International Think International Think

Tank for LLDC’s Tank for LLDC’s

Third Meeting of Trade Ministers of Third Meeting of Trade Ministers of LLDCsLLDCs Ezulwini, Kingdom of Ezulwini, Kingdom of

Swaziland Swaziland 21-22 October 2009 21-22 October 2009

Gunaajav BatjargalGunaajav BatjargalDirector Director Department of Strategic Department of Strategic Planning, Analysis and Planning, Analysis and EvaluationEvaluationMinistry of Foreign Affairs and Ministry of Foreign Affairs and Trade, Mongolia Trade, Mongolia

OutlineOutline

Background Background Establishment of Think TankEstablishment of Think Tank Steps taken so far Steps taken so far Mandates and GoalsMandates and Goals Institutional IssuesInstitutional Issues Way ForwardWay Forward

Background Background

For For Landlocked Developing Countries Landlocked Developing Countries ((LLDCs) there is an increasing need for LLDCs) there is an increasing need for research and policy work on traderesearch and policy work on trade

Mongolia was one of the pioneers to Mongolia was one of the pioneers to organiorganisse and lead e and lead a a Group of LGroup of LLDCLDCs in s in New York since 1994New York since 1994 and acted as first and acted as first ChairChair

In 2007, Mongolia hosted Second In 2007, Mongolia hosted Second Meeting of Trade Ministers of LLDCs Meeting of Trade Ministers of LLDCs

Establishment of Think TankEstablishment of Think Tank

The idea to improve the analytical capability of LLDCs The idea to improve the analytical capability of LLDCs through establishing an international think tank was through establishing an international think tank was first presented by the first presented by the President of MongoliaPresident of Mongolia at the at the First Summit of the LLDCs in HaFirst Summit of the LLDCs in Havvana in 2006.ana in 2006.

““If we want to maximize the efficiency of our If we want to maximize the efficiency of our coordinated efforts we should have an excellent coordinated efforts we should have an excellent analytical capacity. This we believe could be reached analytical capacity. This we believe could be reached through establishing an international think-tank in one through establishing an international think-tank in one of our capitals. Putting such a ‘brain’ in place we could of our capitals. Putting such a ‘brain’ in place we could build optimal strategies on any matter of our interest build optimal strategies on any matter of our interest and avoid duplication of our actions and endeavors.”and avoid duplication of our actions and endeavors.”

AAt the t the previous meeprevious meeting of Trade Ministers of ting of Trade Ministers of LLDCs, LLDCs, in Ulaanbaatar in 2007in Ulaanbaatar in 2007, the President of , the President of Mongolia Mongolia specifically invited to set up the Think Tank specifically invited to set up the Think Tank in Ulaanbaatar.in Ulaanbaatar.

SSome important documentsome important documents supporting supporting

the establishment of LLDCs Think the establishment of LLDCs Think TankTank

Ulaanbaatar DeclarationUlaanbaatar Declaration adopted at the Meeting of Trade adopted at the Meeting of Trade Ministers of LLDCs, Ulaanbaatar, 28-29 August 2007Ministers of LLDCs, Ulaanbaatar, 28-29 August 2007

CommuniqueCommunique of the Seventh Annual Ministerial Meeting of of the Seventh Annual Ministerial Meeting of Landlocked Developing Countries (LLDCs), New York, 28 Landlocked Developing Countries (LLDCs), New York, 28 September 2007September 2007

LLDCs LLDCs Ministerial Communique,Ministerial Communique, Accra, 22 April 2008 (on Accra, 22 April 2008 (on the sideline of UNCTAD XII)the sideline of UNCTAD XII)

In addition, Mongolia promoted the idea through a number In addition, Mongolia promoted the idea through a number of multilateral meetings, including of multilateral meetings, including the UNCTAD, the the UNCTAD, the UNUNESCAPESCAP and OSCE-Mongolia Conference and OSCE-Mongolia Conference

Steps TakenSteps Taken

Mongolia as the initiator took several important steps Mongolia as the initiator took several important steps to mobilize a broad support from the international to mobilize a broad support from the international community. These include:community. These include:

Midterm Review of the Almaty Program of Action by Midterm Review of the Almaty Program of Action by the General Assembly in 2008 resulted in the General Assembly in 2008 resulted in enendodorsing rsing a a separate paragraphseparate paragraph on the Think Tankon the Think Tank

The The UNUNESCAP ESCAP session in session in April 2009 unanimously April 2009 unanimously adopted a full-fledged resolution in support of adopted a full-fledged resolution in support of establishing the Think Tank in Ulaanbaatar establishing the Think Tank in Ulaanbaatar

With With support from support from the UNDPthe UNDP,, a a ffeasibility easibility sstudy was tudy was carried out to charter the ways and means of carried out to charter the ways and means of establishing the Think Tankestablishing the Think Tank and in July 2009, t and in July 2009, the he Government of Mongolia formalGovernment of Mongolia formallyly deci decided ded to host the to host the Think TankThink Tank

Opening Ceremony of International Think Opening Ceremony of International Think Tank for the Landlocked Developing Tank for the Landlocked Developing

Countries Countries 28 July 2009, Ulaanbaatar28 July 2009, Ulaanbaatar

The ceremony was attended by The ceremony was attended by UN Secretary-General Ban Ki-UN Secretary-General Ban Ki-Moon. In his opening remarks, Moon. In his opening remarks, he said: he said:

““It [Think Tank] will contribute It [Think Tank] will contribute to further strengthening the to further strengthening the analytical capacities of analytical capacities of landlocked developing landlocked developing countries…help them better countries…help them better articulate their positions articulate their positions throughout the world.throughout the world.””

Substantive mandate Substantive mandate of International Think Tankof International Think Tank

Think Tank in its full capacity will conduct research on Think Tank in its full capacity will conduct research on the following priority areas as identified in the Almaty the following priority areas as identified in the Almaty Program of Action:Program of Action:

• Fundamental transit policy; Fundamental transit policy; • Infrastructure development and maintenance; Infrastructure development and maintenance; • International trade and trade facilitation;International trade and trade facilitation;• International support measures. International support measures.

However, in order to carry out institutional and capacity However, in order to carry out institutional and capacity building smoothly, we expect that the Think Tank will building smoothly, we expect that the Think Tank will focus first focus first on trade issueson trade issues of the LLDCs which are more of the LLDCs which are more relevant and can be more value-added, given the relevant and can be more value-added, given the ongoing negotiations at the WTO on Trade Facilitation.ongoing negotiations at the WTO on Trade Facilitation.

Feasibility studyFeasibility study** conducted by UNDP suggests the following conducted by UNDP suggests the following mission statement and key activities: mission statement and key activities:

““Using top-quality research and advocacy the Institute Using top-quality research and advocacy the Institute endeavors to improve the ability of landlocked developing endeavors to improve the ability of landlocked developing countries to benefit from international trade, with the ultimate countries to benefit from international trade, with the ultimate aim of raising human development and reducing poverty.” aim of raising human development and reducing poverty.”

Key activities should include:Key activities should include:

Research papers and briefings on trade-related issues of Research papers and briefings on trade-related issues of LLDCsLLDCs

Domestic and international advocacy on LLDCsDomestic and international advocacy on LLDCs Promoting trade-related interests of LLDCs in international Promoting trade-related interests of LLDCs in international

forums including the WTO and UNforums including the WTO and UN

** PROPOSAL TO LAUNCH THINK TANK ON TRADE AND LANDLOCKED DEVELOPING COUNTRIES (LLDCs) IN PROPOSAL TO LAUNCH THINK TANK ON TRADE AND LANDLOCKED DEVELOPING COUNTRIES (LLDCs) IN ULAANBAATAR, UNDP Mongolia; Daniel Gay & Haliun DalantaiULAANBAATAR, UNDP Mongolia; Daniel Gay & Haliun Dalantai

Short and medium-term Short and medium-term

goalsgoals Publish policy paper on trade-related issues facing Publish policy paper on trade-related issues facing

Mongolia Mongolia

Compile and publish briefings and research papers on Compile and publish briefings and research papers on trade and LLDCstrade and LLDCs

Establish a website Establish a website

With support and assistance of UNOHRLLS, establish and With support and assistance of UNOHRLLS, establish and maintain regular contacts with LLDCs representatives, as maintain regular contacts with LLDCs representatives, as well as transit and donor countries well as transit and donor countries

Help formulate Help formulate and express and express the interests of LLDCs in the interests of LLDCs in international forums, identify priority areas, and deliver international forums, identify priority areas, and deliver material or advocacy work related to those areas material or advocacy work related to those areas

Establish and maintain relations with Establish and maintain relations with a Group of a Group of LLDCLLDCss at the UN Headquarters at the UN Headquarters in New York, and with informal in New York, and with informal group of such group of such countries at the WTO in Genevacountries at the WTO in Geneva

Establish and develop a network Establish and develop a network with other with other institutinstitutionsions, , universituniversities ies and consultants working in related areasand consultants working in related areas

Achieve formal consultative status at the UN Economic Achieve formal consultative status at the UN Economic and Social Counciland Social Council

Long-term GoalsLong-term Goals

Can include the following: Can include the following:

Expand, if demand exists, to a fully-fledged Expand, if demand exists, to a fully-fledged research instituteresearch institute and a and aim to attract visiting im to attract visiting professors on a regular basisprofessors on a regular basis

Publish a series of high-quality Publish a series of high-quality research research papers on trade and landlocked issues, papers on trade and landlocked issues, through through peer-reviewed journals or as a bookpeer-reviewed journals or as a book

Establish a reputation as Establish a reputation as aa foremost foremost international institution on research and international institution on research and analysis on trade and LLDCsanalysis on trade and LLDCs

Operationalization Operationalization

Above-mentioned Above-mentioned Feasibility study Feasibility study suggests that suggests that the Think Tank should initially consist of three the Think Tank should initially consist of three staff: staff:

director, one analyst and an director, one analyst and an operations/administrative officer. Consultants operations/administrative officer. Consultants should be recruited. Board of governors, and an should be recruited. Board of governors, and an advisory council may be set up. advisory council may be set up.

At the beginning stage, the Think Tank is currently At the beginning stage, the Think Tank is currently operating with interim director and one analyst, operating with interim director and one analyst, who are fixed term staff of the Ministry of Foreign who are fixed term staff of the Ministry of Foreign Affairs and Trade. Affairs and Trade.

Financing IssuesFinancing Issues Under this base-case scenario funding from the Under this base-case scenario funding from the

Government is expected to be approximately Government is expected to be approximately US$93,000 in the first year of operations using US$93,000 in the first year of operations using government rates and US$177,000 using domestic government rates and US$177,000 using domestic commercial rates commercial rates

Voluntary support from fellow LLDCs will be a key to Voluntary support from fellow LLDCs will be a key to mobilize other resourcesmobilize other resources

A second scenario is also presented: given additional A second scenario is also presented: given additional donor funding, staffing levels can be expanded during donor funding, staffing levels can be expanded during the second year and the level of activities increased. the second year and the level of activities increased. Another four staff at commercial rates would require Another four staff at commercial rates would require additional external donor financing of US$200,000 additional external donor financing of US$200,000 during year two during year two

Ideally government and donor funding will remain at Ideally government and donor funding will remain at these levels over the medium to long term. Five years these levels over the medium to long term. Five years of funding would total to US$1.84 million. In the event of funding would total to US$1.84 million. In the event of international funding being secured, a trust fund of international funding being secured, a trust fund may be set up under international oversightmay be set up under international oversight

Creating links with other Creating links with other institutionsinstitutions

DomesticDomestic

National Development and Innovation Committee National Development and Innovation Committee Institute of Strategic StudiesInstitute of Strategic Studies Transit Mongolia ProgrammeTransit Mongolia Programme National University of Mongolia National University of Mongolia Mongolian Development Research Centre Mongolian Development Research Centre Mongolian University of Science and TechnologyMongolian University of Science and Technology Centre for Policy ResearchCentre for Policy Research Proposed Mongolian Economic Policy Analysis InstituteProposed Mongolian Economic Policy Analysis Institute Proposed Mongolian Centre for Responsible MiningProposed Mongolian Centre for Responsible Mining

InternationalInternational

- UNCTADUNCTAD- WTO WTO - UN Regional CommissionsUN Regional Commissions- UNDP and its Regional Bureaux UNDP and its Regional Bureaux - World Bank and Regional Development BanksWorld Bank and Regional Development Banks- LLDCs, including their academiaLLDCs, including their academia- International and regional research organizations and International and regional research organizations and

programmes such as South Centre, ITC, AITIC and programmes such as South Centre, ITC, AITIC and Central Asia Regional Economic Cooperation (CAREC) Central Asia Regional Economic Cooperation (CAREC) Programme Programme

Way forwardWay forwardWhat status would the Think Tank have?What status would the Think Tank have?

There could be two options:There could be two options: a/ determine its mandate and status through a/ determine its mandate and status through

establishment of intergovernmental agreement establishment of intergovernmental agreement between LLDCs between LLDCs oror UNGA resolutionUNGA resolutionIn this case, South Centre seems to be a well-In this case, South Centre seems to be a well-functioning example. Collective effort and active functioning example. Collective effort and active support of LLDCs is essential. support of LLDCs is essential. Mongolia desires an intergovernmental status to Mongolia desires an intergovernmental status to the extent possible. the extent possible.

b/ Think Tank could be ab/ Think Tank could be a research centre with public research centre with public and academic involvementand academic involvement..

Way forwardWay forward

Enhance cooperation between national officials Enhance cooperation between national officials of LLDCs by exchanging information and of LLDCs by exchanging information and experience through Think Tank’s website that experience through Think Tank’s website that will be soon established will be soon established

Documents containing information on Think Documents containing information on Think Tank’s activities will be sent by the Permanent Tank’s activities will be sent by the Permanent Mission of Mongolia in NY and Geneva Mission of Mongolia in NY and Geneva

Mongolia is actively looking for funding. Some Mongolia is actively looking for funding. Some donor countries and international organizations donor countries and international organizations expressed their readiness to make financial expressed their readiness to make financial contribution contribution

International Think Tank International Think Tank for the Landlocked Developing Countries for the Landlocked Developing Countries

Contact detailsContact details

Mr. Suren Badral Mr. Suren Badral Interim Director of International Think Tank for LLDCs Interim Director of International Think Tank for LLDCs Department of International OrganizationsDepartment of International OrganizationsMinistry for Foreign Affairs and Trade Ministry for Foreign Affairs and Trade Tel: 976-51 262657 Tel: 976-51 262657 badrals@mfat.gov.mnbadrals@mfat.gov.mn

Thank you for your kind Thank you for your kind attention. attention.