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Europe and CIS

Europe and CIS. Ministerial Conference Aid-for-Trade Roadmap for SPECA Baku, Azerbaijan, 1-2 December 2010. AID FOR TRADE FOR CENTRAL ASIA, SOUTH CAUCASUS AND WESTERN CIS Promoting Trade Development and Poverty Reduction in Partnership with Finland´s Wider Europe Initiative. Jacek Cukrowski

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Europe and CIS

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  1. Europe and CIS Ministerial Conference Aid-for-Trade Roadmap for SPECA Baku, Azerbaijan, 1-2 December 2010 AID FOR TRADE FOR CENTRAL ASIA, SOUTH CAUCASUS AND WESTERN CIS Promoting Trade Development and Poverty Reduction in Partnership with Finland´s Wider Europe Initiative Jacek Cukrowski AfT Team Leader, UNDP, Europe and the CIS Bratislava Regional Centre Baku, 2 December 2010

  2. Europe and CIS Outline • Background • Wider Europe: AfT in Central Asia, South Caucasus and Western CIS • A framework • Project components • Implementation • Long term partnership with Finland´s Wider Europe Initiative • Phase II of the regional project

  3. Europe and CIS Background UNDP’s human development agenda and trade • Millennium Declaration • Millennium Development Goals • Human development • Human development and trade • trade can be a powerful source of economic growth • liberalizing trade does not ensure poverty reduction or human development, nor does it guarantee immediate economic growth • the nature of resource allocation and social inclusion are important determinants of growth leading to poverty reduction and human development

  4. Europe and CIS Background Finland’s development priorities • The EU Strategy on Aid for Trade (2007) • Finland’s Aid for Trade Action Plan (2008–2011) • The Wider Europe Initiative (2008) • a framework prepared for cooperation with former Soviet republics • promote stability and well-being

  5. Europe and CIS Wider Europe: Aid for Trade for Central Asia, South Caucasus and Western CISImplementation framework • Time frame • 18 months: August 2009-January 2011 • Budget • 1.6 million Euro • Implemented in 11 countries • New Independent States (without Russian Federation)

  6. Europe and CIS Wider Europe: Aid for Trade for Central Asia, South Caucasus and Western CISProject components • Component I • AfT Road Map in Central Asia: Identification of National and Regional AfT Priorities • Aid for Trade Conference (Ministerial Meeting) for SPECA countries proposed by the Government of Azerbaijan • Component II • AfT for Central Asia: Support to Economic Development along Trade Corridors • Kazakhstan (Semey) • Kyrgyzstan (Batken) • Tajikistan (Khujand) • Component III • AfT Needs Assessments in South Caucasus and Western CIS • Armenia, Georgia, Belarus, Ukraine, Moldova

  7. Europe and CIS Component II: AfT for Central Asia: Support to Economic Development along Trade CorridorsObjectives • Help SME, farmers and associations of farmers to gain from the opportunities the new transport infrastructure will bring to the regions and local communities placed along transport corridors • Identify products with the biggest trade potential, improve the understanding of the markets, match potential trading partners • Improve the regions competitiveness, expanding trade and alleviating poverty

  8. Europe and CIS Component I: AfT Road Map in Central Asia: Identification of National and Regional AfT PrioritiesComponent III: AfT Needs Assessments in South Caucasus and Western CISObjectives • Identification of capacity gaps (institutional, human, etc.) and technical assistance needs • Development of policy recommendations and action matrix for potential donor assistance • Development of concrete project proposals for AfT interventions

  9. Europe and CIS AfT Needs Assessments • 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 http://europeandcis.undp.org/poverty/trade/show/8BD35D19-F203-1EE9-B08767E3833D66C6

  10. Europe and CIS Background for project development • National AfT Needs Assessments: - Azerbaijan - Kazakhstan - Kyrgyzstan - Tajikistan - Turkmenistan - Uzbekistan

  11. Europe and CIS Long term partnership with Finland´s Wider Europe InitiativeAfT for Central Asia, South Caucasus and Western CIS:Phase II • Time frame: 36 months (2011-2013) • Geographical coverage • New Independent States (without Russian Federation) • Indicative budget: 4.6 million Euro • Current status • project proposal submitted (September, 2010)

  12. Europe and CIS AfT for Central Asia, South Caucasus and Western CIS: Phase IIOutputs of the project • Increased economic development along trade corridors linking the countries of Central Asia, South Caucasus and Western CIS with key markets for their products (Component I) • Increased use of trade opportunities through technical assistance (Component II) • Better understanding of informalities and enhanced capacities to overcome informal trade barriers faced by small enterprises and micro businesses (Component III) • Enhanced opportunities for small enterprises and micro-businesses to benefit from trade (Component IV)

  13. Europe and CIS AfT for Central Asia, South Caucasus and Western CIS: Phase IIComponent I Support to economic development along trade corridors linking countries of Central Asia, South Caucasus and Western CIS with key markets for their products • Geographical coverage: selected areas in Armenia, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan • Concept: Build on experience gained during the implementation of phase I in selected regions located along the CAREC trade corridors • Objective: support the development of trade related capacities and help SME in remote urban and rural areas, as well as farmers and farmers’ associations to gain from the opportunities that expanded trade possibilities may bring to the regions and local communities

  14. Europe and CIS AfT for Central Asia, South Caucasus and Western CIS: Phase IIComponent II Trade development: Technical assistance for a better use of trade opportunities • Geographical coverage: Belarus, Moldova, Ukraine, Turkmenistan • Concept: Implement country tailored interventions to build trade support capacities, optimize institutions, and support exporters • Objective:Facilitate international trade on the national and local level by supporting the development of strategic documents to develop trade, optimizing the institutional framework, and providing technical assistance to exporters

  15. Europe and CIS AfT for Central Asia, South Caucasus and Western CIS: Phase IIComponent III Understanding informalities and overcoming informal trade barriers faced by small enterprises and micro businesses, especially women entrepreneurs • Geographical coverage:Azerbaijan, Georgia, Kyrgyzstan, Moldova, regional activities • Concept: Facilitate knowledge exchange and support regional debate on selected issues related to international trade • Objective:Articulate national and sub-regional AfT issues with special reference to the challenges faced by SME operating in local areas, shadow economic activities and informal cross border trade, gender inequality and environment

  16. Europe and CIS AfT for Central Asia, South Caucasus and Western CIS: Phase IIComponent IV Creating opportunities for small enterprises and micro-businesses to benefit from trade • Geographical coverage:Uzbekistan, regional activities • Concept: Facilitate exchange of the best practices, knowledge, spread of new technologies, and explore new trade channels • fair trade • Objective:Create opportunities for micro-businesses to gain from international trade and improve knowledge regarding the application of new technologies, and tools for better market access

  17. Europe and CIS AfT for Central Asia, South Caucasus and Western CIS: Phase IIManagement arrangements • UNDP Bratislava Regional Centre for Europe and the CIS • UNDP project implementation procedures • Quality assurance • Financial management • Consolidated reporting • Country presence • Support for UNDP offices in all the countries of the region • Project components on national and local level • Synergies and coordinated regional activities

  18. Europe and CIS Thank you… • Jacek.Cukrowski@undp.org • United Nations Development Programme, Europe and the Commonwealth of Independent States, Bratislava Regional Centre • http://europeandcis.undp.org

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