REGIONAL WORKSHOP

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REGIONAL WORKSHOP
TRADE CAPACITY BUILDING AND PRIVATE SECTOR
DEVELOPMENT IN ASIA

• Lessons from Experience With Donor Support

Dr. Lili Sisombat, MPDF December 2 3,
2003 Phnom Penh, Cambodia
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Mekong Private Sector Development Facility (MPDF)

• Multi-donor program of ADB, Australia, Canada,
  Finland, France, IFC, Japan, the Netherlands, New
  Zealand, Norway, Sweden, Switzerland, and the UK
• Managed by International Finance Corporation
  (IFC), private sector arm of the World Bank Group
• Promotes development of domestic privately-owned
  small and medium enterprises (SMEs) in Cambodia,
  Vietnam, and Lao PDR

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• How does MPDF work?

• Directly provides technical assistance (not cash)
  to SMEs.
• Develops SME support services.
• Promotes a better business enabling environment.

• Rationale

• To generate income and create jobs, sustainably.
• Part of broader poverty reduction program.

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Three Roles for Donors

• 1. Trade policy and regulations
• Catalyst for improving the Business Environment
• Establish/support mechanisms for public-private
  sector dialogue (IFC PSF)
• Strengthen govt. capacity as enabler of PSD
  (JICA,WBG)
• Support research of constraints and
  identification of recommendations
• based on best practices (Many)
• Support improvement of infrastructure, legal and
  judicial reform (ADB, JICA,WBG, EU)

• 2. Infrastructure
• ADB, Unido, Jica / Government of Japan (EPZ,
  Growth Corridor), UNDP

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• 3. Trade Development Projects
• Support development of business service providers
• Support capacity building of business
  associations (USAID, MPDF, Asia Foundation),
  business consulting firms (MPDF), business
  training institutions (GTZ, MPDF)
• Support development of relevant information
  flows in private and public sector (ITC, OECD)
• Build capacity of financial sector (AFD, ADB,
  MPDF)
• Build capacity of SMEs directly
• Linkage programs around larger businesses
• Support clusters of SMEs in key sub-sectors
  (USAID)
• Direct technical assistance (MPDF)

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Principles of Interventions

• Follow strategy for PSD set by Government
• Build local partners, to achieve sustainable
  outcomes
• Demand-led, not supply-driven
• Coordinate/ build on other related activities
• Donors must coordinate with each other
• Do not subsidise market transactions/dont
  distort the market

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Trade Promotion ActivitiesBy MPDF

• Hotels Associations in Cambodia linking with the
  region (online booking)
• Certification (Garment, seafood, etc)
• Handicraft Associations (e-trade)
• Trade Finance and export guides
• SME Finance