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Industrial Policy and Trade Research Ideas Port-au-Prince March 2016

Top Ideas for Industrial Policy and Trade

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Page 1: Top Ideas for Industrial Policy and Trade

Industrial Policy and Trade

Research IdeasPort-au-Prince

March 2016

Page 2: Top Ideas for Industrial Policy and Trade

Working with 30-50 economists including Nobel Laureates, 100+ sector experts, government, donor organizations, civil society, development agencies, businesses, youth, across rural and urban areas to identify, analyze and prioritize interventions that will deliver greater benefit per gourde spent, helping move Haiti towards a more prosperous long term future.

Page 3: Top Ideas for Industrial Policy and Trade

Copenhagen Consensus Center organized roundtable discussions

with an aim to figure out smarter solutions to the most problematic

issues facing Haiti.

These roundtables are one of several sources

for research ideas.

Page 4: Top Ideas for Industrial Policy and Trade

Research Ideas

Page 5: Top Ideas for Industrial Policy and Trade

Agro-Industry;(1 of 6)

• Adopt an industrial and trade policy focusing on a strategy to substitute imports.

• Substantial increase of all tariffs on imported agricultural products, within the limits set by the CARICOM.

• Establishment of vocational schools in agricultural areas.

• Identification of crops that have comparative advantages in the global marketplace.

• Public and private investment in research:• To expand the agricultural area;• To move away from subsistence farming.

Page 6: Top Ideas for Industrial Policy and Trade

Agro-Industry; (2 of 6)

• Creating a regulating institution for the microfinance sector.

• Research fruits, foods and vegetables that have a higher return for a specific area in order to make small producers more competitive.

• Require import licenses in collaboration with the MCI:• Increase tariff barriers that have been reduced or removed;• Enhance local production;• Set up mechanisms that protect start-ups; • Establish an import substitution compared to imported

products (for example Dominican agricultural products and American rice).

Page 7: Top Ideas for Industrial Policy and Trade

Agro-Industry; (3 of 6)

• Special protection for these sectors: rice, coffee, peanuts and cashews:

• Protection of defined zones;• Subsidies for farmers;• Tax credits;• Farmers cooperatives (mutual);• Participatory financing from the diaspora – including a guarantee on

investment.• Research complementary cultures that promote subsistence

agriculture which is more competitive.• Reduce bank interest rates for local firms to make them

more competitive in tenders.• Create a quality control office to certify and control the

quality of imported goods and exports.

Page 8: Top Ideas for Industrial Policy and Trade

Agro-Industry; (4 of 6)

• Protect, restore and make agricultural production zones more accessible.

• Create a quality control laboratory in the areas of agricultural production.

• Shared costs of production and processing:• Creation of agricultural product processing plants;• Subsidize inputs;• Diversify agricultural production;• Training for actors.

• Form a bilateral partnership with the Bahamas.• Create and export promotion agency.

Page 9: Top Ideas for Industrial Policy and Trade

Agro-Industry; (5 of 6)

• Improve the regularity of agricultural supplies which is seasonable and marked by a lack of conservation mechanisms:

• Reorganize the market;• Create factories or product conservation centers (freezers,

warehouses etc.); • Develop small scale processing;• Enhance product quality by setting standards and applying

the precautionary principle;• Improve accessibility in the country by investing in the

development of road infrastructure;• Reduce the volume of imported products:

• High port control through customs; • iRequirement of import licenses.

Page 10: Top Ideas for Industrial Policy and Trade

Agro-Industry; (6 of 6)

• Establish standards for agricultural products. • Create 5 special agricultural zones in sectors deemed

advantageous:• Sharing of costs;• Processing plant;• Export promotion.

Page 11: Top Ideas for Industrial Policy and Trade

Internal Trade and the stabilization of local markets; (1 of 2)

• The adoption of an aggressive internal policy:• Formation of cooperatives;• Subsidize cooperatives.

• Create a single point at MCI for entrepreneurship.• Develop an industrial micro-park and shared use among

operators.• Formalize the creation of types of adaptive businesses

that responds to reality (eg. A type of business formed by 10 small producers).

• Develop a legal framework for semi-public companies.• Launch an awareness campaign for local products.

Page 12: Top Ideas for Industrial Policy and Trade

Internal Trade and the stabilization of local markets; (2 of 2)

• Develop off-season producers by strengthening “Mandan Sara”.

• Provide tax incentives, fixed interest rates and credit access.

• Establish a business protection agency.

Page 13: Top Ideas for Industrial Policy and Trade

External Trade; (1 of 2)

• Strengthen the CFI's ability to attract direct investment from the diaspora.

• Strengthening Foreign Trade Directorate of MCI and establish a permanent contact with the WTO representative.

• Establish a certificate for organic products.• Redo the Haitian-Dominican dual commission, including

a commercial agreement signing, ratifying and exchange.

• Combat smuggling and corruption in the regulation of bilateral trade.

• Create a packing and marking center.

Page 14: Top Ideas for Industrial Policy and Trade

External Trade; (2 of 2)

• Improve the value of the brand “Made in Haiti”: exotic, organic, natural etc.

Page 15: Top Ideas for Industrial Policy and Trade

For more information www.HaitiPriorise.com