0 4 2 1 5 6 7 3 - 2 0 2 0 0 -10 3 0 10 4 0 19 9 6 19 9 8 2 0 0 0 2 0 0 2 2 0 0 4 2 0 0 6 2 0 0 8 2 0 10 2 0 12 2 0 14 2 0 16 G D P P E R C A P I TA D E V E L O P I N G C O U N T R I E S ( R I G H T A X I S ) P R I C E I N D E X A L L C O M M O D I T I E S C O R R E L AT I O N C O E F F I C I E N T= 0 ,7 9 INOKS CAPITAL SA   © 2018 16 INOKS CAPITAL SA   © 2018 17 2017 COMMODIT Y VALUE CHAIN CHALLENGES INOKS CAPITAL 2017 IMPACT REPORT LACK OF FINANCIAL RESOURCES ACCESS Restricted financial access combined with increasing finance costs is affecting various players in the commodity sector, especially small and medium agribusinesses and their entrepreneurs. Alternative finance has a key role to play in offering more efficient supply of capital. TRADE WARS Throughout 2017 we closely monitored protectionist drives in the East (China) and West (USA), although in some cases these favoured firms geared towards domestic and/or EU offtake amongst others. We therefore continued to favour beneficiaries whose distribution channels cover markets ex. USA/China. Trade protection also means more inflation pressure via import prices, favouring real assets relatively to financial assets. EM DEPENDENCE ON COMMODITIES Two out of three developing countries are commodity dependent, i.e. their socio-economic development is directly correlated to the performance of the commodity sector. Commodity price fluctuations thus affect macroeconomic variables via several channels, hindering economic growth and development. Emerging countries face the important challenge of managing price volatilities whilst diversifying their revenue streams in order to strengthen their macroeconomic stability. CLIMATE CHANGE Global warming is strongly affecting the trade of commodities as severe weather events multiply; certain resources be- come scarce as production assets in low latitude countries are damaged; whilst production conditions in tem- perate climate regions improve. Well- designed trading policies are required to address the implications of climate change on international trade and en- sure well-functioning markets guaran- teeing food reallocation from surplus to deficit countries. POEX – Khazakstan: grain is stored in a brand new silo complex Figure 2: UNCTAD Non-oil Nominal Commodity Price Index and GDP per capita developing countries 1995-2016 (annual % changes)