Sector Export Strategies for Nepal

Sector Export Strategies for Nepal

Olivier Marty, Trade Adviser - Export Strategy, ITC March 2016

World imports of coffee

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15

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25

30

35

40

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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on

s

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ion

USD

World Import (Quantity)

World Imports (Value)

Source: Trade Map

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10,000

20,000

30,000

40,000

50,000

60,000

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50,000

100,000

150,000

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250,000

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450,000

500,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ton

s

Tho

usa

nd

USD

Worldimports (inquantity)

Worldimports (invalue)

World imports of cardamom

Source: Trade Map

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500,000

1,000,000

1,500,000

2,000,000

2,500,000

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1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

To

ns

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lio

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US

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Tea (Worldimports invalue,,millions)

Tea (Worldimports inquantity)

World imports of tea

Source: Trade Map

Source: Trade Map

Source: Trade Map

Source: Trade Map

Export Development Strategies that Succeed

• Setting priorities (everyone has opinions on what should be done, but…)

• Allocating limited resources to these priorities.

Why Strategy?

Why Sector Export Strategy?

• Export constraints that impede international competitiveness and export growth

need to be addressed through an integrated response.

• Export development and competitiveness involves a range of stakeholders, public

and private.

SES objectives and expected outcomes KEY OBJECTIVES OF A SES:

• To facilitate decision-making at the national level in matters relating to competitiveness and export

development;

• To introduce a national framework within which the country can effectively allocate scarce resources

(financial, institutional and human) to specific initiatives that are designed to achieve export development

objectives;

• To establish the capacities and competencies required to effectively design, manage and refine national

sector export strategy.

KEY TANGIBLE OUTCOMES THAT AGGREGATE

INTO IMPROVED EXPORT COMPETITIVENESS:

• Prioritization of scarce resources available for export development

• Effective framework for the public and private sectors to work within

a partnership to achieve mutually beneficial objectives

• Improved service delivery of Trade Support Institutions (TSIs) that is

responsive to the needs of the export sector

SOCIO-ECONOMIC GROWTH

ACCOMPANIES EXPORT

GROWTH:

• Poverty reduction

• Job creation

• GDP growth

• Gender equality

• Long-term productivity increases

• Environmental sustainability

• Regional integration

Sector Export Strategies:

ITC’s Approach

Country-owned

Inclusive and consultative

Capacity-building oriented

Builds on, and integrates

national plans

Comprehensive in Scope

Sets needs-based,market-led priorities

Specific and measurable

Seven fundamental principles constitute the critical success factors of the sector

development strategy design process:


As important as the content of the strategy is the process by which it is

reached.

The key to this process is OWNERSHIP.

Those responsible for managing and monitoring a strategy, those who

implement it and those who stand to benefit from it need to be involved in its

formulation. If not, there is no commitment and limited interest.

Country-owned


An effective PPD involves a process of consultation:

• within and among Ministries (public sector);

• among local business representatives (private sector);

• between public and private sector.

The process combines a top-down with a bottom-up approach.

• The public and private sector jointly establishes priorities and target for the

sector

Inclusive & Consultative

Inclusive & Consultative


Builds on and integrates national plans and ongoing development projects

SES builds on, and

integrates national plans

National Plans: ADS and NTIS

Trade Studies +

NTM Survey

Ongoing Development

Projects


Comprehensive Scope:

Goes beyond the traditional

emphasis on market access and

market promotion, towards:

• Export development

• Export competitiveness

• Supply-side capacities

• Quality of business

environment

• Market entry

• Developmental impact


Market-led value chain driven priority setting

Sets Needs-based, Market-led Priorities

National Component of the Value ChainMain Market # 3

Tools

Supplier

Technology /

Know-How

Supplier

Seed

Supplier

Grower

Pesticide

Supplier

International

Transporter

Importer /

Wholesaler

Disposal /

Recycler

Fertilizer

Supplier

Value

Industrial

Consumer

Main Market # 1

Importer /

Distributor

Re-Packer

Retailer ConsumerDisposal /

Recycler

Main Market # 2

Importer /

Retailer

Disposal /

RecyclerConsumer

Processor /

Manufacturer

Machinery

Supplier

Buyer /

Collector /

Transporter

Packaging

Materials

Supplier


Design and implementation management framework

Specific & Measurable


The Principal Output

An endorsed, coherent, comprehensive and prioritised

National Sector Strategy document completed with a

detailed plan of action and implementation management

framework.

Overview of the Sector Development Strategy Design Process

Process, objectives and roles

Pre-engagement

mission

•Validate sectors

•Establish Navigators

•Confirm process and workplans

ITC distance support

•Sector teams complete baseline sector analysis

•Preparation for Value-Chain diagnostic workshop

VC Diagnostic Workshops

•Identify market opportunities and sector issues

•Identify agro cross-sector issues

•Coach specialized team


•Confirms sector issues

•NTM results

•Identify potential sector solutions

•Compile list of functional issues


•Drafts sector action plans

•Confirm institutional capacities

Validation Workshops

•Validate action plans

•Identify quick wins activities

•Define sectors implementation framework


•Finalize sector strategy documents

•Finalize cross-sector functional strategy documents

•Consolidate final strategy document.

•Launch in Nov.

ITC Mission

March

Work by National Specialized teams and

Navigators ITC Mission

June

Work by Sector Core team and Navigator ITC

Mission Sept.

Work by National Specialized teams,

Sector Core team and National Focal Point

Estimated Timeline 6/8 months

Steps of the sector development strategy process

Indicative Workplan

Activities Date

Pre-engagement mission 14-18 March

VC Diagnostics Workshop:

Sector specific value chain analysis and diagnostics including value chain mapping, 4-gear

analysis, and NTM survey results

June

Validation Workshop: Identify strategic solutions to identified competitiveness constraints, and to explore value

options

Validate action plans Identify quick wins activities

Define sectors implementation framework

September

Strategy Launch Event November

The Navigator maintains ultimate authority over the SES

design process and is accountable for the delivery of the final SESs document. S/he is the ‘face’ and the ‘heart’ of the

SESs, the manager and the leader and doer. The Navigator is ideally a senior official from

the public sector who is reassigned and empowered to

manage the NES for the duration of the design process.

The sector Core Team is composed of between 8 and

10 principal stakeholders covering each export sectors;

they support, assist and advise the Navigator. They meet

regularly and makes decisions at key points in the strategy

process. There must be a balance of public and private sector representation. Each

team is composed of about 8-10 key stakeholders.

All public, private and civil society stakeholders that have

a bearing on export development and

competitiveness are consulted throughout the design

process. They will determine the orientation of the sector

strategy and provides substance and content. Between 25 and 30 representatives from the

Sector Strategy Stakeholders.

The National Consultant is recruited by ITC for a period of time over the duration of the

SES design process. S/he works closely with the

Navigator, the Sector Core Teams and sector

stakeholders.

The Consultant conducts research, analyses, records

inputs from consultations and prepares drafts of the output

documents.

ITC assigns one or more experts and international

consultants to lead technical assistance .

ITC provides guidance and expertise, briefing notes and

tools, feedback, technical inputs and commentaries, and

facilitates consultations and workshops. ITC works closely

with the the Navigator, the Sector Core Teams and sector

stakeholders.

Navigator Sector Strategy Stakeholders

National Consultants

ITC Experts and Lead

International Consultant

Sector Core Teams

Key Players and Roles

Key players and roles

The Navigators and the Sector Core Teams will be the key driving forces in the design stages of the

strategy

Coffee, Tea, Large Cardamom

#2 #4 #25p/sector

Navigator(s)

The Navigators are critical to the success of the Sector Strategies.

The role and responsibility includes:

- Lead the process of SES design

- Being the key point of liaison between ITC and the export strategy makers

- Ensuring the process is highly consultative with continued communication with

all relevant stakeholders

- Securing the engagement of the public sector, private sector and civil society

representatives

- Establishing and managing the Sector Core Teams and monitoring their work

in progress

- Coordinating and leading consultations to ensure substantive output is

produced

- Taking corrective action in cases of non-performance

Sector Core Team

1. The Core Team, chaired by the Navigators, meets regularly and makes

decisions at key points in the strategy process.

2. Typically, each Sector Core Team is constituted of a balanced mix between

the public and private sector.

3. The Sector Core Team will work throughout the strategy design process in

terms of technical and coordination based aspects at a national and

sectorial level.

4. On an ongoing basis, the Core team:

i. Champions the sector strategy,

ii. Monitors the progress of the strategy design, and,

iii. Resolves issues as they may arise at a political and technical level.

• Be ready to make decisions and to prioritize;

• Have the courage to acknowledge challenges so that they can

be addressed;

• Willingness to change opinions and positions;

• Focus on quick, short-term wins, but also on medium- and

longer-term goals;

• Sector strategy belongs to all stakeholders: from the small

farmholder to the minister of commerce

• Beyond rhetoric, down to action.

Final thoughts


Thank you

[email protected]

Documents

Sector Export Strategies for Nepal