The Common Fund for Commodities announced this week that spurred high demands for metals in China and India, is broadening its focus on minerals. So, what is the Common Fund for Commodities? And how does it operate? Read on to know all about the Common Fund for Commodities.
What is this fund?
The Common Fund for Commodities is an inter-governmental financial institution established within the framework of the United Nations. The fund's specific mandate is to support developing countries that are commodity dependent to improve and diversify commodities production and trade.
What are the fund's projects?
The fund's projects typically have a market development and poverty alleviation orientation; and through a variety of project-based initiatives, the fund places a high premium on development of commodities-based economies upon which the producers and exporters depend for their livelihoods.
Who are the fund's members?
The fund currently has a membership of 107 countries. Institutional members include the European Community (EC), the African Union (AU) and the Common Market for Eastern and Southern Africa (COMESA). The latest institutional member is CARICOM. The Secretariat is based in Amsterdam, The Netherlands.
What are the main activities of the Common Fund?
The Common Fund's mandate seeks to enhance the socio-economic development of commodity producers and to contribute towards development of society in general. In line with its market-oriented approach, the Fund finances commodity development projects from its own resources, which are voluntary contributions, capital subscriptions by Member Countries transferred to the Second Account and from interest earned.
How does the fund focus on commodities?
The Common Fund operates under the novel approach of commodity focus instead of the traditional country-cetric format. This entails concentrating on the overall general problems relative to specific commodities in developing countries, especially the least developed countries.
What are the approved projects under the fund for 2007?
The following are the approved projects under the fund for 2007: