Promoting internationalisation of agribusiness SMEs in Tajikistan
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Promoting internationalisation of agribusiness SMEs in Tajikistan

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Presented at the 1st Working Group meeting on Promoting Internationalisation of Agribusiness SMEs - Dushanbe, Tajikistan, 12 March 2014

Presented at the 1st Working Group meeting on Promoting Internationalisation of Agribusiness SMEs - Dushanbe, Tajikistan, 12 March 2014

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Promoting internationalisation of agribusiness SMEs in Tajikistan Promoting internationalisation of agribusiness SMEs in Tajikistan Presentation Transcript

  • CENTRAL ASIA INITIATIVE INVESTMENT AND COMPETITIVENESS IN CENTRAL ASIA Focus on Tajikistan 1st Working Group meeting on Promoting Internationalisation of Agribusiness SMEs Dushanbe, 12 March 2014 With the financial assistance of the European Union
  • OECD Private Sector Development 2 Objectives of today’s meeting 1. To present the OECD project with Tajikistan: expected benefits, governance, planning 2. To present the methodological framework of the OECD assessment of export and investment policies in Tajikistan 3. To highlight why to focus on internationalisation of agribusiness SMEs, present international case studies and to identify policy instruments that could be relevant for Tajikistan 4. To agree on next steps until next WG meeting in June 2014
  • OECD Private Sector Development 3 Agenda  Introduction to the project  Assessment of export and investment policies in Tajikistan: Methodological Framework  Promoting internationalisation of agribusiness SMEs in Tajikistan  Baseline situation  International case studies  Discussion of their relevance for Tajikistan  Next steps
  • OECD Private Sector Development 4 Expected benefits of the project: enhancing country competitiveness and providing global visibility 1. Enhancing country competitiveness • Developing targeted and practical action plans for reforms • Following-up on implementation and building capacity 2. Providing global visibility • Reviewing reform action plans with OECD countries • Showcasing the Tajikistan’s reform agenda as a model in Eurasia
  • OECD Private Sector Development 5 The OECD at a glance A forum where governments can compare policy experiences and address the economic, social and governance challenges of globalisation as well as to exploit its opportunities 34 Member countries Broad policy expertise Horizontal policy areas  Competitiveness and Investment  Public Governance and Territorial Development  Entrepreneurship, SMEs and Local Development  Employment, Labour and Social Affairs  Trade  Education  Tax Policy and Administration Sector-specific policy areas  Agriculture  Industry  Science and Industry  Financial and Enterprise Affairs Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States This map is for illustrative purposes and is without prejudice to the status of or sovereignty over any territory covered by this map
  • OECD Private Sector Development 6 Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova, and Ukraine Eastern Europe and South Caucasus Initiative Afghanistan, Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan Central Asia Initiative The OECD Eurasia Competitiveness Programme OECD Council Mandate covering two regions and thirteen countries The OECD Eurasia Competitiveness Programme was launched in 2008 and aims at contributing to economic growth and development in eleven countries of the former Soviet Union as well as Afghanistan and Mongolia. This map is for illustrative purposes and is without prejudice to the status of or sovereignty over any territory covered by this map
  • OECD Private Sector Development 7 Project Steering GroupPrivate sector representatives Relevant ministries and government agencies Chairman: First Deputy Prime Minister Deputy Chairman: Minister of Economy OECD (including relevant experts) Proposed governance for the project includes 2 public-private Working Groups reporting to a Project Steering Group OECD Secretariat, GIZ and Ministry of Economic Development and Trade of Tajikistan European Commission Chairman:DeputyChairman,SCISPM Working Group 2 Investment and Trade Promotion for SMEs GIZ Working Group 1 Access to Finance for SMEs Chairman:DeputyMinister,MEDT
  • OECD Private Sector Development 8CONFIDENTIAL – NOT FOR DISTRIBUTION 1. Provide data (e.g. data request, questionnaires) 2. Co-operate in developing the analysis 3. Review materials Working Group Members 1. Co-ordinate the project 2. Analyse data and develop materials with the support of international experts 3. Draft key conclusions and propose recommendations for discussion WG Secretariat: OECD and GIZ 1. Sets overall priorities of the project 2. Reviews and comments on progress accomplished by the Working Groups (approves proposals, recommends adjustments) 3. Decides on recommendations to be implemented Steering Group – Chaired by the First Deputy Prime Minister WG members collaborate with the OECD and GiZ to develop an action plan that will be reported to the Steering Group for final discussion
  • OECD Private Sector Development 9 Tajikistan in the peer review process Roundtable members to comment on draft report and draft guidelines Project Steering Group Tajikistan Eurasia Competitiveness Roundtable Policy reform plan and draft guidelines finalised by Tajikistan with support of the OECD and GiZ Policy reform plan to be peer reviewed by Roundtable members Finalisation of reform plans and guidelines based on comments provided by Roundtable members Promoting internationalisation of agribusiness SMEs in Tajikistan Reviewers Follow up on reform implementation Tajikistan 1 2 3 4 Tajikistan, March-October 2014 Paris, November 2014 Dushanbe, December 2014
  • OECD Private Sector Development 10 Working Group Schedule: 3 meetings are suggested for 2014 The objective is to get ready for the Roundtable in November 2014 2013 2014 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec COUNTRYLEVEL Working Group, Dushanbe Project Steering Group, Dushanbe REGIONAL Eurasia Competitiveness Roundtable, Paris 1st Roundtable Peer review of action plans for reforms in the Kyrgyz Republic 2nd Roundtable Peer review of two action plans for reforms of Tajikistan 1st Meeting Decision on focus and set up of two thematic working groups 2nd Meeting Review of the initial results and recommendations 3rd Meeting Endorsement of final recommendations 3 meetings will be conducted for each of the two Working Groups Design of draft action plans for reform
  • OECD Private Sector Development 11 Agenda  Introduction to the project  Assessment of export and investment policies in Tajikistan: Methodological Framework  Promoting internationalisation of agribusiness SMEs in Tajikistan  Baseline situation  International case studies  Discussion of their relevance for Tajikistan  Next steps
  • OECD Private Sector Development 12 Tajikistan could attract more FDI inflows and increase exports of goods and services Sources: OECD Statistics; World Bank WDI, IMF Exports of goods and services (% of GDP), 2011FDI inflows (% of GDP), 2011
  • OECD Private Sector Development 13 OECD peer review methodology for Export and Investment Promotion 11 policy indicators will be assessed across three policy sub-dimensions Dimensions Sub-dimensions 3 Export and Investment Promotion policies Sub-Dimensions 3.1 Investment and Export Promotion Strategy and Institutions 3.2 Investment and Export Promotion Tools 5.3 ACAAs Sub-dimensions Indicators 3.1 Export and Investment Promotion policies Indicators 3.2.1 Export promotion programmes Indicators Level of Reform Indicators 1 2 3 4 5 Export promotion programmes Financial support for export promotion activities National SME promotion events Assessment of Export and Investment Promotion policies to define priorities for reform implementation • Export and Investment Promotion Strategy and Institutions • Investment/Export Promotion Strategy • Investment/Export Promotion Agency • Monitoring and evaluation of the agency • Export and Investment Promotion Tools • Export promotion programmes • Financial support for export promotion activities • National SME promotion events • One Stop Shop for investors • Aftercare services • Free economic zones • Business linkage programmes • Public-private consultations with investors
  • OECD Private Sector Development 14 OECD structures the policy development path of each policy indicator from 1 to 5 to measure the level of policy development Policy indicator levels: • Level 1: There is no framework (e.g. law, institution, project, initiative etc.) in place to cover the area concerned. • Level 2: There is a draft or pilot framework and there are some signs of government activity to address the area concerned. • Level 3: A solid framework is in place for this specific policy area. • Level 4: Level 3 + some concrete indications of effective policy implementation of the framework. • Level 5: Level 4 + some significant record of concrete and effective policy implementation of the framework. This level comes closest to good practices as identified by OECD standards. Level of Reform 1 2 3 4 5 No export promotion programmes exist. Export promotion programmes under consideration/ some pilot programmes in place, limited funding available and no co- ordination between programmes. New programmes approved. Programmes are largely funded by donor countries. Co- ordination between programmes. Basic trade information provided and some trade promotion activities (trade missions, country representation at major trade fairs) in place, but limited support given to a small number of SMEs. Export promotion programmes are adequately funded but do not completely provide for all of the following: trade policy information and commercial intelligence, export promotion and marketing, trade fair participation, product development and financial services and training Range of well-funded export promotion programmes capable of providing all of dimensions mentioned in level 4. Example indicator: Export promotion programmes
  • OECD Private Sector Development 15 The assessment of the Kyrgyz Republic identified a need to further strengthen strategies, institutions and promotion tools EXAMPLE OF RESULTS Sources: OECD Peer Review Assessment of the Kyrgyz Republic (2013) • Approve the 2013 – 2017 Export Development Strategy and strengthen related investment promotion efforts • by setting up an investment and export promotion agency with sector expertise • by defining clear roles and responsibilities for the implementation of related activities • Further develop investment promotion tools (e.g. business linkage programmes) to foster links between SMEs and foreign investors and facilitate the participation of domestic companies in global value chains Example recommendations 0 1 2 3 4 5 3.1.1Investment/Export PromotionStrategy 3.1.2Investment/Export PromotionAgency 3.1.3Monitoringandevaluation oftheagency 3.2.1OneStopShopforinvestors 3.2.2Aftercareservices 3.2.3Freeeconomiczones(FEZs) 3.2.4Businesslinkage programmes 3.2.5Public-privateconsultations withinvestors 3.2.6Exportpromotion programmes 3.2.7Financialsupportforexport promotionactivities 3.2.8Nationalexport/investment promotionevents 3.1 Investment and Export Promotion Strategy and Institutions 3.2 Investment and Export Promotion Tools
  • OECD Private Sector Development 16 Agenda  Introduction to the project  Assessment of export and investment policies in Tajikistan: Methodological Framework  Promoting internationalisation of agribusiness SMEs in Tajikistan  Baseline situation  International case studies  Discussion of their relevance for Tajikistan  Next steps
  • OECD Private Sector Development 17 Agricultural sector in Tajikistan has been growing over the last years and accounts for a major share of GDP and employment •Net agricultural production sector grew on average by 5% since 1998 and accounted for more than 1/3 of GDP growth since then •A large part of the population depends on agriculture for employment and income – the sector accounts for 66% of total employment in the economy •WTO-related SME internationalisation in the agribusiness sector can be one of the best ways to improve the economic situation in Tajikistan Sources:State Statistical Committee of the Republic of Tajikistan; Akramov and Shreedhar (2012), Economic Development, External Shocks, and Food Security in Tajikistan, International Food Policy Research Institute Discussion paper 01163 Share of agriculture in GDP and employment, 2011 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 constant2000somoni Net value of agricultural production 24% 66% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Share in GDP Share in employment
  • OECD Private Sector Development 18 While exports have slowly been increasing since 2009, agribusiness exports remain limited •While Tajikistan imports have been fast growing since 2004, exports have not increased at the same pace •Tajikistan’s export is characterized by over-reliance on a small number of export commodities (e.g. cotton and aluminium) •High potential for exports include for example processed food and vegetables – fruit concentrates, fruit and vegetable juices) Sources: Ministry of Foreign Affairs of Tajikistan (2012). External Trade Activity of the Republic of Tajikistan for 2012; OECD analysis Structure of Tajikistan’s export, 2012Export, import, and total trade turnover in Tajikistan, 2012 [USD m] +140%
  • OECD Private Sector Development 19 Tajikistan Government has put agribusiness exports as a priority in the WTO post-accession plan Items of the Tajikistan’s WTO Post accession plan related to SMEs in agribusiness: • Item I.18 Expand the state support on promotion of Tajik good into markets • Item I.20 Active use of perspective support programs in context of accession to the WTO • Item I.24 Provide conditions for the reduction of interest rates on bank loans to the average level for the developing countries of the world • Item VII.1.3. Support domestic agricultural producers by stimulating demand in both domestic and foreign markets (Partial funding of events for the promotion of products: exhibitions, workshops, assistance in obtaining certificates)
  • OECD Private Sector Development 20 Initial analysis suggests that agribusiness SMEs in Tajikistan face challenges spanning across finance, marketing, quality, fragmentation •Limited credit and export financing •Underdeveloped financial market Finance •Weak national branding of Tajikistan's products •Inefficient customs procedures •Limited supply chain coordination •Limited information to analyse foreign markets Marketing and distribution Quality and productivity “Problem of being small” •A highly fragmented structure dominated by small producers and processors •Limited trust and co-operation between agriculture producers to achieve economies of scale •Lack of information and co-ordination along supply chain, e.g. between producers and processors •Low sanitary /phytosanitary and technical standards •Low quality of some agribusiness products •Low productivity •Costly certification procedures on export markets Sources: OECD analysis, interviews with experts
  • OECD Private Sector Development 21 Agenda  Introduction to the project  Assessment of export and investment policies in Tajikistan: Methodological Framework  Promoting internationalisation of agribusiness SMEs in Tajikistan  Baseline situation  International case studies  Discussion of their relevance for Tajikistan  Next steps
  • OECD Private Sector Development 22 Enhancing the capacity of SMEs to use external sources of financing can increase exports Cooperative structures can create credit guarantee schemes and support financial education of agribusiness SMEs Tajikistan could leverage policy learnings drawn from international case studies Finance Export promotion support can be scaled based on the private sector needs and government resources National/regional brand can be linked to a system of institutional promotion with better recognition of local products Marketing and distribution Quality and productivity “Problem of being small” Producers’ associations can help create economies of scale and enhance efficiency of the sector Integrating SMEs into network of clusters can overcome fragmentation in the agribusiness sector Designing, implementing, and monitoring an SME Development Strategy can help increase agribusiness exports Timely testing and standardisation is crucial for being competitive on export markets and governments can support Competitiveness of agriculture and its improving exports are mainly determined by medium and bigger farms Countries further studied: Italy, Poland, Moldova
  • OECD Private Sector Development 23
  • OECD Private Sector Development 24 Polish Ministry of Economy offers a mix of tailored instruments to support internalisation of companies •Export certificates: addressing certification challenges •Industry export promotion: exhibitions, industry meetings, market surveys • Promotion events and publishing: conference space, printing, translation •Passport to export: consulting costs on an export promotion, market entry, missions abroad, financing strategy •Industry promotion programmes: support for industries which may become Polish export specialties •General promotion programmes: participation in events to strengthen Poland’s recognition worldwide and promote Poland as a country of innovative production potential •Support for participation of entrepreneur organizations in international industry organizations: subsidy for coverage of membership fees Direct financing of firms •Trade and Investment Promotion Sections: establishments at Polish Embassies to support match-making, identify export barriers, evaluate trade potential, and to inform on regulations •Export Promotion Portal: export-relevant resources, profiles of exporters •Investor and Exporter Assistance Centres: information on export outside Poland (pro-export service), information on attracting investors to Poland (pro-biz service) •Product Contact Point: information on national technical rules, contact details of authorities competent in technical rules •Consultancy services: reimbursement of costs related to deepen knowledge about foreign markets, documents, analyses, studies, legal opinions, market expertise Indirect financing of export infrastructure Sources: OECD analysis, Ministry of Economy of Poland 2010 Instruments for internationalization of business activity CASE STUDY See next page
  • OECD Private Sector Development 25 To overcome complicated product certification procedures, the government of Poland reimburses eligible expenditures Source: OECD analysis, Ministry of Economy of Poland (2010), Instruments for internationalization of business activity, Support Instruments Department • Complicated product certification procedures constitute a genuine barrier to entering a new market • Timely testing and standardisation is crucial for being competitive on export markets • Aid for SMEs for obtainment of a product certificates required in foreign markets • Only eligible expenditure is incurred for: a. required consultancy services b. preparation and translation of technical documentation c. transport and insurance of product samples and technical documentation sent for certification tests d. conduction of certification tests e. issuance and release of a product certificate f. performance of an audit • Amount of support for one entrepreneur: an annual aid limit may not exceed an amount of EUR 12,000 CASE STUDY Challenge addressed Support Export Certificates as a policy solution
  • OECD Private Sector Development 26 Lessons learned from the Poland’s case study leads to several questions for Tajikistan • How to offer the right mix of instruments to support agribusiness exports? • How to support product certificates required in foreign markets? Questions for Tajikistan CASE STUDY • Timely testing and standardisation is crucial for being competitive on export markets and government support might be needed • Export promotion support can be scaled based on the private sector needs and government resources • Competitiveness of agriculture and its improving exports has been driven by medium/ bigger farms Lessons learned
  • OECD Private Sector Development 27 • Moldova is a country with a very small internal market, which needs to actively engage in foreign economic relations • Since the demise of the former Soviet Union, Moldova has tried to create beneficial trade regimes both with the European Union and the Commonwealth of Independent States (CIS) • Despite trade reforms, costly quality certification and limited access to export finance, continue to remain a problem Moldova is a country with a small internal market that managed to increase and diversify its exports beyond Russia Source: National Bureau for Statistics ( www.statistica.md); OECD Analysis Background Results • Productivity of agriculture remains low (27% of work force vs 16 % of GDP) • Moldova is the net exporter of processed fruit and vegetables, grape wines and foodstuff • In the last decade Moldova managed to diversify its exports (today EU- 49 % vs. CSI- 42 %) • Despite the Russian embargo on wines (2006) and a potential similar risk for all agribusiness exports, 90 % of fruits continue to be exported to Russia CASE STUDY 0 500 1000 1500 2000 2500 2001 2005 2011 Other countries EU countries CSI countries Moldova’s exports by destination *USD m+
  • OECD Private Sector Development 28 To tackle the export barriers the Moldovan government implemented reforms in this area Source: OECD analysis, The EU-funded project “Support to Export Promotion and Investment Attraction in the Republic of Moldova”, Farmer to farmer report CNFA (2008); www.usaid.gov Financing • Unwillingness of export credit agencies to provide financial cover Marketing and distribution • Constrained knowledge of export markets • Limited marketing skills among agribusiness SMEs • Unwillingness of smallholder producers to cooperate Quality and productivity • National certification laboratories not recognized by the EU • Non-compliance with sanitary and phytosanitary rules of the European market • Lack of a solid system of food safety control • Slow transition from the Soviet to European standards, due to the dependence on Russia • Supporting SMEs in accessing export financing • Identifying external sources of export financing and enhancing the capacity of SMEs to use them • Export microfinancing is being analysed as an option • Farmer-to-Farmer programme: Transfer of knowledge and expertise from abroad • Improving production technologies and marketing skills • Facilitating access to new markets (online export and investment promotion tools - interactive business and investment opportunity database) • Enhancing the system of testing laboratories • Preparing staff of the beneficiary testing laboratories in applying the international certification principles within their laboratories • Organising laboratories’ proficiency testing trials • Selecting and contracting the appropriate internationally-recognized accreditation body for accreditation of laboratories Challenges addressed Policy solution CASE STUDY
  • OECD Private Sector Development 29 Action Budget (EUR) Indicator Strengthening cooperation of SMEs by integrating them into network of clusters 120,000 # of clusters, # of trainings, % of SMEs in clusters Advice and assistance to exporting SMEs to develop export strategies and improve marketing techniques 6000 # of entrepreneurs trained The concept of “trusted trader” to reduce the # of customs controls applicable to credible SMEs N.a. Regulatory framework developed and implemented # of SMEs benefiting Implementation of a quality management systems, including those integrated into the SME sector in conformity with international standards 400,000 # of SMEs that have a certified quality management systems To tackle the remaining SME barriers, OECD helped Moldova draft and implement the 2012-2020 SME Development Strategy CASE STUDY • OECD supports the implementation of Moldova’s SME policy reform: • SME policy reforms through a diagnostic of the SME policy framework and good practices review in OECD countries • The SME Development Strategy 2012- 2020 and Action Plan 2012-14 • Policy priorities: access to finance for SMEs and business support infrastructure for SME • OECD continues providing assistance in the implementation of the SME Action Plan • Special focus given on developing capacity in the monitoring, evaluation and its impact on the SME sector Moldova’s SME Action Plan 2012-14OECD SME project in Moldova Assessment Prioritisation Implementation Monitoring Evaluation
  • OECD Private Sector Development 30 Lessons learned from the Moldova’s case study leads to several questions for Tajikistan • How to improve the marketing skills in agribusiness in order to ensure a better access to the market? • How to encourage the implementation of a quality management system? • How to identify external sources of export financing and enhancing the capacity of agribusiness SMEs to use them? Questions for Tajikistan CASE STUDY • Integrating SMEs into network of clusters can overcome fragmentation in the agribusiness sector • Enhancing the capacity of SMEs to use external sources of financing can increase exports • Designing, implementing, and monitoring an SME Development Strategy can help enhance the agribusiness sector Lessons learned
  • OECD Private Sector Development 31 • Trentino is a mountainous region in Italy • Traditionally agricultural • Before 1945: • Great poverty • Very fragile economy • Epidemics afflicting agricultural products (basis of rural livelihoods) • Large emigration • Rural businesses too small for farmers to sell their products on the national market Historically poor Trentino developed to one of Italy’s richest provinces based on agricultural cooperation and exports Source: OECD analysis; Salvatori, G. (2012), The Flexibility of the Cooperative Model as a Development Tool: The Case of the Metamorphosis of an Italian Region, Euricse Working Paper, N.025 | 12; http://www.academiabarilla.com/; OECD Analysis Background Results • Today one of Italy’s richest provinces • Trentino’s GDP 30% higher than the European average • Most important products: apples and other fruit, vegetables and grape: important especially for its quality and wine production • Co-operatives represents 90% of the agricultural sector and play a key role in exports • Food production increasingly oriented towards high quality standards CASE STUDY
  • OECD Private Sector Development 32 Cooperative movement is the basis of Trentino’s agribusiness success Source: OECD analysis; Salvatori, G. (2012), The Flexibility of the Cooperative Model as a Development Tool: The Case of the Metamorphosis of an Italian Region, Euricse Working Paper, N.025 | 12; www.cooperfidi.it CASE STUDY Trentino Province challenges and successes Agricultural enterprises • Small in size: average 1.2 ha, mostly part-time workforce • Regional autonomy makes for a light regulatory environment Institutional organisation • Very comprehensive cooperative movement • Between 1880-1945 a unique system of intense and branched cooperatives was created • Today 45% of 500,000 inhabitants are members of a cooperative • Trentino is a «cooperative district», almost unique in the world • Cooperation in Trentino employs 18,000 inhabitants, with a turnover of EUR 2 bn Cooperative structure supports financing, marketing, and production: • Credit Guarantee Schemes (paying guarantees on different types of operations: Unsecured loans, Mortgage Loans, Current accounts, Special Funds) • Financial Education • Skills acquisition and training Italy Trentino province
  • OECD Private Sector Development 33 Trentino also recently developed provincial “Trentino” and “Qualità Trentino” brands to promote its products Source: Chamber of Commerce Trento, http://www.palazzoroccabruna.it/ ; * www.marchiotrentino.it • Since 2010, provincial “Trentino” and “Qualità Trentino” brands give a marketing instrument for: • promotion of agri-food products • enhancing agri-food production quality • strengthening its close bond to the land, Trentino • Increasingly, Trentino production focuses on quality and branding • Advantages: • Communication of values associated with Trentino; • Opportunity to be listed among products within a system of institutional promotion • Promotion of a unified image of Trentino on the national and international markets • Synergy with other forms of promotion (e.g. Tourism) • How: By enrolling online* any company may follow an easy procedure, depending on the sector, • Charge: no charge; compliance with limitations of use; 3 years from the time of release • Who: the managing body for the use is the Tourism and Promotion Division of Trentino government Development Agency CASE STUDY
  • OECD Private Sector Development 34 Lessons learned from the Trentino’s case study leads to several questions for Tajikistan • How to enhance cooperation in the agribusiness sector? • How to create a well-functioning national marketing brand? • How to use producer’s associations to create credit guarantee schemes and improve financial education of agribusiness SMEs? Questions for Tajikistan CASE STUDY • An efficient system of producers’ associations can help create economies of scale and enhancing efficiency of the agribusiness sector • National/regional brand can be linked to a system of institutional promotion, better recognition of local products and as a consequence for higher exports • Cooperative structures can create credit guarantee schemes and support financial education of agribusiness SMEs Lessons learned
  • OECD Private Sector Development 35 Agenda  Introduction to the project  Assessment of export and investment policies in Tajikistan: Methodological Framework  Promoting internationalisation of agribusiness SMEs in Tajikistan  Baseline situation  International case studies  Discussion of their relevance for Tajikistan  Next steps
  • OECD Private Sector Development 36 Suggested areas to be further investigated: Focus could be on marketing and quality Finance Marketing and distribution Quality and productivity “Problem of being small” How to create a well- functioning national marketing brand ? How to enhance cooperation between producers ? How to diversify export destinations, while keeping positions in Russia and other traditional markets? How to improve the marketing skills in order to ensure a better access to clients (processors, retailers, end consumers) ? How to encourage the implementation of a quality management system ? How to support product certificates required in foreign markets ? How to enhance supply-chain co-ordination? How to identify external sources of export financing and enhancing the capacity of agribusiness SMEs to use them? How to use producer’s associations to create credit guarantee schemes and improve financial education of agribusiness SMEs?
  • OECD Private Sector Development 37 Agenda  Introduction to the project  Assessment of export and investment policies in Tajikistan: Methodological Framework  Promoting internationalisation of agribusiness SMEs in Tajikistan  Baseline situation  International case studies  Discussion of their relevance for Tajikistan  Next steps
  • OECD Private Sector Development 38 How to assess policy gaps in internationalisation of agribusiness SMEs Methodology and suggested work plan for Working Group members Horizontal Assessment Instrument to promote internationalization of agribusiness SMEs Components Expected contributions from WG members Timeline Availability for content discussions by phone or in Dushanbe Provision of information on access to finance regulations to OECD consultant Availability for content discussions by phone or in Dushanbe Provision of data and strategies Feed-back on if/how good policy practices from other countries could be applicable to Tajikistan From now on to next WG meeting in June 2014 Fact-finding mission to Dushanbe to be organised in April 2014
  • OECD Private Sector Development 39 Working Group Schedule: Two more meetings are suggested for 2014 The objective is to get ready for the Roundtable in November 2014 2013 2014 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec COUNTRYLEVEL Working Group, Dushanbe Project Steering Group, Dushanbe REGIONAL Eurasia Competitiveness Roundtable, Paris 1st Roundtable Peer review of action plans for reforms in the Kyrgyz Republic 2nd Roundtable Peer review of two action plans for reforms of Tajikistan 1st Meeting Decision on focus and set up of two thematic working groups 2nd Meeting Review of the initial results and recommendations 3rd Meeting Endorsement of final recommendations 3 meetings will be conducted for each of the two Working Groups Design of draft action plans for reform
  • OECD Private Sector Development 40 Points of decision 1. To agree on the project schedule 2. To agree on the focus area of the Working Group 3. To agree on the assignment of responsibilities and expected contributions from Working Group members
  • OECD Private Sector Development 41 OECD contact details Grégory LECOMTE Project Manager OECD Eurasia Competitiveness Programme gregory.lecomte@oecd.org Sebastian KUPFERSCHMID Policy Analyst, OECD Eurasia Competitiveness Programme sebastian.kupferschmid@oecd.org Martin POSPISIL Policy Analyst, OECD Eurasia Competitiveness Programme martin.pospisil@oecd.org
  • OECD Private Sector Development 42 ANNEX
  • OECD Private Sector Development 43 OECD and Eurasia countries case studies show that several instruments can tackle the different barriers • Reimbursement of export- related expenses • Development of export microfinancing • Credit guarantee schemes Finance • Development of a provincial trademark • “Trusted Trader” concept to reduce the # of customs controls to credible SMEs • Consultancy services to deepen knowledge about foreign markets Marketing and distribution Quality and productivity “Problem of being small” • Comprehensive support to producers’ associations • Strengthening SME cooperation • Strengthening cooperation of SMEs by integrating them into network of clusters • Assisting selected testing laboratories in gaining international-recognised accreditation • Support to obtaining a product certificates required in foreign markets Sources: OECD analysis, interviews with private sector and international organisations Countries further studied: Italy, Poland, Moldova