PRIVATE SECTOR AND EXPORT DEVELOPMENTITC’s approach to SPECA region

.

Outline

Private sector participation in Aid for Trade: ITC’s role

Trade challenges in SPECA region

How does ITC respond (ITC approaches)

How does it work in practice: examples of ITC projects in

Kyrgyzstan and Tajikistan

.

Private sector participation in A4T:

Role of ITC

SME’s as beneficiaries of A4T

SME’s as advocate for policy reform

Private sector as partners in implementation

.

Trade challenges in the SPECA region Small domestic markets with low purchasing power

Land locked, far from world markets

Narrow export base, low product and market diversity

Re-developing intra-regional trade

Improvement in institutional and regulatory environment

Limited availability of trade support services to enterprises

Enhancement of managerial skills of enterprises

ITC work in the region

1. Business Environment ( National and Sectoral Export Strategies)

2. Training programmes and support in TSI strengthening

3. Improving sector and enterprise competitiveness

Main principles

• Customise interventions in response to national priorities;

• Work with local entities, as beneficiaries and implementation partners;

• Ensure additionality, especially in view of the domestic excellence in many specific fields;

• Complement what other agencies and institutions do; cooperate closely with them as appropriate;

• Engage beneficiary and partner countries in securing improved access to TRTA financing.

How does ITC respond:

BUSINESS ENVIRONMENT

Bringing together the public and the private sector

to discuss trade obstacles, design and implement

trade strategies

• Provision of platform for P&P sector to discuss export related

obstacles lted

• Assitance with National and Sector Export Strategies

BUSINESS SERVICES PROVIDERS

Training and advice to trade related business

services providers, working with them in assisting

enterprises in solving export related problems

• Training for service providers

• Training for standardization, certification and accreditation institutions

• Benchmarking of laboratories against international requirements

• Technical and financial support to local SQAM agencies to become

active members in International SQAM bodies;

• Train representatives of association

• Provision of trade information sources and market analysis tools to

BSP

ENTERPRISES

Individual assistance to selected, export-motivated

enterprises, training on export-related issues to a

wider group of enterprises

• Identification of need for improving export performance

• Audit of pilot enterprises and action plan for improving export

performance

• Training for enterprises on product development, supply chain

management and international marketing, and food safety;

• Trade fair participation, buyers sellers meetings, direct contact with

buyers

ITC work in the region (more specifics)

.

Practical examples from the region

Sector based, integrated trade development projects in Kazakhstan,

Kyrgyzstan, Uzbekistan and Tajikistan (two on-going in Kyrgyzstan &

Tajikistan)

Bringing business in trade policy and WTO accession at regional and

country level

National export strategy development ( Kazakhstan, Kyrgyzstan)

Supply chain management training

Imroving Quality Managment Infrasructure

Short term: 2-5 yearsTo ensure

improvements in

limited number of

enterprises and BSSO

Long term: 5-10 yearsTo replicate the best practices

Meso Level: Business

Support Services

Organizations

Macro Level: GOVERNMENT

Micro Level: Fruit & Vegetable

Processing Enterprises

APPROACH: Sustainable capacity building within the country

SQAM

Selected Business

Support Service

Organizations and

Selected Enterprises

Micro Level: F&V Processing Enterprises

• Improved access to world markets through participation in international trade

fairs and direct ontacts with foreign buyers;

• Improved knowledge of export markets

• Food Safety and Quality Management principles;

• Improving supply chain and martketing operations Contracts leading to

purchasing of new equipment and prospecting of new sourcing options;

• New contracts and increase in sales.

Kyrgyzstan and Tajikistan: project results

Meso Level: Business Support Services Organizations

• Kyrgyz Center of Accreditation (KAC)

• Capacities of BSPs on HACCP provided through on-the-job-training;

• Membership of Tajik nad Kyrgyz standards in ISO and OIML;

• Bar Code system in Tajikistan (in cooperation with Euroasia Foundation of Tajikistan);

• Brand “Taste of sun”in Kyrgyzstan;

• Laboratory accreditation system according to ISO/IEC 17011;

• Review on law on technical regulations and provided a road map for its implementation;

Macro Level: GOVERNMENT

• Export strategies for the agri processing sectors of Kyrgyzstan and

Tajikistan developed;

Impact • Enterpises do sell more

• Enterprises modify their products in view of foreign market requirements

• Enterprises changed their management procedures

• Enterprises start to cooperate and some of them even merged

•Increased demand on raw materials (generation of employment)

• Sector association „s recognition strengthened

• Improved business services

• Improved SQAM infrastructure

• Increased awareness of trade related problems in the course of design

and implementation of Export Strategy of agri processing sector

Starting Point

Todays Practices

THANK YOU !

Rajesh Aggarwal

aggarwal@intracen.org

Business and Trade Policy Section

Elena Boutrimova,

boutrimova@intracen.org

Armen Zargaryan

zargaryan@intracen.org

Office for Eastern Europe & Central Asia

International Trade Centre

Geneva, Switzerland

Tel. +41 22 730 0579

www.intracen.org