The2030Agenda,Financing,andAidforTrade

Marcus Bartley JohnsSenior Trade SpecialistTrade & Competitiveness Global Practice

WTO MIKTA Workshop, 12 October 2017

Outline

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•WBGengagementontheSDGs•AidforTradeandtheSDGs

• Implementation

• Financing• Data

•WhatnextforAidforTrade?

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WorldBankGroupisstronglycommittedtoSDGs

September 2015 December 2015 May 2016

April 2015

July 2015

April 2016

MDBs Extend $400B+/3 years,Joint IMF/WBGTax Initiative

Household-Based Surveys in 78

poorest countries by 2020

Increase climate financing from 21%

to 28% of WBG portfolio by 2020

Joint MENA Financing Facility supports refugees and host

communities

Commitments in response to forced

displacement crisis

In 2016 co-hostwith MDBs first

Global Infrastructure Forum

October 2015

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ThreekeyareasoffocusforWBGengagementonSDGs

• ExperiencewiththeMDGshighlightedtheimportanceofthreecriticalpillars:

IMPLEMENTATIONDATA FINANCING

Ref: WBG/UN report to the CEB on the Lessons

Learned from the MDGs; DC Lima paper on

WBG’s role on SDGs

Ref: Spring Meetings 2015 DC paper on

Financing; Addis 2015 outcome document

Ref: UN report on “A World that Counts”;

WBG/MDBs/UN MoU on Data

Partnershipsessentialfordeliveringacrossdata,financingandimplementation

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TradeandtheSDGs

IMPLEMENTATIONDATA FINANCING

Betterdataontradeandlinkswithsustainable

developmentissues(e.g.participationof

women)

AfT relevanttoODA,domesticresourcemobilization,andprivateflows

Specifictrade-relatedgoals/targets

ANDTrade’srolein

achievingothergoals

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Implementation:Tradewillhaveakeyroletoplay

Direct:Specific

inclusioninGoals/Targets

Cross-cutting:

tradehasarolein

achievingofallSDGs

Reflectedincountry,regionalandglobaloperations

AfT andImplementation:DirectvsCross-cuttinglinks(someexamples)

Endpovertyinallitsformseverywhere

Reducingtradecostsandconnectingthepooresttotradeopportunities

Endhunger,achievefoodsecurityandimprovednutrition,andpromotesustainableagriculture

Reductioninbarriersanddistortionsofinternationalagriculturaltrade

UnlockingnewsourcesofeconomicgrowthandjobcreationbyloweringtradecostsFacilitatingstandardsadoptionfordecentwork

Promoteinclusiveandsustainableeconomicgrowth,employmentanddecentworkforall

AfT andImplementation:DirectvsCross-cuttingLinks(moreexamples)

Reduceinequalitywithinandamongcountries

Revitalizetheglobalpartnershipforsustainabledevelopment

SupportingthemultilateraltradingsystemandanopenglobaleconomyHarnessingtheAidforTradeinitiative

IntegratingdevelopingcountriesintotheglobaltradingsystemDoingmoretoconnectthepooresttotradeopportunitiesandreducerisks

Conserveandsustainablyusetheoceans,seasandmarineresourcesforsustainabledevelopment

Sustainablefisheriestrade

Economicgrowthanddecentwork

Trade-growthlinkagesAidforTradementionedspecifically

Implementation:whataredonorandpartnercountryviewsonAfTcontributiontosustainabledevelopmentagenda?

Source:2015WTO/OECDAidforTradeMonitoringExercise

AfT andSDGImplementation:countryfocus…

• Lookingatcountry-levelSDGimplementationthroughlensofhowtradecancontribute– eitherdirectly orthroughcross-cuttingrelationshipwithGoals?

• Tradenotasa“sector”inmanycases– instead,cross-cutting

• Manyexistinganalyticaltoolsandoperationalexperiencestodrawupon

• ButweneedtobuildonthisandshareexperiencesbetterifwearetomakesuretradeisadequatelyconsideredinSDGachievementatthecountrylevel

…butactionattheregionalandgloballevelisalsoneeded

ImportantalsotolookattheregionalandgloballevelRegional:AchievingfoodsecurityinAfricarequiresaregionalapproach(SDG2)

• E.g.facilitatingintra-Africantrade:atpresentonly5%ofimportedAfricanfoodstaplescomefromwithinAfrica

Global:lookingatglobalpublicgoods• UsingAfT tosupportmultilateraltradereform• Sharingknowledgeglobally• Data(moreonthislater)

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Financing:thebigpicture

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ODAvsotherdevelopmentfinance

• IBRDaverage$25billion/year• IDAaverage$17billion/year• IFCaverage$21billion/year

(Settoincrease,includingwithotherMDBs)

AfT – around$50billion/yearInlast5years

• FDI$1.2trillion

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Financing

• AidforTradeisrelevanttoeachofthesourcesofdevelopmentfinanceoutlinedabove

• Domesticresources:• Tradefacilitation,revenuecollection• Improvedbusinessenvironment

• FDI:TradeenvironmentaffectsFDI,especiallyrelatedtoglobalvaluechains• Closelyrelatedtowiderinvestmentclimate

• ODA:Especiallyimportantforlowest-incomecountries&fragileandconflict-affectedsituations

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Financing:MakingthebestuseofAfT

• AfT – it’snotjustaboutthemoney…• UltimatelyAfT shouldnotbesubstitutableforothersourcesofdevelopmentfinance

PublicsectorAfT:Financereforms/projectstheprivatesectorwouldn’t(risk)orshouldn’t(neutrality)payforCatalyzingprivatefunding

Privatesectorfinance:InvestmentsinareasofmutualgainSupportinginnovationandknowledgeflows

Greaterpublic-privatecooperationcanmaximizeimpactandachievethebestvaluefromdevelopmentfinance

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Data,AfT andSDGs

• EssentialfortargetingofAfT• Dataandanalysisontrade-relatedconstraints(DoingBusiness,TradeCosts,LogisticsPerformanceIndex)

• DataonpovertyandotherSDGs

• Buildingdatacapacity• Weakcapacitytocollecttradedatainmanycountries,anduseitforpolicydesign

• Combinewithinnovativemethodsofdatacollection

• Manydatagaps:onlinksbetweenaspectsofSDGsandtrade• E.g.Womenandtrade

• Monitoring:keyroleoftheglobalAidforTradeInitiative• EssentialformaximizingimpactofAfT

ExampleofaprogramcloselylinkedtoSDGs

SDG8– DecentWorkandEconomicgrowth

8.8Protectlaborrightsandpromotesafeandsecureworkingenvironmentsforallworkers,includingmigrantworkers,inparticularwomenmigrants,andthoseinprecariousemployment

ILO/IFCBetterWorkproject– fosteringadoptionoflaborandotherstandardsinparticipatingapparelfactories,whilealsoboostingproductivity.à Partnershipactivein8countriesacross3continentsreaching1000

enterprisesandonemillionworkersà Vietnamisonecountryinvolvedinthepartnership– recentresearchonthe

impactofstandardsadoptiononproductivityshowedthatfactoriesadoptingstandardsinVietnamsawasignificantincreaseinproductivity

Closercollaborationwithprivatesector:leveragingfinancing,expertize,implementationcapacity

Goals:-CreateCambodianrubberassociation-AccreditrelevantCambodianlaboratoryforcertification-InternationalrecognitionofCambodiancertification

Producers?Buyers?Sustainability?

Developmentagencyfunding

Cambodiangovernmentimplementsproject

Buyers/retailers

Producers

Servicesproviders

Traditionalmodel:public-publiccooperationtodeveloplocalstandardscapacity

Newmodel:closerpartnershipbetweenpublic-private,focusedonmeetingstandardsofleadfirms

GFSI

*SeeCattaneo 2015formore.

Dev’gcountryfirms

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WhatthismeansforAidforTrade- conclusions

• Implementation:AfT isstronglyrelevanttoSDGimplementation• Directandenablinglinks• Country,regionalandgloballevelrelevanceofAfT• OpportunitytouseAfT initiativetoshareexperienceonanalyticaltools,projectdesignandimplementationontrade-SDGlinks

• Financinglinks• AfT stillrelevantinacontextoflargerdevelopmentfinanceflows:FDI,Domesticresources,remittances

• AfT canleverageotherfunds– butshouldalsonotsubstituteprivatesectorfunding

• Dataandmonitoring:evidenceforreformsandprograms

• Greatercollaborationbetweenprivateandpublicsectorsneeded

Thankyou

Mbartleyjohns@worldbank.org