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- ITC: A dwarf Africa should support
ITC: A dwarf Africa should support
- By Beatrice Chisunkah
- Published 04/11/2008
- Globalisation
- Unrated
In Geneva, Switzerland
is found a small international trade organisation
whose image is little known or underestimated by
many African governments. Although African
diplomats in Geneva call it and its Executive Director, J. Denis
Bilisle "the African businessman's friend", the
small organisation attracts only those "in the
know" at its annual Joint Advisory Group Meeting
(this year, from 10 to 14 April).
The International Trade Centre
(ITC) is a subsidiary of two trade development
giants, the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD).
ITC is the focal point in the United Nations
system for technical co-operation with developing
countries and economies in transition in trade promotion and export development. It was created by the General Agreement on
Tariffs and Trade (GATT) in 1964 and since 1968
has been operated under the joint aegis of GATT,
now WTO and the UN through UNCTAD. ITC works with
Africa to set up effective national trade promotion programmes for expanding exports and improving import operations of
enterprises. ITC's main link with Africa's private
sector is manifested in technical co-operation
activities. J. Denis Bilisle believes Africa's main need is to build national capacity for trade. This is the only way
exports will increase and job creation expand.
That is one way the benefits of liberalisation
will be realised. He is right and Africa must help his organisation to make a modest contribution to achieve that.
Bilisle cites the development of the supply side;
understanding WTO rules; creating and delivering
national export strategies; and developing export
skills as essential and the most promising opportunities in trade.
In the post Uruguay Round, improved skills to understand WTO
rules and their implications on trade become
critical. But, Africa lacks these skills. ITC''s
perception of imparting these skills goes beyond simple seminars. In Africa, it is difficult to tell whether exporters
really know about the potential opportunities and
threats of WTO rules to their business due to a
lack of an effective linkage of the rules with the
exporters. The international community must assist in developing a strong link between WTO and governments, firms, and their
associations. Enterprises need to comprehend
provisions in the WTO that are of developmental
value to them so that they can press their governments to fight for these and convert them into gains just like their
counterparts in rich countries do.
Wth its existing state of
debility juxtaposed by decades of protectionism,
Africa's firms need to understand how they will cope up. Unless proper preparations are made, the erosion of
preferences under the WTO will plunge Africa into
even stiffer competition. ITC's assistance will be
important as firms reposition to compete globally.
Interest in ITC's work will be important too if Africa has to avoid continued crouching. Lacklustre must end. With ITC's long
history in this business, a glimmer of hope is
there for companies to build and maintain
sustainable competitive advantage.
Enhancing Africa's capacity
for trade
Creation and delivery of national strategies that are
synchronised with WTO rules will be key for
survival and prosperity of African firms. This
could only be achieved by mainstreaming trade in national strategies. At the moment many African governments put trade
at the backseat of their priorities. They also
treat the private sector with disdain. In the
post-Uruguay Round, this attitude will be detrimental to development. ITC's vision is to participate in the
establishment of dialogue between all relevant
players in trade ** private sector and their
associations, public sector, etc in order to contribute toward building a strong and long-term national strategy for
trade.
National capacity building for trade will do well if they are
based on a mix of new trade rules, national export
strategies and export skills, as ITC shows. This
includes incorporating rules; involving all relevant players; and developing trade skills in quality management,
marketing, human resource and all other important
facets.
This
year's annual meeting will be the 33rd such event. Among the items that will feature at this year's meeting are ITC's work in
trade information, south-south trade, and market
development for products such as gourmet coffee.
The meeting also reviews ITC's technical cooperation activities as a whole in 1999, including its joint work
programmes with other international organizations
dealing with trade development.
One such inter-organizational initiative is the Integrated
Framework (IF) for technical assistance for LDCs.
Created in 1997 at a WTO Ministerial Meeting, the
IF's objective is to increase the benefits that
LDCs derive from trade-related assistance available to them from the
six agencies (WTO, UNCTAD, ITC, UNDP,
World Bank and the IMF) which established this
Framework, plus those of other interested bilateral, regional and multilateral organisations, with a view to
assisting them to enhance their trade
opportunities, to respond to market demands and to
integrate into the multilateral trading system. The IF has potential to contribute immensely to the development of capacity
building alluded to earlier. As Africa is host to
33 LDCs, it is a special target for the IF and its
Ministers of trade should exhibit more interest and commitment.
At the Third WTO Meeting in Seattle and the UNCTAD X Meeting in
Bangkok last month, LDC Ministers issued a
Declaration and Communiqui respectively asking for
an independent review of the IF. An evaluation is
now underway, conducted by an independent team of consultants under the aegis of the evaluation unit of the World Bank. These
consultants will be interviewing and consulting
extensively with LDCs.
Lack of financial commitment
The high profile of
agencies makes the future of the IF promising.
ITC, which hosts the administrative unit of the IF, identifies
increased efficiency and effectiveness in the
delivery of trade-related technical assistance;
co-ordinated efforts; increased transparency; increased visibility and participation given to the trade sector;
enriched dialogue between governments and the
private sector as key strengths of the IF.It is at
such forums as the ITC Annual Meeting, where all the three Geneva-based agencies and other agencies will be
present, that LDC Ministers could come and ask
questions. It is here they could ask donors why
funding for country roundtables has remained flat. Ever since its inception, the IF has received lacklustre commitment from
donors. It is here they could elaborate how they
want "ownership," an important attribute for the
IF to work. It is also here they could send
positive signals to the international community about their
seriousness and commitment to trade in general and
the IF in particular.
Finally, Ministers should
use more than declarations and communiquis to fight marginalisation. The most effective weapon is perhaps
their presence and active participation at forums
such as the ITC Annual Meeting, because with one
voice they simultaneously talk to WTO, UNCTAD and
ITC.
Beatrice Chisunkah. emichigan@deckpoint.ch
Transmitted: April 3rd 2000

