Trade SWAp Concept

Cambodia’s Conception on a Trade Sector Wide Approach (Trade SWAp

Presented by H.E. Dr. CHAM Prasidh, Senior Minister and Minister of Commerce, Kingdom of Cambodia At the Launch of Cambodia DTIS 2007 Phnom Penh – December 6, 2007

Trade SWAp Object

To coordinate the efforts and resources of the Cambodian Government, Cambodian stakeholders, and Development Partners on a single, shared strategy to develop Cambodia’s trade sector.



Diagnostic Trade Integration Study 2007

In 2000, Cambodia was designated as one of three pilot countries under the Integrated Framework (IF). Subsequently, Cambodia was the first country to complete a Trade Integration Strategy also known as Diagnostic Trade Integration Study or DTIS (Cambodia’s DTIS 2002) under the IF.1 The IF is a program of six multilateral agencies – the International Monetary Fund (IMF), International Trade Centre (ITC), United Nations Conference on Trade and Development (UNCTAD), United Nations Development Programme (UNDP), World Bank, and World Trade Organization (WTO) – supported by a number of multilateral and bilateral development partners. The IF assists Least Developed Countries (LDCs) to integrate more effectively into global trade and turn trade into a driver of national development. The IF is the product of a commitment made by development partners under WTO agreements.

Trade Development Support Program (TDSP)

TRADE DEVELOMENT SUPPORT PROGRAM
PROJECT DESCRIPTION

A. Financing Instrument

1. The TDSP is prepared as an ‘investment lending’ operation and appraised following World Bank Specific Investment Loan (SIL) guidelines. The TDSP itself will be structured to finance activities in trade-related agencies, with overall management by the Ministry of Commerce. The allocation would be based on Annual Operational Plans (AOPs) derived from the Trade SWAp, hence aligning with the RGC’s trade strategy and with its support from other DPs. The TDSP would provide a flexible financing instrument promoting incremental progress towards the goals of a SWAp in cooperation with other DPs. The TDSP would be financed from resources mobilized through the MDTF, which is a multi donor trust fund administered by the World Bank (Annex 6).

2. The initial allocation to the TDSP is US$12.60 million (US$12.35 million from MDTF and US$0.25 represents counterpart funding) to be implemented over 3 years and 3 months.



Enhanced Intergrated Framework

The enhanced IF (EIF) is an international initiative through which the International Monetary Fund (IMF), the International Trade Centre (ITC), the United Nations Conference on Trade and Development (UNCTAD), the United Nations Development Program (UNDP), the World Bank (WB) and the World Trade Organization (WTO) combine their efforts with those of Least-Developed Countries (LDCs) and bilateral and multilateral development partners to respond to the trade development needs of LDCs. The goal of the Integrated Framework (IF) is to enhance the capacity of LDCs to integrate into the multilateral trading system in order to reduce poverty and benefit from increased market access.

ជំនួយសម្រាប់ពាណិជ្ជកម្ម

WHAT IS YOUR AID FOR TRADE STRATEGY?

1. What priority is accorded to trade development in your country’s economic growth/national development/poverty reduction strategy?
International trade has played a fundamental role in Cambodia’s economic growth over the last 10 to 15 years. Exports represent approximately a quarter of the country’s GDP. Expansion of international trade is a key element in Cambodia’s “rectangular strategy.” The rectangular strategy is Cambodia’s principal tool to meet the objectives of its National Strategic Development Plan (NSDP) and its Millennium Development Goals (CMDGs.) While international trade has been central to creating employment and lifting income in Cambodia in recent years, the mainstreaming of trade development in the country’s poverty reduction efforts is an area that could benefit from a closer understanding of the relationships between trade expansion and poverty reduction. The RGC is trying to explore more vigorously and more explicitly these relationships as part of its Diagnostics DTIS 2007 and through a series of studies launched under the Ministry of Commerce’s Human Development Impact Assessment (HDIA) of trade. The hope is that, through a better understanding of those relationships, trade development interventions can be better focused on poverty-reduction. Cambodia is clear that trade expansion is not an end in itself but only a means to achieving human development and poverty-reduction.