1. Commodity markets are still highly unstable Extreme price volatility Many commodity-dependent economies unable to participate effectively and diversify.

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Commodity markets are still highly unstable Extreme price volatility Many commodity-dependent economies unable to participate

effectively and diversify successfully. Commodity booms and busts caused in part by speculation

disrupt the investment process There are structural mismatches between supply and demand. Risk management at a micro/local transactional level difficult to

access and at high cost Smaller scale participants continue to face challenges of access

to finance, logistics and other services in supply chains. Improvements in functioning of commodity markets and

commodity policies are of importance for achieving sustainable production and consumption modes

Issues to address

GCF: a multi-stakeholder approach

• History shows that attempts to address commodity problems only through inter-governmental negotiations is not enough

• Intervention has in the past created challenges• GCF will be a neutral platform bringing together

key stakeholders• Only a dialogue between ALL stakeholders may

enable moves towards an optimal balance between market practices and regulation.

The Structure of GCF• The first GCF meeting focuses on extractive industries – oil, gas and metals

markets• Plenary and parallel sessions focus on market instability/price volatility,

developing sustainable supply capacity and making commodities an“Ëngine for Growth”

• Plenaries tend to be policy focused and the parallel sessions are more market orientated

• Structure envisages GCF in future as not just a meeting event but also an information portal. Weplan to develop a GCF eForum websiteto distribute UNCTAD analytical materials(issues for discussion, specialisedjournals and publications)

Who is coming to GCF?• Governments: 7 government ministers have confirmed;

Ecuador, Mali, UAE, Iraq, Switzerland, Qatar. More are expected.

• Heads of international agencies: OPEC, CFC, ACP Secretariat, IEA, WTO*

• Private sector – more than 40 banks including Deutsche Bank, HSBC, SMBC, BNP

• Representative organisations such as the Berne Union• Commodity exchanges: CME, Dubai

Mercantile Exchange, LME• Academics & others• More than 200 delegates registered

Reaching Stakeholders

• SUC outreach globally • Email, dedicated registration platform• Development of central online database for

GCF/SUC

What will be achieved?

• Improving communications between key stakeholders• Creating platform to regain consultation initiative

on key commodity issues• Improved information-sharing in and transparency• Understanding volatility and risk issues from a management

perspective• Tackling the regulatory dilemma & dealing with volatility debate• Improving information flows and measurement of the commodity

economy• Assessing mechanisms to better contribute to price

discovery/transparency• Improved supply and demand forecasts • Combining supply and stock management

Thank you for your attentionFor further questions:

[email protected]@unctad.org

Special Unit on CommoditiesUNCTAD