The2030Agenda,Financing,andAidforTrade
Marcus Bartley JohnsSenior Trade SpecialistTrade & Competitiveness Global Practice
WTO MIKTA Workshop, 12 October 2017
Outline
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•WBGengagementontheSDGs•AidforTradeandtheSDGs
• Implementation
• Financing• Data
•WhatnextforAidforTrade?
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WorldBankGroupisstronglycommittedtoSDGs
September 2015 December 2015 May 2016
April 2015
July 2015
April 2016
MDBs Extend $400B+/3 years,Joint IMF/WBGTax Initiative
Household-Based Surveys in 78
poorest countries by 2020
Increase climate financing from 21%
to 28% of WBG portfolio by 2020
Joint MENA Financing Facility supports refugees and host
communities
Commitments in response to forced
displacement crisis
In 2016 co-hostwith MDBs first
Global Infrastructure Forum
October 2015
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ThreekeyareasoffocusforWBGengagementonSDGs
• ExperiencewiththeMDGshighlightedtheimportanceofthreecriticalpillars:
IMPLEMENTATIONDATA FINANCING
Ref: WBG/UN report to the CEB on the Lessons
Learned from the MDGs; DC Lima paper on
WBG’s role on SDGs
Ref: Spring Meetings 2015 DC paper on
Financing; Addis 2015 outcome document
Ref: UN report on “A World that Counts”;
WBG/MDBs/UN MoU on Data
Partnershipsessentialfordeliveringacrossdata,financingandimplementation
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TradeandtheSDGs
IMPLEMENTATIONDATA FINANCING
Betterdataontradeandlinkswithsustainable
developmentissues(e.g.participationof
women)
AfT relevanttoODA,domesticresourcemobilization,andprivateflows
Specifictrade-relatedgoals/targets
ANDTrade’srolein
achievingothergoals
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Implementation:Tradewillhaveakeyroletoplay
Direct:Specific
inclusioninGoals/Targets
Cross-cutting:
tradehasarolein
achievingofallSDGs
Reflectedincountry,regionalandglobaloperations
AfT andImplementation:DirectvsCross-cuttinglinks(someexamples)
Endpovertyinallitsformseverywhere
Reducingtradecostsandconnectingthepooresttotradeopportunities
Endhunger,achievefoodsecurityandimprovednutrition,andpromotesustainableagriculture
Reductioninbarriersanddistortionsofinternationalagriculturaltrade
UnlockingnewsourcesofeconomicgrowthandjobcreationbyloweringtradecostsFacilitatingstandardsadoptionfordecentwork
Promoteinclusiveandsustainableeconomicgrowth,employmentanddecentworkforall
AfT andImplementation:DirectvsCross-cuttingLinks(moreexamples)
Reduceinequalitywithinandamongcountries
Revitalizetheglobalpartnershipforsustainabledevelopment
SupportingthemultilateraltradingsystemandanopenglobaleconomyHarnessingtheAidforTradeinitiative
IntegratingdevelopingcountriesintotheglobaltradingsystemDoingmoretoconnectthepooresttotradeopportunitiesandreducerisks
Conserveandsustainablyusetheoceans,seasandmarineresourcesforsustainabledevelopment
Sustainablefisheriestrade
Economicgrowthanddecentwork
Trade-growthlinkagesAidforTradementionedspecifically
Implementation:whataredonorandpartnercountryviewsonAfTcontributiontosustainabledevelopmentagenda?
Source:2015WTO/OECDAidforTradeMonitoringExercise
AfT andSDGImplementation:countryfocus…
• Lookingatcountry-levelSDGimplementationthroughlensofhowtradecancontribute– eitherdirectly orthroughcross-cuttingrelationshipwithGoals?
• Tradenotasa“sector”inmanycases– instead,cross-cutting
• Manyexistinganalyticaltoolsandoperationalexperiencestodrawupon
• ButweneedtobuildonthisandshareexperiencesbetterifwearetomakesuretradeisadequatelyconsideredinSDGachievementatthecountrylevel
…butactionattheregionalandgloballevelisalsoneeded
ImportantalsotolookattheregionalandgloballevelRegional:AchievingfoodsecurityinAfricarequiresaregionalapproach(SDG2)
• E.g.facilitatingintra-Africantrade:atpresentonly5%ofimportedAfricanfoodstaplescomefromwithinAfrica
Global:lookingatglobalpublicgoods• UsingAfT tosupportmultilateraltradereform• Sharingknowledgeglobally• Data(moreonthislater)
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ODAvsotherdevelopmentfinance
• IBRDaverage$25billion/year• IDAaverage$17billion/year• IFCaverage$21billion/year
(Settoincrease,includingwithotherMDBs)
AfT – around$50billion/yearInlast5years
• FDI$1.2trillion
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Financing
• AidforTradeisrelevanttoeachofthesourcesofdevelopmentfinanceoutlinedabove
• Domesticresources:• Tradefacilitation,revenuecollection• Improvedbusinessenvironment
• FDI:TradeenvironmentaffectsFDI,especiallyrelatedtoglobalvaluechains• Closelyrelatedtowiderinvestmentclimate
• ODA:Especiallyimportantforlowest-incomecountries&fragileandconflict-affectedsituations
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Financing:MakingthebestuseofAfT
• AfT – it’snotjustaboutthemoney…• UltimatelyAfT shouldnotbesubstitutableforothersourcesofdevelopmentfinance
PublicsectorAfT:Financereforms/projectstheprivatesectorwouldn’t(risk)orshouldn’t(neutrality)payforCatalyzingprivatefunding
Privatesectorfinance:InvestmentsinareasofmutualgainSupportinginnovationandknowledgeflows
Greaterpublic-privatecooperationcanmaximizeimpactandachievethebestvaluefromdevelopmentfinance
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Data,AfT andSDGs
• EssentialfortargetingofAfT• Dataandanalysisontrade-relatedconstraints(DoingBusiness,TradeCosts,LogisticsPerformanceIndex)
• DataonpovertyandotherSDGs
• Buildingdatacapacity• Weakcapacitytocollecttradedatainmanycountries,anduseitforpolicydesign
• Combinewithinnovativemethodsofdatacollection
• Manydatagaps:onlinksbetweenaspectsofSDGsandtrade• E.g.Womenandtrade
• Monitoring:keyroleoftheglobalAidforTradeInitiative• EssentialformaximizingimpactofAfT
ExampleofaprogramcloselylinkedtoSDGs
SDG8– DecentWorkandEconomicgrowth
8.8Protectlaborrightsandpromotesafeandsecureworkingenvironmentsforallworkers,includingmigrantworkers,inparticularwomenmigrants,andthoseinprecariousemployment
ILO/IFCBetterWorkproject– fosteringadoptionoflaborandotherstandardsinparticipatingapparelfactories,whilealsoboostingproductivity.à Partnershipactivein8countriesacross3continentsreaching1000
enterprisesandonemillionworkersà Vietnamisonecountryinvolvedinthepartnership– recentresearchonthe
impactofstandardsadoptiononproductivityshowedthatfactoriesadoptingstandardsinVietnamsawasignificantincreaseinproductivity
Closercollaborationwithprivatesector:leveragingfinancing,expertize,implementationcapacity
Goals:-CreateCambodianrubberassociation-AccreditrelevantCambodianlaboratoryforcertification-InternationalrecognitionofCambodiancertification
Producers?Buyers?Sustainability?
Developmentagencyfunding
Cambodiangovernmentimplementsproject
Buyers/retailers
Producers
Servicesproviders
Traditionalmodel:public-publiccooperationtodeveloplocalstandardscapacity
Newmodel:closerpartnershipbetweenpublic-private,focusedonmeetingstandardsofleadfirms
GFSI
*SeeCattaneo 2015formore.
Dev’gcountryfirms
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WhatthismeansforAidforTrade- conclusions
• Implementation:AfT isstronglyrelevanttoSDGimplementation• Directandenablinglinks• Country,regionalandgloballevelrelevanceofAfT• OpportunitytouseAfT initiativetoshareexperienceonanalyticaltools,projectdesignandimplementationontrade-SDGlinks
• Financinglinks• AfT stillrelevantinacontextoflargerdevelopmentfinanceflows:FDI,Domesticresources,remittances
• AfT canleverageotherfunds– butshouldalsonotsubstituteprivatesectorfunding
• Dataandmonitoring:evidenceforreformsandprograms
• Greatercollaborationbetweenprivateandpublicsectorsneeded