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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 Finlands
Wider Europe Initiative
Jacek Cukrowski AfT Team Leader, UNDP, Europe
and the CIS Bratislava Regional Centre
Baku, 2 December 2010
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Outline

• Background
• Wider Europe AfT in Central Asia, South Caucasus
  and Western CIS
• A framework
• Project components
• Implementation
• Long term partnership with Finlands Wider Europe
  Initiative
• Phase II of the regional project

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Background UNDPs 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

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Background Finlands development priorities

• The EU Strategy on Aid for Trade (2007)
• Finlands Aid for Trade Action Plan (20082011)
• The Wider Europe Initiative (2008)
• a framework prepared for cooperation with former
  Soviet republics
• promote stability and well-being

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Wider Europe Aid for Trade for Central Asia,
South Caucasus and Western CIS Implementation
framework

• Time frame
• 18 months August 2009-January 2011
• Budget
• 1.6 million Euro
• Implemented in 11 countries
• New Independent States (without Russian
  Federation)

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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
• 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

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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

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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

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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/8B
D35D19-F203-1EE9-B08767E3833D66C6
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Background for project development

• National AfT Needs Assessments
• - Azerbaijan
• - Kazakhstan
• - Kyrgyzstan
• - Tajikistan
• - Turkmenistan
• - Uzbekistan

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Long term partnership with Finlands Wider Europe
Initiative AfT 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)

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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)

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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

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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

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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

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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

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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

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Thank you

• Jacek.Cukrowski_at_undp.org

• United Nations Development Programme,
• Europe and the Commonwealth of Independent
  States,
• Bratislava Regional Centre
• http//europeandcis.undp.org