In an era of slowing trade and growth, developing countries can achieve better outcomes for their citizens through reforms that boost their participation in global value chains. These reforms can help them expand from commodity exports to basic manufacturing, while ensuring that economic benefits are shared more widely across society, a new World Bank Group report concludes.

The World Development Report 2020: ‘Trading for Development in the Age of Global Value Chains’ marks the World Bank Group’s first trade-focused development report since the late 1980s. It finds that global value chains have powered an economic transformation ever since, allowing the poorest countries to quickly climb the development ladder. Such chains enable developing countries to specialize and grow wealthier without having to build whole industries from scratch.

“Global value chains have played an important part in growth, by enabling firms in developing countries to make significant gains in productivity, and by helping them transition from commodity exports to basic manufacturing. In the age of global value chains, all countries have much to benefit by speeding up reforms that increase commerce and boost growth,” said World Bank Group Chief Economist Pinelopi Koujianou Goldberg.

He says countries need trade to develop, and an open, predictable environment benefits everyone. “To ensure sustained social support for trade, policymakers need to ensure that the benefits of global value chains are widely shared among a broad range of groups—especially the poor and women – and that the environment is protected,” he says.

Today, global value chains account for nearly 50 per cent of trade worldwide. But their growth has plateaued since the financial crisis of 2008, the report finds. Trade frictions have created uncertainties over market access, causing firms to consider delaying investment plans. Moreover, the gains from participating in global value chains have not been distributed equally across and within countries. Environmental costs are growing, mainly from higher carbon dioxide emissions due to transportation of intermediate goods across greater distances.

Stories Continues after ad

 By Patricia Scotland

Global uncertainties and tensions are escalating and affecting trade in every region. We see rising protectionism, while multilateral cooperation – including through the World Trade Organisation – is increasingly under threat. Meanwhile, the resilience of many smaller or less developed countries is being undermined by the impact of climate change and extreme weather unprecedented in living memory, together with other natural disasters.

These factors combine to make the general outlook for economic growth and prosperity sombre. Yet through the encompassing gloom, Commonwealth connection and cooperation shine as beacons of hope guiding towards safer and saner waters.

This year, world GDP is projected to grow 2.6 per cent, down from 2.9 per cent last year, while world merchandise trade volumes are now expected to rise by only 1.2 per cent in 2019 – the weakest growth since the global financial crisis. Our citizens experience the effects of these trends in their day-to-day lives as the prices of food, fuel and basic services rise, jobs become harder to find, and there is reduced potential for businesses to grow.

Against this backdrop, this week in London the UK will chair a meeting of trade ministers from the 53 countries of the Commonwealth. Building on the distinctive nature of Commonwealth connection and cooperation, ministers will consider approaches for tackling pressures on international trade, and for making even more of the Commonwealth Advantage enjoyed among our member countries.

Most importantly, ministers will review progress towards the target agreed by Heads of Government at CHOGM 2018 for annual trade within the Commonwealth to be worth at least $2 trillion by 2030 – a goal closely linked to achieving the UN Sustainable Development Goals.

The challenges may seem daunting, but our governments know that through coordination and with the right policies in place the prizes can be brought within reach. Collective strategic action can unlock promising opportunities for all members of our diverse and geographically widespread family of 53 Commonwealth countries.

Our studies have shown that on average the nations of the Commonwealth countries tend to trade 20 per cent more with each other than with non-Commonwealth countries. This very real and valuable tendency is an important factor in Commonwealth Advantage. It is the product of historical ties, shared language, and similar legislative, governance and administrative systems based on the common law. As a result, trade costs are on average 19 per cent lower between Commonwealth country pairs than comparable non-Commonwealth counterparts, and our member states also invest on average 10 per cent more in each other than they do in non-members.

These benefits are now further bolstered by our Commonwealth Connectivity Agenda, which provides powerful mechanisms for structured dialogue, sharing of best practices, networking and collaboration on trade and investment among our member countries. Intra-Commonwealth trade in goods has increased by around $100 billion over the past three years, reaching almost $450 billion in 2018. With rapid population and per capita income growth in developing countries, especially in Asia, trade in goods and services is expected to reach the $700 billion mark by 2020. With more than 60 per cent of the combined Commonwealth population of 2.4 billion under the age of 30, these drivers of growth and prosperity are unlikely to slow for some very considerable time.

The digital economy holds further untapped opportunities, with the number of internet users globally trebling over the past decade. Yet in low-income Commonwealth countries only 18 per cent of the population currently have internet access, compared with 85 per cent in high-income countries. So the economic case for tackling the digital divide is persuasive: full access to broadband internet could add up to $1 trillion to combined Commonwealth GDP.

Certainly, with 49 of our members belonging to the WTO, the Commonwealth can play an increasingly strategic role as a champion of free trade, advocating for a transparent, inclusive, fair and open rules-based multilateral trading system. Commonwealth discussions provide space for broader wide-ranging dialogue in the spirit of goodwill and an atmosphere of trust rather than treaty. This means deadlocks are less likely to hinder pragmatic progress towards practical solutions. Our member countries gain advantage through cooperation and coordinated action, and remain free to move forward with their preferred domestic reforms unfettered by obligations, deadlines or legally binding commitments.

It is within this context that we can look forward to Commonwealth trade ministers, when they meet this week, offering powerful messages which, while rooted in reality and notwithstanding the diverse economic interests represented, proffer the prospect of progress towards hope and harmony within a broad unity of purpose. For while the global trading system may be far from perfect, it is the most potent pathway towards eradicating poverty. That is a prize not be lost. By enhancing opportunities for enterprise and investment among all our member nations, and by working together for the common good, we shall truly live up to the ambition and aspiration of being a Commonwealth.

The writer is the Commonwealth Secretary-General

Stories Continues after ad

An investigation into the alleged breach of minimum broadcasting standards by 13 broadcasters has found a number of them culpable and recommended a range of actions, including asking them to show cause why Uganda Communications Commission shouldn’t revoke their licenses.

NTV, NBS, BBS, Bukedde TV and Radio Sapientia must all show cause why the regulator shouldn’t revoke their licenses, while Salt TV, Capital FM, CBS and Radio Simba are to be cautioned.

As for Radio Two Akaboozi and Beat FM, investigators found no evidence of a breach but, like many others, they were faulted on failing to install pre-listening and delay devices and contravening the Press and Journalists Act.

Pearl FM was singled out for its programme “The Inside Story”, which the report says should be suspended, while Kingdom TV is on the spot for failing to notify UCC about changes in its programming.

The investigation, according to the report, was sparked by complaints from security agencies to the effect that a section of radio and television stations were broadcasting content that was contrary to the minimum broadcasting standards enshrined in Section 31 and Schedule 4 of the Uganda Communications Act 2013.

The UCC responded by instituting investigations in accordance with sections 5(1)(j), 27, 28, 29, 30, 31 and 32 of the Uganda Communications Act 2013. In addition, the affected 13 stations were asked to have their producers, editors and heads of programs step aside to protect the public against the risk of further breach of the law and standards, and to ensure smooth investigations.

From the report’s findings, most of the broadcasters investigated were found to have been in breach of various laws, standards and license terms and conditions. Most of the breaches related to a failure by the broadcasters to adhere to the minimum broadcasting standards and the standards for general broadcast programming in Uganda. Investigators also found widespread non-compliance with the Press and Journalists Act.

The report indicates that the Uganda Police and other security agencies reported they had received intelligence information to the effect that certain persons were mobilising members of the public to gang against security agencies and force their way towards vital government installations in order to disrupt peace and security. The security agencies were also concerned that the continuous live coverage of exchanges between rioting crowds and security personnel, including one-sided interviews, was intended to incite the public against their lawful actions

In addition to the concerns of security agencies, the Commission also received complaints from concerned members of the public who expressed fears that the manner in which some broadcasters were repeatedly showing violent clashes between the police and rowdy crowds was threatening their safety, that of their children and businesses.

Meanwhile, the Commission had also, on its own, observed a growing trend of some broadcasters disregarding the prescribed minimum broadcasting standards. The Commission had, for instance, noted the increasing number of live programs, breaking news stories and prime news bulletins being dominated by misrepresentation of information, incitement of violence; unbalanced content; sensational reporting; and giving undue prominence to certain individuals and events in a manner likely to mislead or cause alarm to the public.

The mandate of the Commission

Established by the Uganda Communications Act 2013, UCC is vested with the regulation, control, monitoring and licensing of communication services in Uganda, including broadcasting.

In addition, the Commission is mandated to receive, investigate and arbitrate complaints relating to communications services, and to take necessary action.

This mandate, the report says, is in keeping with the constitutionally enshrined right to freedom of speech and all other rights associated with broadcasters. Article 29(1)(a) of the Constitution provides that every person shall have a right to freedom of speech and expression, which shall include freedom of the press and other media. However, the report is quick to add that as with all other rights; these rights cannot be enjoyed at the expense of the law or the rights of others.

Article 43(1) of the constitution states: “In the enjoyment of the rights and freedoms prescribed in this Chapter, no person shall prejudice the fundamental or other human rights and freedoms of others or the public interest.”

The same provision, however, clarifies in Article 43(2) that public interest shall not permit political persecution, detention without trial and any limitation on rights and freedoms that is beyond what is acceptable and demonstrably justifiable in a free and democratic society.

“Accordingly, the broadcasting standards set out under the law are aimed at ensuring that in exercising their rights, broadcasters do not infringe upon the rights of others, break the law or compromise national security (public interest). This is an established norm the world over, and it was in this spirit that the Commission proceeded with the investigation following reports of breach,” the report states.

On the narrative in the media that the action taken by UCC was an encroachment on press freedom, the report clarifies that it was simply an administrative measure backed by relevant laws.

“The directive to order individual producers, editors and heads of news to step aside was never intended to stifle any particular person’s right. This was a purely administrative measure that the Commission, in exercise of its broad investigative mandate under the Uganda Communications Act, deemed necessary for purposes of protecting the public against the potential continued risk of harmful content produced, edited and presented to the public by the same individuals that were subject of the investigations,” the report says.

The report also addresses the view that the Commission’s powers do not extend to staff within the media houses under its regulatory jurisdiction.

“Contrary to arguments by a section of the public that the Commission’s regulatory mandate does not extend to personnel, Section 32 of the Uganda Communications Act 2013 empowers the Commission to ensure that the professional code of ethics contained in the Press and

Journalists Act is adhered to,” the report states.

“The same provision empowers the Commission to modify the professional code of ethics for journalists where it is deemed necessary in order to ensure that content carried on communication platforms complies with the Uganda communications Act and any other relevant law. Therefore, any matter that pertains to broadcasting falls within the Commission’s regulatory mandate, and this includes individuals.”

For the most part, the report is hinged on the minimum broadcasting standards embedded in the Uganda Communications Act 2013 (Schedule 4), standards for broadcast programming in Uganda, and the Penal Code.

According to Schedule 4, a broadcaster or video operator shall ensure that any program which is broadcast;

Is not contrary to public morality
Does not promote a culture of violence or ethnic prejudice
In the case of a news broadcast, is free from distortion of facts
Is not likely to create public insecurity or violence
Is in compliance with the existing law

Findings and recommendations

Having been found culpable for contravening minimum broadcasting standards, the report recommends that Radio Sapientia, Bukedde TV, NTV, NBS TV and BBS are given notice to show cause why the Commission should not invoke Section 41 of the Uganda Communications Act 2013. Section 41 covers suspension and revocation of a broadcaster’s license in case of serious and repeated breach.

It is also recommended that the said TV stations be required to train their news reporters, producers and editors in professional reporting, emphasising key provisions of the law and the standards.

NBS and NTV, in particular, are to be asked to demonstrate that they have adequate measures in place “to ensure that news reporters, anchors, producers and editors remain impartial and non-partisan in the course of their work.” This observation is derived from the finding that some reporters are taking sides in political debates.

Salt TV, Capital FM, CBS and Radio Simba were all said to be largely compliant, with some mistakes acknowledged and promises made to improve. They are to be cautioned.

As for Radio Two Akaboozi and Beat FM, the report says there was no evidence of a breach so it’s recommended that no action be taken against the stations.

On Pearl FM, the report states that UCC has previously warned the station about similar breaches. Investigators took exception of a show known as the “Inside story”, which they said is not well structured and the presenter “does not seem to have credible sources for the information upon which the show is based.” The report says that if the show is not redefined and adequate controls put in place, “it is likely to alarm the public and become a platform for fueling political propaganda, which can result in violence.”

The report, therefore, recommends that “Inside Story” be immediately suspended until “Pearl FM can demonstrate to the satisfaction of the Commission that it has instituted adequate measures to improve this show.”

Concerning Kingdom TV, it was established the station had no news bulletin on the said date.

“The allegations against Kingdom TV were not backed by adequate evidence to warrant further investigation,” the report says. However, the station was reminded that under the terms and conditions of its license, they ought to notify the Commission of any significant changes in their programming.

For failing to submit all the required documents, Radio Sapientia will be required to show cause why regulatory sanctions should not be taken against it in accordance with Section 41 of the Uganda Communications Act 2013.

Additional broadcasting breaches

In addition to the breaches in respect of content that was aired on 29th April 2019, the investigation also considered compliance with other relevant laws, license terms and conditions.

The violations in this case are mostly in relation to infringement of the Press and Journalists Act, particularly with regard to enrollment and certification of journalists contrary to sections 26 and 27 of the Press and Journalists Act, registration of Head of News, Head of Programs and Producer (contrary to Section 5 of the Press and Journalist Act).

Sections 30, 31, and 32 of the Uganda Communications Act 2013 require personnel running a licensed broadcast house to have qualifications required of them by the Media Council under the Press and Journalists Act.

The broadcasters were also faulted for having no sufficient safeguards in their editorial policies to address conflict of interest of staff, as well as failure to install pre-listening and delay devices as agreed with the Commission.

The report was on Monday, 7th October 2019, availed to the concerned broadcasters and other stakeholders.

Stories Continues after ad

The Commonwealth will send a team to observe elections in Mozambique, which will take place on 15 October.

Kalonzo Musyoka, former Vice-President of Kenya, is leading the Group, which will observe presidential, legislative and provincial assembly elections.

Secretary-General Patricia Scotland said: “These elections are crucial for the further consolidation of peace and democracy in Mozambique. I am pleased that through this group of eminent persons, the Commonwealth will once again be present to demonstrate its support to the people of Mozambique.  I am confident that the recommendations the Group will make in its final report will contribute to the strengthening of Mozambique’s democratic culture.”

The Commonwealth Observer Group will be in Mozambique from 10-20 October to consider the pre-election environment, election preparations, the vote on election day itself and the immediate post-election environment, including the results process.

As with all Commonwealth observer groups, the team will function with impartiality and independence, and conduct itself according to the standards set out in the International Declaration of Principles for Election Observation, to which the Commonwealth is a signatory.

The Secretary-General added: “The responsibility for conducting credible and peaceful elections is a collective one. It falls on all concerned, including the election management body, to political parties, civil society, community leaders, security agencies, the media and the electorate. Each stakeholder has a constitutional duty and responsibility to ensure that the process is credible and peaceful.”

Mozambique joined the Commonwealth in November 1995 as the first member country with no colonial links to Britain.  The Commonwealth last deployed a Group to observe elections in Mozambique in 2014.

The observer group is supported by a Commonwealth staff team led by Yvonne Apea Mensah, Adviser and Head of Africa in the Governance and Peace Directorate.

Full list of Observer Group members:

HE Mr Stephen Kalonzo Musyoka (Chair), Former Vice-President, Republic of Kenya

Mr Musa Mwenye, Former Solicitor General and former Attorney General, Zambia

Dr Alex Vines, Head, Africa Programme, Chatham House

Dr Nomsa Masuku, Commissioner, Electoral Commission of South Africa

Ms Emma Lee Wilson, Lecturer in conflict mediation, Department of Politics and International Studies, Cambridge University

The Commonwealth is a voluntary association of 53 independent and equal sovereign states.

The Commonwealth is home to 2.4 billion people and includes both advanced economies and developing countries.

Thirty-one of our members are small states, many of which are island nations.

Our shared values and principles are inscribed in the Commonwealth Charter.

Member countries are supported by a network of more than 80 intergovernmental, civil society, cultural and professional organisations.

Stories Continues after ad