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How to build a sustainable framework How to build a sustainable framework for endogenous-led capacity for endogenous-led capacity development in the trade-related sectordevelopment in the trade-related sector
Phnom Penh, 5 February 2008
Fabio Artuso ( [email protected] )
EC Delegation in Bangkok
OutlineOutline
Overview on EU Trade Related Assistance
Trade-Related Capacity Development
(Doha, OECD/DAC, EC approach)
The way forward
EU Trade Related AssistanceEU Trade Related AssistanceOverviewOverview
Commitments TRA by donor 2001-2005
4,985, 56%2,327, 26%
209, 2%
261, 3%
168, 2%
136, 2%
429, 5%
370, 4%
EU
USA
Japan
Switzerland
Canada
Norway
World Bank
Others
source: 2006 Joint WTO/OECD report on TRA
EU Trade Related AssistanceEU Trade Related Assistance“EU Aid for Trade Strategy”“EU Aid for Trade Strategy”
“EU Strategy on Aid for Trade: Enhancing EU support for trade-related needs in developing countries” – published on 29/10/07
More, better and quicker aid for trade
Clear picture of how the EU intends to respond to the recommendations of the WTO 2006 Taskforce on AfT
EC Trade Related AssistanceEC Trade Related AssistanceDisbursementsDisbursements
OWNERSHIP is at the core of the new strategy: beneficiary countries must integrate trade-related needs into their development strategies and assistance requests
EC Trade Related AssistanceEC Trade Related AssistanceThe Paris DeclarationThe Paris Declaration
Source: OECD/DAC
Trade-related Capacity DevelopmentTrade-related Capacity Development
The Doha DeclarationThe Doha Declaration
Doha Declaration (2001):
“We confirm that technical cooperation and capacity building are core elements of the development dimension of the multilateral trading system…”
“We underscore the urgent necessity for the effective coordinated delivery of technical assistance with bilateral donors…”
Trade-related Capacity DevelopmentTrade-related Capacity DevelopmentOECD/DAC GuidelinesOECD/DAC Guidelines
OECD/DAC “Guidelines on Strengthening Trade Capacity for Development”
Trade Capacity Building enhances the ability of policymakers, enterprises and civil society in developing countries to:
Collaborate in formulating and implementing a trade development strategy embedded in a broader national development strategy;
Increase the volume and value-added of exports, diversify export products and markets and increase foreign investment to generate jobs and exports;
Participate in – and benefit from – the institutions, negotiations and processes that shape national trade policy and the rules and practices of international commerce.
Trade-related Capacity DevelopmentTrade-related Capacity DevelopmentOECD/DAC GuidelinesOECD/DAC Guidelines
The Guidelines suggest that donors and developing countries should seek to construct trade policy frameworks with the following elements:
Coherent trade strategy overall development strategy
Effective mechanisms for consultation
Effective mechanisms for intra-governmental policy co-ordination A strategy for the enhanced collection, dissemination, and analysis of
trade-related information
Trade policy networks
Private sector linkages
A commitment to outward-oriented regional and global strategies
Trade-related Capacity DevelopmentTrade-related Capacity DevelopmentOECD/DAC GuidelinesOECD/DAC Guidelines
Suggestions to Donors:
Co-ordinate more closely TCB activities are comprehensive
in scope and integrated in execution Foster local ownership and participation Embrace approaches that strengthen the ability of
partner countries to continue helping themselves once donors have left
Strengthen donors' own trade-related capacities Commit significant financial and personnel resources
EC approach to Capacity DevelopmentEC approach to Capacity Development- Consider organisations as “open systems” -- Consider organisations as “open systems” -
EC approach to Capacity DevelopmentEC approach to Capacity Development- Focus on products and services -- Focus on products and services -
Look at the outputs of the organisation: products and services
Capacity development must result in specific changes in output
EC approach to Capacity DevelopmentEC approach to Capacity Development- Explore the context, the inputs – and then go inside -- Explore the context, the inputs – and then go inside -
Before looking inside the organisation, explore structural and institutional drivers of and constraints to change in the context
Look for stakeholders – they make and break change!
Consider the Inputs and resources
Then, finally, look at the rest of the “inside” elements
EC approach to Capacity DevelopmentEC approach to Capacity Development- Dig deeper to get a solid diagnosis -- Dig deeper to get a solid diagnosis -
Look for both formal and informal aspects of organisations
Look for both the “functional-rational” dimension and the “political” dimensions of organisations
EC approach to Capacity DevelopmentEC approach to Capacity Development- Change and CD are mostly domestic processes -- Change and CD are mostly domestic processes -
External factors are often powerful drivers of capacity change – but committed insiders must lead
A change strategy is required
EC approach to Capacity DevelopmentEC approach to Capacity Development- Roles of and instruments for donors -- Roles of and instruments for donors -
Make sure that the partner can and will lead!
Assist the partner to define realistic CD targets in terms of changes in organisational outputs
Donors can play a catalytic role, engage to build up demand for change, provide access to knowledge, pilot different approaches, facilitate dialogue between domestic stakeholders
Trade-related Capacity DevelopmentTrade-related Capacity DevelopmentThe way forwardThe way forward
TCD should build upon and foster the process
for formulating and delivering trade policy
What delivery mechanisms can be used to boost effectiveness of programmes supporting TCD?
The way forwardThe way forwardHow can we enhance TCD effectiveness?How can we enhance TCD effectiveness?
Need to improve donor-donor coordination donor-recipient coordination
Fora for discussion and coordination
Shared analysis / joint diagnostic reviews
Use existing Government’s structures to channel TRA and provide support to strengthen them
Use common arrangements and procedures: programmatic approaches to be supported through basket funding
The way forwardThe way forwardIncrease use of Sector Wide ApproachesIncrease use of Sector Wide Approaches
They way forwardThey way forwardSWAps and Basket Funding ArrangementsSWAps and Basket Funding Arrangements
Other Sector national budgetrevenues support
‘Pool Fund’Donor XDonor Y
Do
no
r X
Through Treasury
Co-financed activities
Projects
Sector Programme
Do
no
r Z
PPP
Own funds
The way forwardThe way forwardThe role of UN agencies and IFIsThe role of UN agencies and IFIs
Need to avoid duplication and competition
Focus on areas where UN bodies have a respective comparative advantage
UNCTAD XII: work on establishing a list of comparative advantages in TA provided among UN agencies [or establish a list of good practices or success stories for each organisation]
