trade policy making_processes_lessons_from_africa

THE FIRST FEATS INTERNATIONAL CONFERENCE

IMPROVING OWNERSHIP THROUGH INCLUSIVE TRADE POLICY MAKING

PROCESSES: LESSONS FROM AFRICAGENEVA, 1 OCTOBER 2009

Presentation of the Main Findings of the First Phase Research

By Rashid S. Kaukab

Deputy Director and Research Coordinator, CUTS Geneva Resource Centre

[email protected]

www.cuts-grc.org

1

STRUCTURE OF PRESENTATION

Introduction: background and objectives

Trade policy making process: main stakeholders and key consultative mechanisms

Challenges in participation: views of stakeholders

Measuring inclusiveness: the Inclusive Trade Policy Making (ITPM) Index

Conclusions and Recommendations

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INTRODUCTION

Focus on five African countries: Kenya, Malawi, Tanzania, Uganda, and Zambia

Importance of trade and trade policy as a means to achieve growth and development

Importance of inclusive trade policy making to ensure national multi-stakeholder ownership

Interactive and inclusive methodology to study an area of political economy of trade

Data issues

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INTRODUCTION

Objectives

To understand the political economy landscape of the country to focus future trade-related work on key actors and processes

To collect and collate information and to analyze the information to identify the main groups of stakeholders as well as the consultative mechanisms in the project countries

To draw lessons to facilitate targeted actions by governments and other stakeholders in the project countries to improve domestic buy-in for national trade policies

To develop a template/model that can be used to conduct such studies in other developing countries as well

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INTRODUCTION

Main Economic and Social Indicators

Nominal per capita

(US$, 2007)

Average Annual Growth

Rate of Real Per Capita (2000-2005)

Growth Rate of Real GDP Per Capita

(2007)

Percentage of Population

Living below National

Poverty Line (2006)


Living below US$1.25 a Day


living in Rural Areas

Percentage of Labour Force in Informal

Sector

MALAWI 178 0.6 3.8 4573.9 (2004-05)

82 73.6

ZAMBIA 945 2.8 3.5 6464.3 (2004-05)

65 81

TANZANIA

386 6.9 7.035.6

(2000-01) 88.5 (2000-01) 75.3616 (2000-

2001)

KENYA 813 0.8 3.356

(2003) 19.7 (2005-06) 79 78

UGANDA 401 6.1 6.5 31.151.5 (2004-05)

87.3

90 (as % of total non-agriculture

employment in 1999)

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TRADE POLICY MAKING: MAIN STAKEHOLDERS

Features of an Inclusive Trade Policy

Key Elements of Inclusive Trade Policy Making Process

Relevant Stakeholders

Based on national development policy

Clear guidance/directions from national development policy makers

National development policy makers (e.g., President’s Office, Ministry for Planning and Development, parliament, etc)

Linked with other governmental policies

Timely inputs and feedback from other government ministries/departments

Other relevant government ministries/departments (e.g., those dealing with agriculture, employment and labour,, competition, etc.)

Linked with international commitments (to implement the commitments as well as to guide the positions regarding future possible commitments)

Timely inputs and feedback from relevant ministries and negotiators

Relevant ministries (e.g., Ministry of Foreign Affairs, etc.) and negotiators (e.g., dealing with the WTO and EPA negotiations)

Balancing the interests of all key stakeholders

Regular inputs and feedback from key non-state stakeholders

Key non-state actors (e.g., representatives of the private sector, farmers, consumers, and the civil society)

Clear implementation plan with adequate resources

Articulation of implementation plan and commitment of required resources

Relevant government ministries (e.g., Ministries of Trade, Finance, Planning) and donors (multilateral and bilateral)

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1. Government Ministry Responsible for Trade Policy

Role of the ministry as the primary institution to deal with all trade policy issues is generally recognized now and reflected in governmental procedures

Responsible for trade policy making, and monitoring its implementation

Also generally responsible for developing negotiating positions for various trade negotiations

Entrusted with the task of consulting all relevant stakeholders on trade policy issues including through the establishment and functioning of consultative mechanisms

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2. Other Relevant Government Ministries and Agencies

Providing overall policy direction to ensure coherence with the long term development vision and strategy, e.g. President’s Office, Ministry for National Planning

Providing specific, expert inputs on issues that are under the mandate of a particular ministry/government agency, e.g., Ministry of Agriculture

Implementing trade policy measures that are covered under the mandate of a particular ministry/government agency, e.g. National Revenue Authority, District Commercial Officers, etc

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3. Private Sector

Organized in overall umbrella organizations (e.g. National Chamber of Commerce and Industry) as well as on sectoral basis (e.g. associations of fresh fruit exporters, textiles and garments industry, etc)

Representation generally through large umbrella and / or sectoral associations but occasionally individual firms also play key role

Informal sector generally not represented

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4. Civil Society Organizations

Organization: international, regional, national; faith-based; project, policy; network

Focus of activities: awareness-raising, advocacy, research, capacity building, project execution, networking

Substantive issue coverage of activities: human rights, trade and development, gender and youth issues, finance and monetary issues

Issues of representation and mandate

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TRADE POLICY MAKING: CONSULTATIVE MECHANISMSCountr

yConsultative Mechanism Role/Mandate

Kenya

National Committee on the WTO (NCWTO)

Joint Industrial and Commercial Consultative Committee (JICCC)

Kenya-European Union Post-Lome Trade Negotiations (KELPOTRADE) Support Programme / National Development and Trade Policy Forum (NDTPF)

Cabinet’s Sub-Committee on Trade

Inter-Ministerial Committees (IMCs)

Multi-stakeholder on WTO issues

Public and private sectors only

Multi-stakeholder on EPA negotiations

Inter-ministerial on trade issues

Inter-ministerial coordination on all issues

Malawi

Malawi National Working Group on Trade Policy

National Development and Trade Policy Forum (MNDTPF)

National Action Group (NAG)/Public-Private Sector Dialogue (PPD)

Inter-Ministerial Committees (IMCs)

Multi-stakeholder on all trade policy issues

Multi-stakeholder on EPA negotiations only

Only public and private sector on all issues

Only governmental on all issues

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TRADE POLICY MAKING: CONSULTATIVE MECHANISMS

Country Consultative Mechanism Role/Mandate

TanzaniaNational Business Council (NBC)

National EPA Technical Team (NETT)

Inter-Ministerial Technical Committee (IMTC)

Public and private sectors only, on all issues

Multi-stakeholder on EPA negotiations


UgandaPresident’s Economic Council (PEC) / The

National Forum

Inter-Institutional Trade Committee (IITC)

Uganda National Development and Trade Policy Forum (NDTPF)

High level public and private sector on all issues

Multi-stakeholder on all trade issues

Multi-stakeholder on EPA negotiations only

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Country Consultative Mechanism Role/Mandate

Zambia National Working Group on Trade (NWGT)

Agriculture Consultative Forum (ACF)

Trade Expansion Working Group

Steering Committee of Secretaries

Multi-stakeholder on all trade issues

Multi-stakeholder on agriculture issues

Public and private sector on trade issues


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Categorization by Mandate

• On a specific trade issue (e.g. EPA negotiations)

• On all trade issues

• On larger set of issues that includes trade

Categorization by Membership

• Only governmental actors

• For public and private sectors

• Multi-stakeholder

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Mandate/Membership

Multi-stakeholder

Public-Private sectors

Only governmental

Multiple issues

including trade

Uganda ACF Kenya JICCC Malawi PPD Tanzania NBC Uganda PEC

Kenya IMCsMalawi IMCs Tanzania IMTC,Zambia SCS

All trade issues

Malawi NWGTP Uganda IITC Zambia NWGT

Zambia TEWG Kenya Cabinet sub-committee on trade

Specific trade issues

Kenya NCWTO Kenya NDTPF

Malawi NDTPF Tanzania NETT Uganda NDTPF

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CHALLENGES IN PARTICIPATION AS VIEWED

BY STAKEHOLDERSMinistry Responsible for Trade Policy

Lack of capacity and technical human resources

Issues of internal and external coordination Lack of financial and human resources to ensure regular

functioning of consultative mechanisms

Diversity and evolving nature of issues

Changes in governments/restructuring of ministries

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BY STAKEHOLDERS

Other relevant Government Ministries and Agencies

Lack of capacity and technical human resources

Issues of coordination among governmental machinery Lack of regular and timely information flow on trade issues

Issue of primary mandate

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BY STAKEHOLDERSPrivate Sector

Limited technical understanding, and advocacy capacities

Need to balance the interests of members Tight timelines to provide feedback on trade issues

Need to improve opportunities for less powerful business associations

Representation of informal sector?

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BY STAKEHOLDERSCivil Society Organisations (CSOs)

Limited technical understanding of complex issues

Need to strengthen research-based advocacy Need for better coordination and information sharing among CSOs

Occasional tensions with the government

Limited opportunities for participation

Lack of resources to maintain sustained engagement and retain the knowledge and expertise gained on trade issues

Issues of representation and mandate ?

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MEASURING INCLUSIVENESS: THE INCLUSIVE TRADE POLICY MAKING

(ITPM) INDEXObjectives of ITPM Index

Raising awareness about the political economy aspects of trade policy making

Assessing the inclusiveness of a country’s trade policy making processes in terms of the capacities and participation of main stakeholders in these processes

Identifying the weaknesses and gaps that should be the target of related capacity building and other activities by the governments, donors, and various stakeholders

Allowing for comparisons across countries to identify the good practices as well as prompting actions by countries lagging behind

Improving prospects for domestic ownership of trade policies through development and application of more inclusive trade policy making processes

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(ITPM) INDEXMethodology

Development of analytical framework: defining main features of inclusive trade policy; linking these

features with elements of trade policy making process and relevant stakeholders; and developing action

variables to assess performance

Constructing initial ITPM Indices for all five countries based on the analytical framework and the

information collected during the study

Validation of the framework and the initial IPTM Index values and finalization after incorporating the

comments

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(ITPM) INDEXIPTM Index: Action Variables, Actors and Values

Part I: Ministry Responsible for Trade Policy

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Action Variable Possible Action ValueA. Identification of all key stakeholders Yes = 1 No = 0

Most identified = 0.75 Some identified = 0.5Few identified = 0.25

B. Creating awareness about the need for trade policy

Yes = 1 No = 0Many efforts made = 0.75 Some efforts made = 0.5Few efforts made = 0.25

C. Establishment of formal consultative mechanisms Yes = 1 No = 0Established for most trade policy issues = 0.75Established for some trade policy issues = 0.50Established for few trade policy issues = 0.25

D. Regular functioning of formal consultative mechanisms

Yes = 1 No = 0Functioning most of the time = 0.75Irregular functioning = 0.5 Ad hoc functioning = 0.25

E. Regular information flow to the stakeholders including on the content of trade policy

Yes = 1 No = 0Information flowing most of the time = 0.75Irregular information flow = 0.5 Ad hoc information flow = 0.25


(ITPM) INDEXIPTM Index: Action Variables, Actors and Values

Parts II, III, and IV: Other Relevant Government Ministries, Private Sector, and CSOs

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Action Variables Possible Action Value

F, I, and L. Regular participation in the process and feedback to the relevant authorities

Yes = 1 No = 0Most of the time = 0.75 Irregular = 0.5Little and / or ad hoc = 0.25

G, J, and M. Faithful representation of and regular feedback to the represented constituencies

Yes = 1 No = 0Most of the time = 0.75Occasional faithful representation and/or irregular feedback = 0.5Little faithful representation and / or ad hoc feedback = 0.25

H, K, and N. Acquiring relevant knowledge and expertise

Yes = 1 No = 0Substantial knowledge and expertise = 0.75Some knowledge and expertise = 0.5Little knowledge and expertise = 0.25


(ITPM) INDEXExplanation of Possible Action Values

• Yes = maximum value of 1 = when appropriate action has been taken by the actor concerned

• Many/Most = high value of 0.75 = when quite a lot has been done but some gaps remain

• Some = intermediate value of 0.5 = when action has been taken but is not sufficient

• Few / Little = low value of 0.25 = when some action has been taken but much remains

• No = 0 value assigned = when no action has been taken by the actor concerned

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(ITPM) INDEX

25

ITPM Action Variable KENYA MALAWITANZA

NIAUGAND

AZAMBI

A

Part I. Ministry responsible for Trade

A. Identification of all key stakeholders

0.75 0.50 0.50 0.75 0.75

B. Creating awareness about the need for trade policy 0.75 0.50 0.50 0.25 0.75

C. Establishment of formal consultative mechanisms

0.75 1.00 0.75 1.00 1.00

D. Functioning of formal consultative mechanisms

0.75 0.75 0.50 0.50 0.75

E. Regular information flow to the stakeholders including on the content of trade policy

0.50 0.50 0.25 0.25 0.50

Part I Score3.50/5

.003.25/5.0

02.50/5.0

2.75/5.00

3.75/5.00


(ITPM) INDEX

26

ITPM Action Variable KENYA MALAWI TANZANIA UGANDA ZAMBIA

Part II. Other relevant government

ministries/agencies

F. Regular participation in the process and feedback to the relevant authorities

1.00 0.75 0.50 0.75 0.75

G. Faithful representation of and regular feedback to the represented constituencies

0.50 0.50 0.50 0.50 0.50

H. Acquiring relevant knowledge and expertise 0.50 0.50 0.50 0.50 0.50

Part II Score2.00/3.0

01.75/3.00

1.50/3.00

1.75/3.01.75/3.0

0Part III. Private sector and

business umbrella organizations

I. Regular participation in the process and feedback to the relevant authorities

1.00 1.00 0.75 1.00 1.00

J. Faithful representation of and regular feedback to the represented constituencies

0.50 0.75 0.75 0.50 0.50

K. Acquiring relevant knowledge and expertise 0.50 0.50 0.50 0.50 0.50

Part III Score2.00/3.0

02.25/3.0

2.00/3.00

2.00/3.002.00/3.0

0


(ITPM) INDEX

27

ITPM Action Variable KENYA MALAWI TANZANIA UGANDA ZAMBIA

Part IV. Civil society organizations

L. Regular participation in the process and feedback to the relevant authorities

0.75 0.25 0.50 0.25 1.00

M. Faithful representation of and regular feedback to the represented constituencies

0.75 0.50 0.50 0.50 0.50

N. Acquiring relevant knowledge and expertise

0.50 0.50 0.50 0.75 0.50

Part IV Score2.00/3.0

01.25/3.00

1.50/3.00

1.75/3.002.00/3.0

0

ITPM Index Score9.50/14.

08.50/14.0

07.50/1

4.008.25/14.0

09.50/14.

00

MAIN CONCLUSIONS

Improved economic performance in recent past, however, poverty, unemployment and under-development challenges remain

Improved policy framework in place with trade policy at various stages of mainstreaming in overall development policies

Importance of trade well recognized; comprehensive trade policies are in place/being prepared; clearer mandates and better resources for ministries dealing with trade

More open political and bureaucratic culture encouraging stakeholder consultations, particularly with the private sector

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MAIN CONCLUSIONS

Several consultative mechanisms on trade issues established; however

Lack legal mandates and adequate resources

Multiplicity of consultative fora

Not all trade issues covered by consultative fora

Irregular and ad hoc functioning

Improved stakeholders participation; but

Not all stakeholders being represented

Not all stakeholders have equal opportunities to participate

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MAIN CONCLUSIONS

Remaining challenges classified in three broad categories

Related to capacity (limited technical, human, and financial capacities of stakeholders)

Related to institutional and structural issues (design and functioning of consultative mechanisms)

Related to challenges internal to each group of stakeholders

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SOME RECOMMENDATIONS

Identification and involvement of remaining stakeholders: by governments and concerned ministries

Awareness-raising on trade issues: by all actors

Regular information flow on trade issues to key stakeholders: by concerned ministries

Rationalization and strengthening of consultative mechanisms: by governments and concerned ministries

Better coordination among relevant government ministries and agencies on trade issues: by governments

31

SOME RECOMMENDATIONS

Better opportunities for CSO participation: by concerned ministries

Better feedback and input loops between CSOs and the private sector umbrella organisations on the one hand, and their constituencies on the other: by private sector and CSOs

Investment on knowledge and expertise building: by all including development partners

Promotion of a culture of dialogue and inclusiveness: by all

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Inclusiveness will generate national ownership which is the best guarantee for effective implementation of trade policy as

part of overall development policy

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