ACDI/VOCAACDI/VOCAStandards Development in Post-Soviet Standards Development in Post-Soviet

Countries:Countries:Honoring the Past, Building the FutureHonoring the Past, Building the Future

Presentation for Presentation for

American National Standards American National Standards Institute (ANSI) Annual MeetingInstitute (ANSI) Annual Meeting

Washington, DC Washington, DC

20022002

Promoting Enhanced Access to Promoting Enhanced Access to Voluntary StandardsVoluntary Standards

• Primary Client:Primary Client: U.S. Agency for International U.S. Agency for International Development (USAID)Development (USAID)

• Focus:Focus: product and process standards in domestic and product and process standards in domestic and export marketsexport markets

• Desired Impact:Desired Impact: economic growth and efficiencyeconomic growth and efficiency- small- and medium-enterprise competitiveness- small- and medium-enterprise competitiveness- trade facilitation and export promotion- trade facilitation and export promotion- financial markets development- financial markets development

• Economic Sectors:Economic Sectors: - - agricultureagriculture- food- food- banking- banking- accounting- accounting

General Project CharacteristicsGeneral Project Characteristics

• Demand-driven, participatory, and market-drivenDemand-driven, participatory, and market-driven

- public officials and government agencies- public officials and government agencies

- private industry stakeholders- private industry stakeholders

• Standards development as one component of larger Standards development as one component of larger programprogram

• Focus on interventions at transactional levelFocus on interventions at transactional level

- intermediary organizations and private firms- intermediary organizations and private firms

• Primary tools:Primary tools: expatriate, regional and local consultants expatriate, regional and local consultants and volunteers for technical advisory services and training; and volunteers for technical advisory services and training; study tours; sub-grants study tours; sub-grants

Barriers to Trade:Barriers to Trade: Financial Markets Financial Markets

• Few chartered accountants in IAS/auditors in ISAFew chartered accountants in IAS/auditors in ISA

• Conflict between Tax Codes and IASConflict between Tax Codes and IAS

• Conflict between nation-building and IAS Conflict between nation-building and IAS

• Gradualist/phased enterprise conversion to IAS Gradualist/phased enterprise conversion to IAS

• Bankers unable to lend (even when a firm is a good Bankers unable to lend (even when a firm is a good credit risk) because of the violation of underwriting credit risk) because of the violation of underwriting standardsstandards

Barriers to Trade:Barriers to Trade: Agriculture and Food Agriculture and Food

• Inadequate food safety management programsInadequate food safety management programs

• Inability to meet national, European Union or Inability to meet national, European Union or international requirements in priority sectorsinternational requirements in priority sectors

• Absence of an organized and cooperative approach Absence of an organized and cooperative approach between government and industry to develop a plan between government and industry to develop a plan for a nation-wide HACCP programfor a nation-wide HACCP program

Changing Roles to Remove Changing Roles to Remove BarriersBarriers

GovernmentGovernment• Prioritize industry sectors for which standards Prioritize industry sectors for which standards

development is most importantdevelopment is most important• Establish standards implementation committeesEstablish standards implementation committees• Incorporate standards into systems of inspectionIncorporate standards into systems of inspection

Industry Associations/Consulting FirmsIndustry Associations/Consulting Firms• Produce industry guidesProduce industry guides• Lobby government on benefitsLobby government on benefits• Provide information related to implementing standardsProvide information related to implementing standards• Collect data on products, hazards and risksCollect data on products, hazards and risks• Provide generic international standards plansProvide generic international standards plans• Conduct training for membersConduct training for members

FirmsFirms• Implement standardsImplement standards

ACDI/VOCA’s Performance ACDI/VOCA’s Performance Targets:Targets:

Small- and Medium-Sized Enterprise Small- and Medium-Sized Enterprise CompetitivenessCompetitiveness

Trade and Export Promotion Trade and Export Promotion

Income GenerationIncome Generation

Job Creation Job Creation

Enhanced Product Quality and SafetyEnhanced Product Quality and Safety

Sub-sector Focus Sub-sector Focus (Bulgaria)(Bulgaria)

• HACCP and GMPs HACCP and GMPs

- Veterinary Pharmaceuticals- Veterinary Pharmaceuticals

- Bakery and Confectionary- Bakery and Confectionary

- Dairy Sector (cheese processing)- Dairy Sector (cheese processing)

- Meat Processing- Meat Processing

- Fruit & Vegetable Processing- Fruit & Vegetable Processing

Intervention ProcessIntervention Process

Firm-level tasks (HACCP):Firm-level tasks (HACCP):

-- Review government regulationsReview government regulations

- Educate management to benefits and costs- Educate management to benefits and costs

- Establish prerequisites for implementation of HACCP- Establish prerequisites for implementation of HACCP

- Provide operational manuals- Provide operational manuals

- Inspect plant- Inspect plant

- Identify Critical Control Points (CCPs)- Identify Critical Control Points (CCPs)

- Review adverse findings- Review adverse findings

- Prioritize deficiencies- Prioritize deficiencies

- Draft Action Plan- Draft Action Plan

- Implement Plan- Implement Plan

Illustrative Recommendations: Illustrative Recommendations:

Cheese ProcessingCheese ProcessingYotovi Ltd Dairy, BulgariaYotovi Ltd Dairy, Bulgaria

• Put lids on all vatsPut lids on all vats

• Provide good sanitary practices training to employeesProvide good sanitary practices training to employees

• Conduct periodic plant self-inspectionsConduct periodic plant self-inspections

• Engage services of professional pest control firmEngage services of professional pest control firm

• Keep finished product on “Hold” until a written release Keep finished product on “Hold” until a written release is issued by Quality Controlis issued by Quality Control

• Calibrate all plant thermometers against a standard and Calibrate all plant thermometers against a standard and keep a record of all calibrations; do not use glass keep a record of all calibrations; do not use glass

Illustrative ResultsIllustrative Results

Veterinary PharmaceuticalsVeterinary Pharmaceuticals

PrimaVet Ltd, BulgariaPrimaVet Ltd, Bulgaria

• Introduced new products Introduced new products

• Increased salesIncreased sales

• Added 4 new employeesAdded 4 new employees

• Expanded exports into 2 new marketsExpanded exports into 2 new markets

• Increased beekeeper clients to 80% of Bulgarian Increased beekeeper clients to 80% of Bulgarian beekeepersbeekeepers

• Finalized blueprints for new plant based upon design Finalized blueprints for new plant based upon design consistent with GMP and efficient operating consistent with GMP and efficient operating conditionsconditions

Key Success FactorsKey Success Factors

• Customer and business demandCustomer and business demand

• Strong host government commitmentStrong host government commitment

• Pro-active and innovative firm-level leadershipPro-active and innovative firm-level leadership

• High potential impact from standards High potential impact from standards implementationimplementation

• Adequate infrastructure and facilitiesAdequate infrastructure and facilities

• Financial resourcesFinancial resources

ACDI/VOCA….Setting Standards GloballyACDI/VOCA….Setting Standards Globally

KyrgyzstanKyrgyzstanLithuaniaLithuania

MacedoniaMacedonia MoldovaMoldova

MongoliaMongolia PolandPoland

RomaniaRomania RussiaRussia

TurkeyTurkey UgandaUganda

UkraineUkraine YugoslaviaYugoslavia

““Man built most nobly when limitations Man built most nobly when limitations were at their greatest.”were at their greatest.”

Frank Lloyd Frank Lloyd WrightWright