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Technical Assistance and Capacity Building

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Title: Technical Assistance and Capacity Building


1
Technical Assistance and Capacity Building
  • The WTO the Doha Round

Fletcher Grundmann, Machiel van der Stelt, Steven
Garrett, Kathleen Riley
2
Maximum benefit from participation in a WTO
rules-based trading system comes about only when
developing countries and transition economies
have the required institutional, physical and
human capacity to take advantage of trade
opportunities. - U.S. Government Initiatives
to Build Trade Related Capacity in
Developing and Transition Countries
3
What is Technical Assistance?
  • Also called technical co-operation, it is
    assisting officials from developing countries to
    operate successfully in the multilateral trading
    system.
  • Objective is to build the necessary institutions
    and train officials.
  • Inclusions in GATT Article XVIII (1955), GATT
    Part IV (1965), Enabling Clause (1979), Agreement
    on SPS Measures, the Agreement on TBT, the
    Agreement on Implementation of Article VII
    (Customs Valuation) and the Agreement on TRIPs

WTO www.wto.org
4
Technical Assistance at WTO
  • Workshops
  • Focus on particular areas of trade policy
  • Seminars
  • National regional level, focused general
  • Technical Missions
  • Assist drafting legislation regulations

WTO www.wto.org
5
Technical Assistance at WTO
  • Briefing Sessions
  • Update on recent developments at WTO
  • Electronic Assistance
  • CD-ROM of Seminars

WTO www.wto.org
6
What is Capacity Building?
  • Developing institutions and other sectors of an
    economy to effectively engage in trade.
  • Modernize Customs Offices
  • Support the design and implementation of
    antitrust laws
  • Enforcement of labor standards and worker rights
  • Assist in the development of physical
    infrastructure needs (telecom, water, etc.)

7
Ministerial Declaration
  • 38.  We confirm that technical cooperation and
    capacity building are core elements of the
    development dimension of the multilateral trading
    system, and we welcome and endorse the New
    Strategy for WTO Technical Cooperation for
    Capacity Building, Growth and Integration. We
    instruct the Secretariat, in coordination with
    other relevant agencies, to support domestic
    efforts for mainstreaming trade into national
    plans for economic development and strategies for
    poverty reduction. The delivery of WTO technical
    assistance shall be designed to assist developing
    and least-developed countries and low-income
    countries in transition to adjust to WTO rules
    and disciplines, implement obligations and
    exercise the rights of membership, including
    drawing on the benefits of an open, rules-based
    multilateral trading system. Priority shall also
    be accorded to small, vulnerable, and transition
    economies, as well as to members and observers
    without representation in Geneva. We reaffirm our
    support for the valuable work of the
    International Trade Centre, which should be
    enhanced.

8
Cont.
  • 39.  We underscore the urgent necessity for the
    effective coordinated delivery of technical
    assistance with bilateral donors, in the OECD
    Development Assistance Committee and relevant
    international and regional intergovernmental
    institutions, within a coherent policy framework
    and timetable. In the coordinated delivery of
    technical assistance, we instruct the
    Director-General to consult with the relevant
    agencies, bilateral donors and beneficiaries, to
    identify ways of enhancing and rationalizing the
    Integrated Framework for Trade-Related Technical
    Assistance to Least-Developed Countries and the
    Joint Integrated Technical Assistance Programme
    (JITAP).

9
Cont.
  • 40.  We agree that there is a need for technical
    assistance to benefit from secure and predictable
    funding. We therefore instruct the Committee on
    Budget, Finance and Administration to develop a
    plan for adoption by the General Council in
    December 2001 that will ensure long-term funding
    for WTO technical assistance at an overall level
    no lower than that of the current year and
    commensurate with the activities outlined above.

10
Cont.
  • 41.  We have established firm commitments on
    technical cooperation and capacity building in
    various paragraphs in this Ministerial
    Declaration. We reaffirm these specific
    commitments contained in paragraphs 16, 21, 24,
    26, 27, 33, 38-40, 42 and 43, and also reaffirm
    the understanding in paragraph 2 on the important
    role of sustainably financed technical assistance
    and capacity-building programmes. We instruct the
    Director-General to report to the Fifth Session
    of the Ministerial Conference, with an interim
    report to the General Council in December 2002 on
    the implementation and adequacy of these
    commitments in the identified paragraphs.

11
U.S. Suggestions for Banks
  • A Strategic Partnership
  • Trade and Finance Ministers Policy Dialogues
  • Trade mainstreaming
  • Lending Facilities and Grant Funding for
    Trade-Related Projects
  • Technical assistance, training and capacity
    building
  • the Doha Development Agenda Trade-Related
    Technical Assistance and Capacity-Building
    Database
  • Seventh, Integrated Framework Partners
  • Finally, Follow-Up - Periodic Consultations

12
The participating banks
  • The African Development Bank
  • The Arab Monetary Fund
  • The Asian Development Bank
  • The European Bank for Reconstruction and
    Development
  • The Inter-American Development Bank
  • The Islamic Development Bank
  • The New Partnership fro African Development
  • World Bank

13
Solution
  • Provide a sound financial basis for WTO technical
    cooperation activities by securing funds to
    enhance technical assistance and
    capacity-building to help developing countries
    participate more actively in the Doha Development
    Agenda. The goal is to enhance the cooperation
    between the WTO and the regional development
    banks.
  • Regional banks must work to ensure that trade
    priority areas of action are mainstreamed
    (distinctly reflected) into national development
    strategies and the Poverty Reduction Strategy
    Papers (PRSPs) of countries in their regions.

14
  • The Integrated Framework
  • Inaugurated in October 1997, due to complex trade
    related problems
  • facing the LDC.
  • The IF is the cooperation between IMF, ITC,
    UNCTAD, UNPD
  • World Bank and the WTO.
  • This cooperation was established mainly to bundle
    the competence
  • of the different organizations. To get more
    results concerning
  • Capacity Building.
  • In 2000 the IF was reorganized, due to improve
    its function.

15
  • The Integrated Framework
  • After the reorganization the IF is mainly
    concentrating on
  • Assisting LDCs in mainstreaming trade priority
    areas to reduce
  • poverty and develop the LDCs economics.
  • Improve governance structure by the Integrated
    Framework Steering
  • Committee (IFSC).
  • Financing the mainstreaming work by the IF Trust
    Fund led by the
  • World Bank.
  • The improvement between bilateral and
    multilateral donors concerning
  • the coordination within a coherent policy
    framework.

16
  • The Integrated Framework
  • Currently the IF is implemented on a pilot basis
    in Cambodia,
  • Madagascar and Mauritania.
  • Now the pilot scheme is extended to 11 new LDCs
    on basis of the gained experience.
  • Criteria for assessing new pilot countries are
  • 1. Strong commitment to integrate into national
    development strategy.
  • 2. Preparatory stage of PRSP.
  • 3. Preparatory stage of upcoming meetings of
    the World Bank Consultative Group or UNDP
    Round Table.
  • 4. Conductive operational country environment.

17
  • The Integrated Framework
  • The implementation of the IF is done by the World
    Bank three step method.
  • 1. Diagnostic integration study (DTIS) is
    prepared for each
  • country.
  • 2. Action Plan is developed in consultation with
    stakeholders,
  • based on the findings of the study.
  • 3. Trade policy priorities are incorporated into
    the countrys
  • updated PRSP.

18
  • The Integrated Framework
  • Challenges for the future (Paul J. Fekete, The
    Service Group)
  • This process is still in a developing state and
    there is not a precise answer yet how to move to
    the implementation state. The program has to be
    put under one umbrella, because some LDC know
    how to play the game of getting money from
    different resources.
  • Capacity building has to be undertaken, not
    everyone has the knowledge in these countries.
    So the institutions have to find the right
    people to send to these countries to do the
    capacity building job well.

19
In summary…
20
WTO and Technical Assistance
  • Because More than three-quarters of WTO's Members
    have self-elected the status of developing
    countries, of which 30 are least-developed…
  • At Doha, Ministers confirmed that technical
    cooperation and capacity building are core
    elements of the development dimension of the
    multilateral trading system.

21
Technical assistance and Capacity Building is
designed to…
  • Assist developing and least-developed countries
    and low-income countries in transition to adjust
    to
  • WTO rules and disciplines
  • implement obligations and exercise the rights of
    membership
  • including drawing on the benefits of an open,
    rules-based multilateral trading system.

22
Through a concerted effort and core development
efforts
  • The WTO promises to support developing nations
    with T.A. in the form of workshops, technical
    missions and seminars, as well as through…
  • Capacity building efforts designed to support
    laws, enforce labor standards, develop necessary
    infrastructure and…
  • Identify funding sources

23
Through the Ministerial declaration adopted on 14
November 2001 the WTO
  • paragraphs 16, 21, 24, 26, 27, 33, 38-40, 42
    and 43
  • Confirmed its support for domestic efforts in
    mainstreaming trade into national plans for
    economic development and strategies for poverty
    reduction. (article 38)
  • Underscored the urgent necessity for the
    effective coordinated delivery of technical
    assistance with bilateral donors (article 39)
  • Promised to ensure long-term funding for WTO
    technical assistance (article 39)
  • Discussed an integrated framework to help in
    bundling limited resources and make the most of
    existing capabilities

24
Sources
  • http//www.wto.org/english/tratop_e/devel_e/teccop
    _e/teccop_act_e.htm
  • http//www.wto.org/english/tratop_e/devel_e/teccop
    _e/tct_e.htm
  • http//www.wto.org/english/news_e/spsp_e/spsp04_e.
    htm
  • http//qesdb.cdie.org/tcb/definition.html
  • http//www.brettonwoodsproject.org/topic/knowledge
    bank/k27tradestat.html
  • http//www.wto.org/english/tratop_e/devel_e/teccop
    _e/w10_e.doc
  • http//www.if.wto.org
  • http//www.tsginc.com/
  • http//www.wto.org/english/news_e/spmm_e/spmm85_e.
    htm
  • http//www.wto.org/english/thewto_e/minist_e/min01
    _e/mindecl_e.htm
  • http//www.wto.org/english/tratop_e/dda_e/dohaexpl
    ained_e.htm
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