TPO ServicesAn institutional perspective

By: Miguel CAMACHO & Ann PENISTAN, TS/DBISDate: 31 March 2011

Agenda

1. Introduction

2. Types of services

3. Outcome-Impact chain

4. Implications

5. Q&A

Agenda

1. Introduction

2. Types of services

3. Outcome-Impact chain

4. Implications

5. Q&A

What is ITC?

Mission

ITC enables small business export success in developing countries by providing, with partners, trade development solutions to the private sector, trade support institutions and policy-makers

The UN body for design of policy recommendations to achieve economic and social development through trade and investment.

ITC works with local and regional institutions and businesspeople to

promote exports and trade.

The forum to negotiate multilateral trade rules, monitor

their implementation and handle trade disputes

ITC activities

Micro,Small and

Medium-SizedExporters

ITC Beneficiaries

Export Impact for GoodGenerating sustainable

incomes and livelihoodsespecially for poor

households, by connectingenterprises to global markets

ITC Development Outcomes

PolicyMakers

TradeSupport

Institutions

BusinessCommunity

ITC Clients

Business and Trade Policy

Export Strategy

Trade Intelligence

Trade Support Institution

Exporter Competitiveness

Activities

One One Many

ITC organisational chart

Agenda

1. Introduction

2. Types of services

3. Outcome-Impact chain

4. Implications

5. Q&A

Trade promotion – basic definitions

• Trade Promotion Organisation

• Government-mandated agency responsible for trade promotion activities in a geographic area. Can be national, provincial, regional, etc.

• Trade Support Institution

• Any organisation that provides services that help companies export. Includes exporters’ associations, national standards boards, training and research centres, etc.

• Trade promotion

• Services targeted at supporting domestic producers and sellers in meeting and interacting with foreign buyers in order to facilitate sales

• Trade development

• Services targeted at building the competencies and capacities of companies to trade

Trade promotion - examples

• Trade Fairs abroad and in-country

• Market exploration missions

• Buyers missions

• Sellers missions

• Buyers-sellers meetings

• Specialised promotion programmes in target markets:

• In-Store Promotion

• Information Booths

• Exhibition Centres

• Country/region branding programmes

Trade development - examples

• Market information and research

• Technical training programmes (Incoterms, international pricing and costing, international payment methods, certificates of origin, labelling requirements, etc.)

• Packaging development programmes

• Sectoral R&D programmes and centres

• Technical support for improving production techniques and yields

• Supply chain optimisation initiatives

• Sanitary and phytosanitary compliance support

• Support for the adoption and certification based on international standards (ISO, GlobalGap, FSC, etc.)

• Programmes to support internationalisation of SMEs

Trade development – examples (2)

• Access to finance training and support

• Advocacy for regulatory and legal reform vis-a-vis the Government

• Participation in trade negotiations

• Programmes to disseminate and facilitate trade law

• Arbitration centres and support in accessing international arbitration schemes

• Support programmes for development of contracts

• Programmes to develop infrastructural services:

• Telecommunications in rural areas

• Seed capital, risk capital and non-debt financing schemes

Trade promotion and development

• Impossible for any one agency to do it all – need for many resources:

• Specialised knowledge and information

• Human resources with right competencies

• Physical infrastructure (training facilities, testing facilities, research and development labs, etc.)

• Financial resources:

• SME development requires co-funding from non-commercial sources

• Alliances: need to develop domestic trade support networks (national / provincial / regional)

• Need to partner many different organisations (universities, research centres, producers and exporters associations, networks of consultants, other TSIs and TPOs, etc.)

• Need for a clear regulatory framework and authority – coordination capacity and mandate

Human Resources

Financial Resources

Strategic Alliances & Networks

Information & Know-how

Physical Assets &

Infrastructure

Human Resources

Financial Resources

Strategic Alliances & Networks

Information & Know-how

Physical Assets & Infrastructure

Strategy & Management Marketing Production Sales

Export Promotion

Export Development

Multiplier Distributor Referral

Customized Off-the-Shelf

1. Purpose of Service

2. Description of Service

3. Role of the TSI

4. Degree of Customization

Agenda

1. Introduction

2. Types of services

3. Outcome-Impact chain

4. Implications

5. Q&A

Outcome and impact chain

Change in level of

competitiveness of enterprises

IntermediateImpact

Change in behaviours in

ways and means of how they work

Final Outcome

Sustainable exports of enterprises

FinalImpact

Awareness created on issues of

importance

Satisfaction of beneficiaries

Intention of beneficiaries to

change behaviour addressed

ImmediateOutcomes

Change in attitudes of

beneficiaries toward the

subject

Reactions of beneficiaries to institution and programmes

IntermediateOutcomes

Agenda

1. Introduction

2. Types of services

3. Outcome-Impact chain

4. Implications

5. Q&A

Some implications

• Legal framework is critical:

• Determines mandate and scope of possible activities for each organisation

• Identification of focus is critical:

• Service design needs to be based on clear appraisal of needs of SMEs

• Development of networks and alliances is critical:

• Final impact of sustainable exports requires multiple resources, impossible to have in one organisation

• Collaboration must be built – not spontaneous nor automatic

• Monitoring and evaluation is critical:

• Impact cannot be measured sporadically – systematic monitoring is key

• Performance is not user satisfaction – outcome-impact chain must be considered and evaluated accordingly

Agenda

1. Introduction

2. Types of services

3. Outcome-Impact chain

4. Implications

5. Q&A