The Ministry of Economy of the Republic of Latvia UNDP Latvia UNCTAD and ITC, Geneva Workshop on the

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The Ministry of Economy of the Republic of
LatviaUNDP LatviaUNCTAD and ITC, Geneva
Workshop on the Development of the Latvian
Export Promotion Policy

• Gabriele Köhler
• UNDP Resident Representative
• Riga Business School, 11 Dec. 2003

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UNDPs rationale

• Overarching objective human development
• Requires
• generating additional and better employment to
  overcome poverty
• evening out regional disparities in exports,
  investment, incomes
• addressing the current account deficit

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The backdrop for Latvias export policy
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Projected breakdown of world exports in 2020 and
market share gain/loss on the period 2000-2020
by major regions
SourceIFRI
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Latvia Increase in world market share vs.
international demand
Underachievers
Champions
Losers in declining markets
Achievers in Adversity
Wood rough
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Latvia Trade Performance Index
Ranking of international competitiveness in terms
of static indicators (Current Index) and the
change in world market share (percentage points)
as well as other dynamic indicators (Change
Index) Position 1 in the ranking refers to the
best performance out of 184 countries
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Objectives underlaying trade policy
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• Creating the knowledge economy
• Diversifying export products and destinations
• Enhancing value and value added of exports
• re-industrialisation of traditional (export)
  products
• development of post-industrial sectors
• creating new products
• upgrading and diversifying trade in services
• Generating investment
• domestic
• foreign
• Supporting the business environment
• strategic business partnerships
• within Latvia
• in the Baltics
• in the EU
• internationally

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Players in economic development

• The UN system
• UN agencies as advisors and sounding board
  e.g. UNCTAD, ITC, UN-ECE, UNIDO, ILO, UNEP
• Civil society
• SME associations
• Industrial organisations
• Employers and Trade Union representations

• Government
• Cabinet of Ministers
• Ministry of Economy
• Deputy Prime Ministers Office
• Secretariat for Promotion of Foreign Economic
  Relations (MFA)
• Ministry of Finance
• Ministry of Regional Development
• Union of Local Governments
• Regional Development Agencies
• Latvia Development Agency

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Country Cooperation Framework between UNDP and
Latvias Government Adding economic
development?

• Introduction to the
• brainstorming session

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Brainstorming session

• Capacity building for fine-tuning economic policy
  in the areas of trade and investment priorities
  from a national and sub-national perspective

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Government-UNDP basis of work

• Second Country Cooperation Framework - Agreement
  between the Government and UNDP (2001-2004)

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Reasons for CCF extension

• Current CCF ends in 2004
• Latvia joining the EU
• political, social and economic impact
• changing Government priorities
• changing composition of public funds

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The brainstorming agenda
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I. Define the main themes

• The trade and investment nexus
• Trade in general
• Exports of goods and services
• Services trade only
• Or other

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II. Identify main addressees 

• Central institutions
• Regional development agencies
• Professional associations (Chamber of Commerce,
  Employers Confederation, SME and sectoral
  associations)
• Other?

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III. Identify synergies and partners for such
project

• Expertise in Latvia
• UN-based expertise

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IV. Define the scope

• Institutional capacity building for policy
  development and professional training
• Promotional and networking measures
• Other?