Aid for trade in ECOWAS: Lessons to learn from existing regional Aid for Trade Strategies
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Aid for trade in ECOWAS: Lessons to learn from existing regional Aid for Trade Strategies

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Jeske van Seters, ECDPM ...

Jeske van Seters, ECDPM
Aid for Trade Working Group Meeting
Economic Community of West Africa States (ECOWAS)
9-11 October 2012, Abuja

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  • 1. Aid for Trade in ECOWAS Lessons to learn from existing regional Aid for Trade Strategies Jeske van Seters ECOWAS Aid for Trade Working Group meeting, 9 October 2012
  • 2. Structure of the presentationI.  Aid for Trade Agenda & ECOWASII. Regional Aid for Trade Strategies
  • 3. I. Aid for Trade Agenda & West Africa
  • 4. What is Aid for Trade and WhyDoes it Matter for ECOWAS?•  AfT has been defined globally (WTO) to refer to 5 categories: - Economic Infrastructure - Building Productive Capacity - Trade Development - Trade Policy and Regulations - Trade Related Adjustment + Other Trade Related Needs
  • 5. Why does AfT matter...?•  Trade is an essential vehicle for improving living standards and reducing poverty•  Donors are increasingly focused on improving trade (DfID, World Bank, ADB) and have committed to increasing AfT flows•  There is also more focus on regional trade and integration - AfT-related activities probably covers 50+ per cent of what the ECOWAS Commission does
  • 6. AfT commitments to ECOWAS countries (millions of constant 2009 US$)600050004000300020001000 0 2002-05(avg) 2006 2007 2008 2009 2010
  • 7. Average ECOWAS Country-level flows 2010 (millions US$)900800700600500400300200100 0
  • 8. AfT to ECOWAS by category (avg 2006-09, thousands of 2009 constant US$) Trade Policy & Regulation and Trade-related adjustment 4%Building ProductiveCapacity (incl trade development) 49% Economic Infrastructure 47%
  • 9. AfT category ECOWAS examplesTrade policy and -  Gap analysis of ECOWAS Trade Liberalization Schemeregulations & trade (ETLS)related adjustments -  ECOWAS programmes on Standardization and Quality controlTrade-related -  Improved Road Transport Governance (IRTG)infrastructure initiative -  West African Power Pool (WAPP)Building productive -  Exports Promotion and Enterprisecapacity Competitiveness for Trade (EXPECT) -  Regional/National Agricultural Investment Programmes (ECOWAP)
  • 10. II. Aid for Trade Strategies
  • 11. AfT strategies – state of play •  A few regional AfT strategies exist so far - e.g. COMESA, Indian Ocean Commission, Pacific & UEMOA •  Development partners with AfT strategies are more numerous - E.g World Bank, EU, UK, Finland, Netherlands,…  some lessons to learn
  • 12. Added value of regional AfT strategies 1.  Guide how to use AfT in a strategic and focussed way to resolve regional bottlenecks E.g. objectives COMESA AfT strategy: 1.  Coherent packages of inter-related investments, instruments and regulatory measures which allow the private sector to reduce the regional costs of doing business 2.  MS have access to mechanisms to address trade and integration related adjustments
  • 13. Added value of regional AfT strategies (cont) 2.  Strengthen coordination & coherence –  between regional programmes (horizontal) –  Between regional and national levels (vertical) 3.  Improve the effective and efficient utilization of resources 4.  Provide a basis for resource mobilisation
  • 14. Lessons learned - successes1.  AfT strategy particularly helpful if provides approach to AfT & clear objectives, not list of projects2.  AfT strategy as short, accessible and focused document - E.g. COMESA AfT strategy = 2½ pages + results matrix3.  AfT strategy addresses issues that can best be addressed regionally - E.g. regional corridors, regional value chains,…
  • 15. Lessons learned – successes (cont)4.  Need for clarity about relationship between various regional policies, strategies and plans - AfT strategy contributes to inter-departmental coordination5.  Communication is key - internally: to ensure ownership, as responsibility for implementation of AfT strategy lies with different divisions/ministries - externally: to mobilise development partners
  • 16. Lessons learned – challenges1.  Move beyond accounting exercise - EU AfT strategy monitoring focussed on AfT flows2.  Mobilise sufficient funding and use (public & private) innovative funding mechanisms - delays in establishing COMESA Infrastructure fund
  • 17. Lessons learned – challenges (2)4.  Ensure sufficient human resources - E.g. COMESA Aid for Trade Unit not given the capacities to fulfill coordination mandate5.  Strengthen linkages between regional and national level - E.g. through national AfT committees (UEMOA)6.  Systematic M&E to facilitate adaptation and improvements to AfT programmes - possibly incorporated in broader M&E system
  • 18. Characteristics of ECOWAS AfT Strategy to be informed by lessons learned •  Objectives •  Focus •  Role of AfT strategy in relation to other regional and national strategies, policies and plans •  Choice of implementation & monitoring mechanisms
  • 19. Thank you!Jeske van Setersjvs@ecdpm.org
  • 20. Resources-  Dalleau, M. and J. van Seters. 2011. Operationalising the West African EPA Development Programme Moving beyond the paperwork. (ECDPM Discussion Paper 121) http://www.ecdpm.org/dp121-  Lui, D., B. Byiers, and Jeske van Seters. 2012. Rethinking Aid for Trade in the context of innovative financing. (ECDPM Discussion Paper 127). http://www.ecdpm.org/dp127-  Seters, J. van, D. Afun-Ogidan, and F. Rampa. 2012. Regional approaches to food security in Africa: The CAADP and other relevant policies and programmes in ECOWAS (Discussion Paper 128d). http://www.ecdpm.org/dp128d-  Lui, D. and J. Van Seters. 2012. Review of the COMESA Aid for Trade Strategy. (ECDPM Discussion Paper 130). http://www.ecdpm.org/dp130