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Aid for Trade: Promoting Trade Development and Poverty Reduction in Transition Economies
Chisinau, Mart 30, 2011
Europe and CIS
Jacek CukrowskiAfT Team Leader, UNDP, Europe and the CISBratislava Regional Centre
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Outline
Why Aid for Trade?
Key focus areas
Support to AfT initiative in transition economies
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Why Aid for Trade (AfT)?
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Trade can be an engine for growth that
lifts millions of people out of poverty
… but many developing countries face barriers that prevent them from benefiting from the world trading system
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Internal barriers – lack of knowledge,
excessive red tape, inadequate financing, poor infrastructure – can be very difficult for exporters to overcome
Targeting these “supply-side” constraints is what Aid for Trade is all about
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One objective....
Ensuring that developing countries can harness trade to raise living standard, improve health and education, protect the environment, alleviate poverty, and secure their development
Europe and CIS
Europe and CIS
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Key focus areas
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Trade policy and regulation
Building capacity to formulate trade policy participate in negotiations implement agreements
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Economic infrastructure
Investing in the infrastructure – roads, ports, telecommunications, energy networks – needed to link products to global markets
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Productive capacity building
Strengthening economic sectors – from improved testing laboratories to better supply chains – to increase competitiveness in export markets
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Adjustment assistance
Helping with any transition costs from liberalization preference erosion loss of fiscal revenue declining terms of trade
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AfT commitments reached USD 41.7 bn in 2008
2002-05 2006 2007 20080
5000
10000
15000
20000
25000
30000
35000
40000
45000
Trade-related AdjustmentBuilding Productive CapacityEconomic InfrastructureTrade Policy & Regulations
Source: OECD/CRS (millions of 2008 US$)4
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2008: + USD 5.3 bn
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AfT resource allocation Europe and CIS
Source: OECD
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Support to AfT initiative in transition economies
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AID FOR TRADE FOR CENTRAL ASIA, SOUTH CAUCASUS AND WESTERN CIS
Promoting Trade Development and Poverty Reductionin Partnership with Finland´s Wider Europe Initiative
Phase I: 2009-2011 (2.3 million USD)
Phase II: 2011-2013 (6.3 million USD)
Armenia, Azerbaijan, Belarus, Georgia, Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Ukraine, Uzbekistan
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Wider Europe: Aid for Trade for Central Asia, South Caucasus and Western CIS
Phase I: Project components
Component I Aid for Trade Road Map in Central Asia: Identification of National
and Regional AfT Priorities Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan Aid for Trade Conference (Ministerial Meeting) for SPECA countries hosted by
the Government of Azerbaijan (December, 2010) http://www.unece.org/trade/SPECA-AfTBaku2010
Component II Aid for Trade for Central Asia: Support to Economic Development
along Trade Corridors Kazakhstan (Semey) Kyrgyzstan (Batken) Tajikistan (Khujand)
Component III Aid for Trade Needs Assessments in South Caucasus and Western
CIS Armenia, Georgia, Belarus, Ukraine, Moldova
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AfT Needs Assessments
http://europeandcis.undp.org/poverty/trade/show/8BD35D19-F203-1EE9-B08767E3833D66C6
Methodology presented in regional guide: How to Conduct Trade Needs Assessment
Focus: Impact of trade on human development, living standards and poverty reduction
Purpose: Highlight capacity gaps and propose actions and technical assistance projects to overcome weaknesses…
Recommendations: Action Matrix
Role of UNDP: methodological support, facilitation of the process
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Key issues
Focus on the link between trade and human development
analyze an impact of trade on living standards and poverty reduction
consumer prices, job creation, budget revenues environment, gender equality, health, knowledge and
education, etc.
Identify gaps and develop an action matrixactions recommended, desired outcomes and target
indicators, timeline for completion of actions, agencies involved, required resources
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Thank you…
United Nations Development Programme, Europe and the Commonwealth of Independent States,
Bratislava Regional Centre http://europeandcis.undp.org
Europe and CIS