- Saharan Africa face a substantial infrastructure-financing gap. Multilateral development banks (MD Bs) have traditionally played an important role in mobilising finance for infrastructure in LICs, but their funding alone cannot match demand. The African Development Bank’s (AfDB) concessional window, the African Development Fund (ADF ), is a key infrastructure financier for African LICs, and comprises 37 regional member countries (RMCs), including emerging markets and fragile states. However, in recent years the ADF has faced funding and technical constraints. This policy brief, based on a discussion paper, outlines the ADF’s role in providing infrastructure financing to LICs and the challenges that countries face in accessing these funds. It also examines the changing context confronting LICs as they weigh their infrastructure demands against the requirement to maintain sustainable debt levels. Lastly, the brief explores the challenges and opportunities of mobilising additional finance for LICs.

pdf Partnering with the New Development Bank: What Improved Services Can It Offer Middle-Income Countries?

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GEG africa DP nov2016 prinsloo FINAL WEB.pdf

GEGAfrica Discussion Paper, November 2016 Multilateral development banks increasingly struggle to respond effectively to the needs of middle-income countries, influencing not only their potential development impact but also their own financial stability. This challenge has been driven by a changing external environment, including additional competition from other financiers, the changing needs of middle income countries and institutional constraints. Business processes that deter greater borrowing by countries, especially in the presence of other financiers with less strenuous requirements, also contribute to this situation. These include lengthy loan approval processes, limited use of in-country management systems and sensitivities around environmental and social safeguards. There is also a need for greater responsiveness and an emphasis on the importance of knowledge services. This paper highlights some of these challenges and offers some alternative solutions. The New Development Bank, as a new entrant to the development finance milieu, will do well to draw on the experiences of existing multilateral development banks to improve its offerings to countries.

pdf Policy Considerations for E-Commerce in South Africa and Other African Countries Popular

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170712 GEGAFRICA PB-6 budree FINAL WEB.pdf

South African organisations, particularly small and mediumsized enterprises (SMEs), can benefit from the local and international exposure that e-commerce affords. In order for these benefits to be fully exploited, increased collaboration between the government and industry is needed, particularly in defining the future e-commerce policy and legislative environment. E-commerce can also enhance economic inclusion in South Africa and other African countries by bringing public services to remote areas and providing better access to markets for women and the poor. However, case studies reveal that the reach of e-commerce in Africa is still hindered by inadequate regulation, education and infrastructure. Moreover, there is insufficient data available to obtain an accurate picture of the scale and contribution of this growing industry. This briefing draws on case studies from South Africa, Kenya and Tanzania, and describes some of the main opportunities and policy challenges confronting the e-commerce industry in these countries.

pdf South Africa’s Foreign Economic Strategies in a Changing Global System Popular

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saia_spi_07_qobo and dube_20150331.pdf

pdf Sustainability Standards, SMEs and GVCs: Recommendations for The G20 Popular

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GA_Th2_PB11 ngarachu-draper_20171009.pdf

Participation in global value chains (GVCs) by developing countries is limited but holds substantial growth prospects. South Africa and Kenya have the potential to steer regional integration opportunities and act as gateways to favourable investment grounds for multinational corporations (MNCs). This brings with it opportunities for GVC development that small and medium enterprises (SMEs) can take advantage of. SMEs play a significant role in the formal and informal sector, both of which are crucial to the two countries’, and their neighbours’, economies. Integrating them into GVCs thus holds potential developmental gains in the form of job creation, economic growth and poverty reduction. We consider the challenges Kenyan and South African SMEs face when integrating into GVCs, with particular focus on voluntary sustainability standards (VSS) as potential enablers of, or barriers to, MNC incorporation of SMEs. We also provide a series of related recommendations for G20 leaders’ consideration.

pdf The Changing Nature of Turkey’s International Policy Popular

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saia_spi_08_arda_20150331.pdf

pdf The G20’s Contribution to Sustainable Development in Africa Popular

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GA_Th3_DP_Tigere Makokera_20171127.pdf

The Group of Twenty (G20), as a forum for international cooperation on global economic governance and finance, has supported African development through the introduction of various initiatives and plans. The expansion of its original mandate has led the group to include other issues that directly impact Africa. It is crucial that the G20 development agenda remains cognisent of the development of the AU’s Agenda 2063 and the need to meet the UN Sustainable Development Goals (SDGs). As such, this discussion paper conducts a comparative analysis of the UN SDGs and the AU agenda, as well as existing G20 initiatives. In view of the gaps that have been identified, recommendations are made to the South African government – as a member of the G20 – on how future G20 engagements could support African objectives, in particular the African Development Agenda 2063 and the SDGs, in a more meaningful and effective manner.

pdf The New Development Bank as an Advocate of Country Systems

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GA_Th1_PB prinsloo_20170831.pdf

The New Development Bank (NDB) locates the use of country systems (UCS) at the core of its operational policies. While fa c i l i tating infrastructure financing through country systems holds significant financial and non-financial benefits for developing countries, the experiences of other multilateral development banks (MDBs) have highlighted some key challenges: increased risks, weak country systems, questionable commitment of member states to the UCS agenda, procurement challenges and capacity-building constraints. By analysing the NDB’s nascent approach to UCS and drawing on the experiences of traditional MDBs, this briefing offers recommendations to the NDB on how it can strengthen its UCS approach. It also raises pertinent considerations for the NDB, its member countries and others looking to join the bank as it considers expanding its membership.

pdf The New Development Bank: Towards Greater Efficiency Popular

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GEGafrica PB-2 prinsloo_20161026.pdf

GEGAfrica Policy Briefing, October 2016 Multilateral development banks (MDBs) increasingly struggle to respond effectively to the needs of middle-income countries (MICs). This has influenced not only their potential development impact but also their own financial stability. Part of the challenge has been internal business processes that deter greater borrowing by countries, especially in the presence of other financiers with less strenuous requirements. These processes include lengthy loan approval processes, limited use of in-country management systems and sensitivities around environmental and social safeguards. There is also a need for greater responsiveness and an emphasis on the importance of knowledge services. This policy briefing (drawing on a more in-depth discussion paper) highlights some of these challenges and offers some alternative solutions. The New Development Bank (NDB), as a new entrant to the development finance milieu, will do well to draw on the experiences of existing MDBs to improve its offerings to countries. Author: Cyril Prinsloo

pdf The Recalibration of Middle Powers under Conditions of Stress and Opportunity Popular

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saia_spi_09_cooper_20150401.pdf

pdf The Trade Reform of SACU: Country Case Studies on Regional Integration Popular

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GA_Th3_DP ginindza et al_20190920.pdf

Member states of the Southern African Customs Union (SACU) are currently deadlocked in discussions on the future of the revenue-sharing arrangement and the role of the SACU Tariff Board. At the same time, there are discussions within SACU on the role of industrial policy, in general, and the need to develop regional value chains, in particular. To take these discussions forward, officials have been tasked to identify potential ‘projects’ that might serve as anchors for cross-border trade and investment within SACU. The establishment of a SACU development fund could serve to finance those projects that are identified and agreed on by member states. While SACU member states have yet to have in-depth discussions on whether or not to proceed with establishing a regional development fund, there remain concerns within Botswana, Lesotho, Namibia and Swaziland (BLNS) that such a fund might divert revenues from national governments. There has consequently been little discussion on how such a fund may work to facilitate the deepening or long-term reform of SACU. This discussion paper draws on the perspectives of business and researchers in the BLNS to identify the main infrastructure and regulatory barriers to the development of intra-SACU value chains, and to assess how the alleviation of these impediments might contribute to improved regional economic outcomes. In doing so, it seeks to inform current discussions within SACU on the type of projects that may serve as a basis for cross-border value chains, and to assess the possible contribution of a SACU development fund in growing, deepening or diversifying economic linkages in the region. This paper presents the results of eight case studies in the BLNS, describing the experiences of eight different firms in operating across SACU borders. It also highlights a number of areas in which SACU member states could work together to improve the environment for cross-border trade and deepen regional integration. This includes taking advantage of specific project opportunities for deeper value chain integration and development within certain industries, improving customs procedures to facilitate the movement of goods across SACU borders, implementing regional infrastructure projects in the electricity, transport and water sectors, and easing the movement of business persons and specialists across SACU member states.

pdf To be or not to be: Has Mexico got what it takes to be an Emerging Power? Popular

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saia_spi_06_gomez bruera_20150331.pdf

pdf Trade Mispricing for Five African Countries Popular

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GEGafrica_ nicolaou manias_20161104.pdf

This briefing estimates the extent of trade mispricing, a form of commercial tax evasion, for five African countries and addresses the data challenges in gauging this component of illicit financial flows (IFFs). This is an estimation of illegal or hidden activities, using the International Monetary Fund (IMF) Direction of Trade (DOTS) methodology. The research points to declining trade mispricing in South Africa and Zambia for the period 2013–2015 and in Nigeria for the period 2013–2014. Morocco and Egypt exhibit increasing trade mispricing from 2013–2014. These flows mean reduced revenues to the fiscus to invest in socio-economic infrastructure and pro-poor growth strategies, which would benefit women and the poor. Policy recommendations address trade mispricing and propose remedies for the data anomalies. Author: Kathy Nicolaou-Manias

pdf Trade, Inclusiveness, Inequality And The WTO a South African Perspective On a Complex Debate Popular

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GA_Th3_DP draper_20171206.pdf

Economic globalisation is coming under increasing scrutiny in many parts of the world. In particular, its trade aspect is increasingly, and critically, being questioned, by populist politicians in the West and developing worlds alike. In the process important questions are being posed, particularly concerning whether trade exacerbates, or even causes, inequality in countries and leads to the exclusion of relatively marginal constituencies. This scepticism is being parlayed into the multilateral trading system, raising existential questions about the future of the WTO and of the liberal international economic order of which it is part. Accordingly, the paper reviews key issues and debates related to these themes, and applies them to African and South African contexts. It concludes with high-level recommendations for the South African government as it prepares for the 11th Ministerial Conference of the WTO in Buenos Aires.

pdf TRANSPARENCY IN BENEFICIAL OWNERSHIP Popular

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GA_Th2_DP5_qobo_20170217.pdf

GEGAfrica Discussion Paper, February 2017 Emerging global standards require countries to introduce measures that ensure transparency in beneficial ownership. These standards are set out in the G20 High-Level Principles on Beneficial Ownership. There are varying degrees of pressure that motivate countries to commit to this transparency agenda: some want to curb corrupt activities, including unseemly activities between corporates and politicians, thereby piercing the veil of corporate entities. Other countries aim to protect the integrity of the financial system from organised crime. Terrorist financing introduces its own exigencies for the banking sector and law enforcement authorities and, as such, banking regulations are enacted to curb abuse of the financial system. Yet others want to limit tax avoidance using legal entities and arrangements. For a country such as South Africa all these challenges are relevant. South Africa has been one of the forerunners in setting or adopting new regulatory measures in this area. It joined the Open Government Initiative in September 2011; became a member of the Financial Action Task Force in 2003; and adopted the G20 High-Level Principles on Beneficial Ownership in 2014. Reinforcing the country’s commitment at the domestic level, the cabinet formally adopted a process that would ensure South Africa fulfils its obligations to the G20 process. This paper sets out the landscape of these processes, taking a global, African and domestic view. Its main thrust is that the global standard-setting process should be sensitive to institutional differences across countries, and that countries participating in the global processes that are setting up these standards should approach the policy discussions on the basis of their own needs and capacities.

Emerging global standards require countries to introduce measures that ensure transparency in beneficial ownership. These standards are set out in the G20 High-Level Principles on Beneficial Ownership. There are varying degrees of pressure that motivate countries to commit to this transparency agenda: some want to curb corrupt activities, including unseemly activities between corporates and politicians, thereby piercing the veil of corporate entities. Other countries aim to protect the integrity of the financial system from organised crime. Terrorist financing introduces its own exigencies for the banking sector and law enforcement authorities and, as such, banking regulations are enacted to curb abuse of the financial system. Yet others want to limit tax avoidance using legal entities and arrangements. For a country such as South Africa all these challenges are relevant. South Africa has been one of the forerunners in setting or adopting new regulatory measures in this area. It joined the Open Government Initiative in September 2011; became a member of the Financial Action Task Force in 2003; and adopted the G20 High-Level Principles on Beneficial Ownership in 2014. Reinforcing the country’s commitment at the domestic level, the cabinet formally adopted a process that would ensure South Africa fulfils its obligations to the G20 process. This paper sets out the landscape of these processes, taking a global, African and domestic view. Its main thrust is that the global standard-setting process should be sensitive to institutional differences across countries, and that countries participating in the global processes that are setting up these standards should approach the policy discussions on the basis of their own needs and capacities.

pdf WTO Ministerial Commitments from Nairobi Key Issues for South Africa At Mc11 Popular

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GA_Th3_DP Tigere Siziba_20171205.pdf

At the WTO’s 10th Ministerial Conference, held in Nairobi from 15–19 December 2015, members agreed on several outcomes relating to public stockholding, export competition, cotton, domestic support and a special safeguard mechanism for developing countries. Ahead of the next ministerial conference, which will be held in Buenos Aires on 10–13 December 2017, this discussion paper assesses the implementation of the Nairobi Package, and identifies gaps in this process. The 11th Ministerial Conference (MC11) comes at a time when developed countries are calling for the abandonment of the Doha Development Round to focus on new 21st century trade-related issues. Yet some developing countries remain committed to the conclusion of Doha before moving on to new issues. These disagreements have resulted in numerous proposals with no consensus emerging for the upcoming conference. As a result, there is no set agenda for MC11. This paper explores potential issues that it is anticipated will be on the agenda of the ministerial conference. This assessment is conducted bearing in mind South Africa’s interests. The paper also considers how the implementation gaps could influence outcomes in December 2017. It provides recommendations for key focus areas, and suggestions for policy alignment among members sharing similar interests.