Transcript Implementation of the Enhanced Integrated Framework (EIF

Preparation and Implementation
of
Nepal Trade Integration Strategy
(NTIS 2010)
Shiv Raj Bhatt
EIF Programme Manager,
Nepal Enhanced Capacities for Trade and Development (NECTRADE)
Ministry of Commerce and Supplies
Government of Nepal
Presented at experience sharing program with the High Level Delegation from Bangladesh
Kathmandu, Nepal
(30 June 2011)
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Objectives:
Information and experience sharing between Nepal and
Bangladesh on trade and development through
mobilization of Aid for Trade, particularly Enhanced
Integrated Framework (EIF).
Contents:
– Background (EIF and Nepal)
– NTIS and status of its implementation
– Next steps (the way forwards)
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Background
• The EIF (previously IF) was set up in 1997 at the WTO.
• The EIF is a multi-donor program, which supports LDCs to be
more active players in the global trading system by helping
them tackle supply-side constraints to trade.
• The EIF is currently helping 47 LDCs worldwide, supported by a
multi-donor trust fund, with contributions from 22 donors.
• Aim: The EIF is working in close cooperation with donors, six
core partner agencies, observer agencies, the Executive
Secretariat (ES) and the Trust Fund Manager (TFM) and other
development partners who are supporting LDCs' own drive to:
– mainstream trade into national development strategies;
– set up structures needed to coordinate the delivery of traderelated technical assistance; and
– build capacity to trade, which also includes addressing
critical supply-side constraints.
– The EIF process aims to strengthen donors' support to a
country's trade agenda.
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Institutions and Instruments to
Implement EIF/Mobilize AfT
• 2007: the IF Working Group (IFWG) and the IF Steering
Committee (IFSC) adopted a package of recommendations to
implement the Enhanced IF (EIF).
• Institutions: a guideline has been prepared for implementation
of EIF and as prescribed in it, an institutional set-up (at country
level) is needed for implementation of EIF.
– At Global Level: EIF Board; EIF Secretariat at WTO Geneva,
led by the Executive Director and United Nations Office for
Project Services (UNOPS) as EIF TFM
– National Level: National Steering Committee (NSC); Focal
Point (FP); National Implementation Unit (NIU); Donor
Facilitator; and any other committees/task force/working
groups etc., as needed and decided by the respective
government.
• Instruments: Diagnostic Trade Integration Study (DTIS).
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EIF and Nepal: Stock taking of DTIS 2004
• Nepal submitted a proposal under revamped IF and received
support under IF (Window I and Window II) during 2003/04.
• Prepared Diagnostic Trade Integration Study 2003/04 (Nepal
Trade and Competitiveness Study 2004).
• To implement recommendations (Action Matrix) of DTIS 2004,
Nepal Window II Trade Related Capacity Building Project was
implemented in 2005.
– Only a few recommended actions of DTIS 2004 were
completed/conducted under the project (duration of the project
was very short –one year, and limited resources – less than one
million).
– Major activities recommended by DTIS 2004 were left because of
the limited resources and time available.
• ‘Enhancing Nepal’s Trade Related Capacity Project’ was
designed and implemented (2006 -2010) to follow the DTIS
2004 and update it as per the changed context.
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Stock taking of DTIS 2004
(Problems)
• Limited resources from IF trust fund to implement
actions recommended under DTIS 2004.
• Weak co-ordination and lack of capacity
(intergovernmental, government-private sector and
government-donors) to implement the reform measures.
• Inadequate response by local donors.
• Ambiguity of ownership for implementation of DTIS 2004
itself (no implementation arrangement, responsible
agencies not specified clearly, budgetary requirements
are not in place, etc.).
• No proper implementation mechanism at place.
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Overcoming problems
A. Instrument/Strategy:
NTIS 2010 (updated DTIS) was launched in June 2010.
B. Institution/Implementation Mechanism
• To provide overall guidance and strategic direction, the GoN
has constituted EIF National Steering Committee (NSC) Chaired by the Chief Secretary of the GoN. Secretaries and
officials of the GoN and business representatives are the
members of NSC.
• The GoN has appointed the Secretary, Commerce & Supplies as
EIF Focal Point (FP).
• In order to facilitate EIF process and establish an effective
coordination between GoN and the donors, NIU was
established at MoCS (headed by the Joint Secretary).
• Donor facilitator is selected (UNDP till November 2010 and
Germany thereafter).
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The Road Map to EIF/NTIS
(June 2008 - onwards)
Formulate – Own – Implement – Communicate - Monitor
DONE (till June 2010):
Work in Progress:
•Constituted a Transition Team to
formulate NTIS
• NTIS formulated and launched.
•Concept note on implementation
mechanism
•Capacity Building Plan
•EIF Tier 1 approved
• NTIS endorsed by the Council of
Minister
• Implementation of NTIS 2010
• Implementation of EIF Tier1
• Trade mainstreaming actions
• Renewing DPs Commitment
• Move towards Trade SWAp
• Development &
implementation of Tier 2
Projects in line with NTIS 2010
•Trade as a priority area in NDP.
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Preparation of NTIS
I. Identify NTIS Focus and Prepare NTIS Work
• February-September 2009:
– Formulated a Transition Team
– Drafted NTIS Table of Content and organized a seminar/WS with
Government, Business, and Development Partners to discuss and
endorse proposed Table of Content.
– Drafted Chapters ToRs
– Identified/Recruitment of Team Leader and chapter teams (mostly
mixed national-international)
– Worked with Donor Facilitator (UNDP) to secure additional funding
from other DPs (DFID, Gov’t of Finland, IFC)
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Preparation of NTIS…….Contd.
II. Conduct NTIS Work (Sept 2009-May 2010)
• Full report containing 12 chapters.
• Each chapter team presented initial findings to
relevant EIF Technical Committee for feedback.
• 3 review workshops organized with GoN, Business,
DPs (September 2009, November 2009, March
2010).
• Separate focus group discussion were organized for
some chapters (e.g. investment facilitation, SPS
and TBT, Trade support institutions).
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Preparation of NTIS….contd.
Prepared Action Matrix & Executive Summary
(April-June 2010)
• Drafted ES+AM and Main Report (Background
Report).
• Draft NTIS 2010 sent to GoN concerned Ministries
and Departments, private sector organizations and
to DPs for comments.
• Incorporated comments/suggestions of
agencies/individuals
• NTIS 2010 launched 24 June
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What is NTIS?
• National trade strategy to
enhance 'supply side
capacity' for Nepal's space
in global market;
• Prioritized strategy
launched by PM himself.
• An outcome of analysis &
consultation with broad
range of stakeholders, but
led by the GoN.
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Salient Features of NTIS 2010
• 19 goods & services identified as priority
items;
• Plus 5 other goods suggested;
• 10 potential destination markets identified;
• 3-5 years period for implementation;
• Engaging of multiple agencies, i.e., GoN's 17
ministries/agencies as well as business
organizations.
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NTIS Priority Export Sectors
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Salient Features of NTIS 2010
• Having 4 strategies:
 Strengthening
Access)
trade
negotiation
capacity
(Market
 Strengthening NTB related domestic capacity (Overall
Supply
Capacity…….trade
facilitation/Product
standards/quality/etc.)
 Strengthening supply capacity of "inclusive exports"
(Supply Capacity of priority export sectors)
 Strengthening
capacity
to
manage
AfT/TRTAs
(Resource mobilization)
• Having 87 cross cutting actions and 171 product/service
specific & total 268 actions to be implemented
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Coordination with the Stakeholders
GoN Buy-in:
 Meetings with National Planning Commission to ensure
alignment of NTIS proposed priorities with 3-year
National Development Plan (NDP) priorities
 Endorsement of NTIS 2010 by Council of Ministers
DPs Buy-in:
 MoCS intensifies discussions with interested DPs to
identify possible ODA support for implementation of
NTIS 2010
 MoCS officials meets with concerned DPs individually
and in groups several time.
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Coordination with the Stakeholders
Business Sector Buy-in:
 From the start of NTIS process, business sector is coorganizer of NTIS seminars/workshops.
 Business sector closely associated with work of the
chapters teams, especially with the export potential
assessment of the 19 sectors selected for priority
focus.
 Export Promotion Forum (EPF) created at FNCCI was
engaged in NTIS preparation through creation of a
public-private dialogue form (PPDF-Nepal) by MoCS.
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Implementation Status
• Endorsement of NTIS 2010 by Council of Ministers.
• Trade is one of the six strategies of current three year plan.
• Mainstreaming of trade in sectoral plans (e.g. Industry and
Agriculture)
• To intensify the mainstreaming process, senior officials of
concerned ministries are being re-orientated
• Budget allocated for NTIS implementation in current FY
budget.
• Tier 1 project implemented to support NIA in trade
mainstreaming actions and AfT mobilization.
• TORs for NIU/Extended NIUs prepared and govt officials and
experts appointed for NIU/Extended NIUs.
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Implementation Status
•
Development of project proposals (Tier 2) underway.
•
Consultation workshops/meetings held with concerned stakeholders.
•
Advocacy for trade development and mainstreaming
•
Training for journalist and grassroots entrepreneurs.
•
Donor Group was established with the support of DF and 3 DG
meetings were held so far.
•
Efforts for mainstreaming of trade in DPs' country strategies.
•
Mobilizing AfT/TRTA





EIF Tier 1 (NECTRADE)
USAID/NEAT
GIZ/2 projects on Bio-Trade and WTO Implementation Support
EC-WTO Project
Consultation with other DPs (WB, ADB, DFID, Finland, Swiss, etc.)
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Work Ahead
I.
Identify implementation mechanism (move
towards Trade SWAp or other better options)
II.
Develop tools to monitor the progress
(periodic/annual…..)
III. Renew DPs Commitments
IV.
Involve stakeholders more deeply in the process
V.
Further mainstreaming of trade in national as
well as sector development strategies
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Conclusion
• The DTIS process is not simply about a Ministry
preparing a trade sector development strategy with
the support from a team of consultants .
• It is about creating buy-in from all key
stakeholders (Concerned Ministries, business
community, DPs and others) so that everyone can
participate in its implementation without any
hesitation.
The process takes time, but is the
key for success.
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THANKS
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