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Example of Best Practices . ...... Business Voice magazine / Electronic newsletter: The ABR's Electronic .... best pract
   

   

African  Business  Roundtable                

ABR  HANDBOOK  ON  BUSINESS  

   

FACILITATION  

   

 

 

     

2014    

Conformity  Standards   Technology   Access  to  Markets  

Contents   Introduction  African  Business  Round  Table  .........................................................................................................  1   CONFORMITY  STANDARDS  ..................................................................................................................................  5   Section  1:  Conformity  Standards  and  Trade  for  Development  ........................................................................  6   What  is  a  standard?  ........................................................................................................................................  9   Popular  standards  .......................................................................................................................................  9   Attributes  of  a  Standard  .................................................................................................................................  9   African  Regional  Organization  for  Standardization  ......................................................................................  10   National  Standards  Bodies  ............................................................................................................................  10   Standards  as  Means  for  Competitiveness  ....................................................................................................  11   Benefits  of  International  Standards  .............................................................................................................  12   Benefits  of  Standardization  ..........................................................................................................................  12   Standards  as  Tool  for  Trade  ..........................................................................................................................  13   For  Business  ...............................................................................................................................................  13   For  Society  .................................................................................................................................................  14   For  Government  ........................................................................................................................................  14   Principles  of  Effective  Application  of  Standards  ..........................................................................................  15   TECHNOLOGY  AND  DEVELOPMENT  ...................................................................................................................  16   Section  2:  Technology  and  Development  ......................................................................................................  17   Technology  as  an  Instrument  for  Development  ...........................................................................................  18   Meeting  entrepreneurial  needs  ................................................................................................................  18   Example  of  Best  Practices  .............................................................................................................................  19   Box  4:  Business  Links,  Investment  and  Banking  .......................................................................................  19   Box  5:  Kenya’s  Mobile  Revolution  ............................................................................................................  20   ACCESS  TO  MARKET  ...........................................................................................................................................  22   Section  3:  Market  Access  ...............................................................................................................................  23   Messages  on  Market  Access  .........................................................................................................................  24   Challenges  Micro-­‐entrepreneurs  face  in  Growing  Their  Enterprises  ...........................................................  24   Table  1:  KNOWLEDGE  OF  THE  INDUSTRY  .................................................................................................  25   Strategic  Market  Access  Plans  ......................................................................................................................  26   Market  Planning  Cycle  ..................................................................................................................................  27   Stage  1.  Assessment  of  Opportunities  ......................................................................................................  27  

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Stage  2:  Strategies  .....................................................................................................................................  28   Stage  3:  Implementation  ...........................................................................................................................  29   Stage  4:  Measure  .......................................................................................................................................  29   Closing  the  Plan  .............................................................................................................................................  30   Strategic  Tips  for  Market  Access  Plans  .........................................................................................................  31   Current  Issues  that  Face  Market  Access  in  the  Region  ................................................................................  32   Market  Access  Mapping  ................................................................................................................................  33   Patterns  of  Protection  ...................................................................................................................................  34   Contingent  Protection  ...................................................................................................................................  37   Policy  Implications  ........................................................................................................................................  39   Opportunities  for  Engagement  with  Global  Market  ....................................................................................  41   Trade  Preferences  .........................................................................................................................................  41   Standards  and  Non-­‐Tariff  Barriers  to  Trade  .................................................................................................  43   Specific  Product  market  ................................................................................................................................  45   Subsidies  and  Their  Impact  ...........................................................................................................................  45   Trade  Facilitation  ...........................................................................................................................................  46   Technology  and  Trade  ...................................................................................................................................  48   Impact  ............................................................................................................................................................  49   Other  Aspects  Related  to  Trade  and  Technology  .........................................................................................  49   USING  MEDIA  AND  INFORMATION  TECHNOLOGY  .............................................................................................  51   Section  4:    Using  Media  and  Information  Technology  ...................................................................................  52   Engaging  Media  for  Advocacy  .......................................................................................................................  53   Massages  .......................................................................................................................................................  54   Follow-­‐up  and  Maintaining  Contacts  ............................................................................................................  54   Telling  the  Case  Stories  .................................................................................................................................  54   Pragmatism  ...................................................................................................................................................  54   Targeted  Advocacy  ........................................................................................................................................  54   Creative  Presentations  ..................................................................................................................................  54   Press  Releases  and  Kits  .................................................................................................................................  55   Harnessing  Regional  and  International  Conferences  ...................................................................................  55   Training  on  Advocacy  ....................................................................................................................................  56  

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Digital  Progress  and  Changing  Dynamics  ......................................................................................................  56   TOOLS  AND  SELF-­‐AWARENESS  RESOURCES  .......................................................................................................  57   Section  5:  Tools  and  Self-­‐Awareness  Resources  ............................................................................................  58   ABR  Mission  ...................................................................................................................................................  58   ABR  Core  Values  ............................................................................................................................................  59   ABR  Messages  on  Business  ...........................................................................................................................  59   Box  15:  ABR  and  Youth  Entrepreneurship  Program  .................................................................................  60   Elements  of  Market  Planning  ........................................................................................................................  60   Awareness  Creation  on  ABR  Communication  Strategy  ................................................................................  60   Using  ABR  Partner  Map  .................................................................................................................................  61   Map  of  Partners  used  for  strategic  planning  to  expand  market  ..................................................................  62   Determination  of  how  ABR  is  perceived  among  the  Partners  .....................................................................  63   ABR  Quantitative  and  Qualitative  Data  ........................................................................................................  63   Description  of  ABR  in  quantitative  terms  ..................................................................................................  63   Description  of  ABR  in  qualitative  terms  .....................................................................................................  63   Quantitative  and  Qualitative  data  used  to  promote  Market  Access  .........................................................  64   Crafting  Effective  ABR  Business  Messages  ...................................................................................................  64   ABR  Reports  as  Marketing  Instrument  .........................................................................................................  64   Monitoring  and  Evaluation  ................................................................................................................................  65   Section  6:  Monitoring  and  Evaluation  ............................................................................................................  66   Mechanism  for  ABR  M&E  ..............................................................................................................................  66   Monitoring  .....................................................................................................................................................  67   Evaluation  ......................................................................................................................................................  67   Conclusion  ..........................................................................................................................................................  70   Conformity  Standards  ...................................................................................................................................  71   Technology  ....................................................................................................................................................  71   Market  Access  ...............................................................................................................................................  71   Reference  ..........................................................................................................................................................  72  

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Acronyms    

 

ABR  

African  Business  Roundtable  

ACBF  

African  Capacity  Building  Foundation  

ACT  

Awareness  Creation  Team  

AfDB  

African  Development  Bank  

AGOA  

African  Growth  and  Opportunity  Act  

ARSO  

African  Regional  Organization  for  Standardization  

ASME  

American  Association  of  Mechanical  Engineers  

ASTM  

American  Association  for  Testing  Materials  

ATM  

Access  to  Market  

AVE  

Valorem  Tariff  Equivalent    

BUSA  

Business  Unity  South  Africa  

CAB  

Conformity  Association  Bodies  

CASCO  

Conformity  Assessment  Standards  

CEAC  

Chinese  European  Arbitration  Centre  

CEO  

Chief  Executive  Officer  

COMESA  

Common  Market  for  Eastern  and  Southern  Africa  

COPOLCO  

Committee  on  Consumer  Policy  

DVD  

Digital  Versatile/Video  Display  

ECOWAS  

Economic  Commission  of  West  African  States  

EU  

European  Union  

FCT  

Federal  Capital  Territory  

FDI  

Foreign  Direct  Investment  

GATT  

General  Agreement  on  Tariffs  and  Trade  

GSP  

General  System  of  Preferences  

HR  

Human  Resources  

IEC  

International  Electro-­‐technical  Commission  

 

IGAD  

Inter-­‐governmental  Authority  for  Development  

IPA  

Investment  Promotion  Agency  

ISO  

International  Standardization  Organization  

ITC  

International  Trade  Commission  

LDC  

Least  Developed  Countries  

M&E  

Monitoring  and  Evaluation  

NBS  

National  Bureau  of  Standards  

NEPAD  

New  Partnership  for  Africa's  Development    

NGO  

Non-­‐Governmental  Organization  

NTM  

Non-­‐Tariff  Measures  

OECD  

Overseas  Economic  Cooperation  and  development  

SADC  

South  Africa  Development  Community  

SAE  

Society  of  Automotive  Engineers  

SAGE  

Students  for  the  Advancement  of  Global  Entrepreneurship  

SME  

Small  Medium  Enterprise  

SPS  

Sanitary  and  Phytosanitary  

TBT  

Technical  barrier  to  Trade  

TRQ  

Tariff  Rate  Quotas  

UNECA  

United  Nations  Economic  Commission  for  Africa  

UNECOSOC   United  Nations  Economic  and  Social  Council   WEF  

World  Economic  Forum  

WTO  

World  Trade  Organization  

 

 

       

 

 

Foreword   This   Handbook   is   developed   to   serve   the   members   on   ABR,   business   partners,   private   sector   and  public  entities  can  benefit  from  all  or  part  of  the  content  of  the  Handbook.  It  provides  basic   understanding   of   how   best   conformity   to   standards,   technology   and   accesses   to   market   can   be   harnessed.   The   thrust   of   the   Handbook   is   that   ABR   takes   the   lead   role   in   creation   and   carrying   out   initiatives   for   their   own   solutions.   The   solutions   are   then   shared   in   advancing   the   regional   capacity   to   achieve   higher   productivity.   ARB,   through   advocacy   takes   on   as   many   different   forms  of  emerging  solutions,  which  are  packaged  for  learning  and  information,  exchange.     The  Handbook  helps  to  provide  different  facet  of  standards,  technology  and  market  access  that   would  improve  the  way  things  can  be  done  better.  It  takes  into  account  the  differences  in  the   trade   the   members   may   be   involved   in,   the   national   and   regional   diversities   and   offering   examples  of  applications  of  standards,  technologies  and  market  access  in  different  situations.   The   use   of   the   Handbook   aims   to   spark   the   members’   creativity,   empower   them   to   innovate   and   propel   their   solutions   for   achieving   high   productivity   and   profitability   in   their   venture.   It   navigates   the   reader   through   understanding   conformity   standards,   harnessing   technology   for   development  and  providing  insights  on  capturing  market  share  at  all  levels.     The   issue   of   advocacy   is   stressed   and   the   use   of   media   for   expanding   market   outreach   and   information   sharing   is   emphasized.   Tools   to   help   members   are   highlighted   in   as   handbook   as   way  to  provide  easy  reference  to  resources  for  market  access  and  outreach.    

         

 

ABR  HANDBOOK  ON   BUSINESS  FACILITATION   Conformity  Standards,  Technology,  Access  to  Markets  

Introduction  African  Business  Round  Table    

Background   African   Business   Roundtable   is   an   NGO   in   special   consultative   status   with   the   Economic   and   Social  Council  of  the  United  Nations,  promoting  private  sector  development  in  Africa.    

Vision  Statement       To  become  the  globally  preferred  partner  for  facilitating  the  sustainable  development  of  Africa’s   private  sector.  

Mission  Statement     To   promote,   via   various   initiatives   throughout   the   continent   and   beyond,   the   development   of   Africa’s   private   sector,   particularly   small   medium   enterprises   (SME’s),   ensuring   they   grow   and   become  dynamic,  globally  competitive  and  sustainable.  

Key  Objectives     § §

§ §

To   expand   the   role   of   private   enterprise   in   Africa   and   to   create   an   environment   conducive  to  economic  growth  and  prosperity   To  provide  assistance  to  existing  enterprises  and  to  serve  as  a  forum  for  business  leaders   to   study   issues,   exchange   ideas   and   develop   positions   and   solutions   to   problems   of   mutual  concern     To   serve   as   a   forum   for   its   members,   promote   the   establishment   of   business   relations   among  them  and  encourage  the  formation  of  joint  ventures   To  promote  wider  awareness  of  Africa’s  business,  investment  and  trade  potential    

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§

§

To   advise   and   encourage   governments   and   other   national,   regional   or   international   institutions,   to   adopt   laws,   policies,   regulations   and   procedures   that   enhance   business   growth,  especially  in  SMEs.   To   co-­‐operate   with   governments,   the   public   sector   and   other   organisations   in   Africa   and   internationally   with   a   view   to   advocating   elimination   of   impediments   to   investment   and   trade  

  To  build  and  maintain  a  positive  image  and  to  enhance  the  good  reputation  and  effectiveness  of   African  entrepreneurs  by  providing  them  with:   § § § § § §

 

Training   and   professional   opportunities   (including   expert   research   and   appropriate   technology).   Advice  on  potential  sources  of  capital  and  assistance  in  resource  mobilisation.   Encouraging   indigenous   African   enterprise   in   the   processing   and   marketing   of   raw   materials  and  agriculture  products  and  in  the  various  service  sectors.   Promoting    amicable  settlement  of  business  disputes  through  mediation  and  arbitration   Serving  as  an  instrument  for  healthy  dialogue  with  governments  and  the  public  sector.   Enhancing   co-­‐operation   with   African   regional   and   sub-­‐regional   financial   or   economic   organisations  for  the  integration  of  the  economies  of  Africa  and  assist  businessmen  and   business  women  to  play  a  constructive  role  in  building  a  more  prosperous  Africa.    

ABR  Strategy  and  Awareness   ABR   is   dedicated   to   achieving   an   African   private   sector   led   regional   economic   integration   and   sustainable   economic   development   of   Africa.   It   is   based   on   good   corporate   governance   and   competitively   open   market   systems.   ABR   focuses   on   sustained   awareness   creation   on   the   need   to   strengthening   the   African   private   sector,   promoting   intra-­‐African   trade   and   investment,   and   attracting   foreign   investment   into   Africa   to   transform   the   continent   from   ‘aid-­‐receiving’   to   private   sector   partnerships  in  economic  development.  

ABR  Business  Services  and  Offers   The   ABR   offers   members   a   broad   range   of   products   and   services,   free   of   charge   or   at   a   discounted  rate,  designed  to  benefit  your  business.  These  include:       Business   guides:   Free  monthly  Business  guides  giving  expert  advice,  opinions  and  experiences   from  top  business  professionals.    

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Business   surveys:   Member   consultations,   business   surveys   and   access   to   our   subscription   of   relevant   publications   that   provide   you   with   the   latest   economic   trends   and   short-­‐term   prospects.     Business   Voice   magazine   /   Electronic   newsletter:   The   ABR’s   Electronic   newsletter   including   features   on   leading   companies   and   business   executives.   Must-­‐read   sections   from   leading   business  writers  cover  business  trends  and  current  ABR  policy  thinking.     ABR   Directory:  A  free  entry  in  the  ABR  Directory  (our  business  listings  guide),  in  print  and  on   the  web.  Promote  your  company  to  over  2,000,000  key  contacts  all  over  the  world.       Economic   and   Business   outlook:   Exclusive   to   members,   the   ABR's   subscription   to   weekly,   monthly,  and  quarterly  economic  and  business  outlooks  and  other  financial  and  trade  journals   and  magazines,  gives  up-­‐to-­‐the-­‐minute,  authoritative  commentary  and  analysis  of  the  national,   regional  and  Africa  continental  economy.       Email  updates:  ABR  has  exclusive  regular  email  bulletins  delivered  to  your  desktop  to  keep  you   in   touch   with   issues   relevant   to   your   industry,   trade   and   investment   climate.   Our   range   of   updates   cover   key   business   sectors,   e-­‐business,   trade   opportunities,   procurement   opportunities,   the   environment,   health   and   safety,   enterprise,   finance,   HR   and   employment,   infrastructure,  and  public  services.       Events:   Our   nationwide,   regional,   continental   and   international   programme   of   events   keeps   members  in  touch  with  business  developments  in  the  Africa  and  abroad,  and  is  a  great  way  to   widen  your  business  contacts.       Policy  reports:  Authoritative  reports  and  briefings  on  a  comprehensive  range  of  business-­‐critical   topics   will   keep   you   up   to   date   with   the   policy   areas   directly   affecting   you.   These   could   be   commissioned  as  the  need  arises  but  can  also  be  available  in  the  policy  magazines  to  which  ABR   has  subscribed.     Sponsorship   and   Partnership   opportunities:  Contact  ABR  Secretariat  to  discover  the  benefits  of   working  with  ABR  on  events,  publishing,  awards  and  online  projects.     Trade,   Investment   Promotion,   Exhibitions:   This   could   be   arranged   in   Africa   or   in   overseas   countries   to   encourage   cross-­‐border   investment   and   promotion   of   products   and   services,   in   conjunction  with  IPAs.   ABR  Handbook  on  Business  Facilitation|  3  

 

Structure  of  the  Handbook   The  Handbook  is  not  just  for  the  members  on  ABR.  Any  business  partners,  private  sector  and   public   entities   can   benefit   from   all   or   part   of   the   content   of   the   Handbook.   The   Handbook   provides   basic   understanding   of   how   best   conformity   to   standards,   technology   and   accesses   to   market  can  be  harnessed.   ABR   promotes   the   principle   that   the   business   entities   that   are   members   of   the   roundtable   take   lead   role   in   creation   and   carrying   out   their   own   solutions.   These   solutions   are   then   shared   in   advancing  the  regional  capacity  to  achieve  higher  productivity.  ARB,  through  advocacy  takes  on   as   many   different   forms   of   emerging   solutions,   which   are   packaged   for   learning   and   information,  exchange.     The   Handbook   simply   helps   to   provide   different   facet   of   standards,   technology   and   market   access   that   would   improve   the   way   things   can   be   done   better.   It   takes   into   account   the   differences  in  the  trade  the  members  may  be  involved  in,  the  national  and  regional  diversities   and  offering  examples  of  applications  of  standards,  technologies  and  market  access  in  different   situations.   The   use   of   the   Handbook   aims   to   spark   the   members’   creativity,   empower   them   to   innovate   and  propel  their  solutions  for  achieving  high  productivity  and  profitability  in  their  venture.  The   Handbook   navigates   the   reader   through   understanding   conformity   standards,   harnessing   technology  for  development  and  providing  insights  on  capturing  market  share  at  all  levels.  The   issue   of   advocacy   is   stressed   and   use   of   media   for   expanding   market   outreach   and   information   sharing  is  emphasized.  Tools  to  help  members  are  highlighted  in  Section  5.  The  importance  of   monitoring  and  evaluation  as  a  means  for  performance  assessment  and  knowledge  generation   is  on  Section  6.   The  matrix  below  provides  the  Handbook  icon  topic  that  highlights  the  key  messages    

 

1   Understanding  issues  on  standards,   Technology,  and  Access  to  Markets   2   Advocacy  and  media   3   Tools  to  help  the  members   4   Knowledge  creation  through  monitoring  and   evaluation  

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1

                 

CONFORMITY   STANDARDS  

           

     

• • • • • • • • • •

Background   What  is  a  Standard   Popular  Standards   Attributes  of  Standards   African  Regional  Organization  for   Standards   National  Standards   Standards  as  Means  for  Competitiveness   Benefits  of  Standardization   Standards  as  Tool  for  Trade     Principles  of  Effective  Application  of   Standards  

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Section  1:  Conformity  Standards  and  Trade  for   Development    

Background   The  development  of  standardization  as  an  engineering  activity  was  pioneered  by  Eli  Whitney,   who   in   1793   invented   the   cotton   gin,   a   machine   for   cleaning   cotton   fibre.   Whitney   later   introduced   the   production   of   interchangeable   components   for   the   manufacture   of   guns.   Standardization  of  screw  threads  by  Sir  Joseph  Whitworth  dates  back  to  1841.  Other  instances   of   early   standardization   can   be   found   in   the   dawning   age   of   the   railway   industry,   as   the   establishment  of  a  standard  width  between  the  two  rails  on  the  railway  track,  the  manufacture   of   railway   couplings,   air   brakes   and   the   signalling   system   called   for   increasing   levels   of   systematized  work.     Mass   production   became   possible   through   standardization.   By   the   turn   of   the   19th   century,   standardization  was  already  recognised  in  industrialised  countries  as  a  powerful  tool  to  increase   productivity  through  inter-­‐changeability  and  reduction  of  variety.     The  early  part  of  the  20th  century  saw  the  establishment  of  several  standardisation  bodies  in   the   United   States   of   America   such   as   the   National   Bureau   of   Standards   (NBS),   the   Society   of   Automotive   Engineers   (SAE),   the   American   Society   for   Testing   and   Materials   (ASTM),   and   the   American   Society   of   Mechanical   Engineers   (ASME),   which   turned   standardisation   into   an   organized  and  ongoing  effort  for  industrial  applications.     By  1928,  national  standards  bodies  (NSBs)  had  been  established  in  16  industrialised  countries.   After  the  First  World  War,  standardization,  through  reduction  in  variety,  was  established  as  a   useful  management  tool  for  reducing  costs.  Some  three  decades  later,  seller  market  conditions,   which   prevailed   for   some   time   after   the   Second   World   War,   put   consumer   interest   in   jeopardy.   To  safeguard  this  interest  and  to  meet  the  rising  demand  for  standards  for  finished  products,   standardization   activities   increased   in   various   countries,   with   the   additional   support   and   involvement  of  government  and  industry.     With   increased   trade   among   industrialised   countries,   internationally   accepted   norms   or   standards   were   needed   to   support   this   development.   This   led   to   the   international   bodies   for   standardization,   such   as   the   International   Electro-­‐technical   Commission   (IEC)   in   1906   and   the   International  Organization  for  Standardization  (ISO)  in  1947.  

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  Following   the   colonial   era   in   Asia   and   Africa   and   accessorily   in   Latin   America,   factors   such   as   excess   demand   over   supply,   low   purchasing   power   and   problems   with   adherence   to   foreign   standards  led  to  the  establishment  of  NSBs.  In  developing  countries  and  in  those  countries  that   had  recently  gained  their  independence,  the  aim  of  these  standards  bodies  were  to  formulate   national   standards   to   suit   local   technologies,   materials   and   consumption   patterns.   Organised   standardization   has   now   become   an   important   element   of   infrastructure   needed   for   the   healthy  growth  of  industry  and  commerce  in  all  countries  of  the  world.     The  extensive  range  of  standards  and  guides  for  conformity  assessment  produced  jointly,  under   the   name   CASCO   standards,   by   ISO   (International   Organization   for   Standardization)   and   IEC   (International   Electro-­‐technical   Commission)   was   outlined,   together   with   their   ability   to   open   opportunities   for   developing   countries   to   build   structures   acceptable   to   global   markets.   The   range  had  recently  been  comprehensively  modernized  and  extended.  In  developing  this  range   of   standards   independently   of   standards   for   specific   products   or   services,   ISO’s   goal   was   to   The   term   conformity   assessment   (CA)   includes   testing  and  certification,  but  also  any  systematic   provide   a   set   of   voluntary   standards   representing   examination   of   the   extent   to   which   a   product   best   practice   in   conformity   assessment,   reducing   fulfils   requirements   specified   by   law   or   by   the   the   need   for   regulation   of   that   activity   and   market.   C.A.   is   therefore   closely   linked   to   the   ensuring  that,  where  regulation  was  unavoidable,  a   regulations   and   standards   against   which   the   conformity  is  to  be  assessed.   uniform  basis  could  be  used  internationally.     They   facilitated   the   creation   of   “open”   systems   of   Box  1:  Conformity  Assessment   conformity   assessment:   systems   open   to   all,   without   discriminatory   entrance   fees   or   other   conditions,   they   contrasted   with   “closed”   systems   of   c.a.,   in   which   the   ground-­‐rules   were   developed   without   open   consultation   of   all   interested   parties,   where   membership   might   be   limited   to   designated   bodies,   and   which   might   be  difficult  for  developing  countries  to  penetrate.   The   standards   were   aimed   not   only   at   conformity   assessment   bodies   (CABs),   but   also   at   accreditation  bodies,  which  in  many  countries  were  deeply  involved  in  the  control  of  CABs  and   in   the   process   of   designating   CABs   as   legally   authorized   to   provide   reports   used   by   public   authorities   in   assessing   compliance   with   regulations.   The   standards   had   been   referenced   in   the   most  recent  Triennial  Review  of  the  WTO  TBT  Committee,  and  were  widely  used.   Open  standards  for  conformity  assessment,  could  only  contribute  optimally  to  the  elimination   of  barriers  if  their  use  was  supported  by  complementary  elements  of  technical  regulation.  Five   elements  are  important:  

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§ § § § §

Effective  product  liability  laws   Well-­‐developed  market  surveillance   Appropriate  resources  and  enforcement  powers   Penalties  for  false/misleading  declarations   Consumer  redress  

Separately,   the   state   of   conformity   assessment   barriers   in   international   trade   today   was   reviewed.  The  WTO  TBT  Committee  had  correctly  identified  a  number  of  potential  targets,  such   as   the   wider   use   of   SDOC   (Supplier’s   Declaration   of   Conformity)   without   mandatory   third   party   certification,   and   wider   recognition   of   internationally-­‐recognized   accreditation   in   order   to   reduce  the  need  for  multiple  testing.     The  issues  that  regional  programmes  in  this  area  raise  are,  for  example:   §

§ §

How   can   conflicts   between   regional   and   global   standards   be   avoided,   and   do   regional   standards   development   programmes   hamper   international   standards   development?   Can   regional   standards   contribute   to   global   trade   liberalization,   beyond   the   boundaries  of  their  region?   What   do   regional   programmes   reveal   about   the   ability   of   governments   to   recognise  conformity  assessment  conducted  outside  their  own  country?  

With   a   total   of   around   300   million   consumers,   SADC   has   made   progress   on   achieving   harmonisation  in  standardization  and  conformity  assessment  though  this  appears  so  far  limited.   However,  two  recent  developments  had  the  potential  to  bring  concrete  progress.  First,  a  2001   Memorandum   of   Understanding   on   SQAM   (Standardization,   quality   assurance,   accreditation,   and   metrology)   aims   specifically   at   the   elimination   of   TBT   and   the   establishment   of   a   quality   infrastructure;  working  groups  had  been  established  to  drive  the  programme  forward.     Secondly,  and  as  a  result  of  this,  a  proposal  to  establish  a  regional  accreditation  body  had  been   prepared.   It   could   provide   a   center   of   expertise   and   a   stepping-­‐stone   to   wider   international   recognition   of   conformity   assessment   in   the   region.   If   supported   by   training   and   awareness   building,  some  regional  framework  for  technical  regulation  could  follow.     Meanwhile,  it  is  striking  that  information  on  technical  requirements  in  major  export  markets  is   often  more  easily  available  to  exporters  in  the  region  than  information  on  requirements  from   other  countries  within  the  region,  so  that  intra-­‐regional  trade  development  is  harmed.  

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What  is  a  standard?   A   standard   is   a   document   that   provides   requirements   specifications,   guidelines   or   characteristics  that  can  be  used  consistently  to  ensure  that  materials,  products,  processes  and   services   are   fit   for   their   purpose.   There   are   over   19  500   International   Standards   that   can   be   purchased  from  the  ISO  (www.iso.org)  store  or  from  its  members.  

Popular  standards   § § § § § § § § §

ISO  9000  Quality  management   ISO  14000  Environmental  management   ISO  3166  Country  codes   ISO  26000  Social  responsibility   ISO  50001  Energy  management   ISO  31000  Risk  management   ISO  22000  Food  safety  management   ISO  27001  Information  security  management   ISO  20121  Sustainable  events  

  A  standard  is  a  document  which  provides  inter  alia,  requirements,  rules,  and  guidelines,  for  a   process,   product   or   service.   These   requirements   are   sometimes   complimented   by   a   description   of  the  process,  products  or  services.     It  is  important  that:     § Standards  are  the  result  of  a  consensus  and  are  approved  by  a  recognised  body.   § Standards  are  aimed  at  achieving  the  optimum  degree  of  order  in  a  given  context.   § The   process   of   formulating,   issuing   and   implementing   standards   is   called   standardisation.  

 

Attributes  of  a  Standard   A  standard  generally  has  three  attributes:     § Level:  such  as  at  the  company,  national  or  international  level.   § Subject:  such  as  engineering,  food,  textile  or  management.  

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§

Aspect:   such   as   specification,   testing   and   analysis,   packaging   and   labelling   (more   than   one   aspect   may   be   covered   in   a   single   standard:   a   standard   may   include   specification   of   items   such   as   the   product,   its   sampling   and   inspection,   related   tests   and   analysis,   packaging  and  labelling).  

  For  example  the  term  “Indian  Standard  Specification  of  Biscuits”,  means  that  the  standard  is  a   national   standard   (level),   in   the   food   area   (subject),   and   provides   specifications   (aspect)   for   the   biscuits.     Developing  countries  have  found  it  difficult  to  participate  in  designing  standards  in  ways  that   better   reflect   their   concerns   and   capabilities,   and   to   challenge   them   where   they   were   imposed   in   a   discriminatory   manner.   A   number   of   agreements   in   the   Uruguay   Round   have   sought   to   address   these   concerns   by   strengthening   international   rules   governing   product   standards   in   order  to  minimise  their  abuse  for  protectionist  purposes.  However,  they  also  entail  substantial   costs  for  product  redesign,  assessing  conformity,  creating  an  administrative  system  to  monitor   compliance,   and   quality   control.   Many   developing   countries   will   require   stepped-­‐up   technical   and  financial  assistance  if  they  are  to  cope  with  the  challenges  posed  by  proliferating  standards.  

African  Regional  Organization  for  Standardization   The   African   Regional   Organization   for   Standardization   (ARSO),   established   in   1977,   is   the   African   intergovernmental   body   mandated   to   promote   standardization   activities   in   Africa,   bearing  in  mind  the  blueprint  for  Africa’s  economic  development  as  outlined  in  the  Lagos  Plan   of   Action.   ARSO   has   developed   a   comprehensive   programme   on   standardisation   and   related   activities  in  Africa.       The  objective  of  standardization  by  ARSO  is  to  elaborate  and  harmonise  regional  standards  in   order   to   remove   the   technical   barriers   that   hinder   intra-­‐African   trade.   Twenty-­‐four   African   countries   are   members   of   ARSO   including,   inter   alia,   Egypt,   Ghana,   Kenya,   Liberia,   the   Libyan   Arab   Jamahiriya,   Malawi,   Mauritius,   Niger,   Nigeria,   Senegal,   Sudan,   United   Republic   of   Tanzania,  Tunisia,  Uganda  and  Zambia.    

National  Standards  Bodies   At   the   national   level,   the   work   of   preparing   and   issuing   standards   is   carried   out   by   NSBs.   In   some   countries,   NSBs   are   called   “institutions”   or   “institutes”   (e.g.   Sri   Lanka   Standards   Institution,  British  Standards  Institute)  and  in  others  “associations”  (e.g.  Standards  Association  

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of  Zimbabwe)  or  “bureaus”  (Bureau  of  Indian  Standards).  In  some  countries  a  department  or  an   agency  of  the  government  is  responsible  for  this  work.     Most  of  the  NSBs  around  the  world  are  members  of  the  ISO.  In  some  countries  that  do  not  have   NSBs,   provisions   exist   for   a   correspondent   membership   status   with   the   ISO.   At   present,   148   countries  are  members  of  the  ISO.   Fifteen   NSBs   were   established   between   1917   and   1925,   mostly   in   developed   countries.     Germany   was   the   first   to   establish   an   NSB,   followed,   inter   alia,   by   the   United   Kingdom   of   Great   Britain  and  Northern  Ireland,  the  United  States,  Belgium,  Canada,  Netherlands,  Switzerland  and   Austria.       In   developing   countries,   NSBs   were   launched   first   in   Brazil   (1940),   then,   inter   alia,   in   India   (1947),   the   Philippines   (1947),   Pakistan   (1951),   Myanmar   (1956),   Iran   (1960)   and   Sri   Lanka   (1964).  Currently,  60  per  cent  of  the  members  of  ISO  are  developing  countries.     The  main  functions  of  NSBs  include:     § Preparation  and  promulgation  of  national  standards   § Promotion  of  the  implementation  of  standards  by  industry   § Certification  of  products   § Provision  of  information  on  standards  and  related  technical  matters,  with  regard  to  both   national  and  international  standards   § Country   representation   in   international   activities   and   at   forums   that   deal   with   standards.    

Standards  as  Means  for  Competitiveness   Today,   more   and   more   companies   in   developing   countries   and   emerging   economies   are   becoming  global  producers.  The  liberalisation  of  consumer  markets  provides  these  companies   with  opportunities   for   exporting   their  products   to  global  markets   where  they  are   increasingly   required   to   comply   with   ‘private   standards’,   a   phenomenon   on   the   rise.   Also   known   as   (business)   values,   norms,   ethics,   codes,   practices,   guidelines,   principles   or   morals,   private   standards  are  considered  to  be  one  way  of  promoting  social  development  and  environmental   sustainability.      

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Benefits  of  International  Standards   The   international   standards   of   ISO   contribute   to   benefiting   consumers,   businesses,   governments  and  society  at  large  in  the  following  ways:     § For   consumers:   conformity   of   products   and   services   with   international   standards   provides  assurance  to  consumers  on  the  quality,  safety  and  reliability  of  these  products   and  services.     § For   businesses:   by   adopting   international   standards,   suppliers   can   conduct   the   development  of  their  products  and  services  on  the  basis  of  specifications  that  have  wide   acceptance   in   their   sector.   This   in   turn   means   that   businesses   that   use   international   standards   are   increasingly   free   to   compete   in   many   more   markets   around   the   world.   The  application  of  international  standards  facilitates  contracting  and  ordering  of  goods   and   services   and   the   assessment   of   their   quality.   It   also   reduces   disputes   over   specifications  and  quality.     § For   governments:   international   standards   provide   the   technological   and   scientific   bases  that  underpin  health,  safety  and  environmental  legislations.     § For  everyone:  international  standards  can  contribute  to  quality  of  life  in  general  by   ensuring  that  the  transport  modes,  machinery  and  tools  we  use  are  safe.     § For   the   planet:   international   standards   on   air,   water,   and   soil   quality,   and   on   emission   of   gases   and   radiation,   can   contribute   to   efforts   to   preserve   the   environment.    

Benefits  of  Standardization   By   its   very   definition,   standardization   is   aimed   at   achieving   maximum   overall   economy.   Standards   provide   benefits   to   different   sectors   of   society.   Some   of   the   benefits   of   standardization  are  as  follows:     For  manufacturers,  standards:   § Rationalise  the  manufacturing  process.   § Eliminate  or  reduce  wasteful  material  or  labour.   § Reduce  inventories  of  both  raw  material  and  finished  products.   § Reduce  the  cost  of  manufacture.   ABR  Handbook  on  Business  Facilitation|  12  

 

For  customers,  standards:   § Assure  the  quality  of  goods  purchased  and  services  received.   § Provide  better  value  for  money.   § Are  convenient  for  settling  disputes,  if  any,  with  suppliers.     For  traders,  standards:   § Provide  a  workable  basis  for  acceptance  or  rejection  of  goods  or  consequential  disputes,   if  any.   § Minimise   delays,   correspondence,   etc.,   resulting   from   inaccurate   or   incomplete   specification  of  materials  or  products.     For  technologists,  standards:   § Provide  starting  points  for  research  and  development  for  further  improvement  of  goods   and  services.   Standards  as  Tool  for  Trade   International  Standards  ensure  that  products  and   services  are  safe,  reliable  and  of  good  quality.  For   business,  they  are  strategic  tools  that  reduce  costs   by  minimizing  waste  and  errors,  and  increasing   productivity.  They  help  companies  to  access  new   markets,  level  the  playing  field  for  developing   countries  and  facilitate  free  and  fair  global  trade.   International  Standards  bring  technological,  

Facts  and  figures  about  the  benefits  of   standards   ISO  has  developed  a  comprehensive  set  of  case   studies  and  materials  describing  the  economic   and  social  benefits  of  standards.  They  also  have   an  extensive  collection  of  case  studies  and   resources  from  other  partner  organizations  (visit   www.iso.org).   Box  2:  Facts  and  Figure  

economic  and  societal  benefits.  They  help  to  harmonize  technical  specifications  of  products  and   services  making  industry  more  efficient  and  breaking  down  barriers  to  international  trade.   Conformity  to  International  Standards  helps  reassure  consumers  that  products  are  safe,   efficient  and  good  for  the  environment.   For  Business   International  Standards  are  strategic  tools  and  guidelines  to  help  companies  tackle  some  of  the   most  demanding  challenges  of  modern  business.  They  ensure  that  business  operations  are  as   efficient  as  possible,  increase  productivity  and  help  companies  to  access  new  markets.       ABR  Handbook  on  Business  Facilitation|  13  

 

Benefits  include:   § § § § §

Cost   savings   -­‐   International   Standards   help   optimise   operations   and   therefore   improve  the  bottom  line   Enhanced   customer   satisfaction   -­‐   International   Standards   help   improve   quality,   enhance  customer  satisfaction  and  increase  sales   Access   to   new   markets   -­‐   International   Standards   help   prevent   trade   barriers   and   open  up  global  markets   Increased   market   share   -­‐   International   Standards   help   increase   productivity   and   competitive  advantage   Environmental   benefits   -­‐   International   Standards   help   reduce   negative   impacts   on   the  environment  

Businesses  also  benefit  from  taking  part  in  the  standard  development  process.     For  Society   There   are   over   19,500   standards   touching   almost   all   aspects   of   daily   life.   When   products   and   services  conform  to  International  Standards,  consumers  can  have  confidence  that  they  are  safe,   reliable   and   of   good   quality.   For   example,   ISO's   standards   on   road   safety,   toy   safety   and   secure   medical  packaging  are  just  a  selection  of  those  that  help  make  the  world  a  safer  place.   To   make   sure   that   the   benefits   of   ISO   International   Standards   are   as   broad   as   possible,   ISO   supports  the  involvement  of  consumers  in  standard  development  work  with  its  Committee  on   consumer  policy  (COPOLCO).   International  Standards  on  air,  water  and  soil  quality,  on  emissions  of  gases  and  radiation  and   environmental  aspects  of  products  contribute  to  efforts  to  preserve  the  environment  and  the   health  of  citizens.     For  Government   ISO  standards  draw  on  international  expertise  and  experience  and  are  therefore  a  vital  resource   for  governments  when  developing  regulations.   National   governments   can   make   ISO   standards   a   regulatory   requirement   (remember   ISO   standards  themselves  are  voluntary).  This  has  a  number  of  benefits:  

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§

§

Expert   opinion:   ISO   standards   are   developed   by   experts.   By   integrating   an   ISO   standard   into   national   regulation,   governments   can   benefit   from   the   opinion   of   experts  without  having  to  call  on  their  services  directly.   Opening   up   world   trade:   ISO   standards   are   international   and   adopted   by   many   governments.   By   integrating   ISO   standards   into   national   regulation,   governments   help   to   ensure   that   requirements   for   imports   and   exports   are   the   same   the   world   over,  therefore  facilitating  the  movement  of  goods,  services  and  technologies  from   country  to  country.  

Certification   –   the   provision   by   an   independent   body   of   written   assurance   (a   certificate)   that   the   product,   service  or  system  in  question  meets  specific  requirements.   Registration  –  certification  is  very  often  referred  to  as  registration  in  North  America.   Accreditation  –  the  formal  recognition  by  an  independent  body,  generally  known  as  an  accreditation  body  that   a  certification  body  is  capable  of  carrying  out  certification.  Accreditation  is  not  obligatory  but  it  adds  another   level  of  confidence,  as  ‘accredited’  means  the  certification  body  has  been  independently  checked  to  make  sure   it  operates  according  to  international  standards.   Box  3:  Some  Definitions  

 

Principles  of  Effective  Application  of  Standards   § § § §

Standards  to  be  precise   Reflecting  international  norms   Easily  applicable   Cost  reducing  

     

 

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2

               

 

TECHNOLOGY  AND   DEVELOPMENT  

       

  • •

Background   Technology  as  instrument  for   Development  

           

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Section  2:  Technology  and  Development   Background   Technology   is   the   "art,   skill,   cunning   of   hand";   and   it   is   the   making,   modification,   usage,   and   knowledge   of   tools,   machines,   techniques,   crafts,   systems,   and   methods   of   organization,   in   order  to  solve  a  problem,  improve  a  pre-­‐existing  solution  to  a  problem,  achieve  a  goal,  handle   an  applied  input/output  relation  or  perform  a  specific  function.     It   can   also   refer   to   the   collection   of   such   tools,   including   machinery,   modifications,   arrangements  and  procedures.  Technologies  significantly  affect  human  as  well  as  other  animal   species'   ability   to   control   and   adapt   to   their   natural   environments.   The   term   can   either   be   applied   generally   or   to   specific   areas:   examples   include   construction   technology,   medical   technology,  and  information  technology.   Emerging   technologies   are   those   technical   innovations   which   represent   progressive   developments   within   a   field   for   competitive   advantage.   Emerging   technologies   in   general   denote  significant  technology  developments  that  broach  new  territory  in  some  significant  way   in   their   field.   Examples   of   currently   emerging   technologies   include   information   technology,   nanotechnology,  biotechnology,  cognitive  science,  robotics,  and  artificial  intelligence.   Over  centuries,  innovative  methods  and  new  technologies  are  developed  and  opened  up.  Some   of  these  technologies  are  due  to  theoretical  research  and  others  from  commercial  research  and   development.   Technological   growth   includes   incremental   developments   and   disruptive   technologies.   An   example  of  the  former  was  the  gradual  roll-­‐out  of  DVD  as  a  development  intended  to  follow  on   from   the   previous   optical   technology   Compact   Disc.   By   contrast,   disruptive   technologies   are   those   where   a   new   method   replaces   the   previous   technology   and   make   it   redundant,   for   example,  the  replacement  of  horse-­‐drawn  carriages  by  automobiles.  This  change  continues  into   the  contemporary  day.   Advocates   of   the   benefits   of   technological   change   typically   see   emerging   and   converging   technologies  as  offering  hope  for  the  betterment  of  the  human  condition.      

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Technology  as  an  Instrument  for  Development   New   technologies   offer   opportunities   that   can   be   used   to   diversify   national   economies.   Services,   in   particular   those   supported   by   new   technologies,   can   be   tapped   to   reduce   dependence   on   commodities.   Half   of   the   countries   in   Africa   derive   more   than   80%   of   their   merchandise   export   income   from   commodities,   and   the   need   for   new   development   paths   to   counter  this  dependence  on  commodities  is  especially  important  for  least  developed  countries   (LDCs),  according  to  UNCTAD's  2012  Commodities  and  Development  Report.     Significant  bottlenecks  and  challenges  remain  in  developing  countries,  and  particularly  in  Africa,   where  costs  associated  with  ICT  remain  extremely  high.  As  a  result,  the  Middle  East  and  Africa   are  estimated  to  handle  a  mere  1.6%  of  global  e-­‐commerce,  although  that  is  expected  to  grow   to  3.5%  by  2016.     Rapid  advances  in  mobile  technologies  and  the  widespread  adoption  of  mobile  telephony  are   empowering  many  low-­‐income  groups  and  unlocking  entrepreneurial  opportunities  by   providing  access  to  global  markets.  With  95  per  cent  of  existing  phones  worldwide  having  a   basic  browser  or  the  possibility  to  have  one,  and  90  per  cent  of  the  world  covered  by  a   minimum  GSM  mobile  telephone  network,  the  minimum  infrastructure  required  for  providing   mobile  browsing  is  already  available.    See  more  at:   http://www.tradeforum.org/article/Innovation-­‐Technology-­‐amp-­‐Trade-­‐ Development/#sthash.lbvfyzKZ.dpuf   Meeting  entrepreneurial  needs     The   UNCTAD   report   shows   that   micro-­‐enterprises   in   low-­‐income   countries   are   rapidly   adopting   mobile  phones  as  key  tools  for  advancing  their  commercial  activities.  In  Niger,  grain  traders  are   benefiting   from   lower   transaction   and   information-­‐search   costs.   In   Ghana   and   India,   mobile   phones   have   become   critical   equipment   for   fishermen   and   fishmongers,   resulting   in   more   efficient  markets  and  improved  livelihoods.  For  women’s  weaving  micro-­‐enterprises  in  Nigeria,   the  phones  have  reduced  transaction  costs.  In  addition,  producers  are  saving  time  and  money   by  eliminating  travel  that  used  to  be  necessary  in  order  to  locate  buyers  and  negotiate  the  best   prices.   Additionally   in   Bangladesh,   a   helpline   has   been   set   up   offering   information   and   advisory   services  to  small-­‐scale  farmers  with  mobile  phones.     See   more   at:   http://www.tradeforum.org/article/UNCTAD-­‐Information-­‐Economy-­‐Report-­‐2010-­‐ICTs-­‐ enterprises-­‐amp-­‐poverty-­‐alleviation/#sthash.XCjfa6hB.dpuf    

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Example  of  Best  Practices   Box  4:  Business  Links,  Investment  and  Banking   In  Benin  the  advantages  are  also  clearly  evident,  particularly  given  the  recent  strides  Viet  Nam   has   made   in   cashew   processing   technology.   Vietnamese   firms   make   80%   of   the   machinery   used   by   factories   in   Benin.   ‘Five   years   ago,   Viet   Nam   was   not   a   known   country   for   Africans.   Since   2008,   I   see   that   OIF   and   ITC   have   accumulated   business   links   between   Viet   Nam   and   Africa.   This   will   pick   up   and   this   will   be   for   the   long   term,’   said   Guillaume   Razack   Ishola   Kinninnon,   General   Manager   of   SWCM,   a   food   processing   and   manufacturing   company   in   Benin.       Kinninnon   added   that   one   problem   often   encountered   by   exporters   from   both   regions   has   been  that  letters  of  credit  often  had  to  be  confirmed  by  a  European  bank  –  causing  delays  and   increasing   costs.   As   part   of   ITC’s   methodology   for   promoting   South-­‐South   trade,   it   has   facilitated  the  establishment  of  direct  interbank  cooperation  between  the  Vietnam  Joint  Stock   Commercial   Bank   for   Industry   and   Trade   (VietinBank)   and   banks   in   Guinea   Bissau,   the   Republic  of  Congo  and  Togo.  Inter-­‐bank  partnership  meetings  were  held  in  Hanoi,  Viet  Nam  in   January  2013  and  in  Yaoundé,  Cameroon  in  November  2013.   http://www.intracen.org/news/South-­‐South-­‐Trade-­‐%E2%80%93-­‐linking-­‐Central-­‐and-­‐Western-­‐Africa-­‐to-­‐ the-­‐Mekong39s-­‐Francophone-­‐countries/  

 

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Box  5:  Kenya’s  Mobile  Revolution   An  African  e-­‐innovation,  affordable  mobile  money  has  played  a  major  role  in  getting  banking   services   to   a   wide   segment   of   the   population   in   East   Africa.   M-­‐PESA,   launched   by   Kenya’s   Safaricom   in   March   2007,   has   been   crucial   in   opening   the   door   to   formal   financial   services   for   Kenya’s   poor   and   has   had   a   significant   effect   on   the   Kenyan   economy.   It   is   estimated   that   Kenya,   Madagascar,   the   United   Republic   of   Tanzania   and   Uganda   have   more   mobile   money   accounts   than   bank   accounts,   clearly   demonstrating   the   greater   levels   of   accessibility   that   new  technologies  offer  compared  with  traditional  banking.   The   incomes   of   rural   households   in   Kenya   have   increased   between   5%   to   30%   since   they   began   using   mobile   banking,   according   to   a   study   cited   in   Standard   Bank’s   September   2011   Africa  Macro  Insight  and  Strategy  report.   The   2012   Global   Mobile   Money   Adoption   Survey   estimated   that   more   than   60%   of   Kenya’s   gross  domestic  product  (GDP)  and  over  30%  of  the  United  Republic  of  Tanzania’s  GDP  moves   through   mobile   money   platforms.   But   mobile   money   is   gaining   currency   elsewhere,   too.   Mobile   money   deployments   in   Côte   d’Ivoire,   Madagascar,   Paraguay,   Rwanda,   Tonga   and   Zimbabwe  range  between  2%  to  5%  of  GDP.   The   slew   of   development   services   that   the   growth   in   mobile   money   has   enabled,   from   healthcare  services  to  tips  for  animal  husbandry,  are  just  as  important.  The  most  sophisticated   of   ITC’s   Trade   at   Hand   services   is   in   Kenya   and   uses   a   range   of   technologies   –   including   M-­‐ PESA,  interactive  voice  response,  radio  outreach,  cloud  hosting,  and  even  the  blackboards  on   which  farmers’  offers  are  displayed  –  to  link  smallholder  farmers  to  food  traders  and  export-­‐ driven  supply  chains.   For  example,  the  Soko  Hewani  platform,  which  was  upgraded  in  early  2013  with  support  from   ITC,   aids   the   Kenya   Agricultural   Commodity   Exchange   (KACE)   in   the   daily   collection   and   dissemination   of   commodity   price   information   in   regional   markets.   The   technology   provides   farmers   with   up-­‐to-­‐date   market   information,   enabling   them   to   make   more   informed   sales   decisions.  The  project  is  initially  expected  to  impact  about  500  rural  farmers  each  month  –  the   buyers  and  sellers  who  physically  visit  KACE’s  Market  Resource  Centres.  Gradually,  however,   the  project’s  use  of  radio  is  expected  to  extend  connectivity  to  regional  markets,  reaching  a   wider   group   of   rural   farmers   who   previously   had   little   option   but   to   take   the   prices   they   were   offered  by  buyers  and  middlemen.    

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See  more  at:  http://www.tradeforum.org/article/E-­‐Commerce-­‐and-­‐Beyond-­‐Opportunities-­‐for-­‐ developing-­‐country-­‐SMEs/#sthash.MuP8DLwP.dpuf  

  Fig  1:  Kenya’s  M-­‐Pesa  

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3

         

   

 

                         

ACCESS  TO  MARKET     Background     Messages  on  Market  Success   Challenges  what  micro-­‐entrepreneurs   face  in  growing  their  business   Market  Planning  Cycle   Strategic  Tips  for  Market  Access   Current  issues  that  face  Market  Access  in   the  region   Market  Access  Mapping   Patterns  of  Protection   Contingent  Protection   Opportunities  for  engagement  with  global   market   Trade  Facilitation   Technology  and  Trade   Impact  

• • • • • • • • • • • • •

 

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Section  3:  Market  Access   Background   Improving  access  to  markets  is  critical  to  achieving  business  growth.  It  is  a  persistent  challenge   for   micro-­‐entrepreneurs.   Integration   into   global   markets   offers   the   potential   for   more   rapid   growth   and   poverty   reduction   but   market   barriers   to   some   key   developing   country   exports   have  made  it  harder  for  them  to  take  full  advantage  of  this  opportunity.   Access   to   Markets   (ATM)   services   are   becoming   recognised   as   a   critical   way   to   support   the   growth   of   micro   and   small-­‐scale   enterprises.   ATM   programs   are   testing   a   wide   range   of   marketing-­‐related   services   with   the   goal   of   connecting   entrepreneurs   to   additional   or   previously   inaccessible   customers,   thereby   increasing   sales   of   and   possibly   income   from   the   business.   Often,  micro-­‐entrepreneurs  are  isolated  from  the  market  in  which  their  product  will  compete.   They  are  less  likely  than  large  firms  to  attend  trade  shows,  read  the  relevant  trade  journals  or   engage   in   costly   and   extensive   market   research.   Yet,   a   seller   of   dried   mushrooms   will   have   a   much  greater  chance  of  success  if  he  or  she  regularly  reads  the  Mushroom  Growers  Newsletter.   A   good   grasp   of   industry   trends   is   essential   to   developing   a   high-­‐end   product   with   a   realistic   and  clearly  identified  niche  on  the  retail  shelf.   Regional   markets   provide   the   potential   for   higher   volumes   of   sales   through   fewer   buyers.   They   also  present  higher  hurdles  for  new  entrants.  Of  these  hurdles,  distribution  is  perhaps  the  most   difficult  for  micro-­‐entrepreneurs  to  overcome.   Government  regulations  present  micro-­‐entrepreneurs  with  another  information  hurdle.  Making   sense   of   regulatory   requirements   can   be   difficult.  In   many   cases   regulations   change,   they   are   not   well   documented   and   are   geared   toward   large   industrial   processing   centers.   To   succeed,   entrepreneurs   need   to   learn   which   retail   outlets   hold   sales   potential   for   their   product   and   how   to  access  these  markets.  For  any  particular  product,  some  markets  hold  greater  sales  potential   than  others.   A  viable  product  and  a  good  understanding  of  target  markets  are  not  the  only  keys  to  selling  a   product.   On   top   of   this,   an   entrepreneur   needs   the   people   skills   to   develop   contacts   with   distributors   and   retailers.   Attending   trade   shows   and   visiting   stores   repeatedly   are   crucial   to   developing   these   contacts.   The   producer   also   needs   to   have   the   confidence   and   ability   to   convey   that   he   or   she   has   an   attractive,   high-­‐quality   product   that   will   be   in   high   demand.   “Pounding   the   pavement”   and   promoting   products   can   be   an   unfamiliar   concept   to   overloaded   or  inexperienced  micro-­‐entrepreneurs.  

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Messages  on  Market  Access   Market  access  refers  to  the  ability  of  providers  of  foreign  goods  and  services  to  sell  in  a  given   country.  For  the  purposes  of  market  access  negotiations  in  the  WTO  context,  tradable  items  are   subdivided   into   four   groups—agricultural   goods,   textiles   and   clothing,   industrial   goods,   and   services.   As   different   multilaterally   agreed   rules   apply   to   each   group,   analytical   and   monitoring   work  usually  follows  the  same  pattern.   Market  Access  and  Tariff   Market  access  for  goods  in  the  WTO  means  the  conditions,  tariff  and  non-­‐tariff  measures,  agreed  by   members  for  the  entry  of  specific  goods  into  their  markets.  Tariff  commitments  for  goods  are  set  out  in   each  member's  schedules  of  concessions  on  goods.  The  schedules  represent  commitments  not  to  apply   tariffs  above  the  listed  rates  —  these  rates  are  “bound”.  Non-­‐tariff  measures  are  dealt  with  under  specific   WTO  agreements.  WTO  Members  seek  to  continually  improve  market  access  through  the  regular  WTO   work  programme  and  through  negotiations  such  as  those  launched  at  the  Doha  Ministerial  Conference  in   November  2001.     Market  access  and  import  regulations   Countries  have  various  different  systems  controlling  the  import  of  products.  Often  authorization  from   certification  bodies  and/or  international  product  certification  is  required.     Company  Data  in  Trade  Map     Allows  to  link  buyers  and  sellers  providing  with  information  on  more  than  500  000  companies  based  in   more  than  60  countries;   Opportunities  for  exporters  to  reach  international  buyers  searching  for  specific  products   Importing  company  also  can  look  for  potential  suppliers  based  in  many  different  countries.     For    more  information:  visit  ITC  website   Box  6:  Market  Access    

 

Challenges  Micro-­‐entrepreneurs  face  in  Growing  Their   Enterprises     ABR  Handbook  on  Business  Facilitation|  24  

 

Table  1:  KNOWLEDGE  OF  THE  INDUSTRY    

 

Industry  Trends    

 

 

 

Regulations  

-­‐  Learning  what  is  required  for:  

-­‐  Learning  what  sells    

-­‐  Products  

 

 

 

 

 

-­‐  Production  

-­‐  Pricing  

 

 

 

 

 

-­‐  Organic  certification    

-­‐  Qualities  

 

 

 

-­‐  Packaging  

 

 

 

-­‐  Labelling    

   

-­‐  Packaging  

-­‐  UPC  coding   -­‐  Product  lines     Markets  

 

-­‐  Learning  what  are:   -­‐  High  potential  markets   -­‐  Processes  to  access  them   -­‐  Distributors  to  access  them   -­‐  Requirements  to  sell  in  them     SKILLS   Developing:  

BUSINESS    

 

 

 

 

Learning  to:  

-­‐  People  skills  to  develop  

-­‐Determine  competitive  and  profitable  pricing  

-­‐  Promotional  skills  to  represent  product    

contacts   -­‐  Project  costs  and  break-­‐evens   -­‐  Track,  manage  and  deliver  orders   -­‐  Implement  useful  business   planning  

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Technical  

 

Developing  production  skills  to   maintain  safety  and  quality  while   increasing  volume    

Strategic  Market  Access  Plans  

  Figure  2:  Market  Planning  Cycle        

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Market  Planning  Cycle   The  stages  in  this  planning  process  are  explained  below:  

Stage  1.  Assessment  of  Opportunities   One   approach   to   this   is   to   examine   the   organization’s   current   position,   and   decide   how   the   organization  can  improve  it.  There  are  a  number  of  techniques  that  will  help  the  organization  to   do  this:   •

SWOT  Analysis    :  

This   is   a   formal   analysis   of   the   organization’s   strengths   and   weaknesses,   and   of   the   opportunities  and  threats  that  it  faces.   •

Risk  Analysis    :  

This   helps   the   organization   to   spot   project   risks,   weaknesses   in   its   structure   or   operation,  and  identify  the  risks  to  which  you  are  exposed.  From  this  the  organization   can  plan  to  neutralize  some  risks.   •

Understanding  pressures  for  change:  

Alternatively,   other   people   (e.g.   clients)   may   be   pressing   the   organization   to   change   the   way  it  does  things.  Alternatively  the  organization’s  environment  may  be  changing,  and   you   may   need   to   anticipate   or   respond   to   this.   Pressures   may   arise   from   changes   in   the   economy,  new  legislation,  competition,  changes  in  people's  attitudes,  new  technologies,   or  changes  in  government.   A  different  approach  is  to  use  any  of  a  whole  range  of  creativity  tools  to  work  out  where  the   organization  can  make  improvements.     •

Identifying  the  Goal  of  Organization’s  Plan  

Once   the   organization   has   completed   a   realistic   analysis   of   the   opportunities   for   change,   the   next   step   is   to   decide   precisely   what   the   aim   of   your   plan   is.   Deciding   and   defining   an   aim   sharpens  the  focus  of  organization’s  plan,  and  helps  the  organization  to  avoid  wasting  effort  on   irrelevant  side  issues.   The  aim  is  best  expressed  in  a  simple  single  sentence.  This  ensures  that  it  is  clear  and  sharp  in   the  perspective  of  the  organization.   If  the  organization  has  difficulty  in  formulating  the  aim  of  its  plan,  ask  the  following  questions   should  be  addressed:  

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• • • • •

What  do  the  organizations  want  its  future  to  be?   What  benefit  does  the  organization  I  want  to  give  to  its  customers?   What  returns  does  the  organization  I  seek?   What  standards  is  the  organization  aiming  at?   What  values  vales  does  the  organization  believe  in?  

The   organization   can   present   this   aim   as   a   'Vision   Statement'   or   'Mission   Statement'.   Vision   Statements   express   the   benefit   that   an   organization   will   provide   to   its   customers.   For   example,   the  vision  statement  for  an  SME  is:  'To  enrich  the  quality  of  our  customers’  lives  by  providing  the   tools  to  help  them  to  think  in  the  most  productive  and  effective  way  possible'.   Mission  statements  give  concrete  expression  to  the  Vision  statement,  explaining  how  it  is  to  be   achieved.   The   mission   statement   for   this   SME   is:   'To   provide   a   well-­‐structured,   accessible,   concise  survey  of  the  best  and  most  appropriate  mind  tools  available'.  

Stage  2:  Strategies   -­‐  Exploring  Options   At  this  stage  it  is  best  to  spend  a  little  time  generating  as  many  options  as  possible,  even  though   it  is  tempting  just  to  grasp  the  first  idea  that  comes  to  mind.  By  taking  a  little  time  to  generate   as  many  ideas  as  possible  the  organization  may  come  up  with  less  obvious  but  better  solutions.   Just  as  likely,  it  may  improve  its  best  ideas  with  parts  of  other  ideas.   -­‐Selecting  the  Best  Option   Once   the   organization   has   explored   the   options   available,   it   is   time   to   decide   which   one   to   use.   If   the   organization   has   the   time   and   resources   available,   then   it   might   decide   to   evaluate   all   options,  carrying  out  detailed  planning,  costing,  risk  assessment,  etc.  for  each.     Two   useful   tools   for   selecting   the   best   option   are   Grid   Analysis   and   Decision   Trees.   Grid   Analysis   helps   you   to   decide   between   different   options   where   the   organization   need   to   consider  a  number  of  different  factors.  Decision  Trees  help  the  company  to  think  through  the   likely  outcomes  of  following  different  courses  of  action.   -­‐Detailed  Planning   Detailed   planning   is   the   process   of   working   out   the   most   efficient   and   effective   ways   of   achieving  the  aim  that  the  organization  has  defined.  It  is  the  process  of  determining  who  will  do   what,  when,  where,  how  and  why,  and  at  what  cost.   When   drawing   up   the   plan,   techniques   such   as   use   of   Gantt   Charts   and   Critical   Path   Analysis       can   be   immensely   helpful   in   working   out   priorities,   deadlines   and   the   allocation   of   resources.   ABR  Handbook  on  Business  Facilitation|  28  

 

While   you   are   concentrating   on   the   actions   that   need   to   be   performed,   ensure   that   you   also   think   about   the   control   mechanisms   that   you   will   need   to   monitor   performance.   These   will   include  the  activities  such  as  reporting,  quality  assurance,  cost  control,  etc.  that  are  needed  to   spot  and  correct  any  deviations  from  the  plan.   A  good  plan  will:   § § § § § §

§

State  the  current  situation.   Have  a  clear  aim.   Use  the  resources  available.   Detail   the   tasks   to   be   carried   out,   whose   responsibility   they   are,   and   their   priorities   and   deadlines.   Detail   control   mechanisms   that   will   alert   the   organization   to   difficulties   in   achieving   the   plan.   Identify   risks   and   plan   for   contingencies.   This   allows   the   organization   to   make   a   rapid   and  effective  response  to  crisis,  perhaps  at  a  time  when  the  organization  is  at  low  ebb  or   are  confused  following  a  setback.   Consider  transitional  arrangements  –  how  will  the  organization  keep  things  going  while   it  implements  the  plan?  

Stage  3:  Implementation   Once   the   organization   has   completed   its   plan   and   decided   that   it   will   work   satisfactorily,   it   is   time  to  implement  it.  The  organization’s  plan  will  explain  how.  It  should  also  detail  the  controls   that  the  organization  will  use  to  monitor  the  execution  of  the  plan.  

Stage  4:  Measure   -­‐Evaluation  of  the  Plan  and  its  Impact   Evaluating  the  plan  gives  you  the  opportunity  to  either  investigate  other  options  that  might  be   more  successful,  or  to  accept  that  no  plan  is  needed  or  should  be  carried  out.   Depending  on  the  circumstances,  the  following  techniques  can  be  helpful  in  evaluating  a  plan:   •

PMI      (Plus/Minus/Interesting):   This   is   a   good,   simple   technique   for   'weighing   the   pros   and   cons'   of   a   decision.   It   involves  listing  the  plus  points  in  the  plan  in  one  column,  the  minus  points  in  a  second   column,   and   the   implications   and   points   of   uncertainty   of   the   plan   in   a   third   column.   Each  point  can  be  allocated  a  positive  or  negative  score.  



Cost/Benefit  Analysis    :  

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This  is  useful  for  confirming  that  the  plan  makes  financial  sense.  This  involves  adding  up   all  the  costs  involved  with  the  plan,  and  comparing  them  with  the  expected  benefits.   •

Force  Field  Analysis    :   Similar   to   PMI,   Force   Field   Analysis   helps   you   to   get   a   good   overall   view   of   all   the   forces   for   and   against   the   organization’s   plan.   This   allows   the   organization   to   see   where   you   can  make  adjustments  that  will  make  the  plan  more  likely  to  succeed.  



Cash  Flow  Forecasts    :   Where  a  decision  is  has  a  mainly  financial  implication,  such  as  in  business  and  marketing   planning,   preparation   of   a   Cash   Flow   Forecast   can   be   extremely   useful.   It   allows   the   organization   to   assess   the   effect   of   time   on   costs   and   revenue.   It   also   helps   in   assessing   the  size  of  the  greatest  negative  and  positive  cash  flows  associated  with  a  plan.  When  it   is   set   up   on   a   spreadsheet   package,   a   good   Cash   Flow   Forecast   also   functions   as   an   extremely   effective   model   of   the   plan.   It   gives   you   an   easy   basis   for   investigating   the   effect  of  varying  the  assumptions  of  the  organization.  



"6  Thinking  Hats"    :   6   Thinking   Hats   is   a   very   good   technique   to   use   to   get   a   rounded   view   of   the   organization’s   plan   and   its   implications.   It   provides   a   context   within   which   you   can   examine  a  plan  rationally,  emotionally,  optimistically,  pessimistically  and  creatively.  

Any  analysis  of  your  plan  must  be  tempered  by  common  sense.  If  your  analysis  shows  that  the   plan   either   will   not   give   sufficient   benefit,   then   either   return   to   an   earlier   stage   in   the   planning   cycle  or  abandon  the  process  altogether.  

Closing  the  Plan   Once   the   organization   has   achieved   a   plan,   it   can   close   the   project.   At   this   point   it   is   often   worth  carrying  out  an  evaluation  of  the  project  to  see  whether  there  are  any  lessons  that  you   can  learn.  This  should  include  an  evaluation  of  the  organization’s  planning  to  see  if  this  could  be   improved.   If  the  organization  is  going  to  be  carrying  out  many  similar  projects,  it  may  be  worth  developing   and   improving   an   Aide   Memoire.   This   is   a   list   of   headings   and   points   to   consider   during   planning.  Using  it  helps  the  organization  to  ensure  that  it  does  not  forget  lessons  learned  in  the   past.    

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Strategic  Tips  for  Market  Access  Plans   Principles   and   modes   of   operation   that   guide   the   services,   business   and   provide   marketing   activities  in  which  they  engage  include:   Sector  Focus:  Focus  on  specialties  of  the  organization  and  those  of  its  members.   Learning:   Staff,   and   the   micro   business  owners  with  whom  you   work,   are   constantly   learning   about  these  sectors,  including:  1)   market   trends   and   how   to   keep   up   with   them;   2)   what   it   takes   for   small   firms   to   become   market-­‐ready;   and   3)   how   to   reach  the  markets  that  will  bring   the   most   return   for   small-­‐scale   producers.  

Simple  Guide  to  a  Market  Access  Call  Strategy   1.   Start   by   mapping   and   understanding   the   local   environment   –   what   local  processes  are  in  place?  Who  is  involved?  What  is  their  sphere  of   influence?   Who   are   the   decision   makers,   key   influencers   and   implementers?     2.   Understand   their   local   priorities   –   what   are   their   key   challenges?   What   are   their   main   objectives?   What   information   do   they   need/like   and   when?     3.  Tailor  your  messages  to  the  needs  of  the  customer  base  –  different   customers  will  need  a  different  approach  

Flexibility:   Developing   program   Box  7    Simple  Guide  to  Market  Access   that   constantly   responds   to   businesses’  needs,  market  opportunities  and  prospective  partnerships.   Customization:  working  with  a  wide  range  of  clients  and  customizing  services  to  best  suit  their   needs,  rather  than  offering  a  rigid,  standard  package  of  services.   Networking:   ABR   primary   strategy   is   to   link   producers,   suppliers,   retailers,   distributors   and   community   resources   around   immediate   market   opportunities   and   the   long-­‐term   goal   of   developing  a  strong  local  infrastructure  to  support  the  growth  of  businesses.     Partnering   and   Leverage:   These   linkages   result   in   partnerships   that   bring   additional   services   and  opportunities.   Leadership:   ABR   should   take   a   leadership   role   in   bringing   together   private   sector   and   community  players  locally,  regionally  and  nationally,  and  providing  the  resources  and  vision  to   the  challenge  of  helping  small-­‐scale  producers  to  access  specialty  markets.   Strategic  Readiness:  Having  a  vision  of  working  with  a  wide  range  of  clients,  providing  a  variety   of   services   and   working   toward   customized   outcomes   with   each   population   group.   Although   there   are   often   not   enough   resources   to   work   on   all   fronts   at   once,   staff   members   focus   on   particular   activities   with   the   big   picture   in   mind.   When   opportunities   arise   and   resources   become  available,  staff  members  are  ready  to  add  or  shift  priorities  accordingly.   ABR  Handbook  on  Business  Facilitation|  31  

 

Current  Issues  that  Face  Market  Access  in  the  Region   Considerable   potential   for   growth   exists   for   both   import   and   export   trade   in   the   region,   especially  with  projected  improvements  in  roads  and  other  infrastructure.  The  overall  potential   for   increasing   trade   from   the   countries   in   one   region   to   other   countries   on   the   continent   remains  significant.  For  example,  in  2005,  Central,  North  and  West  African  countries  imported   18,000   tons   of   fresh   and   chilled   beef   and   328,000   tons   of   frozen   bone   in   boneless   beef   from   India,  Brazil  and  Argentina.       Egypt  alone  imported  103,661  tons  of  frozen  liver  and  4265  tons  of  frozen  offal  from  the  United   States  while  central  and  West  Africa  imported  56,000  tons  of  frozen  offal  from  Argentina.  South   Africa,  Mauritius,  Ghana,  Central  and  West  Africa  also  imported  36,000  tons  of  frozen  mutton   from  New  Zealand  and  Australia  in  the  same  year.       This  huge  market  potential  provides  opportunities  to  expand  trade  within  the  continent  if  the   countries  in  the  region  with  livestock  surplus  can  compete  on  prices,  sustain  supplies,  delivery   schedule  and  quality.     Market   access   continues   to   suffer   from   policy   and   investment   biases   based   on   poor   understanding   of   countries’   economic   potential,   the   dominance   by   outsider   interests   and   investment  agendas,  and  imposed  policies  and  programs  that  are  often  inconsistent  with  local   economic  and  environmental  realities  and  priorities.   Main  market  access  barriers   Import  tariffs  and  other  price-­‐based  border  measures:   government   policies   usually   targeted   at   restricting   market   access  in  a  particular  commodity  and  raising  budget  revenue.  These  measures  include:  import  duties,  tariff  quotas,   and  other  border  duties,  levies,  and  charges.     Nontariff   border   measures:  government  policies  that  may  restrict  market  access  through  non-­‐price  instruments.   Such   measures   include:   quantitative   restrictions   (import   quotas,   direct   prohibitions,   domestic   content   requirements,  licensing);  contingency  measures  (antidumping,  countervailing,  and  safeguard  measures);  technical   barriers   to   trade   (TBT)   (regulations,   standards,   and   testing   and   certification   procedures);   sanitary   and   phytosanitary  measures  (SPS)  (food,  animal  and  plant  health  and  safety).     Domestic   policy   measures:   government   policies,   which   may   restrict   market   access   if   not   applied   uniformly   to   domestic   and   imported   goods   and   services.   These   are:   tax,   competition,   credit,   and   investment   policies;   price   controls;  and  fiscal  incentives,  in  particular,  trade-­‐distorting  export  subsidies  and  domestic  support.  

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  Negotiations   on   market   access.   The  Doha  Development  Agenda  envisages  negotiations  on  market  access  in  all  the   above  areas.  The  current  negotiating  setup  and  the  initial  phase  of  negotiations  are  described  in  the  companion   staff  report,  “World  Trade  Organization-­‐-­‐The  Doha  Development  Agenda  and  Selected  Activities  of  Interest  to  the   Fund,”  (SM/02/225,  7/15/02).   Source:  WTO   Box  8:  Market  Access  Barriers  

  Currently  credit  flows  from  the  bottom  (producers  and  small-­‐scale  traders)  of  the  value  chain  to   higher-­‐levels   where   large-­‐scale   traders   and   exporters   and   urban   small   businesses   dominate.   This   paradox   results   from   exporters   and   wholesalers   delaying   payments   to   actors   down   the   chain  until  after  they  are  paid.  This  pattern  results  in  an  unfair  form  of  a  credit  subsidy.     The   issue   of   collateral   for   loans   for   both   traders   and   herders   is   another   challenge   that   needs   to   be  dealt  with  by  organizing  credit  to  small-­‐scale  traders  and  producers.    

Market  Access  Mapping     Market  Access  Map   Ø

Information  on  market  access  conditions  allows  importers/exporters  and  other  actors  to:   •

Evaluate  a  possible  market  access  advantage  on  the  product  relative  to  suppliers  from  other   countries  under  different  tariff  schemes.  



Select  markets/market  segments  in  which  the  product  has  the  best  market  access  advantage.  



Evaluate  the  attractiveness  of  a  country  from  a  FDI  (Foreign  Direct  Investment)  perspective  with   respect  to  market  access.  

Features  of  Market  Access  Map   Ø

Wide  geographical  coverage:   •

Tariffs  applied  by  different  countries  to  the  products  exported  by  other  countries  and   territories.  

Ø

Wide  coverage  of  instruments:  

Ø

Preferences:  



Ø

Ad-­‐valorem  tariffs,  specific  tariff  quotas,  antidumping  duties  and  NTMs  (non-­‐tariffs  measures).  



Covers  most  bilateral  and  regional  agreements  



Rules  of  Origin  and  Certificates  of  origin  also  included  for  most  agreements.  

Analytical  flexibility:   •

Permits  any  analysis:  by  region,  by  economic  sector  or  by  measure.  

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Data  Sources:   •

Applied  tariffs:  ITC  research  from  National  Customs  Institutions  



Tariff  quotas:  from  WTO  (Agricultural  notification  of  tariff  quota)  and  national  sources  for  bilateral  and   regional  tariff  quota  agreements.  



Trade  data:  from  national  sources,  IDB  (Integrated  database),  WTO  and  COMTRADE  database  of  the   United  Nations  Statistics  Division  (UNSD).  

  Box  9:  Market  Access  Map  

 

Patterns  of  Protection     Successive   rounds   of   multilateral   negotiations   have   lowered   average   levels   of   protection.   Industrial   countries   have   generally   set   applied   tariff   rates   close   to   their   tariff   bindings,   enhancing   the   predictability   and   transparency   of   market   access   regimes.   In   contrast,   most   developing  countries  bind  their  tariffs  at  levels  well  above  their  applied  rates  so  that  they  could   in   principle   substantially   increase   their   applied   tariffs   without   infringing   their   WTO   commitments.       Applied  tariff  rates  in  2001  varied  considerably  across  country  groupings.  Despite  the  significant   progress   made   in   recent   years,   sub-­‐Saharan   African   countries   continue   to   have   the   highest   simple   average   tariff   protection   (17.2   percent),   followed   by   the   Middle   East   and   North   Africa   (16.8   percent).   Among   broad   country   groupings,   it   is   notable   that   the   average   tariff   of   least   developed   countries   (LDCs)   (17.9   percent)   is   higher   than   that   of   other   developing   countries   (14.0  percent)  and  well  above  that  of  industrial  countries  (5.2  percent).       Averages  of  most-­‐favoured-­‐nation  (MFN)  applied  tariffs  by  importing  country  or  region  provide,   however,  an  incomplete  picture  of  protection.   First,  a  number  of  barriers  are  not  covered  by  the   standard  MFN  databases,  including  specific  tariffs  (that  is  an  absolute  monetary  value  per  unit   of  imports),  tariff  rate  quotas,  prohibitions,  contingent  protection,  the  costs  of  rules  of  origin,   and  environmental  and  technical  standards.  Second,  the  averages  do  not  capture  the  impact  of   tariff   dispersion,   in   particular   tariff   peaks   and   escalation.   Third,   because   of   preference   schemes   and   differing   export   structures,   the   barriers   faced   by   exporters   to   the   same   market   can   vary   widely.   And,   finally,   uncertainty   over   market   access,   related   to   contingent   protection,   interpretation   of   norms   and   procedures,   and   the   discretionary   nature   of   many   preference   schemes,  may  represent  a  further  disincentive  to  exporters.  

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  Developing  countries  generally  face  higher  barriers  to  their  exports  than  industrial  countries.   Underlying  that  general  result,  however,  there  are  large  variations  in  market  access  conditions   depending   on   the   type   of   product   and   the   particular   exporter-­‐importer   combination.   Table   2   presents   combined   ad   valorem   tariff   equivalents   (AVEs)   of   a   range   of   protective   measures,   while  taking  into  account  preferences  and  export  structures.       The  results  suggest  that  EU  protection  is  heavily  skewed  against  imports  from  middle-­‐income   developing  countries,  and  U.S.  protection  against  imports  from  LDCs.  The  geographical  patterns   of  Canadian  and  Japanese  protection  are  less  marked,  although  the  former’s  protection  pattern   appears   tilted   against   LDCs   and   the   latter   against   other   low-­‐income   countries.   Levels   of   protection  in  other  OECD  markets,  and  in  middle-­‐income  developing  countries  as  a  group  tend   to   be   well   above   those   in   the   Quad.   Given   the   potential   for   trade   among   the   developing   countries,   now   at   40   percent   of   their   total   exports,   barriers   to   this   trade   are   increasingly   significant.    

 

Table  2:  Effective  Ad-­‐Valorem  Tariff  Equivalents  on  Bilateral  Trade  Flows  

     

Least   Developed   Countries  

Importers  

 

 

Canada  

6.7  

European  Union  

2.8

United  States   Other  OECD  

1

4.9   13.6

1

8.7  

Developing  Countries  

(Total  Trade)   5.4   4.4  

 

7.0   6.4  

 

6.2  

…  

Middle  Income  Countries  

 

 

 

Japan  

Exporters   Middle-­‐   Income   Countries  

Other   Low-­‐Income   Countries  

 

10.3   4.5   3.6  

4.4   7.2   4.7   4.5  

10.4  

10.2  

11.9  

12.7  

…  

…  

   

13.1  

…  

8.1  

All   Developing   Countries  

7.5  

             

OECD    

  …   …   …   …   …   …   …  

 

(Trade  in  Agriculture)  

 

Canada  

3.4  

European  Union  

7.6

1

Japan  

29.1  

United  States  

28.1

1

Other  OECD  

19.6  

Middle  Income  Countries  

18.2  

Developing  Countries  

 

18.7  

16.3  

17.5  

33.7  

13.4  

24.8  

20.0  

41.6  

9.5  

13.0  

12.7  

14.5  

…  

17.0  

14.5  

16.3  

 

28.0  

…  

…  

18.4  

21.2   35.4   23.1  

 

  Trade  in  Manufactures  

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21.9   32.5   …  

28.3   42.1   …  

Canada  

European  Union   Japan  

United  States  

0.0

1

0.1   8.0

1

 

4.2  

2.0  

2.9  

2.0  

5.0  

1.4  

2.5  

1.2  

5.7  

 

5.9  

Other  OECD  

5.0  

10.8  

Middle  Income  Countries  

6.0  

11.1  

Developing  Countries    

7.7  

…  

…  

5.5   2.1   5.7   …  

10.9  

4.5   3.6   7.4   6.4   …  

2.5   1.6   7.4   6.9   …  

Source:  International  Trade  Centre  (ITC).  For  the  methodology  in  calculating  AVES,  see  Bouët  and  others  (2001)  

 

The  evidence  indicates  that  impediments  to  trade  in  agricultural  products  remain  far  greater   than   in   manufacturing   trade   (Table   2).   In   the   Round,   quantitative   restrictions   and   other   nontariff  measures  (NTMs)  were  converted  into  tariffs.  While  improving  transparency,  the   modalities   of   conversion   have   in   many   cases   allowed   an   increase   in   effective   protection.   Specific  tariffs  and  tariff-­‐rate  quotas  (TRQs),  which  are  most  frequent  in  agricultural  trade,   account  for  a  significant  share  of  the  AVEs.     Ad  valorem  tariff  equivalents  of  middle-­‐income  developing  countries  are  broadly  comparable   with   those   of   the   Quad.   Note   that   these   AVEs   cover   neither   domestic   measures   of   support   nor  the  effect  of  export  subsidies.     As   average   industrial   tariffs   fell   over   successive   trade   rounds,   pockets   of   protection   have   survived  in  products  of  particular  interest  to  developing  countries.  Between  6  and  14  percent   of  Quad  tariff  lines  are  subject  to  tariff  peaks,  in  some  cases  at  rates  well  over  100  percent.   Tariff   peaks   are   also   a   prominent   feature   of   tariff   regimes   in   developing   countries.   Most   preference  schemes,  moreover,  offer  little  relief  from  tariff  peaks.  In  Canada  and  the  United   States,   tariff   peaks   are   concentrated   in   textiles   and   clothing,   and   in   the   case   of   the   EU   and   Japan,  in  agriculture,  food  products  and  footwear.  Notably,  estimates  suggest  that  the  capping   of   all   peaks   at   the   threshold   of15   percent   would   reduce   AVEs   in   textiles   and   clothing   by   around  20  percent  for  imports  from  most  source  countries  into  the  United  States,  and  by  59   percent  for  imports  from  China.  In  agriculture  and  food  products,  they  would  decline  by  40–60   percent  on  imports  into  the  EU.     The  pattern  of  protection  creates  particular  hurdles  for  countries  taking  the  first  steps  up  the   technology  ladder.  Protection  is  relatively  low  for  primary  products,  but  increases  sharply  for   low-­‐technology,   labor-­‐intensive   food   processing   and   light   industries,   declines   somewhat   in   the  medium-­‐technology  range—such  as  automotive  products—and  is  lowest  at  the  upper  end   of   the   technology   spectrum.   Since   low-­‐   income   country   exports   tend   to   be   labor-­‐intensive,  

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the  impact  on  their  exports  can  be  substantial:  a  recent  study  shows  that  revenue  from  duties   collected   by   the   United   States   on   imports   from   Bangladesh   is   similar   to   that   on   imports   from   France,   which   are   twelve   times   larger.   A   similar   pattern   can   be   observed   within   processing   chains,   where   tariff   escalation   remains   a   major   concern.   By   reducing   demand   for   more   processed   imports   from   developing   countries,   tariff   escalation   hampers   the   expansion   of   their  processing  industries  and  export  diversification.     Protection   is   costly   to   both   industrial   and   developing   countries.   Estimates   of   the   static   income  gains  from  eliminating  barriers  to  merchandise  trade  are  substantial,  ranging  from   US$250   billion   to   US$620   billion   annually,   of   which   around   one-­‐third   to   one-­‐half   would   accrue  to  developing  countries.   A  large  share  of  the  gains  to  industrialized  countries  would   be   due   to   the   elimination   of   restrictions   on   trade   in   apparel   and   agriculture.   Additional   dynamic   gains   would   stem   from   the   supply   response   to   the   more   favorable   international   trade  regime  (World  Bank,  2002).  Since  much  of  the  remaining  protection  is  in  agriculture,   food  products,  and  textiles  and  clothing.        

Contingent  Protection    

Statutory  protection  in  the  form  of  tariffs  and  quotas  is  aggravated  by  contingent  protection.   Among  the  trade  remedies  permitted  under  WTO  rules,  anti-­‐dumping  has  become  by  far  the   most   widely   used,   in   both   industrial   and   developing   countries.   Since   1995,   over   1,800   antidumping   investigations   have   been   initiated   (Table   3).   While   industrial   countries   have   traditionally   been   the   main   users   of   such   measures,   developing   countries   have   been   more   active  in  recent  years,  led  by  India,  Argentina,  Brazil,  and  South  Africa.  In  the  seven  years  to   2001,  developing  countries  initiated  almost  two  thirds  of  all  investigations,  well  in  excess  of   their   share   in   world   trade.   However,   developing   countries   have   also   been   the   target   of   nearly  60  percent  of  investigations,  mostly  initiated  by  other  developing  countries.     Table  3.    Initiations  of  Antidumping  Investigations,  1995-­‐2001   Affected  countries  

Initiating  Country    

Number  of  investigations   Industrial  countries   Of  which:   United  States   EU  

Industrial   Countries    

United   EU   States                              

Developing   Countries    

Transition   Countries    

Total      

 

 

 

 

 

511   128   79   15  

102   17  

313   67  

0   6  

46   0  

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1,086   363   146   165  

248   114   30   66  

1,845   605   255   246  

Developing  countries   Transition  countries  

379   4  

85   0  

242   4  

718   5  

131   3  

1,228   12  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent  of  investigations   Industrial  countries   United  States   EU   Developing  countries   Transition  countries   Source:  WTO  Secretariat  

 

28   21   31   6   31   33  

6   3   0   2   7   0  

17   11   18   0   20   33  

59   60   57   67   58   42  

13   19   12   27   11   25  

100   100   100   100   100   100  

The   recent   steep   rise   in   antidumping   investigations   puts   at   risk   the   predictability   and   nondiscriminatory  application  of  trade  policies.  Recent  enforcement  practices  have  raised   serious  concerns  about  the  influence  of  special  interests  on  public  policy,  and  may  impose   large   costs   on   consumers   and   downstream   industries   in   importing   countries.   Moreover,   the   deterrent   effect   of   an   investigation   typically   reaches   well   beyond   the   targeted   exporter,  and  impedes  incentives  to  pass  on  efficiency  gains.       The   frequency   of   antidumping   measures   increases   during,   and   may   thus   reinforce,   economic  downturns.  Small  firms  and  countries  face  greater  uncertainty  as  they  often  lack   the   resources   to   challenge   antidumping.   Several   reform   proposals   suggest   that   the   introduction   of   competition   law   principles   and   of   public   interest   clauses,   giving   affected   importers   and   users   legal   standing   to   argue   against   protection,   would   reduce   the   protectionist  bias  of  antidumping.     Types  of  tariffs   Ø

Ø

Ad-­‐valorem  tariffs   •

Levied  on  the  basis  of  the  value  of  the  product  



Used  by  most  countries;  more  than  87%  of  tariffs  worldwide  are  ad  valorem.  

Specific  tariffs   •

Levied  on  the  basis  of  volume  or  weight  or  number  of  units  of  the  product.  



Users  of  specific  tariffs  include:  Switzerland  (83,4%),  Thailand  (10,3%),  Russia  (11,8%),  Argentina   (11,3%),  Belarus  (12,1%),  USA  (9,4%).  

Ø

Ø

Ø

Compound  tariffs   •

Contain  both  ad  valorem  and  specific  rates  



E.g.  10%  of  the  value  +  $2  per  kilo  (frequently  applied  by  Japan,  EU  and  Canada)  

Mixed  tariffs   •

Minimum  or  maximum  of  2  kinds  of  tariffs  



E.g.  Min  or  Max  (10%  *  $2/kg)  

Variable  tariffs  

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Levied  on  the  basis  of  the  price  of  the  products  

  Box  10:  Types  of  Tariffs  

 

 

Policy  Implications   The   phasing   out   of   tariff   peaks   and   escalation   is   a   critical   element   of   the   development   dimension  of  the  current  round  of  multilateral  trade  negotiations.  Tariff  peaks  and  escalation   bias   protection   in   both   industrialized   and   developing   countries   against   agricultural,   labor-­‐ intensive,   and   low   technology   products.   This   holds   back   export-­‐led   growth   and   greater   diversification   in   developing   countries   and   the   poverty   reduction   that   is   associated   with   increased  demand  for  unskilled  labor.     A   formula-­‐based   approach   seems   likely   to   be   the   best   way   to   ensure   a   compression   of   tariff   schedules   across   tariff   lines.   Experience   has   shown   that   formulas   are   less   vulnerable   to   the   influence   of   vested   interests   than   the   tariff   line-­‐item   (“request-­‐offer”)   negotiations.   At   the   same  time,  developing  countries  should  be  far  more  ambitious  in  binding  tariffs  at  levels  close   to  applied  rates,  in  order  to  reduce  uncertainty  and  reap  the  full  benefits  of  liberalization.   Disciplines   on   the   application   of   contingent   protection   should   be   strengthened.   This   would   require   the   full   participation   of   all   the   main   users.   One   approach   would   be   for   procedural   rules   to   give   greater   weight   to   consumer   concerns   in   considering   trade   remedy   action.   Short   of   that,   the   rules   could   be   reviewed   with   a   focus   on   methodological   weaknesses,   the   potential   for   abuse,  possibilities  for  raising  the  triggers  or  making  them  more  rigorous  (e.g.,  higher  margins,   sunset   clauses,   etc.),   and   the   administrative   costs   anti-­‐dumping   and   countervailing   duty   actions.     Current   rules   allow   national   authorities   a   wide   margin   of   discretion.   A   related   risk   is   the   possibly   protectionist   application   of   health   and   technical   standards,   which   calls   for   careful   monitoring   and   greater   assistance   to   developing   countries,   both   to   enable   their   full   participation  in  negotiations  and  in  meeting  standards.   Adoption   by   all   industrial   countries   of   schemes   that   provide   unrestricted   market   access   for   LDCs  could  have  significant  benefits  without  imposing  undue  costs  on  other  suppliers,  given  the   very  small  share  of  LDCs  in  world  trade  (around  0.5  percent).  However,  trade  preferences  can   also  have  drawbacks.  Apart  from  the  economic  inefficiencies,  they  risk  creating  vested  interests  

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in   the   status   quo,   and   should   therefore   be   set   firmly   within   a   context   of   rapid   multilateral   liberalization.     Improved  market  access  for  LDC  exports  will  not  be  sufficient  to  engender  a  sustained  growth   performance,   but   should   form   part   of   a   broader   strategy   to   promote   a   vigorous   supply   response.   Inefficiencies   in   key   infrastructure   sectors   like   telecommunications,   transport,   and   financial   services   often   add   more   to   export   costs   than   foreign   trade   barriers   (World   Bank,   2002).   Protection   in   developing   countries   makes   production   for   the   home   market   more   attractive.       Further   reform   of   developing   countries’   trade   and   investment   environments   and   progress   on   transparency   and   governance   in   the   administration   of   foreign   trade   will   often   be   necessary   complements  to  better  market  access.  This  includes  reducing  the  average  level  and  dispersion   of   protection,   maintaining   an   appropriate   exchange   rate   regime,   and   liberalizing   the   policies   towards   foreign   direct   investment   and   key   services   sectors.   The   sequencing   of   policies   often   matters  greatly.  For  instance,  in  a  number  of  countries  reductions  in  trade  tariffs  will  need  to  be   combined  with  a  rebalancing  of  fiscal  revenue  sources.     Market  access   Tariffication   and   bindings:   Nontariff   measures   to   be   converted   to   bound   tariffs   at   the   start   of   the   implementation   period   with   average   tariff   cuts   by   industrial   countries   of   36   percent   over   six   years   from   a   1986-­‐ 88  base,  and  a  minimum  cut  of  15  percent  on  any  tariff  line.   Minimum  import  access:  Tariff  rate  quotas  were  introduced  to  guarantee  minimum  market  access  by  the  end   of  the  implementation  period.   Internal  support   Domestic   support,  as  measured  by  the  total  Aggregate   Measurement  of  Support  (AMS),  to  be  reduced  by  20   percent   from   a   1986-­‐88   base   over   the   implementation   period.   Exempt   are   domestic   supports   of   less   than   5   percent,   “green   box”   subsidies   allowed   for   purposes   such   as   development   and   technical   progress,   and   “blue   box”  subsidies  linked  to  output  reduction  schemes.   Export  subsidies   Export  subsidies   to   be   reduced   by   36   percent   in   value   and   subsidized   exports   by   21   percent   in   volume   for   each   product  over  the  implementation  period  from  a  1986-­‐90  base.   Special  safeguard   Special   safeguard   provisions,   triggered   by   volume   increases   or   price   reductions,   permit   the   imposition   of   additional  duties  up  to  specified  limits.  

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  Developing  countries   Greater   flexibility   was   given   to   developing   countries   in   their   commitments   to   market   access,   reductions   in   domestic  and  export  subsidies  (generally  2/3  of  developed  country  commitment  sand  a  longer  implementation   period  of  10  years).   Peace  Clause   Among  other  provisions,  for  subsidies  excluded  from  the  reduction  commitments,  the  measures  will  be   considered  non-­‐actionable  in  terms  of  countervailing  duties  and  legal  challenges  in  the  WTO  until  the  end  of   2003.  

Box  11:  Uruguay  Round:  Principal  Commitments  on  Agriculture  

 

Opportunities  for  Engagement  with  Global  Market   Trade  Preferences   Most   developing   countries   have   preferential   access   to   industrial   country   markets   for   a   wide   range  of  products.  This  departure  from  the  traditional  nondiscrimination  principle  of  the  GATT   has  been  sanctioned  under  the  so-­‐called  “Generalized  System  of  Preferences”  (GSP).  In  2001,   some   15   such   schemes   were   in   effect,   though   country   coverageand   preference   margins   over   applied  MFN  tariffs  varied  widely.       An  important  recent  development  has  been  the  proliferation  of  bilateral  and  regional  free  trade   agreements   between   industrial   and   developing   countries.   According   to   WTO   rules,   such   agreements  shave  to  cover  substantially  all  trade,  unlike  GSP  schemes.  However,  some  of  the   problems  of  preferential  schemes  reviewed  below—in  particular  the  drawbacks  related  to  rules   of  origin—apply  in  equal  measure.     Irrespective   of   their   broader   merits   or   shortcomings   within   the   multilateral   trading   system,   the   benefits  of  many  GSP  schemes  for  their  beneficiaries  have  been  limited.  Typically,  preference   margins  are  smaller  for  products  that  the  importing  country  deems  to  be  sensitive—which  are   also   among   the   most   protected.   Moreover,   as   a   large   number   of   countries   with   often   similar   export   structures   tend   to   benefit   from   these   and   other   schemes,   the   competitive   advantage   they  convey  is  reduced.  In  addition,  country  and  product  specific  graduation  mechanisms  may   make   exports   ineligible   for   GSP   treatment,   and   hence   detract   from   incentives   to   invest   in   anticipation   of   continued   benefits.   In   this   context,   there   is   evidence   to   suggest   that   the   availability   of   unreciprocated   market   access   preferences   has   undermined   the   incentives   of   ABR  Handbook  on  Business  Facilitation|  41  

 

benefiting   countries   to   engage   in   trade   liberalization,   thus   at   times   perpetuating   anti-­‐export   biases  in  their  trade  regimes.     Preferential  trade  regimes  invariably  bring  with  them  the  monitoring  of  rules  of  origin  to  avoid   trans-­‐shipment.  This  appears  to  have  reduced  the  benefits  expected  from  such  schemes.  Rules   of   origin   are   akin   to   local   content   requirements.   Costs   arise   both   from   exporters   seeking   to   benefit  from  preferences  by  procuring  inputs  from  less  efficient  sources  (trade  diversion),  and   from  the  administration  of,  and  accounting  for,  origin.       Under   NAFTA,   clothing   imports   into   the   United   States   market   are   subject   to   the   “triple   transformation   rule,”   according   to   which   sourcing   at   all   stages   of   prior   transformation   (yarn,   fabric,  and  cutting/assembly)  must  obey  value  added  thresholds.  In  the  case  of  the  EU,  a  recent   study  found  that,  partly  as  a  result  of  unattractive  rules  of  origin,  only  one-­‐third  of  imports  that   were   eligible   for   preferential   treatment   did   in   fact   enter   the   EU   market   with   reduced   duties.   This  problem  is  particularly  acute  for  textiles  and  clothing.       In  the  case  of  Albanian  exports,  for  instance,  84  percent  of  exports  to  the  EU  were  eligible  for   preferential   treatment,   but   only   2   percent   actually   requested   or   were   granted   such   preferences.  Cumulating  of  origin  across  beneficiary  countries  can  mitigate  the  burden  of  rules   of  origin,  though  often  at  the  expense  of  greater  administrative  complexity.     Market  access  under  GSP  schemes  has  recently  been  enhanced  on  a  regional  basis,  in  particular   for  African  countries.  To  date,  36  sub-­‐Saharan  African  countries  have  qualified  in  principle  for   preferential   access   under   the   United   States’   AGOA,   adopted   in2000.   Margins   of   preference   are   substantial  for  textile  and  apparel  products  as  well  as  for  a  range  of  other  light  manufactures   and  food  products.  In  order  to  benefit  from  this  scheme,  countries  have  to  meet,  in  addition  to   relatively   tight   rules   of   origin   and   standard   GSP   criteria,   requirements   relating   to   child   labour   and  the  protection  of  internationally  recognized  workers’  rights.       The   administrative   requirement   involved   in   documenting   eligibility   may   explain   why   only   15   countries  had  availed  themselves  of  benefits  under  this  scheme  in  the  year  to  March  2002,  with   most   of   the   benefits   accruing   to   four   countries—Gabon,   Lesotho,   Nigeria,   and   South   Africa— and  with  fuel  accounting  for  85  percent  of  AGOA  imports.  Nevertheless,  since  initiation  of  the   scheme,   sub-­‐Saharan   African   exporters   have   increased   their   U.S.   market   share   in   textiles   and   clothing   from   approximately   1   percent   in   2000   to1.6   percent   in   mid-­‐2001   (in   value   terms).   Conservative  estimates  suggest  that  by  2008  the  volume  of  African  exports  to  the  U.S.  market  

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may   rise   by   an   additional   6-­‐7   percent.   However,   effective   preference   margins   will   decline   as   quotas  under  the  WTO  Agreement  on  Textiles  and  Clothing  are  phased  out.     A  number  of  industrialized  countries  have  recently  granted  comprehensive  tariff  and  quota  free   access   to   LDCs.   The   EU’s   EBA   initiative   has   extended   such   preferential   access   since   coming   into   effect  in  March  2001.  It  covers  all  products,  except  for  sugar,  bananas,  and  rice,  which  are  to  be   liberalized  more  gradually.  Unlike  the  EU’s  GSP  scheme,  benefits  under  the  EBA  are  extended   on  an  indefinite  basis,  subject  however  to  broad  safeguards.       At  the  G-­‐8  Summit  in  Kananaskis,  the  Canadian  government  announced  that  duty-­‐  and  quota-­‐ free  access  would  be  extended  to  imports  from  LDCs  effective  January  2003,  with  the  exception   of  certain  supply-­‐managed  agricultural  products  (dairy,  poultry  and  eggs).Schemes  providing  for   virtually   unqualified   duty-­‐   and   quota-­‐free   access   for   LDCs   have   also   been   adopted   by   New   Zealand,  Norway,  and  Switzerland.  Results  of  the  EBA  initiative  are  not  yet  available,  but  earlier   experience  in  the  EU  has  shown  that  broad-­‐based  tariff-­‐free  market  access  for  LDCs  can  assist   in   diversifying   their   export   structures.   Recent   research   suggests   that   under   such   schemes,   if   adopted   by   all   Quad   markets,   LDC   exports   to   the   Quad   might   increase   by   US$2.5   billion,   or   about  11  percent,  with  relatively  limited  cost  in  terms  of  trade  diversion.      

Standards  and  Non-­‐Tariff  Barriers  to  Trade   Many   developing   countries   are   concerned   that   they   are   ill-­‐prepared   to   meet   increasingly   complex   and   burdensome   standards   and   regulations.   Standards   and   regulations   on   products   and   production   processes   play   an   important   role   in   facilitating   trade   by   ensuring   quality,   safety   and   technical   compatibility.   However,   there   is   often   a   risk   that   such   regulations   may   be   captured   by   special   interests,   particularly   when   regulatory   processes   are   not   transparent.   Conditions   might   then   be   imposed   that   are   tighter   than   needed   to   achieve   the   safety   and   health  objectives  in  order  to  serve  a  protectionist  purpose.   Technical   barriers   have   become   a   key   concern   regarding   market   access.   Annual   notifications   of   new   technical   barriers   (including   health   and   safety   standards,   and   product   standards)   to   GATT/WTO  increased  steadily  from  a  dozen  or  two  in  the  early  1980s  to  over  400  in  1999.  Low-­‐   and   middle-­‐income   countries   reported   that   over   the   period   from   1996–99   more   than   50   percent  of  their  potential  exports  of  fresh  and  processed  fish,  meat,  fruit  and  vegetables  into   the   EU   were   “prevented”   by   their   inability   to   comply   with   Sanitary   and   Phytosanitary   (SPS)   requirements   (OECD,   2001b).   SPS   and   other   technical   requirements   have   been   viewed   by   developing  country  trade  officials  as  a  greater  constraint  on  their  ability  to  export  than  tariffs   and  quantitative  restrictions.   ABR  Handbook  on  Business  Facilitation|  43  

 

  One  approach  to  measuring  the  importance  of  technical  barriers  to  trade  is  to  submit  questionnaires  to   exporters  or  government  officials.  Henson  and  others  (2000)  surveyed  government  officials  in  65  low-­‐and   middle-­‐income  countries.  Respondents  were  asked  to  consider  a  range  of  factors  that  might  impede  their   country’s  ability  to  export  agricultural  and  food  products  to  the  EU  and  indicate  the  significance  of  each   on   a   five-­‐point   Likert   scale   from   “very   significant”   (1)   at     one   extreme   to   “very   insignificant   ”(5)   at   the   other.  Overall,  SPS  requirements  were  considered  the  most  significant  impediment  to  exports  to  the  EU   (this   does   obviously   not   imply   that   these   standards   are   necessarily   unreasonable).   Other   technical   requirements,   for   example,   labeling   regulations   or   compositional   standards   were   also   considered   significant  impediments  to  trade.   Mean   Significance   Scores   for   Factors   Influencing   Countries’   Ability   to  Export  Agricultural  and  Food  Products  to  the  European  Union  

  Rank                                                                                        Factor                                                                          Mean  Score    

 

 

1   2   3   4   5  

 

SPS  requirements   Other  technical  requirements   Transport  and    other  direct  export  costs   Tariffs   Quantitative  restrictions  

 

2.1   2.8   2.8   3.3   3.8  

 

Source:  OECD  (2001b),  based  on  Henson  and  others  (2000).  

Box  12.  Technical  Standards  and  Barriers  to  Trade  

    Developing  countries  have  found  it  difficult  to  participate  in  designing  standards  in  ways  that   better  reflect  their  concerns  and  capabilities,  and  to  challenge  them  where  they  were  imposed   in   a   discriminatory   manner.   A   number   of   agreements   in   the   Uruguay   Round   have   sought   to   address   these   concerns   by   strengthening   international   rules   governing   product   standards   in   order  to  minimize  their  abuse  for  protectionist  purposes.  However,  they  also  entail  substantial   costs   for   product   redesign,   assessing   conformity,   creating   an   administrative   system   to   monitor   compliance,  and  quality  control.  Many  developing  countries  will  require  stepped-­‐up  technical   and   financial   assistance   if   they   are   to   cope   with   the   challenges   posed   by   proliferating   standards.      

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Specific  Product  market   Textile:   Textiles   and   clothing   exports   have   been   central   to   industrialization   strategies,   but   barriers  continue  to  be  very  high.  Developing  countries  account  for  some  50  percent  of  world   textile   exports   and   70   percent   of   world   clothing   exports.   Several   have   developed   a   high   dependence  on  these  exports.  Tariff  barriers  far  exceed  those  on  other  manufactured  products,   in   industrial   and   developing   countries   alike.   Despite   an   international   agreement   to   phase   out   quotas  on  textile  and  clothing  trade,  the  vast  majority  is  still  in  place.  The  back  loading  of  quota   removal  by  Canada,  the  EU,  and  the  United  States  is  set  to  cause  sharp  adjustment  pressures  at   the   end   of   the   implementation   period   in   early   2005,   as   quotas   have   protected   less   competitive   suppliers  in  both  industrial  and  developing  countries.   Agriculture:  Agricultural  liberalization  in  both  industrial  and  developing  countries  is  likely  to   have  long-­‐term,  dynamic  effects  on  developing  country  production  and  trade.  Static  gains  alone   would   be   on   the   order   of   US$30   billion   in   income   and   US$120   billion   in   exports   per   year.   Increased   investment   and   enhanced   technologies   could   magnify   the   benefits   of   liberalization,   but  require  a  framework  of  supportive  domestic  policies  and  infrastructure  (transport,  logistics,   credit,  technical  assistance).  

Subsidies  and  Their  Impact   World   trade   in   products   of   export   interest   to   developing   countries   remains   heavily   distorted.   Market  access  barriers  and  trade-­‐distorting  subsidies  imposed  by  industrial  countries  tend  to  be   skewed   toward   labor-­‐intensive   manufactures   and   agricultural   products.   The   trade   policies   of   the  developing  countries  themselves  target  many  of  the  same  products,  adding  substantially  to   the   burden   they   face   in   increasing   and   diversifying   their   exports.   The   need   for   greater   coherence   between   trade   and   development   policies,   including   better   market   access   for   developing  country  exports,  is  a  central  focus  of  the  Doha  Development  Agenda  of  the  World   Trade  Organization  (WTO).   Improving  market  access  for  developing  country  exports  requires  a  comprehensive  approach  to   liberalization.  The  Doha  Development  Agenda  contains  important  commitments  but  this  initial   effort  needs  to  be  sustained.  Particular  issues  include:   §

The   phasing   out   by   all   countries   of   tariff   peaks   (tariffs   of   15   percent   or   higher)   and  escalation  (tariffs  rising  with  the  degree  of  processing  of  imports)  is  critical   to   the   development   dimension   of   the   current   round   of   multilateral   trade   negotiations,   and   could   best   be   achieved   through   formula   approaches   that   ensure  deep  across-­‐the-­‐board  reductions.  

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§

§

§

§

§

Disciplines  on  the  application  of  trade  remedy  action  should  be  strengthened— including   through   reviews   of   existing   rules   to   deter   their   use   as   protectionist   devices—and  developing  countries  should  receive  more  assistance  to  implement   product  and  process  standards.   Schemes   that   provide   unrestricted   market   access   for   all   least   developed   countries   should   be   extended   by   all   large   trading   nations   (with   liberal   rules   of   origin)  but  set  within  a  framework  of  multilateral  liberalization.   In   agriculture,   meaningful   liberalization   must   cover   border   protection   and   subsidies   in   industrial   as   well   as   developing   countries.   OECD   countries   should   seek   to   de-­‐link   agricultural   income   support   from   production   levels.   Reforms   of   subsidy   and   tariff   regimes   should   proceed   in   parallel   in   order   to   soften   the   impact  on  net  food  importing  countries.   In   textiles   and   clothing,   the   priority   must   be   to   accelerate   the   removal   of   quotas   in  order  to  avoid  an  adjustment  shock  in  2005  as  a  result  of  the  phasing  out  of   quotas   under   the   Uruguay   Round   Agreement   on   Textiles   and   Clothing.   The   simultaneous   reduction   in   import   tariffs   would   help   to   mitigate   adjustment   pressures.   Reform  of  market  access  in  developing  countries  themselves  would  contribute  as   much   to   a   development-­‐oriented   multilateral   trading   system   as   OECD   policies.   Apart   from   domestic   efficiency   gains   and   a   reduction   in   remaining   anti-­‐export   biases,  developing  countries  are  increasingly  large  markets  for  each  other.  

Trade  Facilitation   Trade   facilitation   looks   at   how   procedures   and   controls   governing   the   movement   of   goods   across   national   borders   can   be   improved   to   reduce   associated   cost   burdens   and   maximise   efficiency   while   safeguarding   legitimate   regulatory   objectives.   Business   costs   may   be   a   direct   function   of   collecting   information   and   submitting   declarations   or   an   indirect   consequence   of   border   checks   in   the   form   of   delays   and   associated   time   penalties,   forgone   business   opportunities  and  reduced  competitiveness.  

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Understanding   and   use   of   the   term   “trade   facilitation”   varies   in   the   literature   and   amongst   practitioners.   "Trade   facilitation"   is   largely   used   by   institutions   which   seek   to   improve   the   regulatory  interface  between  government  bodies  and  traders  at  national  borders.  The  WTO,  in   an   online   training   package,   once   defined   trade   facilitation   as:   “The   simplification   and   harmonisation   of   international   trade   procedures”   where   trade   procedures   are   the   “activities,   practices  and  formalities  involved  in  collecting,  presenting,  communicating  and  processing  data   required  for  the  movement  of  goods   Fiscal:   Collection   of   customs   duties,   excise   duties   and   other   in  international  trade”.   indirect  taxes;  payment  mechanisms   In   defining   the   term,   many   trade   facilitation   proponents   will   also   make  reference  to  trade  finance  and   Environment   and   health:   Phytosanitary,   veterinary   and   hygiene   the   procedures   applicable   for   controls;  health  and  safety  measures;  CITES  controls;  ships’  waste   making   payments   (e.g.   via   a   Consumer   protection:   Product   testing;   labelling;   conformity   commercial   banks).   For   example   checks  with  marketing  standards  (e.g.  fruit  and  vegetables)   UN/CEFACT  defines  trade  facilitation   as   "the   simplification,   Trade  policy:  Administration  of  quota  restrictions;  export  refunds   standardization   and   harmonisation   Box   13:   Examples   of   Regulatory   Activity   in   of   procedures   and   associated   International  Trade   information   flows   required   to   move   goods  from  seller  to  buyer  and  to  make  payment".   Safety   and   security:   Security   and   anti-­‐smuggling   controls;   dangerous  goods;  vehicle  checks;  immigration  and  visa  formalities  

Occasionally,   the   term   trade   facilitation   is   extended   to   address   a   wider   agenda   in   economic   development  and  trade  to  include:  the  improvement  of  transport  infrastructure,  the  removal  of   government   corruption,   the   modernisation   of   customs   administration,   the   removal   of   other   non-­‐tariff  trade  barriers,  as  well  as  export  marketing  and  promotion.   Reference   to   trade   facilitation   is   sometimes   also   made   in   the   context   of   "better   regulation".   Some   organisations   promoting   trade   facilitation   will   emphasise   the   cutting   of   red   tape   in   international  trade  as  their  main  objective.  Propagated  ideas  and  concepts  to  reforming  trade   and  customs  procedures  generally  resonate  around  the  following  themes:   § § § § §

Simple  rules  and  procedures   Avoidance  of  duplication   Memoranda  of  Understanding  (MoUs)   Alignment  of  procedures  and  adherence  to  international  conventions   Trade  consultation  

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§ § § § § § § § § § § § §

Transparent  and  operable  rules  and  procedures   Accommodation  of  business  practices   Operational  flexibility   Public  service  standards  and  performance  measures   Mechanisms  for  corrections  and  appeals   Fair  and  consistent  enforcement   Proportionality  of  legislation  and  control  to  risk   Time  release  measures   Risk  management  and  trader  authorisations   Standardization  of  documents  and  electronic  data  requirements   Automation   International  electronic  exchange  of  trade  data   Single  Window  System  

Technology  and  Trade     Electronic  trading,  sometimes  called  e-­‐trading,  is  a  method  of  trading  securities  (such  as  stocks,   and   bonds),   foreign   exchange   or   financial   derivatives   electronically.   Information   technology   is   used  to  bring  together  buyers  and  sellers  through  an  electronic  trading  platform  and  network   to  create  virtual  market  places  such  as  NASDAQ,  NYSE  Arca  and  Globex  which  are  also  known  as   electronic  communication  networks  (ECNs).   Electronic  trading  is  in  contrast  to  older  floor  trading  and  phone  trading  and  has  a  number  of   advantages,   but   glitches   and   cancelled   trades   do   still   occur.   Electronic   trading   systems   are   typically  proprietary  software  (e-­‐trading  platforms  or  electronic  trading  platforms),  running  on   COTS   hardware   and   operating   systems,   often   using   common   underlying   protocols,   such   as   TCP/IP.   The  move  to  electronic  trading  compared  to  floor  trading  continued  to  increase  with  many  of   the   major   exchanges   around   the   world   moving   from   floor   trading   to   completely   electronic   trading.  Trading  in  the  financial  markets  can  broadly  be  split  into  two  groups:   §

§

Business-­‐to-­‐business   (B2B)   trading,   often   conducted   on   exchanges,   where   large   investment   banks   and   brokers   trade   directly   with   one   another,   transacting   large   amounts  of  securities,  and   Business-­‐to-­‐consumer  (B2C)  trading,  where  retail  (e.g.  individuals  buying  and  selling   relatively   small   amounts   of   stocks   and   shares)   and   institutional   clients   (e.g.   hedge  

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funds,   fund   managers   or   insurance   companies,   trading   far   larger   amounts   of   securities)  buy  and  sell  from  brokers  or  "dealers",  who  act  as  middle-­‐men  between   the  clients  and  the  B2B  markets.    

Impact   The  increase  of  electronic  trading  has  had  some  important  implications:   Reduced   cost   of   transactions   –   By   automating   as   much   of   the   process   as   possible   (often   referred   to   as   "straight-­‐through   processing"   or   STP),   costs   are   brought   down.   The   goal   is   to   reduce   the   incremental   cost   of   trades   as   close   to   zero   as   possible,   so   that   increased   trading   volumes   do   not   lead   to   significantly   increased   costs.   This   has   translated   to   lower   costs   for   investors.   Greater   liquidity   –   electronic   systems   make   it   easier   to   allow   different   companies   to   trade   with   one   another,   no   matter   where   they   are   located.   This   leads   to   greater   liquidity   (i.e.   there   are   more  buyers  and  sellers)  which  increases  the  efficiency  of  the  markets.   Greater  competition  –  While  electronic  trading  hasn't  necessarily  lowered  the  cost  of  entry  to   the   financial   services   industry,   it   has   removed   barriers   within   the   industry   and   had   a   globalisation-­‐style  competition  effect.  For  example,  a  trader  can  trade  futures  on  Eurex,  Globex   or   LIFFE   at   the   click   of   a   button.   He   or   she   does   not   need   to   go   through   a   broker   or   pass   orders   to  a  trader  on  the  exchange  floor.   Increased   transparency   –   Electronic   trading   has   meant   that   the   markets   are   less   opaque.   It's   easier   to   find   out   the   price   of   securities   when   that   information   is   flowing   around   the   world   electronically.   Tighter  spreads  –  The  "spread"  on  an  instrument  is  the  difference  between  the  best  buying  and   selling   prices   being   quoted.   It   represents   the   profit   being   made   by   the   market   makers.   The   increased  liquidity,  competition  and  transparency  means  that  spread  have  tightened,  especially   for  commoditised,  exchange-­‐traded  instruments.   For  retail  investors,  financial  services  on  the  web  offer  great  benefits.  The  primary  benefit  is  the   reduced  cost  of  transactions  for  all  concerned  as  well  as  the  ease  and  the  convenience.  Web-­‐ driven  financial  transactions  bypass  traditional  hurdles  such  as  logistics.  

Other  Aspects  Related  to  Trade  and  Technology   § § § §

E-­‐commerce   Electronic  trading  platform   Electronic  communication  network   Stock  market  data  systems  

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§ § §

Straight-­‐through  processing  (STP)   Trading  room   2010  Flash  Crash  

The   microenterprise   field   has   much   to   learn   about   e-­‐commerce   and   its   benefits   and   costs   to   micro   businesses.   E-­‐commerce   presents   similar   barriers   for   small-­‐scale   producers,   some   opportunities  for  access  and  some  additional  different  challenges.   Similar  challenges  include  developing  market  knowledge,  market  ready  products  and  business   skills.  Depending  on  the  market  channel  used  on  the  internet,  different  additional  opportunities   and  challenges  arise.  For  example:   §

Internet   sales   through   existing,   large-­‐scale   retailers   can   be   as   challenging   for   small  producers  as  selling  through  a  national  grocery  chain.  

§

By   accessing   virtual   malls   or   listing   products   on   auction   sites,   producers   can   control  the  quantity  offered  and  are  likely  to  attract  small  orders  and  therefore,   can  produce  in  manageable  quantities.  

They   also   can   ship   their   products   without   a   distributor.   If   stock   falls   low,   advertisements   and   listings  can  easily  be  removed  without  presenting  an  image  of  unreliability.   Hosting  a  company  website  circumvents  much  of  the  cost  and  knowledge  involved  in  gaining   access  to  other  company  sites  and  markets.  Major  challenges  include  the  costs  of  designing  and   maintaining  a  site,  particularly  a  secure  site  where  customers  can  use  credit  cards,  and   attracting  enough  appropriate  customers  to  the  site.  

               

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4

               

 

   

USING  MEDIA  AND   INFORMATION   TECHNOLOGY  

                       

 

 

• • • • • • • • • • • •

Background   Engaging  Media  for  Advocacy   Messages   Follow-­‐up  and  Maintaining   Contacts   Telling  Stories   Pragmatism   Targeted  Advocacy   Creative  Presentations   Press  Release  and  Kits   Harnessing  Regional  and   International  Conferences   Training  and  Advocacy   Digital  Progress  and  Changing   Dynamics  

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Section  4:    Using  Media  and  Information  Technology   Background   The   ability   to   create,   acquire   and   adapt   new   technologies   is   a   critical   requirement   for   competing  successfully  in  the  global  marketplace.  Various  international  forums  and  agreements   on   technology   access   and   technological   capacity   building   have   recognised   the   importance   of   the   transfer   of   technology,   especially   to   developing   countries.   It   is   also   a   well-­‐documented   fact   that   the   African   continent   has   not   kept   pace   with   technological   advancement.   Africa's   technological   gap   could   be   the   source   of   its   increasing   economic   deterioration   because   other   developing  regions  are  constantly  upgrading  their  own  technological  capabilities,  and  the  global   marketplace  has  become  increasingly  liberalized  and  competitive.     Effective   technology   strategies   are   based   on   a   clear   understanding   of   the   basic   unit   of   technological   activity,   the   industrial   firm,   which   imports,   masters,   uses   and   improves   technology.   It   also   subsequently   stimulates   the   demand   for   innovative   technologies.   For   the   process  to  thrive,  it  needs  active,  supportive  and  dynamic  government  policies  and  institutions.   Efficient   technology   use   goes   beyond   importing   machinery.   It   entails   building   capabilities,   technical   understanding   and   an   informational   base,   acquiring   new   technical   skills   and   managerial  practices  and  forging  linkages  with  other  firms  and  institutions.       It  requires  the  ability  to  understand  and  master  new  technology;  to  adapt  it  to  local  factors  and   conditions;  and  to  upgrade  it  as  technologies  improve  and  new  products  appear.  Different  firms   use   the   same   technology   at   vastly   different   levels   of   efficiency.   Moreover,   countries   vary   in   their  technological  capabilities.     Technological   competitiveness   lies   in   the   effectiveness   with   which   countries   promote   capabilities.   Firms   in   developing   countries   often   lack   the   expertise   to   determine   which   new   skills,  technical  knowledge  and  organizational  techniques  are  required  to  make  newly  imported   technologies  function  at  optimal  levels.  Changes  in  traditional  mind-­‐sets  are  required  to  form   interactions  and  linkages  with  other  firms  or  institutions,  and  to  build  technical  know-­‐how,  as   well  as  to  overcome  the  problem  of  “leakage”  of  trained  workers.  Firms  may  not  have  access  to   the  information,  skills,  financing  or  other  factors  needed  to  develop  their  capabilities.     Furthermore,  not  all  activities  involve  the  same  degree  of  effort  or  cost.  For  instance,  learning   needs   may   be   lesser   in   apparel   manufacturing   than   in   the   making   of   advanced   electronics   or   machinery.   They   also   vary   with   ownership:   new   knowledge   and   technology   might   be   more  

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accessible  to  multinational  affiliates  than  to  local  small  and  medium-­‐sized  enterprises  (SMEs).   Effective  learning  is  further  constrained  among  firms  by  a  lack  of  coordination.  Restrictions  on   learning  within  firms  include  reluctance  to  change,  risk  aversion,  lack  of  knowledge  and  inability   to   undertake   learning   processes.   Corrective   policies   are   needed   in   order   to   promote   national   technological  growth.       The  manufactured  exports  provide  useful  indicators,  particularly  in  country  comparisons,  of  the   technological   strength   and   specialisation   of   the   industrial   sector.   While   they   do   not   capture   trends   for   non-­‐trade   activities,   they   provide   an   overview   of   underlying   technological   activity.   This  section  places  in  an  international  context  the  performance  of  Africa  in  general  and  the  case   study   countries   in   particular.   In   general,   technology-­‐intensive   structures   are   expected   to   be   more  beneficial  because:   § Activities   with   rapid   product   or   process   innovation   enjoy   growing   demand   visà-­‐vis   technologically   stagnant   activities.   They   also   grow   faster   because   they   substitute   for   other   products   (final   or   intermediate)   and   stimulate   demands   for   other   technology-­‐ based  products,  thereby  quickening  the  pace  of  production,  employment  and  exports.   § Technology-­‐intensive   activities   are   less   vulnerable   to   entry   by   competitors   compared   to   low-­‐technology   activities   where   scale,   skill   and   technology   requirements   are   more   modest.   § Technology-­‐intensive  activities  offer  higher  learning  and  productivity  potential  as  well  as   greater   spill   over   benefits   for   other   activities.   Thus,   they   lead   to   faster   growth   in   capabilities,   greater   diffusion   and   higher   quality   capabilities.   A   technology-­‐intensive   structure   is   thus   likely   to   offer   greater   systemic   benefits   in   terms   of   learning   and   innovation.   § Capabilities   developed   in   technology-­‐intensive   activities   are   more   attuned   to   technological  and  market  trends,  giving  the  ability  to  respond  more  flexibly  to  changing   conditions.   In   the   emerging   global   environment,   they   provide   more   valuable   competitive  skills.  

 

Engaging  Media  for  Advocacy   ABR  engagement  with  media  for  advocacy  is  critical  for  visibility  and  coverage.  Media  messages   enhance  credibility  to  the  work  and  initiatives  of  the  ABR  and  are  members.  The  strategy  is  to   cultivate   the   relationship   with   the   media   houses   to   ensure   that   the   stories   and   coverage   are   always   accurate.   Media   reporting   can   sometimes   be   skewed   on   how   they   write,   edit   and   publish  stories.  

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Massages   The  messages  from  ABR  targeting  the  media  need  to  be  simple.  The  press  like  to  see  complex   business   issues   translated   into   simple   terms.   The   business   stories   from   ABR   and   its   members   should  be  simple  and  precise  to  attract  media  audience.  This  minimizes  the  risk  of  distortions.   Media  is  one  of  the  tools  of  advocacy  and  business  learning  in  the  region.  

Follow-­‐up  and  Maintaining  Contacts   ABR   has   to   stay   on   the   lookout   for   what   is   reported   about   its   business   engagements   and   initiatives.   If   the   coverage   is   favorable,   keep   in   touch   with   the   media   house   issuing   the   reports.   Supply   them   with   progress   reports   and   other   case   stories   about   emerging   issues   on   the   business  in  the  region.  

Telling  the  Case  Stories   A   great   part   of   the   work   of   ABR   is   advocacy   and   communicating   the   vision,   innovations   and   solutions   from   its   members.   Developing   case   stories   for   the   media   helps   to   establish   and   encourage  information  sharing  and  learning.  

Pragmatism   ABR’s   work   is   pragmatic   and   business   driven.   It   is   not   only   of   interest   for   ABR   to   service   its   members,  but  also  its  work  is  tailored  to  reach  specific  audience  in  the  region.  For  the  general   public   audience,   the   quantitative   numbers   that   emanate   from   the   operations   of   the   ABR   initiatives  should  be  translated  into  understandable  and  easy  to  use  packages.  Key  documents   including  research  findings,  studies  and  evaluation  reports  provide  useful  data  and  information.   These  can  be  translated  and  packaged  for  members’  consumption  and  public  awareness  on  the   state  of  business  in  the  region.  

Targeted  Advocacy   ABR   will   always   attempt   to   develop   unique   stories   that   fit   and   portray   the   interest   of   the   members.  Focus  on  one  innovation  and  promote  one  invention  at  a  time.  Resist  temptation  of   overloading   the   message   to   the   media.   Patience   and   focus   are   key   principles   for   advocacy   through  media.  

Creative  Presentations   The  gallery  of  picture  from  ABRM  combined  with  words  can  be  used  for  creative  empathy  and   messages   are   captured   by   using   appealing   photos   and   graphic   visuals.   Use   the   power   of   pictures  and  photos  to  showcase  the  work  of  ABR  members.    

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Press  Releases  and  Kits   The  press  releases  can  be  used  by  ABR  to  break  the  news  on  innovations  by  the  members.  It   can  be  used  for  publicity.  Press  releases  are  powerful  tools  for  communicating  with  government   agencies   in   the   region.   The   press   releases   need   to   be   followed   up   by   ABR   Secretariat,   the   respective  members  or  both  in  order  to  gain  further  attention.     For  complex  issues  involving  research  findings,  case  studies  and  survey,  ABR  can  establish  press   kits.  These  can  be  used  for  advocacy  campaigns  on  new  products  and  marketing.  

Harnessing  Regional  and  International  Conferences   A   number   of   conferences   and   meetings   where   ABR   participate   can   be   used   to   organize   side   shows   to   organize   press   conferences   to   propagate   ABR   initiative.   Press   conferences   provide   opportunities   for   members   to   illustrate   emerging   solutions   and   their   potential   applications   in   the  region.     ABR  Participation  in  the  Work  of  the  Economic  and  Social  Council  and  its  Subsidiary  Entities   1)   Bending   the   Arc,   4   July   2005,   London,   (along   G8   Summit):   The   ABR   was   member   of   the   organizing   committee   of   Bending   the   Arc.   ABR   president,   Dr   Bamanga   Tukur   pronounced   the   opening   address   and   participated  during  the  Africa  Union  Summit  session;       2)   Business   and   Millennium   Development   Goals.   Organizers:  Inwent  Capacity  building,  World  Bank  Institute,   UN   Global   compact.   The   event   was   held   in   New   York   from   11   to   13   September   2005.   The   ABR   President   th represented  the  ABR  during  the  10  International  Business  Forum  as  a  speaker  on  the  theme  “The  role  of  the   private  sector  in  Development”;       3)   United   Nations   General   Assembly   held   on   16   September   2005   in   New   York:   the   ABR   President   was   a   speaker  on  the  theme:  “The  vital  role  that  business  plays  in  meeting  the  societal  commitment  embodied  in  the   Millennium  Development  Goals”;       4)  Annual  New  Partnership  for  Africa’s  Development  Summit  was  held  at  the  United  Nations  Headquarters  on   18   September   2006:  The  ABR  President  representing  the  African  Business  Roundtable  chaired  the  Summit  along   with  Professor  Firmino  Mucavele,  CEO  of  NEPAD  Secretariat,  Joseph  Legwaila,  United  Nations  Under-­‐Secretary-­‐ General  and  Amin  Dossal,  Executive  Director  of  the  United  Nations  Funds  for  International  Partnership;       5)  High  Level  Summit  of  the  United  Nations  Economic  and  Social  Council  (UNECOSOC)  held  on  5  July  2006  in  

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New  York  at  the  United  Nations  Headquarters:  Roundtable  meeting  on  the  challenges  of  employment  creation   in  Africa  and  the  Least  Developed  countries  (LDC).  The  ABR  President  was  a  speaker  on  the  theme:  “Creating  an   environment  at  National  and  International  levels  conducive  to  generating  full  and  productive  employment  and   decent  for  work  for  all  and  its  impact  on  sustainable  development.”    6)  International  Conference  on  Financing  for  Development  to  review  the  implementation  of  the  Monterrey   Consensus.  The  ABR  was  on  the  Steering  Committee  and  participated  actively  during  the  Second  International   Business  Forum  held  along  with  the  conference.  The  ABR  President  was  a  speaker  during  the  opening  address  as   well   as   the   moderator   during   the   session   “Proposals   for   building   enabling   environment   and   enhancing   donor   effectiveness.”   Box  14:    ABR  Contribution  to  High  Level  Conferences  

 

Training  on  Advocacy   The   training   relating   to   harnessing   the   media   on   addressing   particular   business   problems   or   solutions   can   be   in   the   form   of   seminars.   These   can   bring   in   experts   on   specific   research   topics   and   innovations   by   ABR   or   its   members   to   explain   technical   issues   that   the   media   may   want   to   capture.    

Digital  Progress  and  Changing  Dynamics   Digital   progress   and   changing   information   dynamics   provide   opportunities   for   electronic   networking.   ABR   website   should   be   used   as   a   strategic   tool   for   message   dissemination.   The   messages   on   ABR   website   must   be   compelling   and   easy   to   use.   The   website   should   be   understood  as  broadcasting  tool.  Messages  have  to  be  strategic.  The  ABR  website  must  be  kept   current.    

   

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5

           

       

TOOLS  AND  SELF-­‐ AWARENESS   RESOURCES  

                 

  • • • • • • • • •

Background   ABR  Brand   ABR  Core  Values   ABR  Messages  on  Business   Elements  of  Market  Planning   Awareness  Creation  on  ABR   Communication  Strategy     Using  ABR  partner  Map   ABR  Quantitative  and  Qualitative  Data   Crafting  Effective  ABR  Business  Messages   ABR  Reports  as    Marketing  Instruments

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Section  5:  Tools  and  Self-­‐Awareness  Resources   Background   This   section   provides   tool   and   resource   that   can   be   used   for   advocacy.   It   also   suggests   that   some   of   the   tools   need   to   be   established   or   built.   Some   of   the   identified   tools   show   how   to   utilize   the   existing   resource   or   the   knowledge   emanating   from   ABR   initiatives   such   as   research,   survey   and   monitoring   and   evaluation.   These   tools   can   be   adapted   to   suit   the   needs   of   the   Secretariat  or  the  members.  They  include:   § § § § § § § § § § § § § § § §

ABR  brand  messages   Messages  on  business  environment   Element  of  strategic  marketing  plan   Mapping  of  partners   Monitoring  and  evaluation  tools   Building  on  quantitative  information   Developing  effective  messages  around  ABR  initiatives   Awareness  creation  on  ABR  business  strategies   Using  ABR  report  as  advocacy  and  marketing  instruments   Using  technology  for  market  access   Using  conformity  to  standards  for  expanding  competitiveness   Harness  media  for  visibility   Press  releases   Press  kits   Creative  presentations   Visual  communications  

§ Planning  press  conference  

ABR  Mission   The  ABR  is  dedicated  to  achieving  an  African  private  sector  led  regional  economic  integration   and  sustainable  economic  development  of  Africa,  based  on  good  corporate  governance  and   competitively  open  market  systems.  The  ABR  focuses  on:   •

Strengthening  the  African  private  sector.  



Promoting  intra-­‐African  trade  and  investment.    



Attracting  foreign  investment  into  Africa  to  transform  the  Continent  from  ‘aid-­‐receiving’   to  private  sector  partnerships  in  economic  development.  

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ABR  Core  Values   The  ABR  is  committed  to  the  realization  of  its  Vision  through  the  commitment  of  its  members,   who  shall  be  policy  level  executives  of  member  companies  and  individuals,  to  the  following   Membership  Core  Values:   •

Conviction  that  an  African  private  sector-­‐led  development  is  the  key  to  unlocking  the   potential  of  African  economies.  



Ethical  business  practices  are  the  foundation  of  an  enduring  private  sector.  



Good  economic  and  corporate  governance  is  essential  to  sustainable  economic  growth   and  development.  



Open  dialogue  and  the  free  flow  of  ideas  foster  innovation,  change,  reduced  conflict,   improved  understanding  and  consensus.  



Regional  integration  based  on  competition  and  open  market  systems.  



Attractive  climate  for  intra-­‐African  trade  and  investment  and  foreign  direct  investment.  



Objective  research.  

ABR  Messages  on  Business   Aims  and  Processes  of  the  ABR   The  aim  of  the  ABR  is  to  help  create  an  enabling  environment  conducive  to  good  governance,   responsible   private   investment   and   sustainable   economic   growth   and   development   in   the   countries  of  Africa.  To  do  this,  the  ABR  sponsors  conferences,  workshops,  seminars,  research,   information  Services,  investment  related  services,  and  educational  activities.  

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Activities   The   major   activities   of   the   ABR   are   founded   on   dialogue,   research   and   communication.   ABR   programmes   are   focused   on   continuous   and   effective   dialogue,   which   provides   opportunities   for   business   leaders   and   youth   to   meet   regularly   amongst   themselves,   and   with   public   sector   officials   building   partnership  

for  

investment  

opportunities   and   consensus   on   policy  reforms.  

Elements  of  Market   Planning  

The African Business Roundtable in fulfilling her role towards promoting, encouraging and supporting entrepreneurial drive in youth awarded scholarship grant to the SAGE club of JSS Jikwoyi, Abuja. The gesture is in furtherance to ABR mentoring role to JSS Jikwoyi SAGE club and also in recognition of their worthy achievement over the years at the SAGE global tournaments. Sage Global mission is to help create the next generation of entrepreneurial leaders whose innovations and social enterprises address the major unmet needs of our global community. As the foremost private sector led not-for profits organization, the African business Roundtable is committed towards raising the next generation of entrepreneur's across the continent of Africa.

that   can   be   used   to   achieve   this.  

The ABR Scholarship has contributed to the training and grooming of more than 5,000 young Entrepreneurs thus creating thousands of job opportunities

They  include:  

Box  15:  ABR  and  Youth  Entrepreneurship  Program  

There   are   a   number   of   techniques  

§

SWOT  Analysis,  involving  analysis  of  strengths  and  weaknesses,  and  of  the  opportunities   and  threats  that  you  face.  

§

Risk  Analysis  ,  used  to  spot  risks  and  weaknesses  in  the  organization  or  operation,  and   identify  the  risks  to  which  the  organization  is  exposed.    

§

Understanding  pressures  for  change:  pressures  may  arise  from  changes  in  the  economy,   new   legislation,   competition,   changes   in   people's   attitudes,   new   technologies,   or   changes  in  government.  A  different  approach  is  to  use  any  of  a  whole  range  of  creativity   tools  to  work  out  where  the  organization  can  make  improvements.    

§

Identifying   the   Goal   of   Your   Plan:   Making   precise   decision   on   what   the   aim   of   the   organization  plan  is.  Deciding  and  defining  an  aim  sharpens  the  focus  of  your  plan,  and   helps  you  to  avoid  wasting  effort  on  irrelevant  side  issues.  

Awareness  Creation  on  ABR  Communication  Strategy   §

Reaching  out  to  partners  and  other  business  group  

§

Establish  Awareness  Creation  Team  (ACT)  

§

ACT  determines  goals  and  engages  other  business  groups  

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  §

ACT  develops  appropriate  messages  

§

ACT  articulates  ABR    strategic  business  communication    plans  

§

ACT  formulates  messages  for  different  target  audience  

Using  ABR  Partner  Map   It   is   important   to   know   who   the   ABR   partners   are.   Mapping   of   the   categorization   of   the   partners  is  an  important  first  step  in  planning  strategic  efforts  to  expand  the  outreach.  This  will   give  a  clear  picture  on  how  to  prioritize  coalition  building,  maximize  resource  of  each  partner,   turn   negative   into   positive   and   preventing   positive   from   becoming   negative   and   determining   how   the   organization   can   work   together   with   partners   for   change.   The   grid   below   (Box…)   is   used   to   understand   the   attributes   and   detriment   of   ABR   partners.   This   will   help   in   building   coalition.     Positive  

 

Negative  

 

Quadrant  1  

 

Quadrant  2  

ADB  

 

UNDP  

ECOWAS  

 

 

UN  ECOSOC  

 

 

 

 

 

UNECA  

 

 

UNIDO  

 

 

ITC  

 

 

 

 

 

Quadrant  3  

 

Quadrant  4  

SADC  chamber  of  commerce  

 

ACBF  

Ethiopian  chamber  of  commerce  

 

NEPAD  

Pan  African  chamber  of  commerce  (head  office)  

 

WEF  -­‐  World  Economic  Forum    

South  African  chamber  of  commerce  and  

 

 

Active  

 

Passive  

 

industry  

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SADC  

 

 

CEEAC  ,  IGAD  

 

 

BUSA  (Business  Unity    South  Africa)    

 

 

All  chambers  of  commerce  and  industry  

 

 

Nigeria  chamber  of  commerce  

 

 

Ivory  coast  of  commerce    

 

 

Box:  16  Mapping  of  Key  ABR  Partners  

 

 

Zimbabwe  chamber  of  commerce   Zambia  chamber  of  commerce      

  Quadrant  1:  This  indicates  those  partners  that  support  one  or  more  of  the  initiatives  of  ABR  and   who   are   active   in   implementing   the   initiatives.   A   number   of   multilateral   agencies   fall   in   this   quadrant.  This  provides  a  window  for  further  collaboration  and  funding  for  new  initiatives   Quadrant   2:   In   this   quadrant,   the   partners   are   those   that   are   negative   but   are   actively   expressing  their  opinion  on  what  ABR  should  focus  on  and  how  to  attract  more  activities  by  the   governments   in   the   region.   The   partners   in   this   quadrant   provide   useful   insight   on   how   best   to   improve  partner  relationship  and  expand  coalition.   Quadrant   3:   This   quadrant   show   those   partners   who   are   generally   positive   about   the   ABR   initiatives  but  who  do  not  take  much  action  or  express  their  opinions  or  support.  A  number  of   partners   fall   in   this   quadrant.   It   is   the   quadrant   of   opportunity.   ABR   can   develop   a   strategic   approach  to  convert  the  partners  in  this  quadrant  to  those  that  are  active  and  positive.   Quadrant   4:   The   partners   in   this   quadrant   generally   have   negative   opinions   about   ABR   initiatives  and  how  they  can  best  be  achieved.  They  are  passive  and  do  not  often  express  their   opinion  or  support.    

Map  of  Partners  used  for  strategic  planning  to  expand   market   The  map  of  partners  can  be  used  for  strategic  planning  for  tailoring  messages  to  target  partners   in  particular  quadrants.  For  instance  more  energy  should  be  placed  on  partners  who  are  passive   and   positive   to   make   them   active.   Not   much   time   should   be   spent   on   those   who   are   already  

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active   and   positive.   They   should   however,   not   be   forgotten.   They   should   be   kept   informed   and   engaged.  Some  champions  can  be  identified  from  quadrant  1  to  act  as  ambassadors.  

Determination  of  how  ABR  is  perceived  among  the   Partners   It  is  important  to  determine  the  perception  of  partners  on  the  work  of  ABR  in  order  to  create   self-­‐awareness.  This  can  be  established  by  investigating  the  following:   §

What  do  members  say  about  ABR  

§

What  do  other  Business  Actors  say  about  themselves  

§

What  do  other  Business  Actors  say  about  ABR  

§

What  does  ABR  say  about  other  Business  actors  

This  can  best  be  achieved  through  structured  group  discussions  in  an  informal  brainstorming   manner.    

ABR  Quantitative  and  Qualitative  Data   The  quantitative  information  and  data  is  to  help  the  members  and  partners  to  understand  the   trends  and  performance  of  ABR.  It  provide  hard  facts  on  the  standing  of  the  organization  and   promotes  credibility  on  the  efforts  by  the  organization.  

Description  of  ABR  in  quantitative  terms   The   ABR   has   more   than   145   corporate   members   and   3   associate   members   (chambers   of   commerce)   with   thousands   of   their   respective   members.   The   ABR   Scholarship   has   contributed   to   the   training   and   grooming   of   more   than   5,000   young   entrepreneurs   thus   creating  thousands  of  job  opportunities.    

 

Description  of  ABR  in  qualitative  terms   On   the   development   of   small   and   medium   scale   enterprises,   ABR   collaborated   with   the   Government  of  Plateau  State  in  Nigeria  and  succeeded  in  training  over  500  beneficiaries  from   all   the   Local   Government   Areas   of   the   three   senatorial   districts   of   the   state.   Participants   included  youths,  women  (widows)  and  cooperative  Associations  and  retirees  who  were  given   intensive  coaching  in  enterprise  development,  practical  skills  acquisition  in  candle  and  chalk   production,   and   were   then   linked   to   the   collaborating   Banks   (Bank   of   Industry,   Nigeria   and   Nigerian  Export-­‐Import  Bank)  for  project  financing.  

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Quantitative  and  Qualitative  data  used  to  promote   Market  Access   African   Business   Roundtable   in   collaboration   with   Student   Advancement   for   Global   Entrepreneurship  (SAGE)  and  SAGE  Club  of  Junior  Secondary  School  (JSS),  Jikoyi  in  the  Federal   Capital   Territory   (FCT)   of   Nigeria   organized   an   enterprise   training   workshop   for   students   of   secondary  schools  in  the  FCT.    Over  250  selected  students  and  teachers  representing  about   twelve  schools  participated.    ABR  donated  entrepreneurship  books  worth  over  $5000.00  USD   to  the  students.  These  young  entrepreneurs  have  won  the  SAGE  World  cup  three  consecutive   times   in   2007,   2008   and   the   last   one   in   Brazil   in   August   2009   as   part   of   global   market   orientation.    The  JSS  Jikoyi  SAGE  Club  have  impacted  positively  on  their  community,  training   other   students,   widows   and   youths   in   skill   acquisition   and   environmental   awareness   campaign,  corporate  social  responsibility  and  enterprise  development  

Crafting  Effective  ABR  Business  Messages   ABR’s  overall  message  is  to  achieve  an  African  private  sector  led  regional  economic  integration   and  sustainable  economic  development  of  Africa,  based  on  good  corporate  governance  and   competitively  open  market  systems.  

ABR  Reports  as  Marketing  Instrument   The   reports   produced   by   ABR   constitute   a   platform   for   building   and   reinforcing   knowledge   creation  information  sharing.  The  purpose  of  the  report  is:  (i)  public  information  (ii)  credibility   mobilization.   ABR   reports   are   meant   to   communicate   key   messages   to   spark   continuous   improvement   for   business   environment   in   the   region.   These   can   be   useful   tools   for   advocacy   and   marketing.   In   principle   developing,   ABR   reports   should   include:   production   process,   dissemination,  and  follow-­‐up.  

§ Production  of  Reports  

o Target  recipients  

o Guideline  for  ABR  reports  

o Regularity  of  reports  

o Research  and  innovations  

o Timing  

§ Follow  up  report  effectiveness  

o Engaging  academia   o Country  consultations  for  

o Media  

product  priorities  

o Round  Tables  

o Training  

o Press  releasers  

§ Dissemination    

o Technical  briefs  

o Via  mails  or  e-­‐mails   o Knowledge  management   ABR  Handbook  on  Business  Facilitation|  64  

 

   

6

                 

Monitoring  and   Evaluation  

         

  • • • •

Background   Mechanism  for  ABR  M&E   Monitoring   Evaluation  

       

   

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Section  6:  Monitoring  and  Evaluation   Background   The  Monitoring  and  Evaluation  within  the  framework  of  ABR  should  be  designed  to  support  the   initiatives  by  the  members  and  cooperating  business  partners.    It  should  focus  on  the  goal  of   promoting   application   of   appropriate   M&E   methodologies   to   provide   insights   of   the   performance  of  the  various  initiatives  by  the  members.     The  key  assumptions  that  underlie  the  monitoring  and  evaluation  approach  of  ABR  is  that  the   business   initiatives   have   been   developed   based   on   expectation   to   achieve   particular   quantifiable  results.    The  ABR  Secretariat  and  its  members  are  able  to  use  quantifiable  results  to   re-­‐orient  their  planned  operations.    It  is  also  assumed  that  in  ABR’s  context,  evaluations  are  not   seen  as  an  event  at  the  end  of  an  initiative,  but  instead  as  an  important  part  of  the  operations   of  ABR  whose  function  is  to  assess  progress  towards  goals  of  the  members  and  to  feed  into  the   business  planning  and  improving  future  initiatives.   Considering  that  the  business  initiatives  are  ultimately  aimed  at  profit  making  to  improve  the   wealth   creation,   the   evaluation   mechanism   should   be   designed   to   help   the   member   to   determine   the   trend   in   their   businesses.   Monitoring   and   Evaluation   should   also   help   in   the   process  of  risk  detection  and  identifying  mitigating  actions.    

Mechanism  for  ABR  M&E   The  mechanism  for  M&E  should  span  the  entire  cycle  of  business  activities  and  investment  by   the   ABR   members.   Participation   of   the   members   in   monitoring   and   evaluation   of   their   initiatives  will  help  to  ensure  that  the  type  of  initiatives  they  undertake  remain  relevant  to  the   overall  goal  of  the  ABR.     The   key   to   the   successful   implementation   of   the   initiative   by   the   ABR   members   is   the   timely   identification   of   problems   and   prompt   corrective   action   to   solve   them.   To   be   able   to   identify   the  problems  and  anticipate  potential  one  require  that  a  good  and  well  managed  information   system   for   data   collection,   collation   and   retrieval   is   in   place.   This   is   the   service   that   the   ABR   Secretariat  could  endeavor  to  promote  in  order  to  prove  M&E  services  to  the  members.  M&E   would   be   a   useful   tool   for   gathering,   analysing   and   utilising   information   to   determine   the   changes  in  the  business  sector  where  the  ABR  members  operate.     The  M&E  approach  for  ABR  should  not  only  focus  on  gathering  information  about  progress  of   particular  business  initiatives  but  also  ensure  their  effectiveness  and  efficiency  in  utilisation  of   their   investible   resources.   The   approach   must   therefore,   go   beyond   the   engagement   of   the  

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members   and   consider   external   factors   beyond   ABR   and   its   members.   Currently   there   is   no   systematic  framework  for  monitoring  and  evaluating  the  initiatives  of  the  ABR.  

Monitoring   Monitoring  and  Evaluation  are  related  but  distinct.  Monitoring  is  the  provision  of  information,   and  the  use  of  information  to  enable  members  of  ABR  to  assess  effectiveness  of  their  initiatives   and  planned  investments.  Monitoring  is  an  internal  ABR  activity  aimed  at  keeping  the  members   informed.   It   is   an   essential   part   of   good   management   practice   and   therefore   an   integral   part   of   regular  management  of  the  initiatives  by  ABR.     A  good  monitoring  approach  for  ABR  members  should  focus  on:   § § § § § § § §

Describing   the   relative   importance   of   the   initiatives   by   the   members   in   reaching   the   goals  of  ABR   Assessing  effectiveness  of    the  implementation  of  the  initiative  by  the  members  of  ABR   Periodically  assessing  the  emerging  results  in  relation  to  the  objectives  of  the  ABR   Acknowledging  the  contribution  from  the  partners  and  associates   Measuring  successes  and  failure  of  the  initiatives  of  ABR     Capturing  extraneous  factors   Highlighting  the  need  for  lesson  and  practices  for  learning   Ensuring   effective   and   efficient   information   and   data   gathering   focusing   on   investments   and  expected  income  flows.  

Evaluation   Evaluation   would   aim   to   assess   the   overall   outcomes   and   effects   of   ABR   interventions.   Evaluation   of   ABR   initiatives   in   the   region   should   aim   at   determining   whether   the   initiatives   meet   the   expected   goals   and   objectives   of   the   members.   The   results   of   evaluations   should   provide  lessons  and  practices  for  learning  by  the  organization  and  its  members.     For  evaluation  to  be  useful,  a  guiding  list  of  issues  includes:   §

§ § §

The  extent  to  which  the  evaluation  considers  the  relevance  of  the  ABGR  initiatives.  To   what   extent   is   the   evaluation   consistent   with   the   understanding   and   rationale   behind   the  goals  of  the  ABF   The  extent  to  which  the  evaluation  of  the  initiatives  are  coherent  and  objective    in  terms   the  aspirations  of  the  members   Does  the  evaluation  involve  all  the  key  partners  and  stakeholders     Is   there   a   clear   implementation   arrangements   including   how   the   evaluation   is   to   be   conducted  

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§

To   what   extent   are   the   products   from   the   evaluation   process   identified.   How   useable   would  the  findings  emanating  from  the  evaluation.  

 

  Figure  3:  Depicting  the  Sequential  Steps  for  Evaluation  

  Evaluations   serve   as   a   learning   tool   that   generate   information   to   be   used   to   improve   performance   as   well   as   to   ensure   transparency,   accountability   and   to   measure   performance   that  emanate  from  the  implementation  of  ABR  initiatives.     The  process  of  performance  monitoring  and  evaluation  cycle  would  involve  careful  goal  setting,   indicators   of   what   the   members   want   see   achieved,   information   gathering   as   initiatives   are   ABR  Handbook  on  Business  Facilitation|  68  

 

implemented,  analysis  of  the  data  and  information  gathered,  share  lessons,  take  measures  to   achieve  continuous  improvement  and  use  results  for  organizational  learning.  

       

                     

           

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7

                   

Conclusion  

   

 

   

 

• • •

Conformity  Standards   Technological  Progress   Market  Access  

         

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Conformity  Standards     The  extensive  range  of  standards  and  guides  for  conformity  assessment  produced  jointly,  under   the   name   CASCO   standards,   by   ISO   (International   Organization   for   Standardization)   and   IEC   (International  Electro-­‐technical  Commission)  has  been  discussed,  together  with  their  ability  to   open   opportunities   for   developing   countries   to   build   structures   acceptable   to   global   markets.   The   range   had   recently   been   comprehensively   modernized   and   extended.   In   developing   this   range  of  standards  independently  of  standards  for  specific  products  or  services,  ISO’s  goal  was   to   provide   a   set   of   voluntary   standards   representing   best   practice   in   conformity   assessment,   reducing   the   need   for   regulation   of   that   activity   and   ensuring   that   where   regulation   was   unavoidable,  a  uniform  basis  could  be  used  internationally.    

Technology   New   technologies   offer   opportunities   that   can   be   used   to   diversify   national   economies.   Services,   in   particular   those   supported   by   new   technologies,   can   be   tapped   to   reduce   dependence   on   commodities.   Half   of   the   countries   in   Africa   derive   more   than   80%   of   their   merchandise   export   income   from   commodities,   and   the   need   for   new   development   paths   to   counter  this  dependence  on  commodities  is  especially  important  for  least  developed  countries   (LDCs),  according  to  UNCTAD's  2012  Commodities  and  Development  Report.   Significant  bottlenecks  and  challenges  remain  in  developing  countries,  and  particularly  in  Africa,   where  costs  associated  with  ICT  remain  extremely  high.  As  a  result,  the  Middle  East  and  Africa   are  estimated  to  handle  a  mere  1.6%  of  global  e-­‐commerce,  although  that  is  expected  to  grow   to  3.5%  by  2016  

Market  Access   Improving  access  to  markets  is  critical  to  achieving  business  growth.  It  is  a  persistent  challenge   for   micro-­‐entrepreneurs.   Integration   into   global   markets   offers   the   potential   for   more   rapid   growth   and   poverty   reduction.   However,   market   barriers   to   some   key   developing   country   exports  have  made  it  harder  for  them  to  take  full  advantage  of  this  opportunity.   Access   to   Markets   (ATM)   services   is   becoming   recognised   as   a   critical   way   to   support   the   growth   of   micro   and   small-­‐scale   enterprises.   ATM   programs   are   testing   a   wide   range   of   marketing-­‐related   services   with   the   goal   of   connecting   entrepreneurs   to   additional   or   previously   inaccessible   customers,   thereby   increasing   sales   of   and   possibly   income   from   the   business.   Often,  micro-­‐entrepreneurs  are  isolated  from  the  market  in  which  their  product  will  compete.   They  are  less  likely  than  large  firms  to  attend  trade  shows,  read  the  relevant  trade  journals  or   engage   in   costly   and   extensive   market   research.   Yet,   a   seller   of   dried   mushrooms   will   have   a   ABR  Handbook  on  Business  Facilitation|  71  

 

much  greater  chance  of  success  if  he  or  she  regularly  reads  the  Mushroom  Growers  Newsletter.   A   good   grasp   of   industry   trends   is   essential   to   developing   a   high-­‐end   product   with   a   realistic   and  clearly  identified  niche  on  the  retail  shelf.   Regional   markets   provide   the   potential   for   higher   volumes   of   sales   through   fewer   buyers.   They   also  present  higher  hurdles  for  new  entrants.  Of  these  hurdles,  distribution  is  perhaps  the  most   difficult  for  micro-­‐entrepreneurs  to  overcome.  

 

Reference       1. African  Economic  Outlook,  2013,  Structural  Transformation  and  Natural  Resources   2. Adenikinju,   A,   and   O.   Oyetani,   200   “Characteristics   and   Behavior   of   African   Factor   Market   and   Market   Institutions   and   Their   Consequences   for   Economic   Growth”   CID   Working   Paper   31,   Harvard   University,   Centre   for   International   Development,   Cambridge,  Mass.   3. 2004,  “Doing  Business  in  2005  Sub-­‐Saharan  Africa:  Regional  Profile.”  Investment  Climate   Department,  Monitoring,  Analysis  and  Policy  Unit.  Washington  DC   4. UNECA,  2002,  Harnessing  Technologies  for  Development,  ECA  Policy  Research  Report   5. Tandon  Yash,  2002,  Evaluation  of  the  WITO  and  Other  Forums  of  Technical  Assistance  to   Developing   Countries   in   the   Context   of   the   Uruguay   Round   of   Agreements.   South   and   Eastern  African  Trade,  Information  and  Initiative,  Harare,  Zimbabwe   6. IMF,   Market   Access   for   Developing   Country   Exports—Selected   Issues   Prepared   by   the   Staffs   of   the   IMF   and   the   World   Bank,   Approved   by   Timothy   Geithner   and   Gobind   Nankani,  September  26,  2002   7. ITC  website.   8. It’s  Time  for  Africa  -­‐  Ernst  &  Young  2011   9. Mutual  Review  of  Development  Effectiveness  in  Africa  2010   10. Lions  on  the  Move:  The  Progress  and  Potential  of  African  Economies  2010  –  McKinsey   11. 2014  Market  Access  Map;  Simulation:  Bound  Tariff,  Also  http//wto.org   12. OECD,   2011,   Making   Reform   Happen   in   Developing   Countries:   Preliminary   Report,   4th   High  Level  Forum  on  Aid  Effectiveness,  2011  

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