LIBYA Private Sector Development (PSD) Workshop ...siteresources.worldbank.org/INTLIBYA/Resources/Tunisian-experience.pdf · DHAMEN FINANCE Amount of granted loans 7,189 MDT 71 exporting

LIBYAPrivate Sector Development (PSD) Workshop“Restructuring the Libyan Economy in Light

of the New Role of the State and the Private Sector”

The Tunisian ExperienceMarouane El Abassi

EPD General CoordinatorWorldbank

CORINTHIA HOTEL29-30 April 2008

Libya in the Global Market

Where will employment come from?

• Unemployment is high, particularly among the young. Including disguised it is thought to be at least 30%. .. Estimates indicate that the government employs up to 70% of all salaried Libyans.

• Since 2000 the government wage bill has risen by almost 50%, mostly as a result of the increasing numbers employed by the state, rather than a rise in wage levels.

• Subsidies, which between 2000 and 2005 are estimated to have risen more than sixfold, made up for the lack of wage rises. …

• Recent initiatives to reduce the number of civil servants (estimated at over 1 million) are likely to affect up to 400,000 workers.

[EIU]

Libya enjoys a favorable trade balance with its leading trade partners.

By most measures, Libya already has sufficient exports.

Libya’s exports are almost entirely centered on energy.

In 2006 the hydrocarbons sector “contributed an estimated 98% of export earnings and 93% of government receipts, and constituted an estimated 79% of nominal GDP. Since the lifting of sanctions, the oil sector has expanded at a rapid rate—in 2000 its share of GDP was just 39%.

As a result, the contribution of both manufacturing and agriculture has fallen over the same period, from 5% and 8.1% of GDP in 2000, to an estimated 1.2% and 2.2%, respectively, in 2006.” [Economist Economic Intelligence Unit]

Given its high per capita GDP, Libya is unlikely to compete in manufactured exports except in niche and

energy‐related sectors.

5,1144,800a8,515a6,15614,548GDP per head (US$ at PPP)

1,9801,430a2,924a3,3567,605GDP per head (US$)

63.3107.929.8111.945.3GDP (US$ bn)

MoroccoaEgyptbTunisiabAlgeriaaLibyaa

Comparative economic indicators, 2006

This suggests that diversification and employment are more likely to be found in nontradables and services.

Much progress on trade, yet much more to do.

• Important tariff reforms. For example, in 2004, the maximum tariff rate was reduced in 2004—to 100%—and the average rate came down to just under 18%.

• “However, the process for Libya to join the WTO is likely to be lengthy, not least because many changes will need to be made in the areas of taxation, tariffs and regulations. The process will also require the Libyan authorities to introduce far greater transparency, initially simply to provide sufficientinformation to support Libya's application negotiations, but eventually to satisfy WTO information requirements as an eventual member.” EIU (2008):

Benefits of liberalizing services under WTO: a vital tool in

economic growth and development

• “The impressive results we have seen in 10 years of opening telecommunications markets shows how crucial liberalizing services trade can be for economies. …

• “Since the results came into force ten years ago this month, global access to telecommunications has increased from below 15 percent in 1996 to above 60 percent in 2006, and revenues have risen from US$620 billion to US$1.4 trillion during the same period.

• Telecommunications are an essential prerequisite for a wide range of economic activities in any national economy, developing or developed, from agriculture, travel and tourism to mining and manufacturing. Opening telecommunications has been a win‐win game,” said WTO Director‐General Pascal Lamy(Feb. 20, 2008).

THE TUNISIAN EXPERIENCE

The Importance of Trade Policy in Achieving Export Development The Importance of Trade Policy in Achieving Export Development GoalsGoals

1970 1970 19901990

The Economic Policy mainly included:The Economic Policy mainly included:

Increasing ExportsIncreasing Exports

Promoting Foreign Direct Investment (FDI)Promoting Foreign Direct Investment (FDI)

The implementation of incentive policies for the fully The implementation of incentive policies for the fully

exporting firmsexporting firms

The protection of the partially exporting firmsThe protection of the partially exporting firms


Limited Domestic Limited Domestic MarketsMarkets

Scarcity of Natural Scarcity of Natural ResourcesResources

Promoting Private InvestmentPromoting Private Investment

Developing ExportsDeveloping Exports

Maintaining a Sustainable Economic GrowthMaintaining a Sustainable Economic Growth


Since Since 19901990

TunisiaTunisia’’s accession to the World Trade Organization s accession to the World Trade Organization

(WTO)(WTO)

TunisiaTunisia--European Union (EU) Association AgreementEuropean Union (EU) Association Agreement

Several other regional and international agreementsSeveral other regional and international agreements

Preserving and developing TunisiaPreserving and developing Tunisia’’s share in the international s share in the international

marketsmarkets

Helping firms enhancing their competivenessHelping firms enhancing their competiveness


Since Since 19901990

The Economy of Tunisia relied on several The Economy of Tunisia relied on several

measures:measures:

The The MiseMise àà NiveauNiveau ProgramProgram

The Export Development Project I and IIThe Export Development Project I and II

The Quality ProgramThe Quality Program

The Industrial Sector Improvement ProjectThe Industrial Sector Improvement Project

The Tunisian economy failed to overcome some challengesThe Tunisian economy failed to overcome some challenges

The participation of domestic private investment in the GDP The participation of domestic private investment in the GDP

during the last decade is low (13% during the last decade is low (13% -- 14%) compared to that of 14%) compared to that of

some economies with high GDP growth rate (20% some economies with high GDP growth rate (20% -- 25%)25%)

The textile and apparel sector which is considered to be the The textile and apparel sector which is considered to be the

leader in total exports (40%) as well as in employment leader in total exports (40%) as well as in employment

(240000 employees), is facing fierce competition based on (240000 employees), is facing fierce competition based on

lowlow--cost from East Asian economies especially after the cost from East Asian economies especially after the

dismantling of the multidismantling of the multi--fiber agreementfiber agreement

The limitation of this sector in creating additional jobs and The limitation of this sector in creating additional jobs and

opportunities for further economic developmentopportunities for further economic development


The Tunisian exports are concentrated in some markets and The Tunisian exports are concentrated in some markets and

including only a limited variety of products. Besides, tourism including only a limited variety of products. Besides, tourism

and travel services participate by 80% in total export of and travel services participate by 80% in total export of

servicesservices

The continuous increase of the TBT for the most important The continuous increase of the TBT for the most important

international markets is a big challenge facing the Tunisian international markets is a big challenge facing the Tunisian

exporting firmsexporting firms


The continuous slight increase in the unemployment rate The continuous slight increase in the unemployment rate

as well as the change in the structure of unemployment as well as the change in the structure of unemployment

due to the increase of university graduates seeking for due to the increase of university graduates seeking for

jobsjobs

The failure of the specialization model adopted by the The failure of the specialization model adopted by the

Tunisian economy to meet the university graduates job Tunisian economy to meet the university graduates job

demanddemand

THE EXPORT DEVELOPMENT PROGRAM

09/05/2008 09/05/2008 ‐‐ 1919

PDE APPROACHPDE APPROACH

By helping the exporting firms to explore By helping the exporting firms to explore new marketsnew markets11

By helping the non exporting firms to By helping the non exporting firms to exportexport22

By facilitating foreign trade proceduresBy facilitating foreign trade procedures33

09/05/2008 09/05/2008 ‐‐ 2020


EXPORTING FIRMS NEEDSEXPORTING FIRMS NEEDS

Information concerning Information concerning overseas markets: overseas markets: Standards, TBTStandards, TBT……

information TBTinformation TBTProject Alerts ExportProject Alerts Export

Prospecting, financial Prospecting, financial support, technical support, technical support,support,……

FAMEX /EMAFFAMEX /EMAF

Before exporting Before exporting guarantee and financing guarantee and financing processesprocesses

DHAMEN DHAMEN financefinance

09/05/2008 09/05/2008 ‐‐ 2121

PDE APPROACHPDE APPROACHFACILITATING FOREIGN TRADE PROCEDURESFACILITATING FOREIGN TRADE PROCEDURES

Better integration of inspection Better integration of inspection procedures and emphasizing risk procedures and emphasizing risk management measuresmanagement measures

DDirection de la irection de la QQualitualitééet de la et de la PProtection du rotection du

CConsommateuronsommateur

Customs procedures Customs procedures simplification and encouraging simplification and encouraging their respecttheir respect

DDirection irection GGéénnéérale rale des des DDouanesouanes

Indicators of trade logistics Indicators of trade logistics performanceperformance

DDirection irection GGéénnéérale du rale du CCommerce ommerce EExtxtéérieurrieur

09/05/2008 09/05/2008 ‐‐ 2222

PDE APPROCH PDE APPROCH

EXPORTINGEXPORTINGWELLWELL

IMPORTINGIMPORTINGWELLWELL

SUPPLY CHAINSUPPLY CHAIN

FACILITATING FACILITATING

FOREIGN TRADE FOREIGN TRADE PROCEDURESPROCEDURES

PDE APPROCHPDE APPROCH

09/05/2008 09/05/2008 ‐‐ 2323

HOW THE EPD COULD HELP LOCAL FIRM

IMPORT`S LEVEL

09/05/2008 09/05/2008 ‐‐ 2424

CONTRIBUTIONS: IMPORTCONTRIBUTIONS: IMPORT

The The offshoreoffshore regime aiming at easing exchange flows, particularly regime aiming at easing exchange flows, particularly

import flowsimport flows

In the wake of trade liberalization, the onshore regime has beenIn the wake of trade liberalization, the onshore regime has been

facing problems related to importing procedures facing problems related to importing procedures

Facilitating Foreign Trade procedures began withFacilitating Foreign Trade procedures began with PDE1 (2000PDE1 (2000‐‐2004):2004):

Single Single windowwindow

TTN TTN

Optimization of customs proceduresOptimization of customs procedures

09/05/2008 09/05/2008 ‐‐ 2525

CONTRIBUTIONS: IMPORTCONTRIBUTIONS: IMPORT

PDE 2 (2005 PDE 2 (2005 –– 2009):2009):

SelectivitySelectivity

Dematerialization of Foreign Trade procedures Dematerialization of Foreign Trade procedures

Providing a network for administrations loaded with Providing a network for administrations loaded with

inspectioninspection

Optimization of risk management procedures (customs, Optimization of risk management procedures (customs,

inspection and INORPI)inspection and INORPI)

Information on standards and onInformation on standards and on‐‐line paymentsline payments

09/05/2008 09/05/2008 ‐‐ 2626

CONTRIBUTIONS: IMPORTCONTRIBUTIONS: IMPORTSELECTIVITYSELECTIVITY

By the end of the By the end of the projectproject, 80% of the , 80% of the

goodsgoods willwill bebeconductedconducted throughthrough the the

Green CorridorGreen Corridor

09/05/2008 09/05/2008 ‐‐ 2727

CONTRIBUTIONS: IMPORTCONTRIBUTIONS: IMPORTDELAYS REDUCTIONDELAYS REDUCTION

ReductionReduction of of averageaveragetime of time of goodsgoods staystay in the in the port (9 to 3 port (9 to 3 daysdays) [6.7 d in ) [6.7 d in

2007]2007]

Reduction of customs Reduction of customs clearance time 0.5 days by clearance time 0.5 days by the end of the project [0.8 the end of the project [0.8

d en 2007]d en 2007]

3 jours3 jours

9 jours9 jours

Stay of the good in Stay of the good in the portthe port

Duration of customs Duration of customs clearanceclearance

09/05/2008 09/05/2008 ‐‐ 2828

CONTRIBUTIONS: IMPORTCONTRIBUTIONS: IMPORTDEMATERIALISATION OF PROCEDURESDEMATERIALISATION OF PROCEDURES

NETWORKING: All of administrations loaded with NETWORKING: All of administrations loaded with inspectioninspection

09/05/2008 09/05/2008 ‐‐ 2929

CONTRIBUTION: IMPORTCONTRIBUTION: IMPORTINFORMATION PROVIDED FOR ECONOMIC AGENTSINFORMATION PROVIDED FOR ECONOMIC AGENTS

Digital data base about inspection procedures lawsDigital data base about inspection procedures laws

Information about Technical Barriers to TradeInformation about Technical Barriers to Trade

Normative Surveillance SystemNormative Surveillance System

09/05/2008 09/05/2008 ‐‐ 3030

CONTRIBUTIONS: IMPORTCONTRIBUTIONS: IMPORTREPORTSREPORTS

Tunisian firms: less transactions cost, more competitivenessTunisian firms: less transactions cost, more competitiveness

The decrease of goods transition explained by a better optimizaThe decrease of goods transition explained by a better optimization tion

of the harbour zones. of the harbour zones.

Effective procedures are generally transformed into a better Effective procedures are generally transformed into a better

optimization of purchases and a decline of the costs of storage.optimization of purchases and a decline of the costs of storage.

Implementation of a trade logistic component piloted by the DGCImplementation of a trade logistic component piloted by the DGCE E

aiming at developing project performance indicators.aiming at developing project performance indicators.

APPROCHE PDEAPPROCHE PDE

09/05/2008 09/05/2008 ‐‐ 3131

HOW the EXPORT PROGRAM DEVELOPMENT COULD HELP AN EXPORT FIRM

09/05/2008 09/05/2008 ‐‐ 3232

CONTRIBUTIONS: EXPORTCONTRIBUTIONS: EXPORTPROSPECTING AND ACCESS TO OVERSEAS MARKETSPROSPECTING AND ACCESS TO OVERSEAS MARKETS

Firm looking for exporting opportunitiesFirm looking for exporting opportunities

PROBLEMSPROBLEMS

09/05/2008 09/05/2008 ‐‐ 3333

CONTRIBUTIONS: EXPORTSCONTRIBUTIONS: EXPORTSPROSPECTING AND ACCESS TO OVERSEAS MARKETSPROSPECTING AND ACCESS TO OVERSEAS MARKETS

To Position the firm To Position the firm ‐‐on long term basison long term basis‐‐ on the on the international marketinternational market

ExportingStrategy

Access to specialized

consultance service

The firm is inclined

to pay for a good quality service

09/05/2008 09/05/2008 ‐‐ 3434

CONTRIBUTIONS: EXPORTCONTRIBUTIONS: EXPORTTECHNICAL BARRIERS TO TRADETECHNICAL BARRIERS TO TRADE

A FIRM FINDS A FOREIGN MARKETA FIRM FINDS A FOREIGN MARKET

PROBLEMSPROBLEMS

Lack of information about the requirements of the Lack of information about the requirements of the overseas marketsoverseas markets

Overseas markets are becoming more and more Overseas markets are becoming more and more demanding: standards, high quality products, normsdemanding: standards, high quality products, norms……

TTechnical echnical BBarriers to arriers to TTraderade

09/05/2008 09/05/2008 ‐‐ 3535

CONTRIBUTIONS: EXPORTCONTRIBUTIONS: EXPORTTECHNICAL BARRIERS TO TRADETECHNICAL BARRIERS TO TRADE

Strengthen the capacity of the Tunisian administration to give tStrengthen the capacity of the Tunisian administration to give to o operators the information about the standards and the technical operators the information about the standards and the technical regulations that could be found within the international marketsregulations that could be found within the international markets

Alerts ExportService

Information about Technical Barriers to

Trade

NormativeSurveillance

09/05/2008 09/05/2008 ‐‐ 3636

CONTRIBUTIONS: EXPORTCONTRIBUTIONS: EXPORTPREFINANCING OF THE EXPORTSPREFINANCING OF THE EXPORTS

Financing the Working Capital Financing the Working Capital problemproblem

Exporting OpportunityExporting Opportunity

Banking system Banking system services services

unhealthy situationunhealthy situation

guarantees guarantees requirements for the requirements for the

bankbank

09/05/2008 09/05/2008 ‐‐ 3737

CONTRIBUTIONS: EXPORTSCONTRIBUTIONS: EXPORTSTECHNICAL BARRIERS TO TRADETECHNICAL BARRIERS TO TRADE

FFonds de onds de GGarantie dearantie de FFinancement des inancement des

EExportationsxportations AAvantvant EExpxpééditiondition

Intervenes by granting the Intervenes by granting the certificate of guarantee to certificate of guarantee to

90 90 %% of the amount and at the of the amount and at the level of level of 500.000 DT500.000 DT

CreatesCreates a a reliablereliable relation relation betweenbetween banksbanks & &

exportersexporters


09/05/2008 09/05/2008 ‐‐ 3838

Main Achievements

09/05/2008 09/05/2008 ‐‐ 3939

MAIN ACHIEVEMENTSMAIN ACHIEVEMENTSFAMEX 2FAMEX 2

652652 firms having established exporting plans:460460 finalized their exporting plans 192192 in progress

Setting‐up abroad: about fifty setting‐ups in more than 15 countries

Additional Exports: more than 200 MD on 70 countries for a subsidy of about 12 MD:

1 1 DT of subsidy generates 17 DT of additional exportsDT of subsidy generates 17 DT of additional exports

More than 150 MD of additional exports (75%) registered outside the four traditional markets

2525 consortia having established exporting plans:13 13 finalized their exporting plans12 12 in progress

09/05/2008 09/05/2008 ‐‐ 4040

MAIN ACHIEVEMENTSMAIN ACHIEVEMENTSFAMEX 2 FAMEX 2 ––SECTOR BASED DISTRIBUTION OF SECTOR BASED DISTRIBUTION OF FAMEXEDFAMEXED FIRMSFIRMS

09/05/2008 09/05/2008 ‐‐ 4141

MAIN ACHIEVEMENTSMAIN ACHIEVEMENTSDHAMEN DHAMEN FINANCEFINANCE

Amount of granted loans Amount of granted loans 7,189 MDT7,189 MDT

7171 exporting transactions exporting transactions

realized byrealized by 29 29 entreprisesentreprises

Additional exportsAdditional exports::17,999 MDT 17,999 MDT (en 2007)(en 2007)

SECTOR BASED DISTRIBUTION OF SECTOR BASED DISTRIBUTION OF GRANTED LOANSGRANTED LOANS

Point National d’Information

« PNI‐Services to firms »

(Opérateur du Ministère du Commerce)

Point National d’Information

« PNI‐Services to firms »

(Opérateur du Ministère du Commerce)

INNORPIINNORPI

PNI – TBTSTANDARDS

PNI – TBTSTANDARDS

Data Base of Data Base of Tunisian NormsTunisian Norms

Min. FarmingMin. Farming

PNI – TBTSPS

PNI – TBTSPS

DQPCDQPC

PNI – TBTOther regulations

PNI – TBTOther regulations

Data Base Tunisian Data Base Tunisian technical rulestechnical rules

Tunisian authorities WTOMin. Trade

D G Cooperation

Other countries

other sources of information about the

standards and the international technical

rules Catalogs, CD‐Rom, Internet,…

other sources of information about the

standards and the international technical

rules Catalogs, CD‐Rom, Internet,…

Tunisian exporting firmsTunisian exporting firmsTunisian exporting firms

Other Tunisan institutionsOther Other TunisanTunisan institutionsinstitutions

Inquiries (other countries)Inquiries (other countries)Inquiries (other countries)

Announcements and projects

(standards and regulations)

Announcements and projects

(standards and regulations)

WTO

09/05/2008 09/05/2008 ‐‐ 4242

MAIN ACHIEVEMENTSMAIN ACHIEVEMENTSPNI PNI –– TBT : TBT : Interface Interface betweenbetween devicesdevices ? And? services to ? And? services to firmsfirms??

09/05/2008 09/05/2008 ‐‐ 4343

MAIN ACHIEVEMENTSMAIN ACHIEVEMENTS

Évolution en pourcentage du traitement électronique des dossiers au niveau de la DQPC (janvier 2006 – Juillet 2OO7)

IMPROVEMENTS AND INTEGRATION OF THE PROCEDURES OF IMPROVEMENTS AND INTEGRATION OF THE PROCEDURES OF INSPECTIONINSPECTION

Project of reengineering of the procedures of inspections in the import (50% achievement)

Dematerialization of the procedures of inspections:•DQPC: 100% 100% of files are treated via TTN since the beginning of 2007•Objective: 100%100% of inspections files, all administrations includedall administrations included, by the end of 2008

09/05/2008 09/05/2008 ‐‐ 4444

MAIN ACHIEVEMENTSMAIN ACHIEVEMENTSINDICATORS OF TRADE LOGISTICS PERFORMANCEINDICATORS OF TRADE LOGISTICS PERFORMANCE

Time Release Study in Time Release Study in RadesRades Port Port (2006(2006‐‐20072007))

09/05/2008 09/05/2008 ‐‐ 4545

MAIN ACHIEVEMENTSMAIN ACHIEVEMENTSINDICATORS OF TRADE LOGISTICS PERFORMANCEINDICATORS OF TRADE LOGISTICS PERFORMANCE

Contribution of every phase in the global procedure of Contribution of every phase in the global procedure of goods customs clearancegoods customs clearance

(2007)(2007)

09/05/2008 09/05/2008 ‐‐ 4646

MAIN ACHIEVMENTSMAIN ACHIEVMENTSINDICATORS OF TRADE LOGISTICS PERFORMANCEINDICATORS OF TRADE LOGISTICS PERFORMANCE

Evolution of the distribution of declarations on corridorsEvolution of the distribution of declarations on corridors(2007)(2007)

09/05/2008 09/05/2008 ‐‐ 4747

MAIN ACHIEVEMENTSMAIN ACHIEVEMENTSINFORMATION SYSTEM INFORMATION SYSTEM –– WWW.PDE.NAT.TNWWW.PDE.NAT.TN

• Control and management of the signings of markets.• States of progress of the project.

• Control and management of the signings of markets.• States of progress of the project.

• Management of the payment of signing of markets.• Publishing of financial follow‐up reports.• Elaboration of follow‐up statistics.

• Management of the payment of signing of markets.• Publishing of financial follow‐up reports.• Elaboration of follow‐up statistics.

• Alarms System: actions while signing.

• Surveillance system: actions that were not planned.

• Management of the internal documents.• Management of the internal mails.

• Display of the components.• Management of the project participants.

• Publishing of follow‐ups reports.• Publishing of follow‐ups reports.

www.www.PDPDEE.nat.tn.nat.tn

Documents

LIBYA Private Sector Development (PSD) Workshop ...siteresources.worldbank.org/INTLIBYA/Resources/Tunisian-experience.pdf · DHAMEN FINANCE Amount of granted loans 7,189 MDT 71 exporting