Challenges, opportunities and risks fordeveloping countries to actively be involved in
standardization and how this could impacttrade in the global marketplace
GenevaSeptember 2013
Jane Ngige
Discussion points:• Standards & Commerce• Using standards• Challenges• Opportunities
– Company– Sector– National– International
• Climate / Environment• Some thoughts
Preamble:• Standards: a language of sustainable
commerce• Link commerce and other segments of
the economy -Productivity• Equity in global trade negotiations• Main partners in standardization:
businesses, consumers, stateregulatory authorities and standardsbodies
Kenya Exports to EU22%
Kenya Exports to EAC27%
Kenya Exports COMESA(non EAC COMESA
countries)17%
Rest of the world34%
Kenya Exports by destination in 2012
Horticulture exports values 2010-2012
Growing Responsibly
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2010 2011 2012
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Vegetables
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Main Issues:
Sustainability: Marginsunder pressure
• Enhance Competiveness• Focus on Product development• Quality management• Business models• Market access
Local and international Business facilitation Standards Trade protocols
EU; RUSSIA; HOLLAND; JAPAN Packaging
• Logistics• Packaging• Cool chain
Distant Markets:
•. Efficient use of resources. H2O. Fuel. Labour
Productivity:
• Nationally, Regionally and international : political; governance &economical• Industry
Branding Kenya:
Using Standards:
Business entities• Need based• Resources
Sector level organisation• Common agenda• Justification• Resources
National level• Justification• Effective and efficient Implementation• Sustainability
International level• Relevance• Sustainability
KFC Organization
checklist foraudits generated
& endorsed,
Mechanism for GuidingVerifications & Certification
proposed
First nationaltrials
Review and FinaliseStandards, QMS and
Mechanism forverification +certification
Guidelines forauditing,
verification,validation andcertification
Development of stds:
Draft CoP (s) +QMS procedures
Review &desk
Research
KeyInformants
Challenges:• Lack of appreciation / knowledge leads to
“standard takers”• Non participation: paucity credible information to
articulate, and defend interests – national /international
• Limited opportunities to influence / ratify stds• Difficulties in adoption of standards and adapting
to conditions of certain economic activities henceless effective in commerce
Tesco NURTURE
KeBS KS 1758
Earmarked for ISO GUIDE 17025 &FSI in 2013
Accredited ISO GUIDE 65 SOME PARTNERS
KAMA. E. A.
WORLD BANK
National:
• Failure to inculcate of adherence to minimumstandards compromises sustainability in theexploitation of resources
• the lack of capacity in implementinginternational standards leads to increasedcosts and difficulties in applying the standardsneeded to increase exports sources
• can cause obstacles or trade barriers
Sector:• technology transfer limited to well endowed
businesses within a sector• businesses not necessarily convinced that the
benefits of sharing R&D are greater than therisk involved in revealing proprietaryinformation
• Reliance on local standards developmentagencies for relevant information.
Company:
• Not sufficiently informed• partly aware of the strategic potential of
standards and accruing benefits• Private industry standards involve of selected
interested parties.
Making/negotiating internationalstandards
• Lack of concrete information and quality data ontopics of discussion.
• The fear of dealing with the unknown.• Challenges of dealing with cultural differences and
foreign bureaucracies.• Lack of adequate preparation – delegates &
organizers
Opportunities:
• Continuous economic growth: sustainabledevelopment (economic, environmental andsocial)
• Competitiveness: access, expand, penetrateand grow market share in global markets.
• Emerging economies should learn usestandardization as a tool to create and sustainnew trade opportunities.
….opportunities:
• reduce liability risk• Stimulate, disseminate innovation and value
addition for economic growth• effective communication• Promotion of locally-identified adaptation strategies;
benchmarking & sharing of best practices / lessonslearned, and exchange of information
Risks:• Initial costs could be prohibitive in the process of transforming
business• Migration of trained human resources to competitors• While public standards may be consistent for a period of time,
private standards are dynamic• In developing countries, business standards often lag behind
parallel national developments, leading to lack of effectiveincentives and disincentives
• Failure of governments to effectively participate in standardssetting (local regional or international) could lead todevelopment of standards that are not practical or achievable
• Where sustainability standards are seen as being in conflictwith development, they risk being de prioritized
Thoughts on what can be done to enhance capacityamong stakeholders using international climate
standards in an efficient way
• Encourage / support developing countries becoming more involvedin international standard setting & implementation
• International standards are of key interest to governments, theprivate sector, NGOs, research and other stakeholders; it is ofimportance that the process of developing market relevantstandards is stakeholder-driven
• Other actions include (1) formulation of national resourceefficiency use / productivity strategies, (2) development of systemsfor monitoring, reporting and verification, (3) development ofstandard data collection systems, (4) setting baselines and (5)establishment of programs / projects that promote sustainabilityand innovation
• Draw policies that incentivize sustainable measures
Thank [email protected]
