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


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

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