Capacity Building – from a practical perspective

2. Capacity Building – from a practical perspective Arild Haraldsen General manager NorStella Private non-profit foundation for e-business and trade procedures Vice chair UN/CEFACT BUREAU

3. Global trade • A prerequisite for global trade is standardisation and harmonisation of procedures world wide • This does not mean one common standard nor one world • A world of standards is a world of common denominators and bridgeheads for communication • Example: a common denominator for the exchange rate between dollars and swiss franc • Therefore: Globalisation is about glocalisation – standards developed by local or regional demands or characteristics • Example: a common eInvoice (datamodel) developed by UN/CEFACT used as a denominator for a syntaxic presentation adopted to national regulations for accounting ) • This is in fact interoperability in practice

4. To achieve economical growth world wide • There are three ways to obtain this • By international agreements (WTO – DOHA-round) • By regulatory decisions made by each country that indicate progress towards large scale goals • To use a competent organisation such as UN/CEFACT and the willingness of national institution(s) or actors to be part of a capacity development process. • UN/CEFACT is not “just another” standardisation organisation – it is under the banner of UN, (UN/ECE) which covers more than 50 European countries. But in fact it has a global “market” with considerable support from Asia and part of Africa

5. Capacity building • Capacity Building is much more than training and includes the following: • Human resource development, the process of equipping individuals with the understanding, skills and access to information, knowledge and training that enables them to perform effectively. • Organizational development, the elaboration of management structures, processes and procedures, not only within organizations but also the management of relationships between the different organizations and sectors (public, private and community). • Institutional and legal framework development, making legal and regulatory changes to enable organizations, institutions and agencies at all levels and in all sectors to enhance their capacities • Use of ICT-standards and UN recommendations. ICT should be an enabler, and not a driver for Trade Facilitation, as stated earlier

6. Some facts about the norwegian approach • The Norwegian Government as such does not give capacity-building • The Government gives « aid for trade » through multilateral organisations such as WCO and World Bank • It is up to the countries recieving this, to set up practical projects • Capacity building is delivered from the customs departement through WCO • Switzerland and Norway has pressed for setting up a TF Committe in WTO.

7. Bu NorStella is giving ”Capacity bulding” to norwegian SMEs on trade facilitation • Capacity building for SMEs in international trade based on UN/CEFACT standards • Open courses in • Business: • International delivering terms for goods to different regions Remburs/documentary credit • Contract terms • Etc • Technical courses: • EDIFACT (Customs) • XML (ShortseaXML, eInvoice) • Modelling (BPMN, UML, UMI etc) • Tailored made courses on request by companies • Capacity building based on interactive discussions and specific work items

8. Providing a solution: An Example • ShortseaXML – a project to develop standardised XML-messages between all actors in the value chain of transport by sea or waterways. The project was lead by NorStella • The messages are developed by using UN/CEFACT standards (Core Components, UMM,NDR, ebXML, etc) • Focus was shortsea-routes in Europe • The focus has expanded to routes from Europe to northern parts of Africa • There is also an interest in this in South-Africa. • There is also a demand for this solution in Asia (Taiwan, Korea, Japan, China) • The solution will be implemented by norwegian ports as a first step to create a ”single window”-solution in Norway • Lessons learned: Developing standards by the experts within UN/CEFACT, creates solutions for more efficient trade across borders in Europa, in Asia, in Africa

9. What to do? • The Economies in transition have asked for support to TF-projects as implementing fx « Single window », etc • UN/ECE has raised the question of availability of «concrete expertise of practioners » that can help and support TF-projects « on the spot » • Such experts are available in UN/CEFACT as such, with over 200 experts in area that can support those countries. • This should be arranged in cooperation with the countries, UN/ECE and UN/CEFACT • The funding could come from « aid for trade » or other programs channelled through some mulilateral organisations (WCO, World Bank or others) • But it is of the outmost importance that economies in transitions also participate in the developement of standards inside UN/CEFACT in order to influence its content, and speed up the processes for « deliverence» to the market when the market needs it.