inclusiveness of trade_policy-rashid

IMPROVING INCLUSIVENESS OF TRADE POLICY MAKING IN DEVELOPING COUNTRIES

Presentation to CUTS Geneva Resource Centre Session during the WTO Geneva

Week

6 May, 2010By Rashid S. Kaukab

Deputy Director and Research Coordinator, CUTS Geneva Resource Centre

[email protected]

www.cuts-grc.org

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STRUCTURE OF PRESENTATION

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Brief Introduction

Trade policy making process: main stakeholders and some features of formal consultative mechanisms

Challenges as viewed by stakeholders

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

Conclusions and Recommendations

I. INTRODUCTION3

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

Importance of inclusive trade policy making to ensure relevance and effective implementation

Based on recent CUTS research under the FEATS project with focus on Kenya, Malawi, Tanzania, Uganda and Zambia

II. TRADE POLICY MAKING: MAIN STAKEHOLDERS

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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

II. TRADE POLICY MAKING: CONSULTATIVE MECHANISMS

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Categorization by Mandate

On specific trade negotiations (e.g. EPA, WTO)

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

II. TRADE POLICY MAKING: CONSULTATIVE MECHANISMS

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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 Negotiations

Kenya NCWTO Kenya NDTPF

Malawi NDTPF Tanzania NETT Uganda NDTPF

III. CHALLENGES AS VIEWED BY STAKEHOLDERS11

Ministry 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


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


Private 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?


Civil 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 ?

IV. MEASURING INCLUSIVENESS: THE INCLUSIVE TRADE POLICY

MAKING (ITPM) INDEX15

Objectives 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



Methodology

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



IPTM Index: Action Variables, Actors and ValuesPart I: Ministry Responsible for Trade Policy

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



IPTM Index: Action Variables, Actors and ValuesParts II, III, and IV: Other Relevant Government Ministries, Private

Sector, and CSOs

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


MAKING (ITPM) INDEX19Explanation 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

IV. MEASURING INCLUSIVENESS: THE INCLUSIVE TRADE POLICY MAKING

(ITPM) INDEX20

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) INDEX21

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) INDEX22

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

V. MAIN CONCLUSIONS23

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

V. MAIN CONCLUSIONS

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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

V. SOME RECOMMENDATIONS25

Identification and involvement of all relevant 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

V. SOME RECOMMENDATIONS26

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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