A pro active agricultural diversification policy would need to combine market and production related interventions.

(c) Supply side weaknesses lack of diversification, structural weaknesses (narrow production and export base, inability to compete in world trade)

The development of production processes which corresponded to the climatic and other characteristics of developing countries could improve competitiveness and assist diversification.

Measures to help Least Developed Countries, and African countries in particular, increase their export orientated production and improve the diversification of their export production and markets must be a key part of this campaign.

Diversification will inevitably change production patterns and impact on life styles, particularly when new production activities are introduced in remote or isolated areas, as is often the case with mining projects.

(b) Support for the productive sector, with the aim of developing supply capabilities and promoting diversification of production in the developing countries, and particularly output of commodities.

Diversification

5.2 Diversification of intervention options

Financing of diversification in Colombia

H. Diversification of African economies

The UNCTAD report notes that the diversification of agricultural production has a real impact on poverty reduction, which is itself a key element in any desertification control strategy.

Much more work remained to be done, particularly in areas such as commercial multilateral diplomacy, debt management, investment, productivity and diversification of commodity production, and improvements in ports.

We underline the importance of implementing the initiatives contained in the New Partnership, in particular those designed to enhance market access and the diversification of production in African economies, which are vulnerable because of their dependence on primary production and natural resources based sectors.

23. The spokesman for the African Group (South Africa) stated, in respect of diversification, that over 75 per cent of the workforce in Africa was engaged in commodity production and trade.

6350 Import diversification

B. Diversification experiences

Finance for diversification

The sustainable increase of rice production and the diversification of rice based production systems will require continuing investment in both research and development at national, regional and global levels to contribute to the achievement of the targets of the Millennium Development Goals and the World Food Summit.

Diversification in production and trade is an integral element in the development and economic restructuring and industrialisation of marginalised economies, notably in Africa and the LDCs, many of which are commodity dependent.

Diversification can serve as a risk management strategy, but risk can also hamper diversification.

This implies in turn for exporters that access to exports for processed industrial products becomes more difficult, and that vertical diversification of production for exports of higher value added products is slowed down.

(c) Client diversification and

Risk factors in diversification

Enterprise level diversification patterns

Various forms of domestic resource mobilization for diversification (e.g. taxes and levies earmarked for diversification) were mentioned in this connection.

Malaysia s diversification The importance of research and development

Implications of the Uruguay Round for vertical diversification

Since the Seventh Plan (1987 1991) the intensification and diversification of farm production has been approached from the standpoint of a modernized agriculture undertaking to secure a qualitative alteration of its development model on durable foundations.

DIVERSIFICATION IN COMMODITY DEPENDENT COUNTRIES

DIVERSIFICATION IN COMMODITY DEPENDENT COUNTRIES

Sixty five per cent of the active population in Africa was engaged in the production of commodities and therefore horizontal and vertical diversification was a sine qua non for the development of this region this diversification needed to be supported by the development of the other sectors of the economy, by technology, transport and communication, and by strengthening of the private sector participation.

Economic and trade diversification could be crucial, and donor commitments to investment in economic diversification could be essential.

47. Foreign capital is another source of diversification funding.

3. Diversification in commodity dependent countries

Social and environmental factors in diversification

A. Diversification in commodity dependent countries

Some advice from NGOs about diversification

B. Enterprise sector strategies in diversification

Government policies and firms diversification decisions

2. Agenda for commodity based diversification

This diversification is an important achievement.

(ii) Improvement of supply capacities is crucial to effective diversification.

Diversification of investments of the United Nations Joint Staff Pension Fund

These sectors, which are identified in table 1, can provide some guidance to industries in developing countries in their strategic approaches towards the expansion of export and supply capabilities and the diversification of their production and export structures.

Policies related to diversification accordingly need to be anchored in the commercial reality that globalized production has become very sophisticated in tapping local inputs, exploiting skill and wage differentials, or jumping trade barriers.