1. UNCTAD UNDP Lessons Learning Workshop Reviving Trade & Investment Khalil Hamdani Learning from Experience for Afghanistan

2. UNCTAD UNDP Lessons Learning Workshop Trade and Investment  Trade is essential for economic revival Import of essential goods and services. Exports restore incomes and livelihoods  Investment can also contribute Not just capital but technology and skills  But investment is not a substitute for ODA

3. UNCTAD UNDP Lessons Learning Workshop Trade and Investment  Trade revives earlier, easier than investment  Imports revive earlier than exports Imports are driven by demand Exports depend on supply capacity, which takes time to restore and needs investment  Primary exports and services revive easier than manufactures

4. UNCTAD UNDP Lessons Learning Workshop Trade and Investment  Actions to revive trade and investment must begin now, even though positive impacts may not be felt immediately  Failure to initiate policy actions can have immediate negative impacts Import bottlenecks, rent-seeking behaviour among enterprises and retrenchment of corruption

5. UNCTAD UNDP Lessons Learning Workshop Trade: Immediate Priorities  Formulate trade policy Import regime, regulatory framework  Establish trade procedures and institutions Import/export, insurance, payments, customs Transit arrangements  Rebuild transport network Roads, rail, airports and inland ports

6. UNCTAD UNDP Lessons Learning Workshop Trade: Medium-term Priorities  Trade policy/negotiations WTO accesion, bilateral agreements, Integrated Framework for LDCs  Strengthen institutions covering all aspects of trade efficiency/management and logistics  Trade faciliation (information, marketing, credit, SME support)

7. UNCTAD UNDP Lessons Learning Workshop Trade Strategy  Turn handicap of being land-locked into an asset of being an efficient transit location between Central Asia, South Asia and Indian Ocean  Activate Trade and Transit Framework Ageement Transit fees as much as $500 million per year  Establish first-class transit arrangements  Improve infrastructure Pipeline royalties estimated at $300 million

8. UNCTAD UNDP Lessons Learning Workshop Successful Experience  Trade policy formulation and implementation requires: Government leadership Institution building Involvement of all actors trade and other ministries, business, civil society

9. UNCTAD UNDP Lessons Learning Workshop Risks  Donor coordination difficult due to conflict between development objectives and commercial interests Solution: Integrated Framework Added safeguard: involve civil society

10. UNCTAD UNDP Lessons Learning Workshop Investment: Immediate Priorities Welcoming attitude Prepare policy statement  National regulatory framework Update Investment Law of 1967 and 1974 Consider Mining Act  Institutional arrangements Re-establish Investment Promotion Department

11. UNCTAD UNDP Lessons Learning Workshop Regulatory Framework  Allow ease of entry  Provide adequate standards of treatment  Grant investors legal protection and guarantees against non-commercial risks  Accede to international instruments at the bilateral or multilateral levels

12. UNCTAD UNDP Lessons Learning Workshop Main Areas of Promotion  Privatization  BOTs (build, operate, transfer)  Support services to small enterprises Hundreds of SMEs in past years  Target former investors (hotels, textile, energy)  Target expatriates

13. UNCTAD UNDP Lessons Learning Workshop  The greater the linkages between foreign affiliates and local enterprises and public institutions, the greater the spillovers into the domestic economy Successful Experience