Transcript Trade Policy - CUTS Geneva

Trade Mainstreaming and Development
EIF Spokes Meeting
12-13 February, 2014
Lusaka
Simon Ng’ona
Centre Coordinators
CUTS International
Outline
• Definition - Trade Mainstreaming
• Trade and Its Importance
• Link Trade Development and Poverty Reduction
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–
–
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Trade Policy Formulation Process
EIF/Trade Policy Formulation and Implementation
Development Planning Process
Opportunities for Trade Mainstreaming
• Conclusion
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Definition of Trade Mainstreaming
• No single definition has been agreed upon on trade
mainstreaming.
– UNECA “Mainstreaming trade policies in national development
strategies involves the systematic promotion of mutually reinforcing
policy actions across government departments and agencies with a
view to creating synergies in support of agreed development plans.
– UNDP “mainstreaming trade is the process of integrating trade into
national and sectoral development planning, policymaking,
implementation and review in a coherent and strategic manner.
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Trade and its Importance
• Trade is a useful tool for spurring economic growth and
poverty reduction
• Historically, no country has achieved sustained prosperity and
economic growth while closing itself off from international
trade and foreign investment
• In china for example, between 1988 and 2008, its trade
volumes grew tremendously with an annual expansion rate of
18.1 %. This growth had an impact on poverty reduction.
• The ultimate goal of an open trade policy should involve
allowing of free movement of all factors of production (and
final consumer products) from surplus to deficit areas
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Trade and its Importance
Botswana Lesotho
Trade Per capita (US$ 2009-2011)
Tanzania
Uganda Zambia
5634
1520
352
295
987
Export of goods and services
107
136
236
309
134
Import of goods and services
156
142
278
233
168
Source: WTO Trade Profile (http://stat.wto.org/CountryProfile/WSDBcountryPFExportZip.aspx?Language=E)
• According to the WTO trade profile database, the trade performance shows
that Zambia lags behind some African countries including Uganda, Tanzania
and Lesotho in export growth from 2005 to 2011.
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Trade and its Importance
Growth in Imports and Exports in Bilateral Trade with the US (2011 – 2012)
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Link –Trade, Development & Poverty
Reduction
• The link between trade, development and poverty reduction is
still under academic scrutiny
• Theoretically, the connections are clear between trade
expansion and its impacts on economic growth and income
distribution
• CUTS (2008) on these linkages in Zambia reveal that the
closure/improvement of businesses in some sectors of the
economy took place after trade liberalisation
• Trade policies can produce both winners
and losers.
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Link –Trade, Development & Poverty
Reduction “continue”
• Trade policy can lead to poverty reduction only if it is treated
as an integral part of development equation.
• This highlights the importance of deliberate and strategic
inclusion of trade in development planning and
implementation
• It is important at this point to understand that this process of
mainstreaming should involve a three tier process.
– Firstly how trade policy (and identification of trade related priorities)
are/is done/designed.
– Secondly, how the development planning process and development
plan is conceived.
– Thirdly opportunities for trade mainstreaming.
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Trade Policy (and Identification of trade
related priority areas)
• It is always important for countries to institute an inclusive
and nationally owned trade policy making and
implementation process
• In general, the process of trade policy formulation can be
described as follows:
– MCTI identifies the need for policy reform and writes to the Policy
Analysis/Coordination Division at Cabinet office which is consulted at
all stages of the process
– The ministry then outlines the roadmap for the policy reform and may
initiate the process through dialogue and consultations with key
stakeholders (SAGS and working Groups)
– When the final draft policy has been prepared it is presented before
Cabinet for approval. The policy is then published after approval and
is enforced on the specified date
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EIF/Trade Policy formulation and
Implementation
• MCTI has embraced AfT initiatives such as EIF as a catalyst for
improved trade outcomes
• The DTIS & Action matrix have been adopted as tools for
identification and prioritising of trade potential sectors
• The EIF, through Tier I is assisting Zambia to strengthen her
institutional arrangement
• Tier II on the other hand is leveraging resources towards
funding key potential projects
• Bridging Macro/Micro Gaps
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Understanding the Development Planning Process
NDCC
SAGS
PDCC
DDCC
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Development Planning/Policy Process
Plan/Policy
Formulation
Agenda
Setting
M&E
People’s Participation at
every level should be
guaranteed
through a
Cleary
defined
institutional Framework
Decision
making
Plan/Policy
Implementation
Inclusive Development Outcomes
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Opportunities for Trade Mainstreaming
• Policy/Development Cycle; At every
stage of the policy/development cycle
presents an opportunity to mainstream
trade;
• Institutional; Capacity of institutions to
deliver on trade
• International
Cooperation
Level;
Integrating trade into a development
assistance programmes and activities
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Conclusion
• Trade mainstreaming should not be looked at in isolation
• It should involve how trade policy and identification of priority
areas evolves to how these identified priorities are
mainstreamed at every development planning process.
More importantly each of these
processes require effective and
inclusive participation of the
different processes so at to
democratise trade governance
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Conclusion
Features listed below are important for trade policy to be called an
inclusive trade policy that has national ownership
• It should be based on the overall national development policy
(coherence between development and trade policies);
• It should be supportive of and be supported by other government
policies dealing with other sectors of the economy and indeed society
(coherence between trade and other socio-economic policies);
• It should balance the interests of all key stakeholders (inclusivity and
balance);
• It should be in conformity with the commitments of the country under
the WTO and other regional and bilateral agreements (harmony with
international commitments); and
• It should have an appropriate implementation plan with the
commitment of adequate resources
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