United Nations Economic Commission for Europe

Bringing

Countries with

Economies in Transition

Closer to World Markets

Aid for Trade:

United Nations Economic Commission for Europe

Poverty in the UNECE

In Eastern Europe and Central Asia, many still struggle to meet their most basic material needs

In some countries, poverty rates are as high as in LDCs

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The poor in transition economies also have to face problems due to:

Climatic conditions that make warm clothing, housing and heating essential

Population aging, meaning that fewer children are there to support the poor

Economic transition which has weakened social institutions

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Ireland GDP per capita

1988 10414 US$

2006 41925 US$

Trade -an engine for growth

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International Trade Can Bring NEW OPPORTUNITIES FOR THE POOR

Aid for trade can help to realize this goal by:

•Identifying key trade development objectives

•Bringing new resources to priority areas

•Creating momentum

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From Tajikistan 3000 USD

To export one container

From Morocco 600 USD

Geographic and economic distance result in high costs

:

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Facilitating trade flows

From standards-takers to full players

Transport policies/infrastructure

3 Priorities related to UNECE’s work

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= Simplified and harmonized processes, procedures & information flows for:

•Buying

•Shipping

•Paying

•International trade

AND

•Domestic trade (suppliers)

= Advance trade information

= Reduced trading costs and economic distance

= A globally more competitive economy

Trade Facilitation

= An important area for Aid for Trade

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• Participation in standards setting & WTO

• Efforts to comply with norms & standards

• Use of voluntary international standards

Aid for Trade to support

Full playersnot just standards-

takers

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Large capital investments can remove bottlenecks to trade.

Priority should be given the international routes that landlocked countries depend on.

Regional and interregional policy coordination to cut transport costs & times (TIR carnets, border crossing facilitation) and improve services

Transport upgrading

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•Transition economies need to become involved

•Sub-regional as well as national trade needs and priorities must be addressed

• A supporting coalition of UN and regional organizations plus country groupings needs to be identified

•A matrix of existing needs analyses is required to identify gaps and form the basis of discussions

•Sub-regional meetings followed by a Ministerial for transition economies?

Next Steps

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The UNECE is ready to assist in developing and coordinating

the partnerships necessary for moving this important initiative

forward