COMESA - PowerPoint PPT Presentation

About This Presentation



1958 &1960 - Meetings of independent African States agreed to promote economic ... Angola, Burundi, Comoros ,DR Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, ... – PowerPoint PPT presentation

Number of Views:1613
Avg rating:3.0/5.0
Slides: 28
Provided by: icr63
Learn more at:
Tags: comesa | comoros


Transcript and Presenter's Notes


  • What kind of Technical Assistance do the Small
    Developing Countries Need?
  • Presented at the
  • International Seminar on
  • Developing Countries and Services Negotiations
  • Indian Council for Research on International
    Economic Relations (ICRIER)
  • 6-7 June 2006
  • Delhi , India
  • Chawe Mpande-Chuulu
  • COMESA Secretariat
  • Lusaka - Zambia

PTA / COMESA Timeline
  • Angola, Burundi, Comoros ,DR Congo, Djibouti,
    Egypt, Eritrea, Ethiopia, Kenya, Libya,
    Madagascar, Malawi, Mauritius, Rwanda,
    Seychelles, Sudan, Swaziland, Uganda, Zambia,

Rationale for Regional Integration
  • Development objective is to reduce poverty and
    improve the populations quality of life.
  • Achieved through economic growth.
  • Economic growth depends to a large extent on
    foreign investment
  • Attracting investment depends in part on-
  • larger markets
  • reduced costs and improved competitiveness
  • predictable business operating framework
  • a stable and peaceful environment.

Growth in Services
  • Traditionally exports of services by developing
    countries have mainly focused on tourism,
    transport and the movement of natural persons
  • During the last decade other sectors have grown
    increasingly in importance .
  • Information technology and the so-called back
    office or out-sourcing services for example
    book-keeping, compilation of data and call
    centres are sectors that have shown rapid
  • Other important export sectors are professional
    services, construction, educational, audio-visual
    and health care services
  • However services related to the physical movement
    of persons is a slowly growing sector in many

Trade in Services by region Asia
  • Asia is the region most successful in benefiting
    from trade in services , developments have led
    to huge exports, strong national development and
    service companies that are world leaders
  • The success in Asia is largely based on exports
  • At the same time several countries have many
    obstacles to market access in their own markets,
    which increases both prices and production costs

Trade in Services by regionsub-Saharan Africa
  • Asia is the winner and on the other had
    sub-Saharan Africa ( with the exception of South
    Africa) has had the weakest development
  • The region participates to a very small extent in
    global trade in services and the inflow of FDI
    is smaller than any other region and affects only
    a small part of the population
  • Liberalization of trade in services does not
    often lead to the expected inflow of FDI or to an
    increase in competition

Trade in Services LDCs and Small Developing
  • every LDC and small developing country has on
    average exports in 30 different services sectors
    usually construction, transport, business and
    professional services
  • There is more trade in services than trade in
    goods between LDCs and small developing countries
  • This is largely because the commodities trade is
    concentrated around unilateral GSP programmes
    provide by the Quad US, EC, Canada and Japan
  • Increases in trade in services has also helped
    several LDCs and small developing countries to
    reduce poverty
  • Tourist services seem to one way for LDCs and
    small developing countries to increase their
    participation in the world economy

Challenges in trade in Services
  • trade in services is subject to greater
    protection than trade in goods
  • Developed countries are more restrictive than
    developing countries where liberalisation is
  • It seems to be generally the case that economies
    with fewer trade barriers in the services sector
    have a higher GNP per capita
  • In the short term most developing countries can
    make larger welfare gains by liberalising their
    own services sectors than by trying to increase
    external market access
  • This is because of the positive effect that
    cheaper and efficient services have on the
    production of goods and other services

Service Sector Performance requirements
  • Dependent on prevailing conditions in individual
  • Increase in trade and liberalization is highly
    dependent on countries having effective
    legislation that guarantees competition,
    alleviates adjustment costs and ensures that the
    gains reach the entire population
  • sound regulatory framework
  • right to regulate
  • meet national policy objectives
  • Incentives for effective performance

What kind of Technical Assistance (TA) do LDCs
and small developing countries need ?
  • Objective No 1
  • National Assessment of trade in services in order
    to re-position the role of services in national
  • Sectoral studies state of liberalisation, market
    access conditions ( in all modes of supply),
    domestic regulation( regulatory capacity and
    transparency issues), prices and performance
    indicators, quality and access issues, investment
    and employment
  • This assessment work should be developing country
    appropriate and based on previous work undertaken
    in other developing countries for example
    cross-pollination between Asia, Africa and South
  • must be undertaken by national services
    specialists themselves in so doing building
    National Services Analytical Capacity

Technical Assistance Needed contd.
  • Objective No 2
  • Development of a cadre of National Services
    Specialists at five levels specialised
    national training courses for the following
    groups of persons to cover among others the
    role of services in national economies ,
    economic theory of trade in services, the
    classification of services , trade in services
    and the multilateral trading system, bilateral
    and regional frameworks for trade in services ,
    domestic regulation of services, measuring trade
    in services ( exports, performance, quality and
  • Level 1 services specialists in the civil
    service/public sector specialised national
    training courses for civil servants not only in
    trade and legal ministries but in sectoral
    ministries. Developing countries should be
    encouraged to have a Department of Services or
    Ministry of Services
  • ( communications, energy, transport ), in
    particular cared of Commercial Diplomats
  • Level 2 services specialists in regulatory
    bodies specialised training for technical
    staff in all regulatory bodies in the theory and
    economics of regulating services
  • Level 3 private sector services specialists
    specialised training for private sector operators
  • Level 4 academia and researchers
  • Level 5 development of appropriate curriculum
    for under-graduate and post-graduate
    courses in Economics, Law, Development Studies,
    International Relations, ICT Courses

Technical Assistance Needed contd.
  • Objective No 3
  • Inclusion of Services in National Economic
    PLANS and should be encouraged actively to be
    distinctively included in Poverty Reduction
    Strategy Papers ( PRSPs), DTIS, National and
    Regional Indicative Programs , Trade Policy

Technical Assistance Needed contd.
  • Objective No 4
  • Locking in Services Reforms
  • National Level development of supporting
    legislative and regulatory framework to LOCK-IN
    autonomous services and future reforms
  • Regional Level vast majority of LDCs and small
    developing countries are members of Regional
    Economic Communities (RECs) and the development
    of regional supporting legislative regulatory
    frameworks to LOCK IN services reforms
  • Multilateral Level after locking in at the
    national level and regional levels then locking
    at the MTS can be eased and more coherent given
    that appropriate sequencing has taken place

Technical Assistance Needed contd.
  • Objective No 5
  • Mode Specific Assistance
  • Mode 1 ICT Reform
  • Mode 2 Recognition and Accreditation
  • Mode 3 performance related training, systems
    related training and access to information
    channels for set up
  • Mode 4 specialist as opposed to generalist
    training, recognition, certification,
    registration, accreditation and revitalisation of
    vocational training

Technical Assistance Needed contd.
  • Objective No 6
  • Participation in International/ UN Services
    related Bodies and Standards Setting Bodies
  • Targeted resources towards the increased
    participation of LDCs and small developing
    countries in international, UN services and
    standard setting bodies taking the form of
    active recruitment of personnel from developing
    countries through increased quotas, allocation of
    developing country representatives in governing
    bodies eg ITU, IPU, World Tourism Organisation,
    IATA etc

Technical Assistance Needed contd.
  • Objective No 7
  • Special Assistance to SMEs/MSMEs
  • Development of appropriate and localised
    training packages for the delivery and if
    possible trade of services in SMEs and MSMEs
    given the fact that the majority of corporate
    entities in LDCs and small developing countries
    are small

Technical Assistance Needed contd.
  • Objective No 8
  • Advocacy for Services
  • Development of appropriate and localised
    advocacy material for trade and delivery of

Complimentary Financial Assistance
  • Objective No 9
  • Services Development Budgets/Funds
  • IFIs, Multilateral Development Banks, Regional
    Development Banks, Investment Banks need to
    allocate specific investment and lending
    resources ( both supply and demand driven) for
    the concerted development of the services sectors
    both to public , private and public-private
    operators in developing countries, including
    the establishment of regulatory authorities . At
    the moment there is over-focus on trade and
    export finance for commodities. Major funds
    should be actively increased and developed by the
    IBRD, European Investment Bank ( EIB),
    International Finance Corporation in particular
    those of the developing regions
  • This should be complimented by resources on-lent
    and allocated by continental banks such as
    African Development Bank (AfDB) , Asean
    Development Bank, Inter-American Development Bank
  • The focus being SMEs and MSMEs financing

COMESA Experience
  • In COMESA we have received resources from EDF and
    DfID to undertake TA Objective No 1 in
    collaboration with UNCTAD, World Bank and other
    specialised agencies

COMESA Regional Work on Services
  • Comprehensive assessment of the state of trade in
    services in COMESA ( excl Libya as became member
    after programme launched) countries
  • Develop a regional programme on integrating
  • to Assist in GATS negotiations
  • to facilitate EPA negotiations with the EU

Regional Assessment Work Programme
  • National assessments in Outlining
  • GATS status
  • extent of liberalisation
  • policy environment
  • regulatory environment
  • sector performance and
  • GATS templates

GATS Templates
  • Collation of national regulations in all sectors
  • conversion of all national regulations in all
    sectors into GATS-type language
  • Four modes of Supply
  • Market Access Limitations
  • National Treatment Limitations
  • Domestic Regulation

Sectoral Assessment
  • Extent of liberalisation factors behind private
    entry and how open sectors are, where the
    restrictions are, why restrictions are there
  • Policy environment competition and entry
  • Regulatory environment characteristics of the
  • Market Structure number of firms, market share,
    ownership patterns
  • Performance indicators price and quality
    measures and employment and investment data

Sectors being covered
  • Financial( Banking, Insurance and Securities)
  • Communications ( Postal and Courier, Audio-Visual
    and Telecommunications,)
  • Transport( Road, Rail, Inland Waterways,
    Maritime, Air and Services related to all modes
    of transport),
  • Construction and related engineering,
  • Business services( Other Business, Computer
    Related and Professional Services),
  • Tourism,
  • Health,
  • Education
  • Energy
  • Distribution
  • Mode IV ( horizontal)

Capacity Building under the Regional
  • All countries have members of their respective
    national working groups on services who are
    government experts , experts from regulatory
    bodies and experts from industry associations who
    have been trained in the development of the
    National GATS Templates and Sectoral Assessments
  • All in all in each country their are four
    experts working on the National GATS Templates
    and 10 experts working on the Sectoral
  • A total of 14 experts per country working on
    assessing trade in services - regional cadre of

Way forward
  • To enable a comprehensive and meaningful
    programme we need more resources in the other TA
Write a Comment
User Comments (0)