Ambassador Belal Urges Humanizing the Value Chain to Put People at the Center of Sustainable Development
30 April 2025, New York – At a high-level side event during the Fourth Preparatory Committee for the Fourth International Conference on Financing for Development (FfD4), Ambassador Sheikh Mohammed Belal, Managing Director of the Common Fund for Commodities (CFC), delivered a powerful call to rebalance global commodity value chains by centering the needs and rights of smallholder farmers, workers, and marginalized producers.
The event, “Leveraging Commodities for Sustainable Development and Resource Mobilization,” was co-organized by the United Nations Department of Economic and Social Affairs (UN-DESA) and CAF – Development Bank of Latin America and the Caribbean. It brought together policymakers, financial leaders, and UN officials to address the structural challenges of commodity dependence and explore pathways toward inclusive economic growth.
The Long Arc of Commodity Dependence
Ambassador Belal traced the historical roots of commodity dependence, citing the pioneering work of economists like Raúl Prebisch and Gamani Corea, whose advocacy led to the creation of the CFC. He emphasized that while commodities remain a vital economic driver for many developing nations, systemic inequities—such as tariff escalation and financial marginalization—continue to trap producers in cycles of poverty and vulnerability.
“The legacy of the Integrated Programme for Commodities and the CFC reminds us that commodity wealth must be harnessed, not extracted,” he stated. “We need inclusive systems, fair pricing, and institutional support to transform raw materials into sustainable prosperity.”
An Unequal Burden: Climate, Debt, and Exploitation
Highlighting the dual crises of climate change and unsustainable debt, Ambassador Belal echoed Prime Minister Mia Mottley’s concerns: many Global South nations spend more on debt servicing than on climate adaptation or social programs. Meanwhile, smallholder farmers—who produce 80% of the world’s food—earn less than 1% of global commodity market value.
“This is neither fair nor sustainable,” he declared, condemning tariff structures that penalize value-added exports from developing countries and perpetuate reliance on raw material extraction.
The CFC’s Role: Financing Equity and Resilience
As the only global institution dedicated to commodity-based development, the CFC prioritizes financing for small and medium enterprises (SMEs), which bridge smallholders to markets and drive local job creation. Ambassador Belal underscored the urgency of closing the $300 billion annual financing gap for smallholder agriculture, calling it essential to eradicating poverty and stabilizing global trade.
“The CFC stands as an advocate for those at the end of the value chain—the farmers and laborers who power economies yet see the least return,” he said.
Humanizing the Value Chain: Dignity, Rights, and Fair Shares
Ambassador Belal outlined a vision for value chains that prioritize:
- Dignity: Safe working conditions and fair wages.
- Rights: Access to healthcare, education, and enforced labor protections.
- Fair Shares: Equitable compensation for smallholders and workers.
He also proposed innovative solutions like blockchain-enabled digital tipping, allowing consumers to directly support producers, thereby fostering ethical and transparent trade.
A Call to Action: Reinventing Finance for People
To reshape the global financial system, Ambassador Belal urged:
- An inclusive tax system to redistribute trade revenues to producing countries.
- SDG-aligned investments and policies that support local development.
- Stronger multilateral cooperation, with the UN as a catalyst for change.
“Shared global risks demand shared solutions,” he concluded. “Let us see commodities not as a curse, but as a lever for sustainable development—if we invest wisely and place people at the heart of policy.”
The event featured remarks by Gianpiero Leoncini (CAF), Mariangela Parra-Lancourt (UN DESA), and government representatives from Indonesia, Zambia, Brazil, and Chile.
For media inquiries, please contact:
[CFC Media Relations Team]
[Email: managing.director@common-fund.org]
[Phone: +31 20 575 4949]