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Aid-for-Trade Roadmap for SPECA CountriesMinisterial Conference, Baku, Azerbaijan, 1-2/12/2010
AfT Needs in SPECA Countries: Findings From
Regional Review
Europe and CIS
Daniel IvarssonBaku, 1 December, 2010
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Presentation outline
Background and contextInitial findingsNational needs assessments and regional reviewPriority areasConclusions for action
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What has happened?
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Context: Aid for Trade Roadmap for SPECA
National needs analyses to identify AfT priorities
Afghanistan Azerbaijan Kazakhstan Kyrgyzstan Tajikistan Turkmenistan Uzbekistan
Sept. 2009 – Aug. 2010
Europe and CIS
Preparatory process
Expert meeting to take stock of national and
regional priorities and prepare for the Ministerial conference
Bishkek, Kyrgyzstan 10-11 March, 2010
Ministerial conference to engage with
development partners in an AfT regional review
to set the direction for future work
Baku, Azerbaijan1-2 December, 2010
Key event
<= Regional Review =>
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Expert Meeting in Bishkek 11 - 12 March 2010Host: Government of KyrgyzstanOrganisers: UNDP, ITFCParticipants from all SPECA countriesWTO, UN agencies (members of the Cluster for
trade and productive capacity), other organisationsPresentations, incl. needs assessment drafts Discussion of needs, priorities and approachesComplementary inputs for Regional Review
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National Aid-for-Tradeneeds assessments I
Reflect particularities of the countryCarried out by local consultantsParticipatory processOfficial validationNeed to consider regional aspectsBasis for Regional Review
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National Aid-for-Tradeneeds assessments II
Methodology presented in regional guide: How to Conduct Trade Needs Assessment
Focus: Impact of trade on human development, living standards and poverty reduction
Purpose: Highlight capacity gaps and propose actions and technical assistance projects to overcome weaknesses…
Recommendations: Action Matrix
Role of UNDP: methodological support, facilitation of the process
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Regional Review
Summarises the national needs assessmentsHighlights commonalities while recognising differencesIdentifies regional needs and opportunitiesReflects common priorities of the SPECA countriesSets trade in the human development contextSuggests measures for regional developmentComplemented by project concept notesOffers concrete Action Plan
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What‘s the situation, then?
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Expert meeting observations I: opportunities and constraints Potential for regional trade developmentPositive effects of infrastructure investmentsFavourable scope for diversificationDifficult natural conditionsRemoteness, distance to world marketsWeak trade infrastructure (physical, institutional)High transaction costsLow competitiveness
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Expert meeting observations II: common needs
Physical infrastructureInstitutional infrastructureBusiness environment, enterprise developmentDiversification, sector development (incl. services)Higher value added, better use of local resourcesSupply and transformation of agricultural produceDevelopment opportunities for the whole country
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Varying conditions;similar challengesDifferences in size, population, economyDeal with the economic crisis and its effectsReduce dependence on a few products & marketsRaise value addedTake a longer term perspectiveConsult and cooperate for concerted actionsMake trade contribute to human development
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Trade performance and opportunitiesBefore the economic crisis: mostly steady growth,
after decline in the ’90sTrade deficits, except for oil and gas exportersEconomic crisis hitting harder than elsewhere: lower
demand, export prices, FDI, remittances, access to credits,...
Potential for regional trade developmentPositive effects of infrastructure investmentsScope for diversification
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National initiatives for developmentMacro-economic measuresFinancial sector strengtheningNational industry support programmesExport promotion agenciesQuality system enhancement‘Single window’ for trade facilitationSupport for higher education, innovationEtc., etc., etc.
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Current Aid for Trade support
Low amounts, except for Afghanistan International organisations, bilateral supportBeneficiary country initiative and leadershipDonor community engagementRegional coordinationComprehensive programmes, well prepared projectsPrivate sector involvement
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Common, current priorities for trade developmentPhysical infrastructure: transport, energy, telecomsInstitutional infrastructure: trade procedures, quality
management, trade and investment supportTrade policies, business environment, enterprise
development Diversification; sector development: services, food
industry, textiles & clothing, leather & footwear, etc.Balanced development – benefits for all
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So, where do we go from here together?!
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Three focus areas for action
Common areas, common actionPractical measures for tangible results:
focus, coherence, sequencing
Supply side/within-border measuresCross-border cooperationThe multilateral trading system
Summarised in Action Matrix
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Focus area 1: Supply side / within-border measures Productive capacity and market development within
selected sectorsEstablishment and/or reinforcement of trade support
institutions and servicesEnhancement of the business environment
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Focus area 2: Cross-border cooperation
Physical infrastructureInstitutional trade infrastructure, with a focus on
trade facilitationMarket access
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Focus area 3: Matters related to the multilateral trading systemBuilding awareness and knowledgeIdentifying common interests and acting on themConsulting and cooperating on practical measuresSupporting SPECA countries during WTO
accession, as appropriate
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Well, how do we make it happen?!
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Baku Ministerial Declaration: basis for future Aid for Trade
Commitment to improved well-being, now and laterAwareness of needs and how they can be addressedResolve to actAgreement on priorities for trade developmentRequest for supportPrimacy of national and regional needs and interests
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Implementation steps
Further develop Aid-for-Trade action matrices in the Regional Review and National Needs Assessments
Identify and prioritize corresponding projects; see concept notes
Actively pursue funding for priority projectsEncourage information exchange and coordination
among beneficiaries, donors, implementing agenciesSet up SPECA Regional Aid-for-Trade Implementing
and Monitoring Council
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Thank you
United Nations Development Programme Europe and the Commonwealth of Independent States
Bratislava Regional Centre http://europeandcis.undp.org
Europe and CIS
