Transcript Presentation by Mr. Sandagdorj Erdenebileg, Chief of Policy

COMPREHENSIVE TEN YEAR
REVIEW OF THE ALMATY
PROGRAMME OF ACTION:
How we got here
Sandagdorj Erdenebileg
UN-OHRLLS
Tel: 212 963 7703,
email: [email protected]
UN-OHRLLS
Almaty Programme of Action - 2003
APoA – comprehensive development agenda yet
focused on transit cooperation.
• Key objectives - Increase export competitiveness
through reducing trade transaction costs
• Develop genuine partnerships at national, bilateral,
sub-regional, regional and global levels -between
LLDCs and transit countries with their development
partners and between the private and public sectors
• Priority areas:
i) Fundamental transit policy issues
ii) Infrastructure development and maintenance
iii) International trade and trade facilitation
iv) International support measures
UN-OHRLLS
LLDCs continue to face problems
Transit and transport related problems:
– Inadequate transit infrastructure
– Remoteness from major international markets
– Inefficient logistics systems
– Delays in transit – due to checkpoints/unscheduled
roadblocks, cumbersome customs and border crossing
procedures and insufficient application of ICT, excessive
number of documentation
Other challenges:
– Heavy reliance on low-value – high-bulk commodities
which make them vulnerable to commodity price volatility
– Limited productive capacities
– High vulnerability to the global financial and economic
crisis, food security, climate change and desertification
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and land degradation
Cost of being landlocked: Results of
OHRLLS study
• Study applied a gravity model to data from 150
including LLDCs and coastal countries over the
period 1980-2010.
• LLDCs’ trade was just 61% of the trade volume of
coastal countries in 2010. In 2004 it was 57%.
• Transport costs for LLDCs were 45% higher than
the representative coastal economy in 2010 and
have increased over time.
• Because of landlockedness the level of
development in the LLDCs is on average 20%
lower than what it would be were the countries
non-landlocked.
======
Improved Transport and Trade Facilitation are still
key to reducing the costs for LLDCs.
UN-OHRLLS
Since 2003 LLDCs experienced high
economic growth
GDP growth (percentage)
10
8
6
4
2
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
-2
World
LLDC average
-4
UN-OHRLLS
LLDCs’ share of the world’s trade doubled
since 2003 to 1.17% in 2012
But export concentration of LLDCs has been
increasing
0.45
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
2000
2001
2002
2003
2004
Developing economies
2005
2006
2007
2008
Developed economies
2009
2010
LLDCs
2011
Declining value addition in manufacture
and agriculture LLDCs economies
Manufacturing Value Addition (Share of GDP)
20
16
14
12
10
8
6
4
2
LLDC
LDCs
TRANSIT COUNTRIES
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0
1990
Percentage of GDP
18
Development of Transport
Infrastructure/Corridors and maintenance
• Progress has been made on the development of the Asian
Highway and Trans-Asian Railway networks. Central Asia
Regional Economic Cooperation (CAREC) Program supported by six
multilateral institutions mobilized almost $10bn since 2003
• Africa - implementing the Programme for Infrastructure
Development in Africa (PIDA);
- with support from partners (World Bank, EU, AfDB, JICA,
South-South Corporation etc.) transit corridors have been
developed. AfDB has financed more than 70 multinational operations
totaling US $3.8 billion
• South America – implementing the Strategic Action Plan for
2012-2022 of the South American Infrastructure and Planning
Council (COSIPLAN).
• Transport of cargo by airfreight has increased in some LLDCs.
• Dry ports are being established in all regions eg. Nepal,
Burkina Faso, Mongolia and Ethiopia.
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• LLDCs have lowest percentage of paved
roads - only 9 have greater than 50%.
Percentage of Paved Roads
100
90
80
70
60
2000
50
40
2011
30
20
10
0
LLDCs
Transit
All
developing
Developed
World
Financing for infrastructure development
• $24.4 billion needed in Africa to finance road
and railway transport infrastructure projects
that can be implemented under Programme for
Infrastructure Development in Africa in 20122020
• $290 billion needed annually in Asia for
transport infrastructure between 2010 and 2010
• International financial institutions play important role in
financing infrastructure development:
• ODA has played a major role in infrastructure development: $2
billion in ODA disbursements to LLDCs went to transport and
storage sector in 2011
• Enhance the role of PPP/private sector.
• Need innovative sources of funding.
UN-OHRLLS
Progress on Trade/transit facilitation
Facilitation measures that have been developed
including:
• a) one-stop border posts;
• b) introduction of single window processing;
• c) harmonized road transit charges and road
customs transit declaration document;
• d) harmonization of axle load limits;
• e) third party motor insurance schemes,
• g) Increased accession to international
transport and transit conventions and
regional and sub-regional transit agreements
UN-OHRLLS
Increased harmonisation of transport and transit
policies, procedures and practices with transit countries
• 57 international conventions on transit, 7 are particularly
important for LLDCs
Convention
No. LLDCs that ratified/
acceded (Jan 2013)
Road Traffic (1968)
13
Road Signs and Signals (1968)
8
TIR Convention (1975)
11
Temporary Importation of Commercial Road Vehicles (1956)
5
Customs Convention on Containers (1972)
6
Harmonization of Frontier Controls of Goods (1982)
11
Contract for International Carriage of Goods by Road (1956)
10
• Asian Highway Agreement entered into force in July 2005
• Trans-Asian Railway Agreement entered into force in June
2009
• Asian dry ports agreement ready for signature
• Trans-African Highway Agreement being negotiated
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LLDCs have made progress in facilitating
transport and trade across borders BUT
still double the time it takes transit
countries to import/export
Import
2006
2013
Percentage
change
Number of documents
11
10
- 10%
Number of days
57
48
- 15%
$2,688
$3,643
+ 36%
Number of documents
9
8
- 11%
Number of days
48
42
- 12%
$2,207
$3,040
+ 38%
Cost per container
Export
Cost per container
• Transit countries: number of days to export in 2013 = 23
number of days to import in 2013 = 27
cost to export in 2013 = $1,268
cost to import in 2013 = $1,567
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Trade Facilitation under the DOHA Round
• Trade Facilitation in the Doha Development Round
has the potential to address many of the
fundamental transit policy issues that affect LLDC
exports.
• Negotiations aim to clarify and improve relevant
aspects of Articles V, VIII and X of the GATT 1994
with a view to further expediting the movement,
release and clearance of goods, including goods in
transit.
• A WTO Trade Facilitation Agreement could bring
down the global cost of moving trade today from
roughly 10 per cent of trade value to 5 per cent.
• OECD estimates that the Agreement would bring
down trade costs in LLDCs by 16.4%.
• Hope that the 9th WTO Ministerial in Bali in
December will deliver.
UN-OHRLLS
International support to LLDCs
• ODA to LLDCs at $25.7 billion in 2011, 3.3
per fall since 2010 as result of fiscal
austerity
• Aid for Trade disbursements at $6.4 billion
in 2011, a 70% increase since 2005
• FDI inflows recovered and reached $34.8
billion in 2011, 24% increase since 2010
=====
But resources are highly concentrated
towards only a handful of LLDCs
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• Global awareness and recognition
increasing…
• Global partnerships are
strengthening…
Recognition of and interest in the
special needs of LLDCs and transit
issues for international trade has
increased since Almaty Conference
in 2003.
Greater recognition of LLDC issues from partner
countries and international organizations
… Thank You
UN-OHRLLS