National Arrangements to Implement NTIS and Manage Aid For Trade

Sven Callebaut, Capacity Development ConsultantKathmandu, June 24, 2010

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4 Capacity Development Objectives

1. Strengthen trade negotiations2. Strengthen the technical capacity of domestic NTB

and other supportive institutions. 3. Strengthen export supply capacity4. Strengthen GoN’s capacity to coordinate and

manage Trade-Related Technical Assistance (TRTA) and Aid for Trade (AfT) and to implement NTIS.

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Lessons from DTIS 2004

Limited resources to implement actions recommended under DTIS 2004.

Weak coordination and weak capacity (intergovernmental, government-private sector and government-donors) to implement reform measures.

Weak engagement in trade sector by local donors.

Ambiguous ownership for implementation of DTIS 2004 : responsible agencies not specified clearly, budgetary requirements missing, etc.

NIAs…

Identify mechanisms required to enhance Country Ownership of Trade-Related Technical Assistance (TRTA) through a Trade SWAp (Sector-Wide Approach)

Identify capacity development actions for key Trade SWAp stakeholder institutions

Evaluate TA support needed to strengthen capacity of those institutions to lead the implementation of the NTIS

Overcoming problems for NTIS implementation

Initiatives needed at country level:

Effective functioning of institutional mechanisms (NSC, NIU, Technical Committees, FP, and DF)

Better coordination among stakeholders (Govt., Pvt. Sector, DPs)

Strengthening and development of Technical Committees in an inclusive format with NTB and DPs

Major Support to Capacity DevelopmentAwareness-raising (including among local DPs).

THE WAY FORWARD

PRIORITY #1

Commitment of the GoN to the NTIS objectives should be visible and reflected in national policies and strategies

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THE WAY FORWARDPRIORITY ACTIONS #1

• Align priorities of NTIS 2010 and 3-year NDP • Incorporate GoN’s Trade Sector Priorities in

Nepal Development Forum• Get NTIS 2010 approved by Council of

Ministers

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THE WAY FORWARD

PRIORITY #2

Mechanisms for strengthened coordination and management of AfT and TRTA should be put in place in the GoN to ensure more effective mobilization of ODA resources for trade.

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THE WAY FORWARD

PRIORITY ACTIONS #2

• Establish effective NSC • Establish effective NIU located in MoCS with focal points

in key Ministries, with staffing and procedures (procurement, M&E,…)

• Establish effective NTIS Technical Committees. Provide strong linkages between NTIS Technical Committees and NBF Working Groups

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THE WAY FORWARD

PRIORITY #3

NTIS should be recognized by the GoN, the business sector, and DPs as the shared strategy to be used as a basis for future technical assistance support.

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THE WAY FORWARD

PRIORITY ACTIONS #3

• NIU and TC to identify, formulate and secure funding for TA proposals to implement NTIS 2010 after launch

• Institutionalize regular consultations between MoCS and development partners

• Create a dedicated web platform to communicate and monitor progress

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EIF Tier 1 ? Tier 1 is aimed at supporting greater in-country capacity and ownership. It providesfinancial resources to support the IF core functions with the following objectives:

• Building the human resource capacity of the IF National ImplementationArrangements (NIAs) • Providing operational support to NIAs, including some local running costs and equipment • Preparing and/or updating of the LDCs’ Diagnostic Trade Integration Study (DTIS) • Facilitating and supporting trade mainstreaming actions

By building capacity and skills through Trade Related Technical Assistance (TRTA)within NIAs, Tier 1 interventions will facilitate project formulation, appraisal andimplementation of Tier 2 projects. Regional projects could be considered at therequest of the LDC Governments concerned.

Conclusion…Success is 5% Luck and 95% Sweat…

so is the AidForTrade…Thank you for your attention.

Questions ?