1 Europe and CIS Jacek Cukrowski AfT Team Leader, UNDP, Europe and the CIS Bratislava Regional Centre 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 Baku, 2 December 2010 Ministerial Conference Aid-for-Trade Roadmap for SPECA Baku, Azerbaijan, 1-2 December 2010

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

3 Background UNDP’s human development agenda and trade  Millennium Declaration Millennium Development Goals Millennium Development Goals  Human development  Human development and trade trade can be a powerful source of economic growth 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 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 the nature of resource allocation and social inclusion are important determinants of growth leading to poverty reduction and human development Europe and CIS

4 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 a framework prepared for cooperation with former Soviet republics promote stability and well-being promote stability and well-being Europe and CIS

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

6 Wider Europe: Aid for Trade for Central Asia, South Caucasus and Western CIS Project components Wider Europe: Aid for Trade for Central Asia, South Caucasus and Western CIS Project 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 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) Kazakhstan (Semey) Kyrgyzstan (Batken) Kyrgyzstan (Batken) Tajikistan (Khujand) Tajikistan (Khujand)  Component III  AfT Needs Assessments in South Caucasus and Western CIS Armenia, Georgia, Belarus, Ukraine, Moldova Armenia, Georgia, Belarus, Ukraine, Moldova Europe and CIS

7 Component II: AfT for Central Asia: Support to Economic Development along Trade Corridors Objectives  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 Europe and CIS

8 Component I: AfT Road Map in Central Asia: Identification of National and Regional AfT Priorities Component III: AfT Needs Assessments in South Caucasus and Western CIS Objectives  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 Europe and CIS

9 AfT Needs Assessments 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 Europe and CIS

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

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

12 AfT for Central Asia, South Caucasus and Western CIS: Phase II Outputs 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) Europe and CIS

13 AfT for Central Asia, South Caucasus and Western CIS: Phase II Component I  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 Europe and CIS Support to economic development along trade corridors linking countries of Central Asia, South Caucasus and Western CIS with key markets for their products

14 AfT for Central Asia, South Caucasus and Western CIS: Phase II Component II  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 Europe and CIS Trade development: Technical assistance for a better use of trade opportunities

15 AfT for Central Asia, South Caucasus and Western CIS: Phase II Component III  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 Europe and CIS Understanding informalities and overcoming informal trade barriers faced by small enterprises and micro businesses, especially women entrepreneurs

16 AfT for Central Asia, South Caucasus and Western CIS: Phase II Component IV  Geographical coverage: Uzbekistan, regional activities  Concept: Facilitate exchange of the best practices, knowledge, spread of new technologies, and explore new trade channels fair trade 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 Europe and CIS Creating opportunities for small enterprises and micro- businesses to benefit from trade

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

18 Thank you… United Nations Development Programme, United Nations Development Programme, Europe and the Commonwealth of Independent States, Europe and the Commonwealth of Independent States, Bratislava Regional Centre Europe and CIS