View of a large open-cast phosphate mine in Togo.
Developing countries such as Togo have an abundance of natural resources. The SDC is committed to ensuring that these are exploited fairly © Alexandra Pugachevsky

Exploiting natural resources is crucial to the economies of many developing countries and Swiss companies play a key role in commodities trading. Natural resources can be used to alleviate traditional forms of poverty, but many countries fail to take this step. The SDC aims to address this problem. 

The commodities sector is becoming increasingly important in developing countries. According to a 2016 report by the United Nations Conference on Trade and Development (UNCTAD), 91 developing countries in 2015 were dependent on commodities, where commodity exports accounted for more than 60% of a country's total merchandise exports. The World Bank also estimates that Africa alone is home to about 30% of the world's mineral reserves. Certain minerals, such as cobalt and tantalum, which are used extensively in electronic products, mainly come from fragile countries. 

With the expansion of 'clean' industries and technologies, the demand for minerals is set to increase, generating significant investment in exploration and developing new mines.

The various backgrounds and roles of the stakeholders involved have been debated for years by the academic community, international development policy committees, governments and civil society. The macroeconomic effects of exploiting natural resources and the factors causing price volatility have also been assessed. Attention has also been focused on extraction practices that cause damage to health and the environment, exploitative working conditions and conflicts over access to natural resources, which have the potential to unleash violence or even armed conflict.

Issues relating to financial flows from commodities trading are also the subject of intense debate. In general, funds that have been acquired illegally, or in questionable circumstances, and are transferred abroad present a major obstacle to economic growth and good governance in developing countries. There is broad consensus that illicit outflows from developing countries exceed the value of official development assistance many times over. A high percentage of these financial flows are attributable to commodities production and trading.

Switzerland is a key player in the commodities trading sector. It is estimated that more than 3 billion tonnes of commodities, calculated at over CHF 960 billion, are traded in Switzerland each year. In a report entitled 'The Swiss commodities sector: current situation and outlook' published in November 2018, the Federal Council states that it expects all companies operating in or out of Switzerland to demonstrate integrity and responsible conduct with regard to respect for human rights as well as environmental and social standards, both within Switzerland and abroad. The Federal Council also states that this applies to the entire value chain and is especially important for companies that operate in fragile states. 

 The SDC's main areas of activity

  • The SDC is committed to raising international standards for commodities production and trading and ensuring that governments and companies properly implement such standards.
  • Switzerland supports the implementation of multilateral instruments in the fight to control corruption and illicit financial flows.
  • In terms of international development cooperation, the SDC is committed to assisting its commodity producing partner countries in managing natural resources and creating sustainable value chains.
  • By supporting research and multi-stakeholder platforms, Switzerland is contributing to a better understanding of both the challenges and opportunities facing developing countries in relation to mining.

Current projects

Object 205 – 216 of 218

Sustainable and Inclusive Regional Economic Development in Macedonia

01.11.2015 - 30.09.2021

The level of development of Macedonia‘s eight regions is highly unequal. A national structure for balanced regional development has been built up since 2007. SDC will contribute to the establishment of a national system for coordination and monitoring for balanced regional development. In the regions, good governance will be enhanced; project development and implementation capacities will be improved with focus on the less developed regions. These measures will ensure greater allocation of funds to the underdeveloped regions.


Contribution to the Cotton Reform Multi-Donors Trust Fund of the World Bank in Uzbekistan

01.09.2015 - 30.09.2021

The World Bank led multi-donor trust fund will contribute to a sustainable cotton reform by thoroughly monitoring child and forced labour during cotton harvest, building the capacities of relevant authorities in terms of international standards and legislaion, raising awareness of the population and the stakeholders' groups involved in cotton picking. This will feed into policy dialogue with the Government and eventually eradicate this harmful practice for the rural population.


PEGIN - Promoción de la Equidad de Género con Incidencia Nacional

01.04.2015 - 31.12.2021

Formada por seis organizaciones cubanas la plataforma PEGIN busca incidir en políticas nacionales para promover procesos políticos y sociales a favor de la igualdad de género y para evitar que las reformas actuales no crean nuevas discriminaciones. Además, el proyecto contribuye a incorporar los principios de igualdad de género en todo el programa de COSUDE (transversalización).


Support for the third International Conference on Financing for Sustainable Development

01.11.2014 - 30.06.2022

Switzerland will engage in strategic advocacy and policy influencing partnerships to strengthen its position in the financing for sustainable development process leading up to the 2015 Financing for Development conference in Addis Ababa, and to enhance the preparatory process and the outcome in line with Swiss priorities, in particular by ensuring that the voice of the Private Sector is heard throughout the process.


Transparency International Bangladesh: Building Integrity Blocks for Effective Change

01.10.2014 - 31.12.2021

Transparency International Bangladesh promotes improved governance in selected institutions of integrity (parliament, judiciary, etc.) and five sectors providing basic services to the people (education, health, local governance, land, climate finance) as well as it strengthens its grassroots movement in order to reduce corruption for the benefit of the poor and the marginalised.


Enhanced Skills for Sustainable and Rewarding Employment (ENSSURE)(Main Credit)

01.08.2014 - 15.07.2022

In Nepal, 450,000 youths enter the labour market yearly but remain un- or underemployed. Through ENSSURE, 21’000 youths will increase their employability by attending company-based trainings such as apprenticeships and further training of workers, combined with off-the-job systematic courses[1].The strong collaboration between the Ministry of Education and industry associations will increase the skill level of workers; thus labor productivity and will lead  to more decent employment.

 

 

 

[1] Systematic courses could be: Pre-employment basics, day or block release for related trade theory, pre-assessment course, etc.

 

 

 


The members of municipal councils working for democracy

Women and men assembled in a community hall.

01.07.2014 - 31.12.2021

With the ‘Empowering Municipal Councils’ project, Switzerland’s international cooperation is helping municipal councils in North Macedonia to become effective local authorities whose community policies take into account the interests of ordinary citizens.

Country/region Topic Period Budget
Macedonia
Governance
Decentralisation

01.07.2014 - 31.12.2021


CHF 4'000'000



Institutional Strengthening of IGAD

31.05.2014 - 31.12.2021

The Intergovernmental Authority on Development (IGAD) is a sub-regional organization in the Horn of Africa. In line with Switzerland’s decision to increase its engagement with IGAD, the proposed contribution aims at strengthening the organization institutionally based on its political legitimacy, thematic relevance and capacity to contribute to peace and development in one of the world’s most fragile regions.


Regional and Municipal Infrastructure Development in Georgia

10.04.2014 - 30.06.2023

The project will increase human and institutional capacities of all municipalities in Georgia (except the capital city Tbilisi). lt will enable them to perform independently the core three functions for decentralised delivery of basic infrastructure services, i. e. Project Cycle Management, Financial Management and Asset Management. Such a decentralized System will enable the Government to better respond to population needs at local level.


Multi Donor Trust Fund (MDTF)

01.12.2013 - 31.12.2022

The MDTF aims to reduce the socio-economic marginalisation of people, with focus on women, religious minorities and internally displaced people, in the Pakistan border regions to Afghanistan; the fund will contribute to state-building in the most fragile regions of the country by strengthening capacity of the subnational governments. Consequently, the population will get increased access to basic services and livelihood opportunities.


Institutional Support to Network of Associations of Local Authorities in South East Europe (NALAS)

01.07.2013 - 31.12.2022

With an institutional support to the Network of Associations of Local Authorities of South – East Europe (NALAS), SDC supports the decentralization and democratization processes as well as stability in South East Europe (SEE). NALAS strengthens national associations of local governments and fosters communication and cooperation among them. Through its advocacy activities, NALAS will support local governments in SEE to become more visible and taken into account, both by national governments and European institutions.


Police Capacity Development on Election Security through the UNDP Election Support Program

01.04.2013 - 30.09.2013

On 11th May 2013, the Election Commission of Pakistan (ECP) will, for the first time in history, administer a transition from one full term democratic elected government to another. The probability of electoral violence threatens this opportunity. The police are the most important player in smooth conduct of election security. Yet, the majority of the police force has limited knowledge of electoral security protocol. With a contribution to the UNDP Election Support Program the capacity of police in election security will be enhanced.

Object 205 – 216 of 218