Malawi presentation3

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Malawi presentation3

  1. 1. Role & influence of interest groups in Trade Policy Making
  2. 2. Presentation outline <ul><li>Stakeholders in trade policy making </li></ul><ul><li>Representation of main stakeholders in formal trade policy making </li></ul><ul><li>Means of influence </li></ul><ul><li>Degree of influence </li></ul><ul><li>Stakeholders not yet represented </li></ul><ul><li>Conclusion </li></ul>
  3. 3. What is trade? <ul><li>Buying and selling of goods and services </li></ul><ul><li>Interaction between producers and consumers </li></ul><ul><li>Trade enablers; transport system, storage facilities, information, regulations, institutions, </li></ul><ul><li>Therefore trade policy should aim at addressing the realization of trade enablers </li></ul>
  4. 4. Who is stakeholder? <ul><li>Those affected and affecting an event/ occurrence, in this case trade </li></ul><ul><li>Thus trade stakeholders are broadly producers, consumers, institutions </li></ul>
  5. 5. Key stakeholders in trade policy making <ul><li>MIPA- attract, promote, encourage, support and facilitate local & foreign investment </li></ul><ul><li>MEPC- export development market, market development, export facilitation, trade information </li></ul><ul><li>MBS- write standards for locally manufactured goods and administer set standards in commerce & industry </li></ul>
  6. 6. Key stakeholders in trade policy making (cont’d) <ul><li>MIRTDC- provides leadership in research & development </li></ul><ul><li>DEMATT- provide business and technical advisory and marketing services to small & medium enterprises. In 1995 it began assisting Finance assistance to small scale businesses </li></ul><ul><li>MNDTPF- organize and coordinate EPA negotiations </li></ul>
  7. 7. Key stakeholders in trade policy making (cont’d) <ul><li>SEDOM- provide financial and technical assistance to MSMEs </li></ul><ul><li>NASME- advocacy association for MSMEs on trading and general </li></ul><ul><li>MCCCI- defend and promote the interests of business community, gather market information & technologies, organize annual trade fairs </li></ul>
  8. 8. Key stakeholders in trade policy making (cont’d) <ul><li>Copyright society of Malawi- administers copyright legislation to protect intellectual property rights of creative work </li></ul><ul><li>NWGTP- formed in 2000 to private-public sector forum on trade negotiations, facilitates consultations and cooperation. Representatives are RBM, Min. of Trade, Agriculture, Justice, Foreign Affairs, UNIMA, MEPC, MIPA, MBS, MCCCI, T&G manu. </li></ul>
  9. 9. Representation in formal trade policy making <ul><li>These include; </li></ul><ul><li>Government- Min. of Trade and Industry, Finance, Agriculture, Justice </li></ul><ul><li>Corporate sector- MCCCI, legal practitiners </li></ul><ul><li>Academia- Economics Department of Chancellor college </li></ul><ul><li>Civil society – MEJN, ActionAid </li></ul>
  10. 10. What have been some of the policies? <ul><li>Periodic increase in interest rate and agricultural prices </li></ul><ul><li>Periodic devaluation of the Malawi Kwacha </li></ul><ul><li>Liberalization of agricultural marketing services (output in 1987 and input in 1990) </li></ul><ul><li>Privatization of state owned enterprises </li></ul><ul><li>Removal of fertilizer subsidy by 1991 </li></ul>
  11. 11. What have been some of the policies? <ul><li>Liberalization of some agricultural produce prices in 1988 </li></ul><ul><li>Floatation in February 1994 </li></ul><ul><li>Liberalization of entry into manufacturing in 1991 </li></ul><ul><li>Bilateral trade agreements, RSA, Zim, Moz </li></ul><ul><li>Multilateral trade agreements, COMESA, SADC, WTO, EU </li></ul>
  12. 12. Means of influencing trade policy <ul><li>Lobbying for </li></ul><ul><li>Tax policy that promote trade </li></ul><ul><li>Supporting infrastructure, i.e. water, energy, international transport corridors, </li></ul><ul><li>Regulation that favours investment </li></ul><ul><li>Protection of marginalized and small producers, e.g listing sensitive products in EPAs </li></ul>
  13. 13. Degree of influence <ul><li>More action on international policies like EPAs, WTO </li></ul><ul><li>Less action on domestic challenges, counterfeit products, anti competitive behaviours </li></ul><ul><li>Less participation in regional policy making like SADC, COMESA </li></ul>
  14. 14. Degree of influence (cont’d) <ul><li>Hasty preparations for negotiations e.g. EPAs </li></ul><ul><li>Capacity constraints to fully benefit from trade policy e.g. Lome convention, AGOA etc </li></ul><ul><li>CSOs ( Oxfam, MEJN, ActionAid) have been influential in the EPA current position for government </li></ul>
  15. 15. Degree of influence (cont’d) <ul><li>NWGTP- privatization </li></ul><ul><li>CAMA has worked on consumer protection </li></ul><ul><li>MCCCI has been influential in ensuring; reduced government intervention, tax policy, exchange rate management etc. </li></ul><ul><li>CISANET on farm subsidy reversion </li></ul>
  16. 16. Why have they been influential? <ul><li>Similar understanding of implications after differences for long time betwn government and CSOs on EPAs </li></ul><ul><li>MCCCI- represents the corporate sector that is engine for economic growth and therefore its interest is response to government stimulus </li></ul><ul><li>NWGTP- interests aligned in government development policy </li></ul>
  17. 17. Why have they been influential? <ul><li>CISANET- pushed through opposition parliamentarians who currently are in majority in parliament </li></ul>
  18. 18. Stakeholders not yet represented <ul><li>Domestic trade dominated by informal sector </li></ul><ul><li>Thus need to include Malawi Union for the Informal Sector (MUFIS), Indigenous Business Association, Parliament, Center for Social Concern, CAMA, Farmers Union, PIAM, CNFA </li></ul>
  19. 19. Conclusion <ul><li>Stakeholders in trade policy are producer oriented </li></ul><ul><li>Balance producer & consumer interests to stimulate competition for growth; CAMA, CFTC </li></ul><ul><li>Sector specific associations like in citrus fruits, cotton, dairy, poultry, artifacts need to be strengthened. </li></ul>
  20. 20. Merci beaucoup! Thank You! <ul><li>Milward Tobias </li></ul><ul><li>The African Institute for Development Research (AIDR) </li></ul><ul><li>P.O. Box 30207 </li></ul><ul><li>Lilongwe 3 </li></ul><ul><li>+265 8 375 967 </li></ul><ul><li>[email_address] </li></ul>

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