hemant dabadiFederation of Nepalese Chambers of

Commerce & Industry (FNCCI)

Nepal Trade Integration Strategy 2010Nepal Trade Integration Strategy 2010

Implementation Issues – Perspectives from the Private Sector

NTIS 2010 - Preliminary analysisNTIS 2010 - Preliminary analysis

The strategy looks impressive based on The strategy looks impressive based on thorough analysis and seems to be a good thorough analysis and seems to be a good beginningbeginning

Will have distinct positive implications if we Will have distinct positive implications if we can implement them and there will be results can implement them and there will be results as envisioned in the strategyas envisioned in the strategy

identified products and services (19)identified products and services (19)Action matrix in general and swot analysis Action matrix in general and swot analysis

for each productfor each product

On a more deeper analysis On a more deeper analysis

Have we gone thru the previous strategy / Have we gone thru the previous strategy / strategies ?strategies ?

were they a success? If no what were the were they a success? If no what were the reasons? reasons?

This question seem to remain unanswered This question seem to remain unanswered in almost all our strategiesin almost all our strategies

Example NTCS 2004 identified labour Example NTCS 2004 identified labour reform or reform in income tax system(with reform or reform in income tax system(with regard to training) but almost nothing has regard to training) but almost nothing has happenedhappened

On a more deeper analysis On a more deeper analysis

The carpets and garments were still part of the The carpets and garments were still part of the product studied in 2004 NTCS. but in the present product studied in 2004 NTCS. but in the present study these products did not get mentioned.study these products did not get mentioned.

The ITC study of 2007 had identified cut flowers as The ITC study of 2007 had identified cut flowers as item with high export potential. it is absent in the item with high export potential. it is absent in the NTIS list. Honey figured as product with low potential NTIS list. Honey figured as product with low potential and low or limited socio economic impactand low or limited socio economic impact

So products seem to be coming to and going out of So products seem to be coming to and going out of list list

Top products being exported to India not in the list Top products being exported to India not in the list (textile, yarn, garments etc)(textile, yarn, garments etc)

On a more deeper analysis On a more deeper analysis

The identified products are more detailed The identified products are more detailed (example in 2004 NTCS agriculture mentioned, In (example in 2004 NTCS agriculture mentioned, In NTIS, tea, large cardamoms, ginger etc identified) NTIS, tea, large cardamoms, ginger etc identified)

but potential impact or coverage not the same but potential impact or coverage not the same (for example is labour services comparable with (for example is labour services comparable with Engineering services)Engineering services)

The competitiveness /competitive advantage does The competitiveness /competitive advantage does not merely depend on resource/market not merely depend on resource/market endowment, it can be created with deliberate endowment, it can be created with deliberate attempt (technology, human resource attempt (technology, human resource development)development)

So let us discuss and decide :So let us discuss and decide :

what products and services we would what products and services we would like Nepal to be known for (Where Nepal like Nepal to be known for (Where Nepal has an edge) ?has an edge) ?

Next Question Is that achievable ?Next Question Is that achievable ?

If yes, develop and implement the If yes, develop and implement the strategy to develop that productstrategy to develop that product

(At least Some will succeed)(At least Some will succeed)

So let us discuss and decide :So let us discuss and decide :

Strategies for each productStrategies for each product

What services/facilities the government will giveWhat services/facilities the government will give

What mobilisation it will do to get the product What mobilisation it will do to get the product exportedexported

What is the time frame for providing servicesWhat is the time frame for providing services

(Human resource development, Technology, (Human resource development, Technology, Infrastructure , Support services, Technical Infrastructure , Support services, Technical standards, help in negotiations and marketing standards, help in negotiations and marketing Could and should be the focus of product Could and should be the focus of product specific strategies specific strategies

NTIS and Private sector NTIS and Private sector

Almost nothing mentioned of the Almost nothing mentioned of the private sector private sector

But success will depend on will the But success will depend on will the private sector take cue from this private sector take cue from this strategy and work accordinglystrategy and work accordingly

Many of the promotional and service Many of the promotional and service functions could be delegated to the functions could be delegated to the private sector institutions private sector institutions

Private sector and NTISPrivate sector and NTIS

Future TA s should also get involved Future TA s should also get involved with private sectorwith private sector

Government and private sector need Government and private sector need to act in tandemto act in tandem

Service functions – delegate to the Service functions – delegate to the private sector, but ensure private sector, but ensure accountability , opennessaccountability , openness

Private sector and NTISPrivate sector and NTIS

Private sector is involved in almost Private sector is involved in almost all issues mentioned in the NTIS.all issues mentioned in the NTIS.

Private sector institutions - more Private sector institutions - more effective in delivering the serviceseffective in delivering the services

Implications too on the private sector Implications too on the private sector

Capacity Building of the private Capacity Building of the private sector institutions – a must for sector institutions – a must for success of NTISsuccess of NTIS

Private sector and NTISPrivate sector and NTIS

Private sector instructions too - do Private sector instructions too - do not replicate each others job (do not not replicate each others job (do not fight for the same piece of the cakefight for the same piece of the cake

Government need to facilitate Government need to facilitate cooperation among pvt sector cooperation among pvt sector institutions rather than play one institutions rather than play one against anotheragainst another

Give direct role in implementation, Give direct role in implementation, not merely advisorynot merely advisory

FNCCIFNCCI

By its sheer size, network, presence By its sheer size, network, presence is a natural leader of private sector is a natural leader of private sector institutionsinstitutions

It be accorded a formal It be accorded a formal coordinating facilitating role ( longer coordinating facilitating role ( longer term not instantaneous)term not instantaneous)

Ways and means to finance its Ways and means to finance its activities connected with the roleactivities connected with the role

In conclusion In conclusion

Three most important issues hindering Three most important issues hindering export as of today export as of today

Insecurity (both physical and institutional)Insecurity (both physical and institutional)

Labour IssuesLabour Issues

Energy Energy

If we do not discuss and decide on these If we do not discuss and decide on these three Holy cows, talking of expanding three Holy cows, talking of expanding export would be merely exercise in a export would be merely exercise in a virtual worldvirtual world

THANK YOUTHANK YOU