Sector Export Strategies
for Nepal
Olivier Marty, Trade Adviser - Export Strategy, ITC
March 2016
World imports of coffee
9
Millions tons
Billion USD
40
35
30
8
7
6
25
5
20
4
15
3
10
2
5
1
-
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Trade Map
World Import (Quantity)
World Imports (Value)
World imports of cardamom
500,000
60,000
450,000
50,000
350,000
40,000
300,000
250,000
30,000
Tons
Thousand USD
400,000
World
imports (in
quantity)
200,000
20,000
150,000
100,000
10,000
50,000
-
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Trade Map
World
imports (in
value)
World imports of tea
8,000
2,500,000
7,000
2,000,000
5,000
1,500,000
Tons
Millions USD
6,000
4,000
1,000,000
3,000
2,000
500,000
1,000
-
-
Source: Trade Map
Tea (World
imports in
value,
,millions)
Tea (World
imports in
quantity)
Source: Trade Map
Source: Trade Map
Source: Trade Map
Export Development Strategies that Succeed
Why Strategy?
• Setting priorities (everyone has opinions on what should be done, but…)
• Allocating limited resources to these priorities.
Why Sector Export Strategy?
• Export constraints that impede international competitiveness and export growth
need to be addressed through an integrated response.
• Export development and competitiveness involves a range of stakeholders, public
and private.
SES objectives and expected outcomes
KEY OBJECTIVES OF A SES:
•
To facilitate decision-making at the national level in matters relating to competitiveness and export
development;
•
To introduce a national framework within which the country can effectively allocate scarce resources
(financial, institutional and human) to specific initiatives that are designed to achieve export development
objectives;
•
To establish the capacities and competencies required to effectively design, manage and refine national
sector export strategy.
KEY TANGIBLE OUTCOMES THAT AGGREGATE
INTO IMPROVED EXPORT COMPETITIVENESS:
• Prioritization of scarce resources available for export development
• Effective framework for the public and private sectors to work within
a partnership to achieve mutually beneficial objectives
• Improved service delivery of Trade Support Institutions (TSIs) that is
responsive to the needs of the export sector
SOCIO-ECONOMIC GROWTH
ACCOMPANIES EXPORT
GROWTH:
•
•
•
•
•
•
•
Poverty reduction
Job creation
GDP growth
Gender equality
Long-term productivity increases
Environmental sustainability
Regional integration
Sector Export Strategies:
ITC’s Approach
Seven fundamental principles constitute the critical success factors of the sector
development strategy design process:
Countryowned
Inclusive and
consultative
Capacitybuilding
oriented
Builds on, and
Sets needsComprehensive
integrates
based,marketin Scope
national plans
led priorities
Specific and
measurable
Export Development Strategies that Succeed
Country-owned
As important as the content of the strategy is the process by which it is
reached.
The key to this process is OWNERSHIP.
Those responsible for managing and monitoring a strategy, those who
implement it and those who stand to benefit from it need to be involved in its
formulation. If not, there is no commitment and limited interest.
Export Development Strategies that Succeed
Inclusive & Consultative
An effective PPD involves a process of consultation:
• within and among Ministries (public sector);
• among local business representatives (private sector);
• between public and private sector.
The process combines a top-down with a bottom-up approach.
• The public and private sector jointly establishes priorities and target for the
sector
Inclusive & Consultative
Export Development Strategies that Succeed
Builds on and integrates national plans
and ongoing development projects
National
Plans: ADS
and NTIS
SES builds
on, and
integrates
national
plans
Ongoing
Development
Projects
Trade
Studies +
NTM
Survey
Export Development Strategies that Succeed
Comprehensive Scope:
Goes beyond the traditional
emphasis on market access and
market promotion, towards:
•
•
Export development
Export competitiveness
•
•
Supply-side capacities
Quality of business
environment
Market entry
Developmental impact
•
•
Export Development Strategies that Succeed
Sets Needs-based, Market-led Priorities
Market-led value chain driven priority setting
Value
Packaging
Materials
Supplier
Machinery
Supplier
Technology /
Know-How
Supplier
Main Market # 1
Re-Packer
Pesticide
Supplier
Importer /
Distributor
Fertilizer
Supplier
Retailer
Consumer
Disposal /
Recycler
Main Market # 2
Grower
Buyer /
Collector /
Transporter
Processor /
Manufacturer
International
Transporter
Importer /
Retailer
National Component of the Value Chain
Seed
Supplier
Tools
Supplier
Consumer
Disposal /
Recycler
Main Market # 3
Importer /
Wholesaler
Industrial
Consumer
Disposal /
Recycler
Export Development Strategies that Succeed
Specific & Measurable
Design and implementation management framework
Export Development Strategies that Succeed
The Principal Output
An endorsed, coherent, comprehensive and prioritised
National Sector Strategy document completed with a
detailed plan of action and implementation management
framework.
Overview of the Sector Development
Strategy Design Process
Process, objectives and roles
Steps of the sector development strategy process
ITC
Mission
Work by National
Specialized teams and
Navigators
March
Preengagement
mission
•Validate
sectors
•Establish
Navigators
•Confirm
process and
workplans
ITC
Mission
Work by Sector Core
team and Navigator
ITC
Mission
Work by National
Specialized teams,
Sector Core team and
National Focal Point
Sept.
June
ITC distance
support
VC Diagnostic
Workshops
ITC distance
support
ITC distance
support
Validation
Workshops
•Sector teams
complete
baseline
sector
analysis
•Preparation
for ValueChain
diagnostic
workshop
•Identify
market
opportunities
and sector
issues
•Identify agro
cross-sector
issues
•Coach
specialized
team
•Confirms
sector issues
•NTM results
•Identify
potential
sector
solutions
•Compile list of
functional
issues
•Drafts sector
action plans
•Confirm
institutional
capacities
•Validate
action plans
•Identify quick
wins activities
•Define
sectors
implementatio
n framework
Estimated Timeline 6/8 months
ITC distance
support
•Finalize
sector
strategy
documents
•Finalize
cross-sector
functional
strategy
documents
•Consolidate
final strategy
document.
•Launch in
Nov.
Indicative Workplan
Activities
Date
Pre-engagement mission
14-18 March
VC Diagnostics Workshop:
Sector specific value chain analysis and diagnostics including value chain mapping, 4-gear
analysis, and NTM survey results
June
Validation Workshop:
Identify strategic solutions to identified competitiveness constraints, and to explore value
options
Validate action plans Identify quick wins activities
Define sectors implementation framework
Strategy Launch Event
September
November
Key players and roles
Key Players and Roles
Navigator
#2
Sector Core
Teams
#4
Sector Strategy
Stakeholders
#25p/sector
Coffee, Tea, Large
The Navigator maintains
Cardamom
ultimate authority over the SES
design process and is
The sector Core Team is
accountable for the delivery of composed of between 8 and
the final SESs document. S/he is
10 principal stakeholders
the ‘face’ and the ‘heart’ of the covering each export sectors;
SESs, the manager and the
they support, assist and advise
leader and doer. The Navigator
the Navigator. They meet
is ideally a senior official from regularly and makes decisions
the public sector who is
at key points in the strategy
reassigned and empowered to
process. There must be a
manage the NES for the
balance of public and private
duration of the design process.
sector representation. Each
team is composed of about 810 key stakeholders.
National
Consultants
All public, private and civil
society stakeholders that have
a bearing on export
development and
competitiveness are consulted
throughout the design
process. They will determine
the orientation of the sector
strategy and provides substance
and content. Between 25 and
30 representatives from the
Sector Strategy Stakeholders.
The National Consultant is
recruited by ITC for a period of
time over the duration of the
SES design process. S/he
works closely with the
Navigator, the Sector Core
Teams and sector
stakeholders.
The Consultant conducts
research, analyses, records
inputs from consultations and
prepares drafts of the output
documents.
ITC Experts
and Lead
International
Consultant
ITC assigns one or more
experts and international
consultants to lead technical
assistance .
ITC provides guidance and
expertise, briefing notes and
tools, feedback, technical
inputs and commentaries, and
facilitates consultations and
workshops. ITC works closely
with the the Navigator, the
Sector Core Teams and sector
stakeholders.
The Navigators and the Sector Core Teams will be the key driving forces in the design stages of the
strategy
Navigator(s)
The Navigators are critical to the success of the Sector Strategies.
The role and responsibility includes:
- Lead the process of SES design
- Being the key point of liaison between ITC and the export strategy makers
- Ensuring the process is highly consultative with continued communication with
all relevant stakeholders
- Securing the engagement of the public sector, private sector and civil society
representatives
- Establishing and managing the Sector Core Teams and monitoring their work
in progress
- Coordinating and leading consultations to ensure substantive output is
produced
- Taking corrective action in cases of non-performance
Sector Core Team
1. The Core Team, chaired by the Navigators, meets regularly and makes
decisions at key points in the strategy process.
2. Typically, each Sector Core Team is constituted of a balanced mix between
the public and private sector.
3. The Sector Core Team will work throughout the strategy design process in
terms of technical and coordination based aspects at a national and
sectorial level.
4. On an ongoing basis, the Core team:
i.
ii.
Champions the sector strategy,
Monitors the progress of the strategy design, and,
iii.
Resolves issues as they may arise at a political and technical level .
Final thoughts
• Be ready to make decisions and to prioritize;
• Have the courage to acknowledge challenges so that they can
be addressed;
• Willingness to change opinions and positions;
• Focus on quick, short-term wins, but also on medium- and
longer-term goals;
• Sector strategy belongs to all stakeholders: from the small
farmholder to the minister of commerce
• Beyond rhetoric, down to action.
Export Development Strategies that Succeed
Thank you
[email protected]