Europe and CIS Wider Europe: AfT in Central Asia, South ... · AfT in Central Asia, South Caucasus...
Transcript of Europe and CIS Wider Europe: AfT in Central Asia, South ... · AfT in Central Asia, South Caucasus...
1
Europe and CIS
Jacek Cukrowski
Team Leader,
UNDP, Europe and the CIS
Bratislava Regional Centre
Wider Europe:
AfT in Central Asia, South
Caucasus and Western CIS
“Wider Europe: AfT for Central Asia, South Caucasus, and Western CIS”Project Meeting
Bishkek, 9 March 2010
2
Outline
Aid for Trade
UNDP human development agenda and trade
Wider Europe: AfT in Central Asia, South Caucasus and Western CIS - a framework
Project components in Central Asian countries Component I: AfT Road Map in Central Asia:
Identification of National and Regional AfT Priorities
Component II: Support to Economic Development along
Trade Corridors
Europe and CIS
4
AfT is part of overall development aid, but with the specific objective of helping least developed countries, to play an active role in the global trading system
to use trade as an instrument for growth and poverty alleviation
to overcome internal barriers lack of knowledge, excessive red tape, inadequate
financing, poor infrastructure
it is not a substitute for trade opening, but a necessary and increasingly important complement
Europe and CIS
What is about ?
5
Increased trade,
competitiveness
and growth
Aid for Trade
trade reformentrepreneurship
private
investment
trade-related
capacity and
infrastructure
catalyst
Europe and CIS
6
Key focus areas
Trade policy and regulation Europe and CIS
Building capacity
to formulate trade policy
participate in negotiations
implement agreements
7
Key focus areas
Economic infrastructure Europe and CIS
Investing in the infrastructure – roads, ports, telecommunications, energy networks – needed to link products to global markets
8
Key focus areas
Productive capacity building Europe and CIS
Strengthening economic sectors – from improved
testing laboratories to better supply chains – to increase
competitiveness in export markets
9
Adjustment assistance Europe and CIS
Key focus areas
Helping with any transition costs from liberalization
loss of fiscal revenue
declining terms of trade
10
0
5
10
15
20
25
30
2002-2005 2006 2007
Trade-related Adjustment
Trade Policy and Regulations
Building Productive Capacity
Economic Infrastructure
Aid for Trade commitments 2002-2007 (billions, constant 2007 dollars)
Source: OECD, Creditor Reporting System database
The biggest components: infrastructure and productive capacity Europe
and CIS
11
20.8
1.2
7.1
1.7
0.4
5.2
3.1
1.7
0.3
0.6
1.0
11.6
1.2
2.6
1.1
0.9
2.4
2.9
0.4
0.1
0.6
0.5
0 5 10 15 20 25
Developing regions' total
Northern Africa
Sub-Saharan Africa
Latin America & the Caribbean
East Asia
South Asia
South-East Asia
Western Asia
Oceania
Transition countries of south-eastern Europe
Commonwealth of Independent States (CIS)
2007
2002
Source: OECD, Creditor Reporting System databaseNote: Four recipients of Aid for Trade (Croatia, Slovenia, St. Helena, Wallis & Futuna) are not included in any of these regions. They account forjust 0.4 per cent of total Aid for Trade commitments in 2007.
Europe and CIS
Aid for Trade commitments
2002-2007 (billions, constant 2007 dollars)
AfT commitments by region
13
World Trade Organization (WTO) sets the framework and provides a forum
run by its members
United Nations Conference on Trade and Development (UNCTAD)
technical assistance provider to governments
International Trade Centre (ITC) provides technical assistance to private sector (esp. SMEs) and trade
intermediaries
United Nations Development Programme (UNDP) ensures HD/MDG approach to trade issues
Role of multilateral organizations
in trade development Europe and CIS
14
UNDP approach: Linking trade
and human development
Trade can be a powerful source of economic growth
…but while broadly based economic growth is necessary for human
development, it is not enough
Human development also requires enlarging people’s
choices and opportunities—especially poor people’s
liberalizing trade does not ensure poverty reduction or human
development, nor does it guarantee immediate economic growth
The nature of resource allocation and social inclusion are
important determinants of growth leading to poverty
reduction and human development
for women and those participating in the informal sector, especially
Europe and CIS
15
Area Based Development Project UNDP approach to local development
Broad focus of the project components Agriculture, water management, microfinance, civil society, capacity building
of local administration
Lack of trade support component
Opportunities to support human and economic development through strengthening trade capacity and improving trade competitiveness
Trade marketing baseline assessment for export promotion interventions
Capacity building on trade mainstreaming
Establishing regional export promotion centers
Expanding SMEs´ access to financial services by developing trade-focused microfinance products (trade finance)
UNDP advantage: Area Based
Development Projects Europe and CIS
17
BackgroundIn December 2008 the Finnish Ministry of
Foreign Affairs approved a proposal to
cooperate with UNDP Bratislava Regional
Centre in the following two areas
Trade for development in Central Asia
Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan,
Turkmenistan
Aid for Trade project in Southern Caucasus and
Western CIS
Azerbaijan, Armenia, Georgia
Belarus, Ukraine, Moldova
In July 2009 project document was signed
Europe and CIS
18
Wider Europe: Aid for Trade for Central Asia, South Caucasus and Western CIS
Project components
Component I Aid for Trade Road Map in Central Asia: Identification of
National and Regional AfT Priorities Aid for Trade Conference for SPECA countries proposed by the
Government of Azerbaijan
Component II Aid for Trade for Central Asia: Support to Economic
Development along Trade Corridors Kazakhstan (Semey)
Kyrgyzstan (Batken)
Tajikistan (Khojand)
Component III Aid for Trade Needs Assessments in South Caucasus and
Western CIS Armenia, Georgia, Belarus, Ukraine, Moldova
Europe and CIS
19
Wider Europe: Aid for Trade for Central Asia, South Caucasus and Western CIS
Implementation framework
Time frame: 18 months: August 2009-January 2011
Budget Total 1st Phase: 1.6 mln Euro
Component I: 120,000, Component II: 792,000, Component III: 100,000
Core team in Bratislava Team Leader: Jacek Cukrowski
Project Manager: Massimiliano Riva (until December 2009)
Daniele Gelz (starting in March 21, 2010)
Support: Kim Boermans (since January 2010)
Project Steering Committee Tuula Yrjölä Ministry of Foreign Affairs of Finland
Director of the Unit for Eastern Europe
and Central Asia
Jens Wandel RBEC Deputy Regional Director
delegated to
Balazs Horvath Poverty Practice Leader at UNDP BRC
Rastislav Vrabensky UNDP Country Director in Tajikistan
Europe and CIS
20
Component I: Aid for Trade Road Map in Central Asia:
Identification of National and Regional AfT Priorities
Component II: Aid for Trade for Central Asia: Support to
Economic Development along Trade Corridors
Europe and CIS
Project components in
Central Asian countries
21
Component I:
AfT Road Map in Central Asia:
Identification of National and Regional AfT Priorities
Europe and CIS
22
Component I: Aid for Trade Road Map in Central Asia: Identification of National and Regional AfT Priorities
Background
AfT Ministerial Conference of SPECA Countries Conference proposed by the Governments of Azerbaijan and Kyrgyzstan
Supported by UNECE, ITC, WTO, UNDP, UNCTAD, EBRD, ADB, IDB…
Co-financed by Islamic Development Bank
Place and Timing (tentative): Azerbaijan, July [ November] 2010
Preparatory and Consultative Meetings Bishkek, March 2009; Geneva, May 2009, October 2009
Expert Meeting: Bishkek March, 2010
UNDP role Facilitate preparation of the background materials for the Conference
National AfT country studies
Regional review
Develop conference agenda
Coordinate efforts of all partners
Europe and CIS
23
Aid for Trade Conference for SPECA countries
Objectives and focus
Objectives Identify national and regional priorities for trade
development
Call the attention of donors to these priorities
Focus The Economic Crisis and Post Crisis Recovery: AfT
Challenges in Central Asia (SPECA region)
Europe and CIS
24
Component II:
AfT for Central Asia:
Support to Economic Development along Trade Corridors
Europe and CIS
25
Component II: AfT for Central Asia: Support to Economic Development along Trade Corridors
Background: Trade Corridors Europe and CIS
26
Component II: AfT for Central Asia: Support to Economic Development along Trade Corridors
Objectives Support economic development of the areas located
along selected transport corridors in Central Asia
Help small/micro entrepreneurs in urban and rural areas, farmers and associations of farmers to gain from the economic opportunities the new transport infrastructure will bring
Support local communities placed along transport corridors
promotion of international standards and procedures
identification of the products with the biggest trade potential
improvement of the understanding of market mechanisms
matching potential trading partners
improving the regions competitiveness, expanding trade and alleviating poverty
Europe and CIS
27
Component II: AfT for Central Asia: Support to Economic Development along Trade Corridors
Next steps
Phase I Batken (Kyrgyzstan)
Khujand (Tajikistan)
Semey (Kazakhstan)
Phase II (2011-2013) ? strong expectations at UNDP BRC and RBEC HQ
donor’s interest
preliminarily ideas for continuation in Central Asia
… but Phase II depends on successful implementation of Phase I
Europe and CIS
28
Thank you…
United Nations Development Programme,
Europe and the Commonwealth of Independent States,
Bratislava Regional Centre
http://europeandcis.undp.org
Europe and CIS