UNECE / ITC

Joint ECE Committee on Trade and ITC High-level Segment

June 18th, 2012

UNDP’s support of trade diversification in Wider Europe - Aid for Trade project

United Nations Development Programme

Linking trade with human development

UNDP’s focus is to help developing countries:– build capacity to compete internationally by

overcoming supply side constraints;– build capacity to negotiate, interpret and

implement trade policies in a manner that prioritizes poverty reduction and human development; and

– incorporate pro-poor, development-centered trade policies into national development strategies, including poverty reduction programmes.

UNDP and TRADE

Policy Advisory ServicesUNDP AfT Working Principles

Basic orientation:1.Eradication of extreme poverty (UN MDG)

2.Promotion of trade and private sector as a tool for leveraging human development

Approaches:1. Multi-level, multi-disciplinary

2. Promoting regional integration

3. Inclusive green, inequality-reducing economic growth

4. Balance between productivity, equality, sustainability, empowerment

Wider Europe - Aid for TradeProject Overview

Donors: Ministry for Foreign Affairs of Finland Government of Luxembourg

Implementation period: Phase I: 2009 – 2011Phase II: 2011 – 2014

Budget: (in million Euro)Phase I: 1.8Phase II: 4.7

 

Wider Europe - Aid for TradeProject Overview

 11 countries in Central Asia, South Caucasus, Western CIS

Wider Europe - Aid for TradePhase I

1.AfT Need Assessment CA

2.Economic development along transport corridors in CA for SME, farmers and associations

3.AfT Need assessment Caucasus & WE 

Wider Europe - Aid for TradePhase II

I. Linking products with key markets along trade corridors • Business Development Centres : ARM, GEO, KAZ, KGZ, TAJ• Business training & SME advise : GEO, KAZ, KGZ, MDL, TAJ • Co-financing innovative investments : ARM, KAZ, KGZ, TAJ• Trade information:

• business/exporters/investment guides : GEO,• online market places : ARM, KGZ, TAJ

• Trade in services : GEO• Vocational skills : GEO• Environmental friendly production : KGZ, TAJ

II. Better use of trade opportunities • Electronic trading facility for light industry : BEL• Capacity development for fruit sector : MDL• Oblast trade strategy : TAJ• Trade policy – national export strategy, WTO tariff commitments, export

financing : UKR

Wider Europe - Aid for TradePhase II

III. Overcoming trade barriers• Informal trade barriers: research, dialogue process, information (GEO, MDL)• Trade Capacity Development

• Local: oblast administration, staff of trade/business/information centers (ARM, GEO, TAJ, UKR)

• Central Asia trilateral : governments, trade support agencies, entrepreneurial associations (KGZ, TAJ, UZB)

IV. SMEs to benefit from trade • Application of new technologies, tools for better market access for SMEs

(Central Asia – Western China)• FairTrade: certification, B2B, SME network, trade fairs (Central Asia)

CRS criteria AfT Project , Phase II

Integrated AfT approach – 1. strengthening productive base and 2. assist in implementing trade agreements-- linking micro with meso and macro level:

I.TRADE POLICY AND REGULATIONS (TPR)

1. Trade Policy and administrative management (33110)• Oblast Trade Development Strategy (TAJ), Study on trade in Eastern KAZ,

Study on state export finance (UKR)

2. Trade facilitation3. Regional trade agreements (RTAs)4. Multilateral trade negotiations5. Trade education/training (33181)

• Trade Capacity Development for oblast administration, staff of trade centers (ARM, GEO, TAJ, UKR), and Central Asia trilateral (KGZ, TAJ, UZB)

CRS criteria AfT Project , Phase II

Integrated AfT approach

II.TRADE DEVELOPMENT (TD)1. Building productive capacity (33210)

2. Banking and finance (240xx)

3. Business support services and institutions (25010)• Business Development Centres : ARM, GEO, KAZ, KGZ, TAJ• Business training & SME advise: GEO, KAZ, KGZ, MDL, TAJ • Trade information:

• business/exporters/investment guides GEO• online market places ARM, KGZ, TAJ

• Trade in services : GEO• Vocational skills : GEO• Environmental friendly production : KGZ, TAJ

III.ECONOMIC INFRASTRUCTURE (EI)

CRS criteria AfT Project , Phase II

Integrated AfT approach

IV.BUILDING PRODUCTIVE CAPACITY (BPC)1. Banking and Financial Services (24010 to 24081)

• Co-financing innovative investments : ARM, KAZ, KGZ, TAJ

2. Business and other Services (25010-20)• market and trade information centres: ARM, GEO, KAZ, KGZ, TAJ• Capacity development for associations: ARM, KAZ, KGZ, MLD, TAJ, UZB;

proposed : UKR

3. Agriculture (31110 to 31195)• value addition by introducing eco-friendly new technologies: clay-wall

greenhouses, organic manure, producing and storage of fruits

4. Forestry5. Fishing6. Industry7. Mineral resources and mining8. Tourism (33210)

• Training of tourism service providers: GEO

V.TRADE RELATED ADJUSTMENTS (TRA) 

TRADE and HUMAN DEVELOPMENT UNIT

Scaling up UNDP’s substantive support to Aid for Trade and the Enhanced Integrated Framework

(corporate resource center for trade and development)How?

– Mainstreaming trade (policy; institutional; international cooperation)

– Human Development Impact Assessment of Trade and Investments Policies

– Develop capacities of trade related institutions (Capacity Development)

– Support UNDP’s regional and national programmingtowards enhancing competitiveness (private sector development portfolio)

– Facilitating UN coordination (CEB Cluster, SCTD, etc.)

massimiliano.riva@undp.org

TRADE & HUMAN DEVELOPMENT UNITGeneva, Switzerland

www.undp.org/geneva/trade.html

www.undp.org/poverty/focus_trade_ip_migration.shtml

REGIONAL CENTER for EUROPE AND CISBratislava, Slovakia

http://europeandcis.undp.org/povertyhttp://akvo.org/rsr/project/

305/joern.rieken@undp.org