Improving the SMEs Access to Trade Finance DRAFT
in the OIC Member States
56
significant: the lack of specialized and well-resourced financial institutions in the South,
and the consequent reliance of producers based in these countries on foreign finance,
which tends to be heavily pro-cyclical and, often, destabilizing. In addition,
sophisticated supply chain operations have in recent years become crucial to global
trade, and their financing poses specific challenges to participating countries and the
international financial system.
Source: Trade Financing and Regional Financial Institutions from a South-South
Perspective, UNCTAD 2012
In sum, the political and policy context stretches from high-level macro-economic policy and
financial policy, to considerations specifically linked to the availability and accessibility of
trade and supply chain finance, and this reality is observed as a global situation, particularly
material in the context of developing and emerging markets.