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Aid for Trade: Promoting Trade Development and Poverty Reduction in Transition Economies (UNDP presentation)


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  • 1. 1
    Europe and CIS
    Aid for Trade:
    Promoting Trade Development and
    Poverty Reduction in Transition Economies
    Jacek Cukrowski
    AfT Team Leader,
    UNDP, Europe and the CIS
    Bratislava Regional Centre
    Chisinau, Mart 30,2011
  • 2. 2
    Europe and CIS
    • Why Aid for Trade?
    • 3. Key focus areas
    • 4. Support to AfT initiative in transition economies
  • 3
    Europe and CIS
    Why Aid for Trade (AfT)?
  • 5. 4
    Europe and CIS
    • Trade can be an engine for growth that lifts millions of people out of poverty
    • 6. … but many developing countries face barriers that prevent them from benefiting from the world trading system
  • 5
    Europe and CIS
    • Internal barriers – lack of knowledge, excessive red tape, inadequate financing, poor infrastructure – can be very difficult for exporters to overcome
    • 7. Targeting these “supply-side” constraints is what Aid for Trade is all about
  • 6
    One objective....
    • Ensuring that developing countries can harness trade to raise living standard, improve health and education, protect the environment, alleviate poverty, and secure their development
    Europe and CIS
    Europe and CIS
  • 8. 7
    Europe and CIS
    Key focus areas
  • 9. 8
    Europe and CIS
    • Trade policy and regulation
    Building capacity
    • to formulate trade policy
    • 10. participate in negotiations
    • 11. implement agreements
  • 9
    Europe and CIS
    • Economic infrastructure
    • 12. Investing in the infrastructure – roads, ports, telecommunications, energy networks – needed to link products to global markets
  • 10
    Europe and CIS
    • Productive capacity building
    Strengthening economic sectors – from improved testing laboratories to better supply chains – to increase competitiveness in export markets
  • 13. 11
    Europe and CIS
    • Adjustment assistance
    Helping with any transition costs from liberalization
    • preference erosion
    • 14. loss of fiscal revenue
    • 15. declining terms of trade
  • Europe and CIS
    AfT commitments reached USD 41.7 bn
    in 2008
    Source: OECD/CRS (millions of 2008 US$)
  • 16. Europe and CIS
    AfT resource allocation
    2008: + USD 5.3 bn
    Source: OECD
  • 17. 14
    Europe and CIS
    Support to AfT initiative in transition economies
  • 18. Europe and CIS
    Promoting Trade Development and Poverty Reduction
    in Partnership with Finland´s Wider Europe Initiative
    • Phase I: 2009-2011 (2.3 million USD)
    • 19. Phase II: 2011-2013 (6.3 million USD)
    • 20. Armenia, Azerbaijan, Belarus, Georgia, Moldova,
    Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Ukraine, Uzbekistan
  • 21. 16
    Europe and CIS
    Wider Europe: Aid for Trade for Central Asia, South Caucasus and Western CISPhase I: Project components
    Component I
    • Aid for Trade Road Map in Central Asia: Identification of National and Regional AfT Priorities
    • 22. Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan
    • 23. Aid for Trade Conference (Ministerial Meeting) for SPECA countries hosted by the Government of Azerbaijan (December, 2010)
    • 24.
    Component II
    • Aid for Trade for Central Asia: Support to Economic Development along Trade Corridors
    • 25. Kazakhstan (Semey)
    • 26. Kyrgyzstan (Batken)
    • 27. Tajikistan (Khujand)
    Component III
    • Aid for Trade Needs Assessments in South Caucasus and Western CIS
    • 28. Armenia, Georgia, Belarus, Ukraine, Moldova
  • 17
    Europe and CIS
    AfT Needs Assessments
    Methodology presented in regional guide: How to Conduct Trade Needs Assessment
    Focus: Impact of trade on human development, living standards and poverty reduction
    Purpose: Highlight capacity gaps and propose actions and technical assistance projects to overcome weaknesses…
    Recommendations: Action Matrix
    Role of UNDP: methodological support, facilitation of the process
  • 29. 18
    Europe and CIS
    Key issues
    • Focus on the link between trade and human development
    • 30. analyze an impact of trade on living standards and poverty reduction
    • 31. consumer prices, job creation, budget revenues
    • 32. environment, gender equality, health, knowledge and education, etc.
    • 33. Identify gaps and develop an action matrix
    • 34. actions recommended, desired outcomes and target indicators, timeline for completion of actions, agencies involved, required resources
  • 19
    Europe and CIS
    Thank you…
    • 35. United Nations Development Programme,
    Europe and the Commonwealth of Independent States,
    Bratislava Regional Centre