Training Manual on Trade and Investment

Trade has historically been a key driver of development. This is because increased trade and trade opportunities incentivize higher production and productivity, both of which are central to facilitating development. However, for trade to effectively promote economic transformation and development, an appropriate policy framework is necessary—one that interlinks different sectors to enhance domestic production and productivity.

In fact, trade and trade-related matters, such as investment, are among the most regulated sectors, with numerous policies, laws, and agreements in place at national, regional, and global levels. Generally, the trade and investment policymaking process involves a complex interplay of various institutions and stakeholders to guide decision-making. These include engagements at the ministry level within individual countries, as well as interactions at regional and global levels, such as within the Africa Group and the Least Developed Countries (LDC) Group, among others.

These processes are often influenced by different players with varying degrees of power, including corporations, influential institutions, and powerful entities such as the World Bank, the European Union, and the United States. Business lobbyists and select groups of media practitioners also play a significant role. However, trade unions, civil society organizations, farmers’ groups, and consumers—particularly those from LDCs—are often marginalized or entirely excluded from these discussions due to various barriers.

In many cases, the level and quality of participation by these key stakeholders directly impact the trade and investment policies and legal frameworks that are implemented. The effectiveness of these frameworks determines whether they contribute to economic transformation and sustainable development or hinder progress.