HUMAN DEVELOPMENT IMPACT ASSESSMENT (HDIA) OF TRADE POLICIES

1. HUMAN DEVELOPMENT IMPACT ASSESSMENT (HDIA) OF TRADE POLICIES CAPACITY ASSESSMENT TOOL FOR IMPLEMENTING HDIA OF TRADE POLICIES AND IMPLEMENTATION OF HDIA By Mumtaz Keklik

2. OUTLINE • HDIA and Basic Principles • Transmission Channels and Variables • Description of a Short Process for HDIA Implementation • Capacity Assessment Tool for HDIA of Trade Policies • Three Applications of HDIA of Trade Policies • Major Issues and Conclusions

3. HDIA OF TRADE POLICIES • A Brief History of the HDIA • Findings of Making Global Trade Work for People • Other Methodologies • Trade Policy Impact on • Productivity • Equity • Sustainability • Empowerment

4. HDIA OF TRADE POLICIES • Ten Principles of an HDIA of Trade Policies: • The HDIA aims explicitly at assessing the feasibility of a particular form of trade policy (in the current context, liberalization) from a HD perspective. It does not take any policy option as given, but analyses the human development impact of a menu of options. In this sense, it directly helps governments build and protect their own human development 'policy space', based on the alternative scenarios provided by the outcomes and recommendations of the assessment; • The HDIA covers the immediate mid-term and long-term assessments depending on the context; • Using both quantitative and qualitative techniques, the HDIA provides a flexible enough methodology to be applied in different contexts;

5. Ten Principles of HDIA • It is participatory in the sense that in analysing particular trade policies, it brings together all of the relevant stakeholders and representatives of vulnerable groups that are most likely to be affected by the policy change. Open and interactive national fora and committees, as well as field work are used to guarantee people’s participation; • One of the HDIA’s main objective is to mainstream participatory decision making into trade policy formulation. This exercise gives the ownership of the decisions to the people who are likely to be affected by the policy change; • The HDIA identifies opportunities as well as negative implications of the policy change and recommends measures that help operationalize and realize the former and mitigate the latter with a specific focus on enhancing human capabilities. • The HDIA is planned to be undertaken and updated at several stages of the process of policy change or trade agreements and negotiations (prior to changes or negotiations are launched then refinements follow after the start of the process which would determine the decision process in continuing the changed policy or trade agreements).

6. Ten Principles of HDIA • HDIA involves assessments of the implementation or enforcement mechanisms of the policy changes i.e. evaluating the means towards the end. • HDIA engages in an integrated analysis, which checks any conflicting impacts of policy changes undermining the laws or regularities to protect fundamental freedoms and human rights. • Its being participatory is very crucial since trade policy changes or trade agreements should be considered subject to public consent.

7. HDIA Transmission Channels and Variables • Transmission Channels • Market Access • Institutional, Legal, and Regulatory Changes • Policy Space • Transmission Variables • Prices • Taxes • Production • Legal and Institutional Mechanisms

8. A Short Description of a Full HDIA Process • Capacity Assessment for HDIA Implementation • Capacity Development for HDIA Implementation • HDIA Implementation • Integration of HDIA Outcomes into NDSs • Implementation of HD-Oriented Trade Policies

10. (To be continued) THANK YOU

11. Three Applications of HDIA of Trade Policies • Nepal’s Accession to the WTO • Employment generation • Poverty reduction • Rural development • Gender Equality • Environmental Integrity

12. Three Applications… • MFA Expiration and Employment Generation in Bangladesh • HDIA of MFA Expiration With a Focus on Employment • Identification of Employment Oriented Export Sectors • Social Protection Schemes • Training and Retraining • Increased Efficiency and SMEs • Social Safety Schemes

13. Three Applications • Trade and Human Development in Mongolia • HDIA of Mongolia’s Accession to the WTO and Trade Related Development Policies • Capacity Building on Trade and Human Development • Global Leadership on Landlockedness and Trade

14. Major Issues and Conclusions • Data and Information Issues • Complex Relationship Between Trade and Human Development • The Methodology and/or Principles Difficult to Implement • Biases on the Discussion Towards Trade or Human Development • The Importance of Institutionalization of HDIA • The Key Role of Employment and Labor Market Variables • Demonstrating the Government the Importance of Making Decisions Based on HDIA • Trade Negotiators’ and Policy Makers’ Capacity • Independence of the Assessment with Strong National Ownership • Objectivity • Cross-Cutting Nature • Leadership and Collaboration

15. THANK YOU mumtaz.keklik@mac.com