Shiv Raj Bhatt ENTReC/UNDP

Ministry of Commerce and Supplies

EIF Asian Regional WorkshopKathmandu,

21-23 June, 2010

Nepal’s Experience with the NTIS:

Using the NTIS Process to Create

Stakeholders’ Ownership

Background• Nepal’s first DTIS (Nepal Trade and Competitiveness Study

- NTCS) was prepared in 2003/2004.

– Main purpose: identify policy and technical assistance requirements for making economy more competitive and enabling it to get greater benefits from trade.

– Broad categories of identified policy actions:

• Institutional capacity development, regulatory framework and creation of investment climate,

• WTO compatible legal and institutional framework,

• Initiatives for reducing transaction costs through trade facilitations and transport and transit logistics, and

• Sector specific initiatives in key and export potential sectors such as garments and carpets, tea, agriculture, tourism and hydro power.

Assessment of NTCS - 2003/04• Overall implementation status: not very encouraging

– Some activities were completed, many of the recommendations still stand valid, while many others are not initiated.

• Problems

– Lack of ownership (stakeholders),

– Limited support from development partners,

– Lack of resources, both financial and human.

• Now the context (National as well as International) is also changed: (WTO Membership, Nepal’s political transition, global financial crisis etc).

• A new strategy is needed:

Nepal Trade Integration Strategy (NTIS)

The Road Map to EIF (June 2008 - onwards)

Constitute Transition Team

Govt.-DPs coordination (IF DF)

Stock-taking and GAP Analysis (DTIS 2003) Study Tour to Cambodia

Trade Policy 2009

Nepal Trade Integration Strategy 2010 Identify implementation mechanism

Concept note on implementation mechanism

Next………

Implement EIF Tier 1Implement NTIS 2010 Capacity Building Plan

Move towards Trade SWAp EIF Tier 1

Renew DPs Commitment

Trade mainstreaming

EIF National Implementation Arrangement in Nepal

NSC

Focal Point Technical Committees (TC)

Technical Committees (TC)

1. Agriculture, agro-industry, NTFP, and SPS 2. Private Sector Development (Manufacturing, SMEs, SEZ/EPZ and TBT) 3. Legislation and Intellectual Property Rights (IPRs)4. Services and taxation5. Cross-Cutting Issues and Trade-related Infrastructure Development

Technical Sub-Committees (TSC)

To be constituted by TC as required.

NIU

Donor Facilitator

TSC

Draft NTIS Table of Content

Organize seminar with Government, Business, and Development Partners to discuss and endorse proposed Table of Content

Identify NTIS Focus (February 2009)

Prepare NTIS Work (Feb-Sept 2009)

During period February-September 2009:

Draft Chapters ToRs

Identify Team Leader

Identify chapter teams (mostly mixed national-international)

Recruit consultants

Work with Donor Facilitator (UNDP) to secure additional funding from other DPs (DFID, Gov’t of Finland, IFC)

Conduct NTIS Work (Sept 2009-May 2010)

Full report to contain 12 chapters

Each chapter team presents initial findings to relevant EIF Technical Committee for feedback

3 review workshops are organized with GoN, Business, DPs (September 2009, November 2009, March 2010)

Separate focus group discussion were organized for some chapters (e.g. investment facilitation, SPS and TBT, Trade support institutions).

Prepare Action Matrix & Executive Summary

(April-June 2010) Team leader drafts ES+AM with chapters

teams based on draft chapters

Draft ES+AM sent to GoN concerned Ministries and Departments, private sector organizations and to DPs for comments

Full report with detailed chapter studies to be completed shortly

NTIS 2010 ES +AM launched 24 June

Strengthening DPs Buy-in:

Beginning in late 2009, MoCS intensifies discussions with interested DPs to identify possible ODA support for implementation of NTIS 2010

MoCS meets with concerned DPs as a group several time

MoCS meets with DPs individually

Strengthening GoN’s Buy-in

Focus from early 2010 onwards is on:

Meetings with National Planning Commission to ensure alignment of NTIS proposed priorities with 3-year National Development Plan (NDP) priorities

Endorsement of NTIS 2010 by Council of Ministers (Done)

Include key priorities of NTIS 2010 in forthcoming Nepal Development Forum (NDF)

Strengthening Business Sector Buy-in

From the start of NTIS process, business sector is co-organizer of NTIS seminars

Business sector closely associated with work of the chapters teams, especially with the export potential assessment of the 19 sectors selected for priority focus

Export Promotion Forum (EPF) created at FNCCI was engaged in NTIS preparation through creation of a public-private dialogue form (PPDF-Nepal) by MoCS in March 2009 and to be linked to recently launched Nepal Business Forum Working Group on Trade

ConclusionThe DTIS process is not simply about a Ministry

preparing a trade sector development strategy with the support from a team of consultants .

It is about creating buy-in from all key trade sector stakeholders (Concerned Ministries, business sector, development partners, others) in the strategy that is to emerge from the work.

The process takes time but is key to future success.

Thanks