IICPSD & IRU & BSEC-URTA Partnership for Efficient Transport and Trade

- Promoting use of IVWC -

International Conference on Prospects of Trade and International Road Transport Development in the Black Sea, Central Asia and

Middle East Regions 28 November 2012

Simona Marinescu, PhDUNDP Istanbul International Center for Private Sector in

Development

+

• Support the development of inclusive and competitive markets and inclusive business models

• Foster private sector engagement and advocacy for the achievement of the MDGs and other IADGs

• Become a center of excellence in terms of capacity development activities that harnesses Trilateral Development Cooperation and South-South partnership

• Convene business and supporting actors to expand dialogue and create actionable partnerships

Objectives:

UNDP and the Government of Turkey established IICPSD toleverage private sector-born solutions to development challenges

IICPSD is part of a global network of UNDP thematic centers but is the only one to focus on and to involve private sector actors in development

International Policy Centre for Sustainable Development(Brasilia, Brasil): “Global forum for policy dialogue… equipping policymakers in the developing world with the skills necessary to design, implement and evaluate policies and programmes towards the attainment of high inclusive growth.”

Oslo Governance Centre (Oslo, Norway):“Provide policy guidance and technical support to the more than 130 UNDP Country Offices around the world.”

The Drylands Development Centre (Nairobi, Kenya):“Carries out research and analysis of policies that affect communities in the drylands, and provide advice and policy-making support to decision-makers.”

Source: Centres’ websites

Seoul Policy Centre for Global Development (Seoul, South Korea):“Through promotion of global learning, networking and dialogue, … will help to foster comparative experiences and approaches of new development partners.”

IICPSD

(Singapore) Public Service Excellence

The IICPSD operates in an ecosystem of:

Governments

Academia

International financing

institutions International development organizations

Businesses and business intermediarie

s

Other partners

Existing Turkish

ecosystem

IICPSD Scope & Mandate

• Leverage the private sector’s contribution to development

• Design a new economic model for resilient growth through employing untapped resources

• Promote inclusive market development to offset the lower yield of the income pyramid

• Replace passive social protection with income opportunities including the poor and disadvantaged in supply chains

• Build markets from below enhancing local content and making competition and solidarity coexist

• Broker private sector’s partnership with governments for more business-led

human development

Academic Partners

7 in Eastern Europe and the CIS

13 in donor countries

6 in Latin America and

the Caribbean

9 in sub-Saharan

Africa

3 in MENA

11 in Asia and the Pacific

Multi-national Corporate Partners

Businesses

BCtA companies

UNDP corp

orate par

tners

Local NetworkEmerging Network

Local Networks of Private Sector Partners (UN Global Compact)

The IICPSD engages in different types of partnership arrangements

•Example: Thematic events

•Example: Research Fellows

•Example: Advisory Board members

•Example: Implementation of development projects

Formal operational partnerships

Advisors / thought leaders

Informal activity-based

collaboration

Institutions engaged through

individualsSourav Mukherji, Associate Professor, Indian Institute of Management, Bangalore

Olayinka David-West, lecturer, Lagos Business School

Dr. Eduardo Aninat, former Minister of Finance, Chile, and former IMF Deputy Managing Director

Jane Nelson, Senior Fellow and Director of CSR Initiative, Harvard Kennedy School, and Director of Strategy, IBLF

Organization of a global expert workshop on impact assessment methodologies

Organization of a LDC-IV side event on Financial Inclusion through G2P Payments and Emergency Cash Transfers

Joint project of IKEA Foundation and UNDP India to empower 2.3 million poor women across 4 States

Joint project of WEF Business Alliance Against Chronic Hunger, UNDP Kenya and Ministry of Agriculture to spread irrigation solutions for improved food security and youth empowerment

IICPSD operates as system developer

Business Cycle

Research and Development

Research Agenda prepared within the Advisory BoardAcademic Partnerships, Fellowship Programmes

Multi-Stakeholder Partnership Platforms for

Inclusive Market Development

Signature Alliances and Programmes as well as new partnerships for market-based solutions to poverty and social exclusion

Training and Capacity Development

Operate as a Center of Excellence, ISO licensed for training and capacity development and involving well known experts and relevant organizations

UNDP IICPSD Signature Alliances and Programmes

Inclusive Market Development tested through global alliances with private sector partners:

– Building Tomorrow’s Markets– Energy Access for Productive Use (SE4ALL)– Strengthen & Improve Sustainable Development Impact of Extractive

Industry– Economic Recovery and Employment Creation in Fragile States– Better Than Cash (Financial Inclusion)– Transport and Trade facilitation (Aid for Trade for Arab States,

Introducing IVWC with IRU&BSEC URTA)– Procurement Leveraging– Impact Investment– Public Private Partnership for Skills Development– Open partnership platforms

TRANSPORT DRIVES PROGRESSRationale and Cooperation Concept

Rationale for IICPSD signature alliance on transport• Crucial driver of development, bringing socio-economic

opportunities within the reach of the poor and enabling economies to be competitive and thrive in a globalized world (The World Bank, 2012)

• The largest employer of the world• Workers with limited education earn more in transportation

related businesses than in most other sectors• It allows men and women to earn their living by manufacturing

vehicles and by driving, maintaining, and regulating them for safe and efficient movement of goods and people

• Critical network of globalization and source to growth• Vital sector of the economy to connect, supply and sustain

livelihoods

Development gaps call for offsetting exchangesGlobally engaging with partners and stakeholders for innovative solutions to development challenges including inequality, social exclusion, transition of fragile states to viable markets and stability

Priority regions include: ACP, BSEC, Arab States, ECOPriority countries in 2012: Liberia, Somalia, Iraq, Guyana, South Sudan, Moldova, Armenia, Georgia

Key Factors Challenging ExportsIdentifying potential markets and buyers

Access to trade finance

Access to imported inputs at competitive prices

Inappropriate production technology and skills

Technical requirements and standards abroad Difficulties in meeting quality/quantity

requirements of buyers High cost or delays caused by international transportation

High cost or delays caused by domestic transportation

Burdensome procedures and corruption at foreign borders

Rules of origin requirements abroad

2012 WEF Global Trade Enabling Report Source: World Economic Forum, Executive Opinion Survey 2012; authors’ calculations.

Key Factors Challenging Imports

Tariffs and non-tariff barriers

Burdensome import procedures

High cost or delays caused by international transportation

Corruption at the border

High cost or delays caused by domestic transportation

Domestic technical requirements and standards

Crime and theft

Inappropriate telecommunications infrastructure

2012 WEF Global Trade Enabling Report Source: World Economic Forum, Executive Opinion Survey 2011; authors’ calculations.

IICPSD & IRU&BSEC-URTA Partnership architecture

PABSEC

BSEC BC

BSTDBICBSS

UNDP

UNDP

UNDP

UNDPUNDP

UNDP

UNDPUNDP

UNDP

UNDP

UNDP

Regional Bureau(x)

Bureau for External

Relations and Advocacy

UNDP

IICPSD

UNECE

ECO:AfghanistanAzerbaijanIranKazakhstanKyrgyz RepublicPakistanTajikistanTurkeyTurkmenistanUzbekistan

LAS: Kuwait, Lebanon, Palestinian Authority, Qatar, Jordan, Bahrain, UAE, Libya, Oman, Saudi Arabia, Syria, Tunisia, Iraq, Comoros, Algeria, Morocco, Sudan, Djibouti, Egypt, Yemen, Mauritania, Somalia

UNDP

Issues UNDP IICPSD can address

• Lack of national consensus in adopting certain solutions• Hostile regulatory environments that discourage investment

regulatory risks, policy uncertainty and corruption• Political risks, conflict incidence• Lack of capacities and skills among public and private partners • Lack of innovative solutions to address global development

challenges and opportunities• Absence of public-private dialog, no common agenda for

development• Short-termed governance versus long-term commitment

needed to achieve planned goals

IICPSD IRU BSEC-URTA Partnership

Brief description• Overall objective: development of the IVWC system, beginning with a

pilot in Turkey, Romania, Serbia, Armenia, Moldova and Georgia according to Annex #8 of the 1982 UNECE International Convention on Harmonization of Frontier Controls of Goods adopted by 56 states including the 12 BSEC countries

• Facilitation of road transport within the BSEC area for growing intra-regional trade as well as with the neighboring, inter-region and global markets

• Simplification of weighing system in transport for efficient business and more opportunities for people to work and supply

• Project aligned with the recommendations of the BSEC 20th Anniversary Summit Declaration of Istanbul, 26 June 2012 as well as with the BSEC Economic Agenda Towards an Enhanced BSEC Partnership adopted on 11 June 2012.

• Inclusion of Arab States (22) and Economic Cooperation Organization member countries (10) will follow

Transport leverages BSEC Agenda for Enhanced Partnership goals

Goal1: Intensify intra-regional trade and investmentGoal2: Cooperate among customsGoal3: Establishment of an Efficient Transport Network (BS Ring Highway, Motorways of the Sea, BSEC Permit)Goal4: Sustainable Energy and Development of the BS Energy MarketGoal5: Environmental Protection and ConservationGoal6: Food Security and Safety Goal7: Health Care and PharmaceuticsGoal8: Development of Tourism and Protection of Cultural HeritageGoal9: Support for Sustainable Development of the SMEsGoal10: Closer Cooperation in the field of Banking and FinanceGoal11: Strengthen Regional Cooperation in SR and TechnologyGoal12: Sustainable Information Society and advanced ICT infrastructureGoal13: Harmonization and Exchange of Economic and Social StatisticsGoal14: Higher Standards in Education and TrainingGoal15: Good Governance and the Rule of LawGoal16: Combating Organized CrimeGoal17: Cooperation in Emergency Situation

TRANSPO

RT DRIVES PRO

GRESS

Transport and Trade Facilitation & Development Corridors

Programme Description• IICPSD – IRU /BSEC-URTA signed MOU on Road

Transport Facilitation for Enhanced Trade & Investment in the BSEC, Arab States and Economic Cooperation Organization regions

• Duration: 16 months• Partners: IICPSD – UNDP Country Offices – IRU –

BSEC URTA - Governments• Aim: Introduce the International Vehicle Weight

Certificate system (UNECE IVWC Convention of 1982) and transit visas

• Pilot project: Turkey-Romania-Serbia-Armenia-Moldova-Georgia

• Facilitation of road transport in BSEC, LAS and ECO will lead to growing inter regional trade

• Actions:Readiness assessment and regulatory review for adoption of IVWC systemIVWC introduction and regulatory enforcementCross-boarder dialogue and engagement

Signing ceremony Chisinau 3 Oct

Regulatory and System specifications in place By Feb 2013

Ratification laws, by-laws and administrative decisions enforced Responsible authority designated

PPP for weighing stations and procedures and IVWC filling in place

Project structures in place and technical evaluation By Dec 2012Selection of Ad-hoc Group of Experts/ Establishment of Technical Secretariat

Meeting of Secretariat with Experts Report disseminated

Context setting By Nov 2012Assessment of current state of affairs Identification of countries for pilot

System operationalization By Dec 2013

Implementation and monitoringCommunication of results

Project closure

Knowledge building By May 2013Translation of rules and of IVWC in official

languages of enrolled countries Training

Network defined By March 2013Weighing stations compliant with Appendix 2 of Annex 8 defined

Allocation of distinctive seals per station

Communication to Secretariat of List of Stations and Seals per country / Consolidated lists communicated to member states and BSEC PERMIS and to UNECE

Project Steering Committee

(PM+IRU/URTA)

 

Technical Advisor

  

Technical Secretariat

UNDP IICPSD 

Government of Turkey and

Romania, Serbia, Armenia,

Moldova and Georgia

Project Support(UNDP Country

Offices)

 

Project Organizational Structure

 

Business Process for ECO & LAS

ASSESSMENT OF

TRANSPORT EFFICIENCY

AND GROWTH

MULTIPLIERS

ASSISTANCE FOR

TRANSPORT FACILITATION

STRATEGY

SUPPORT FOR CONDUCIVE REGULATORY ENVIRONMENT (ADOPTION

of 1982 UNECE Convention)

INTRODUCTION OF IVWC (MULTI-

COUNTRY PILOT BASED

APPROACH)

TRAINING AND CAPACITY

DEVELOPMENT FOR ROLLOUT

THANK YOU, IRU, BSEC & BSEC-URTA!