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GM Sector-Based Approach

At the country level, the Global Mechanism (GM) Market Access and Trade Programme (MAT) is driven by a sector-based approach that considers both policy issues and concrete opportunities for market development.

The programme focuses on innovative (natural) products and industries with the potential to contribute to improving sustainable land management (SLM), the socio-economic development of drylands and livelihoods. The baseline for the sector-based approach is based on its potential for increased market opportunities for products with a comparative advantage for dryland communities. These opportunities include the possibility for diversification and value addition that encourage private sector engagement in the development of sustainable value chains, thus generating additional income for local communities.

Which products have a comparative advantage for dryland communities?   In addition to products that are resistant to drought and particularly suitable for dryland ecosystems (which can be marketed at the local and national levels), there are also natural/biodiversity products – such as aloe, karité butter, gum arabic, medicinal plants, jatropha and tropical fruits – that are unique to drylands. The peculiarity of these products is derived from the environment in which they grow: They develop features that enable them to provide environmental services that are extremely precious for the conservation of land, water and biodiversity. They develop natural properties that provide valuable substitutes for chemical components and processes in industries such as pharmaceuticals, cosmetics, food and energy. They are crucial to the livelihoods of local communities because they play an important nutritional role for local populations during dry seasons and food shortages. They are often the only natural resources available for income-generating activities. Socio-economic assessments also demonstrate that vulnerable groups, such as women, are often major stakeholders in these markets. Why are these products interesting from an investment perspective? In recent years these products have seen a growing demand in northern markets for green/ethical products. Market demand remains mostly unsatisfied by current supplies because producing countries often work at less than half their production capacity. The private sector is showing increased interest in investing in the development of production and markets for these products, with the aim of “greening” its image and diversifying its scope. Because markets for these products are not yet structured, there is large scope for influencing the policy-making processes and embedding the criteria of environmental sustainability in the design of institutional and regulatory frameworks for the development of related industries.

By focusing on innovative products, the GM aims to increase the potential for enhanced investment in SLM by developing trade of these products and providing better guidance to governments in creating supporting regulations, incentives and financing and in addressing issues related to non-tariff barriers and measures for market access. It is believed that GM and United Nations Convention to Combat Desertification (UNCCD) constituencies can exert a greater influence on emerging markets for these products than on more complex and structured markets, such as those for traditional agricultural export commodities (cotton, sugar, tobacco, timber, etc.).


Nonetheless, depending on the specific country situation and needs, traditional agricultural products – including heavily traded commodities – may occasionally be taken into consideration. In these cases, the GM does not aim to influence trade policy negotiations. Instead it will focus on reducing the negative impacts that trade in these products has on SLM, and will build awareness of the factors related to this trade (i.e. governance structures, tariffs and market distortions) that undermine the development and competitiveness of emerging markets for products with greater potential to enhance SLM and sustainable use of natural resources. GM partners can complement and strengthen GM interventions by advising countries on how to strengthen their position in policy negotiations and by engaging in advocacy activities to influence trade in traditional commodities.

Related Links

Read more about the GM/UNCTAD Biotrade Initiative