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NBI First National Coordination Meeting. Ministry of Water Resources and Irrigation, NWS Cairo,28-29 July 2007. Socio-economic Development and Benefits Sharing (SDBS) Project. Activities of the INSTITUTE OF NATIONAL PLANNING (INP) In its capacity as a PARTICIPATING INSTITUTION (PI) By
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NBIFirst National Coordination Meeting Ministry of Water Resources and Irrigation, NWS Cairo,28-29 July 2007
Socio-economic Development and Benefits Sharing (SDBS) Project Activities of the INSTITUTE OF NATIONAL PLANNING (INP) In its capacity as a PARTICIPATING INSTITUTION (PI) By A.M.FARAHAT
SDBS Project Two Components: • Nile Transboundary Development Network (NTDN) and, • Network of 10 PIs. • Nile Transboundary Development Facility (NTDF) • Network of Collaborating Institutions CIs, i.e NGOs, Private Sector and other civil society institutions
Two Phases • A Preparatory Phase: March 2006 – January 2007 • An Operational Phase: 1February-31 July 2007
The Preparatory Phase • INP designated by MWRI as the PI from Egypt March 2006. • Inception Workshop for the PIs, Entebbe, April 2006 • Work Plans prepared and submitted. • First PSC mandated a clustering scheme, Kampala, June 2006 • New Work Plans prepared accordingly • Contract Negotiated, Entebbe, Nov.2006 • Contract signed, February 2007
Clustering Scheme Five clusters, each led by a PI as follows: • Cross-Border Trade • Egypt, Uganda, Tanzania, Burundi • Benefit-Sharing: • Ethiopia, Burundi, DRC. • Food Security: • Kenya, Ethiopia, Sudan. • Energy: • Tanzania, Uganda, Kenya, Rwanda, Egypt. • Water/Natural Resources Management: • Rwanda, Ethiopia, Egypt, Burundi, DRC.
Operational Phase • Started 1 February 2007 • Focus on Cross Border Trade • Concept Note • Cluster Meeting/Workshop, Cairo, 26-27 March 2007 • Announcement of the first grant competition of the NTDF • Scoping Study prepared
Operational Phase • INP also participated with Country Papers in the other five clusters. Two of the four meetings were attended by a representative from INP: • Energy Cluster, Dar Es Salam, 2-3 April 2007 • Food Security Cluster, Nairobi, 10-11 April 2007 • Water/Natural Resources Cluster, Rwanda, 26-27 April 2007 • Benefits Sharing Cluster, Addis Ababa, May 2007
Scoping Study Development of Cross Border Trade among Nile Basin Countries
Table of Contents ICBT, NILE BASIN COOPERATION AND POVERTY 1. Introduction 2. CBT and Poverty II RELEVANT CONCEPTS AND CONSIDERATIONS 3. Benefit-Sharing Considerations 4. The Virtual Water Concept 5. The Comparative Advantage of Agricultural Commodities 6. Supply Chain and Transport 7. Implications of ICTs 8. Contemporary Trade Facilitation Schemes
Table of Contents III THE STATUS QUO 9. Nile Basin CBT: The Current Situation 10. Nile Basin CBT: The Role of Women 11. Contemporary Regional Cooperation Schemes 12. Transport Infrastructure: An Overview 13. Investment Opportunities in the Nile Basin IV PROMOTING CBT: TOWARDS A STRATEGIC FRAMEWORK 14. A Proposed Strategy 15. Towards Action: A Result-Based Approach
Highlights of the Study The Poverty Scene in the NB • A Human Development perspective • An MDGs perspective • The genuine relationship between CBT & Poverty • Social implications.
Highlights of the Study The Current Intra-Basin Trade • VOLUME: • Intra-basin trade is extremely low (5-6%) • STRUCTURE: • Primary commodities on the exports side and manufactured goods on the imports side • Unfavorable terms of trade • Mainly with EU and North American markets
Highlights of the Study Low Intra-Basin Trade VOLUME • Explains why current RC schemes such as COMESA scored limited success • They are working on alleviating tariff and non-tariff barriers to trade • If trade volume is low, then expected result should be modest
Highlights of the Study UNFAVORABLE Trade Structure • Indicates that Trade Liberalization Schemes of the WTO will not yield the required results • They tend to facilitate trade according to the current links and structure • They don’t induce much change in the structure
Highlights of the Study The Way Out of this Situation • If CBT is truly the vehicle for development, then the engine would be our real target • Endogenous development is the Engine for development • The ultimate goal should be REGIONAL INTEGRATION. • Regionalization is no hindrance to globalization • This means interdependent economic relationships based on: • Comparative advantages • Competitive advantages • Favorable factors (diversified resources and big markets)
Highlights of the Study Investments Should Precede • The role to be vested to the private sector • Investments will increase the potential for trade
Highlights of the Study Agricultural Trading opportunities • Comparative advantages for NBCs • Competitive advantages ( Egypt for instance) • Case of meat production and oil seeds
The Way Ahead Integrated Strategy The Core of which: • Investment promotion • Flow facilitation • Market access Market access is taken care of by WTO and globalization trends
Highlights of the StudyThe Need for an Integrated Strategy Investment Promotion • Will increase the potential for CBT • This is the role to be vested in the Private Sector • This is the focus of other clusters acc. To log frame of SDBS project Flow facilitation • Will trigger CBT • This will be the recommended focus of our cluster for future action
The Way Ahead Our Focus Flow facilitation through alleviation of physical and non-physical barriers to trade
Highlights of the StudyFlow FacilitationA Two Track Approach Physical Barriers • Mainly transport infrastructure • Could be approached through a long-term capital-intensive hard-measures track Non-Physical Barriers • For instance, logistics, conventions,..etc • Could be approached through a medium-term not highly capital intensive soft measures track
Highlights of the StudyFlow Facilitation Physical Barriers to Trade • The need for a multimodal integrated normative transport network • The need for a North-South Corridor as a backbone for such network • The Nile River potentials and equatorial lakes potentials as inland waterways should be fully exploited • The problems of the East Africa shipping line should be studied and solved
The Way FORWARD • The starting Point would be to have a BETTER UNDERSTANDING OF THE PROBLEM on the ground • What are the missing links, where are the barriers, what are the bottlenecks, …etc • This requires a multidisciplinary team and field visits
The Way FORWARD • A crude proposal for action is prepared • It is based on the Result-Based technique adopted by the SDBS project • Moreover, it is consistent with the Log Frame of the SDBS project itself • A detailed Work Plan will be prepared once the proposal is accepted