Commodities and Switzerland: Development Policy Challenges and Policy Options

• Main Author: Werner Thut
• Format: Article
• Language: English
• Published: Institut de Hautes Études Internationales et du Développement 2013-09-01
• Series: Revue Internationale de Politique de Développement
• Online Access: http://journals.openedition.org/poldev/1621

EDITOR’S NOTE This paper, written in December 2012, is a contribution to the ‘Policy Debate’ section of the International Development Policy. In this section, academics, policy makers and practitioners engage in a dialogue on global development challenges. Papers are copy-edited but not peer-reviewed. Instead, an initial thematic contribution is followed by critical comments and reactions from different stakeholders. This paper by Werner Thut is followed by reactions and analysis from a non-profit policy institute (Alexandra Gillies, Revenue Watch Institute, New York, ‘Crafting a Strategic Response to the Commodity-Development Conundrum’), a Southern scholar (Prof. Humberto Campodonico, Universidad Nacional Mayor de San Marcos, Lima ‘Going Beyond Transparency and Good Governance’ | ‘Más allá de la transparencia y una buena gobernanza’) and a representative of the trading sector (Stéphane Graber, Secretary General of Geneva Trading & Shipping Association – ‘Reassessing the Merchants’ Role in a Globalized Economy’). PAPER’S ABSTRACT Switzerland is one of the world’s largest commodity trading hub. The author, senior policy adviser at the Swiss Agency for Development and Cooperation (SDC), reviews experiences and policy options related to commodity trading from a development policy perspective. While this sector has become of strategic importance to Switzerland’s economy, it also entails a number of risks. On the other hand, Swiss development cooperation efforts focus on several resource-rich countries, whose mineral and agricultural commodities are traded via Switzerland. How can Switzerland assist these countries to reap the benefits of their natural resource wealth? This paper looks at development policy aspects of commodity trading in relation to Swiss foreign and domestic policy. It examines ongoing policy debates in Switzerland and discusses development policy options.