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THE COMPREHENSIVE TEN-YEAR REVIEW OF THE ALMATY PROGRAMME OF ACTION Global perspectives

THE COMPREHENSIVE TEN-YEAR REVIEW OF THE ALMATY PROGRAMME OF ACTION Global perspectives. Sandagdorj Erdenebileg UN-OHRLLS Tel: 212 963 7703, email: erdenebileg@un.org. Almaty Programme of Action - 2003. APoA – comprehensive development agenda focused on transit cooperation.

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THE COMPREHENSIVE TEN-YEAR REVIEW OF THE ALMATY PROGRAMME OF ACTION Global perspectives

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  1. THE COMPREHENSIVE TEN-YEAR REVIEW OF THE ALMATY PROGRAMME OF ACTION Global perspectives Sandagdorj Erdenebileg UN-OHRLLS Tel: 212 963 7703, email: erdenebileg@un.org UN-OHRLLS

  2. Almaty Programme of Action - 2003 APoA – comprehensive development agenda focused on transit cooperation. • Key objectives - Increase export competitiveness through reducing trade transaction costs • Develop genuine partnerships at national, bilateral, sub-regional, regional and global levels -between LLDCs and transit countries with their development partners and between the private and public sectors • Priority areas: i) Fundamental transit policy issues ii) Infrastructure development and maintenance iii) International trade and trade facilitation iv) International support measures v) Implementation and review UN-OHRLLS

  3. LLDCs continue to face problems • Transit and transport related problems: • Inadequate transit infrastructure • Remoteness from major international markets • Inefficient logistics systems • Delays in transit – due to checkpoints/unscheduled roadblocks, cumbersome customs and border crossing procedures and insufficient application of ICT, excessive number of documentation • Other challenges: • Heavy reliance on low-value – high-bulk commodities which make them vulnerable to commodity price volatility • Limited productive capacities • High vulnerability to the global financial and economic crisis, food security, climate change and desertification and land degradation UN-OHRLLS

  4. Cost of being landlocked: Results of OHRLLS study Study applied a gravity model to data from 150 including LLDCs and coastal countries over the period 1980-2010. LLDCs’ trade was just 61% of the trade volume of coastal countries in 2010. In 2004 it was 57%. Transport costs for LLDCs were 45% higher than the representative coastal economy in 2010 and have increased over time. Because of landlockedness the level of development in the LLDCs is on average 20% lower than what it would be were the countries non-landlocked. ====== Improved Transport and Trade Facilitation are still key to reducing the costs for LLDCs. UN-OHRLLS

  5. Since 2003 LLDCs experienced high economic growth UN-OHRLLS

  6. LLDC per capita GDP increased – Less than transit countries; 14 African LLDCs below $ 1,000 UN-OHRLLS

  7. Declining value addition in manufacture and agriculture LLDCs economies

  8. Human Development Index (HDI) has improved but lower than other groups UN-OHRLLS

  9. African LLDCs have lower HDI

  10. MDGS • Advances on some MDG indicators • Net primary school enrolment increased from 64% in 2000 to 83% in 2011 • Share of women in national parliament increased from 7.8% in 2000 to 23.5% in 2013 • HIV prevalence rate decreased from 4% in 2001 to 2.8% in 2011 • Under-5 mortality rate declined from 121.5 per 1,000 live births in 2000 to 80.9 in 2011 • However challenges remain • Prevalence of undernourishment in all LLDCs was 22% in 2011and African LLDCs 31% • In half of the LLDCs the proportion of the population living under $1.25 per person per day is greater than 20% • GDP per capita (constant 2005 $) is below $1,000 in 19 LLDCs, 13 of which in Africa UN-OHRLLS

  11. Poverty headcount ratio at 1.25 dollars per day (% of total pop) has decreased but still high UN-OHRLLS

  12. Selected key achievements

  13. Priority area 1: Fundamental transit policy issues • Increased harmonization of policies • Streamlining of border procedures • Institutional frameworks have been set up • Facilitation measures include: • one-stop border posts; • TIR System, • introduction of single window processing; • harmonization of axle load limits; • third party motor insurance schemes UN-OHRLLS

  14. Increased harmonisation of transport and transit policies, procedures and practices with transit countries • 57 international conventions on transit, 7 are particularly important for LLDCs • Asian Highway Agreement entered into force in July 2005 • Trans-Asian Railway Agreement entered into force in June 2009 • Asian dry ports agreement ready for signature • Trans-African Highway Agreement being negotiated UN-OHRLLS

  15. Priority Area 2. Infrastructure development and maintenance • Progress has been made on the development of the Asian Highway and Trans-Asian Railway networks. • Africa - implementing the PIDA; with support from partners (World Bank, EU, AfDB, JICA, South-South Corp etc.) transit corridors have been developed. • South America – implementing the Strategic Action Plan for 2012-2022 of the South American Infrastructure and Planning Council. • The rate of cellular subscription and Internet users significantly increased in all LLDCs • Transport of cargo by airfreight has increased in some LLDCs. • Dry ports are being established in all regions eg. Nepal, Burkina Faso, Mongolia and Ethiopia. UN-OHRLLS

  16. LLDCs have lowest percentage of paved roads - only 9 have greater than 50%. Percentage of paved roads

  17. $24.4 billion needed in Africa to finance road and railway transport infrastructure projects that can be implemented under Programme for Infrastructure Development in Africa in 2012-2020 $290 billion needed annually in Asia for transport infrastructure between 2010 and 2020 International financial institutions play important role in financing infrastructure development: ODA has played a major role in infrastructure development: $2 billion in ODA disbursements to LLDCs went to transport and storage sector in 2011 Enhance the role of PPP/private sector. Need innovative sources of funding. Financing for infrastructure development UN-OHRLLS

  18. Priority Area 3. International trade and trade facilitation Merchandise Exports (millions $) UN-OHRLLS

  19. LLDCs’ share of the world’s trade doubled from 0.6% in 2003 to 1.17% in 2012 • However LLDCs are still marginalized from the international trade markets.

  20. LLDCs are still heavily dependent on commodities African LLDCs: Minerals (diamonds, gold, copper, uranium) and agriculture (cotton, coffee, tobacco, bovine)

  21. LLDCs have made progress in facilitating transport and trade across borders BUT still take double the time it takes transit countries to import/export • Transit countries: number of days to export in 2013 = 23 • number of days to import in 2013 = 27 • cost to export in 2013 = $1,268 • cost to import in 2013 = $1,567 UN-OHRLLS

  22. Trade Facilitation under the DOHA Round • Trade Facilitation in the Doha Development Round has the potential to address many of the fundamental transit policy issues that affect LLDC exports. • Negotiations aim to clarify and improve relevant aspects of Articles V, VIII and X of the GATT 1994 with a view to further expediting the movement, release and clearance of goods, including goods in transit. • A WTO Trade Facilitation Agreement could bring down the global cost of moving trade today from roughly 10 per cent of trade value to 5 per cent. • OECD estimates that the Agreement would bring down trade costs in LLDCs by 16.4%. • Hope that the 9th WTO Ministerial in Bali in December will deliver. UN-OHRLLS

  23. Since 2003 three LLDCs were able to successfully complete their accession to the WTO – Nepal, Lao PDR and Tajikistan. Kazakhstan, Afghanistan and Ethiopia are in advanced stages of the accession process. Azerbaijan, Bhutan and Uzbekistan are at various less advanced stages of the accession process. Support to acceding countries is needed. WTO Accession UN-OHRLLS

  24. Way forward - Challenges and new developments Reduce high trade transaction costs Enhance productive capacities, value addition, diversification and reduction of dependency on commodities Inadequate infrastructure Strengthen legal framework, conventions, GATT trade facilitation agreement, regional and bilateral Regional integration/ corridor management Increased financial resources, ODA, FDI, remittances Impact of global trends: slow down of economic development triple crisis, climate change, desertification. Mainstream into global post 2015 development agenda, SDGs Strengthen role and contributions of international regional organizations. UN-OHRLLS

  25. Global awareness and recognition increasing… Global partnerships are strengthening…

  26. Recognition of and interest in the special needs of LLDCs and transit issues for international trade has increased since Almaty Conference in 2003.

  27. Greater recognition of LLDC issues from partner countries and international organizations

  28. … Thank You UN-OHRLLS

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