Progress in the Implementation of

The Almaty Programme of

Action

Third Meeting of Trade Ministers of Landlocked Developing Countries

Ezulwini, Swaziland, 21-22 October 2009

Sandagdorj Erdenebileg UN-OHRLLS Tel: 212 963 7703, fax: 212 963 0419, email: erdenebileg@un.org

The Almaty Programme of Action

Outcome of the 2003 International Ministerial Conference of Landlocked and Transit Developing Countries and Donor Countries and International Financial and Development Institutions on Transit Transport Cooperation

“The Millennium Summit of September 2000 committed to addressing the special needs of LLDCs. The Almaty Programme of Action translates this commitment into

specific actions.” – UN Secretary-General

Overarching goal: to forge partnerships to establish efficient transit transport systems

Only four major priority areas: (1) Fundamental transit policy issues(2) Infrastructure development and maintenance (3) International trade and trade facilitation(4) International support measures

UN-OHRLLS Global Mandate on LLDCsThe High Representative is the highest ranking UN official appointed to deal with the three

vulnerable groups of countries.

Mobilization and coordination of UN System-wide efforts for the implementation of the Almaty Programme

Assist LLDCs in strengthening their negotiating capability in international fora

Advocacy to mobilize international awareness and resources

Monitor and report on the implementation of the Almaty Programme (GA annual review: Secretary-General Report and Resolution)

UN-OHRLLS: 4 sets of

indicators1. On economic development;2. On transit transport and

communications infrastructure;

3. On trade and trade facilitation and transit policy issues;

4. On International Support

UNESCAP

1. Time/cost distance

methodology

World Bank

1. Doing Business Report

2. Logistics Performance Index

High Level Meeting on Midterm Review

• Excessive number of documentation for import/export• Multiplication of scheduled and unscheduled roadblocks• Lack of adjacent border controls• Unnecessary customs convoy• Insufficient application of IC• Non transparency of trade and customs laws• Underdeveloped logistics sector• Absence of competition in transit transport services sector

Noted progress made in transit policy reforms, increased international support (ODA, market access, debt relief) and greater support by international community to LLDCs

Adopted a consensus Midterm Review Declaration (Res.63/2) – broad recognition of LLDCs’ specific challenges

Convened by the General Assembly on 2 and 3 October 2008 in New York

Identified specific bottlenecks related to trade facilitation that persist in LLDCs and transit neighbours and must be urgently addressed

High Level Meeting on Midterm Review

LLDCs and transit developing countries are called to:• strengthen legal frameworks for transit transport

operations• effectively implement trade facilitation measures• make efforts towards eliminating customs convoy practice• Improve border infrastructure facilities • Widen and deepen public and private sector cooperation• Mobilize investment from all sources

Declaration identifies specific actions to be undertaken by all stakeholders to accelerate implementation under each priority:

Donors and multilateral, regional, financial and development institutions are called to:• provide appropriate, substantial and better coordinated

technical and financial assistance, notably in the form of grants or concessionary loans

• effectively operationalize the Aid for Trade Initiative, so as to support trade facilitation measures and trade-related technical assistance

• facilitate access to and encourage transfer of technologies related to transit transport

2009 Annual Report: Economic Overview

2003 – 2007 GDP of LLDC Group had average annual growth rate of 7.7 per cent -- average GDP p.c. almost doubled in quantity2007: Record high FDI inflows of $14 billion in 2007 - result of strategic policy reforms and continued economic liberalizationBetter macroeconomic management also resulted in lower ratios of external debt to GNI

LLDCs continue to remain at margins of global economyEven though progress was being made:

Share of world trade in goods amounted to only 0.7 percent in 2007 – up from 0.5 in 2003

LLDCs’ structural vulnerabilities have magnified the negative impacts of the global economic and financial crisis – on top of climate change impacts and preceding energy and food security crisesIMF GDP growth projections for 27 out of 31 LLDCs will sharply decline in 2009

2009 Annual Report: Progress - Priority 1

Electronic single-window systems and automated customs procedures

Regional customs transit system (Thailand, Laos and Vietnam)

Notable progress made in reviewing regulatory frameworks applicable to transit transport and trade to eliminate inefficiencies

National trade and transport facilitation committees or transport corridor groups with balanced private and public sector participation Reduction in the number of checkpoints along transit routes (between Dakar and Bamako dropped from 25 to 4, reducing the average transport time between the two capitals by one week)One-stop border facilities (i.e. at Chirundu between Zambia and Zimbabwe) and increasing competition among customs brokers

Over last 3 years: for LLDCs the average time to complete export formalities was reduced by an entire week and the time for imports dropped by six days

Great number of infrastructure development and upgrading projects of regional and sub-regional relevance are underway in all landlocked regions with the financial support of the donor community Substantial advancements to Trans-Asian Railway and the Asian Highway Networks, with the latter having achieved the goal of providing connectivity to all LLDCs in the region

Renewed commitment to regional infrastructure development attested by the decision by African Union and NEPAD to merge their strategic frameworks to create a common continental initiative, called the Programme for Infrastructure Development in Africa.Resource mobilization for investment in priority projects of regional importance remains a central challenge

2009 Annual Report: Progress - Priority 2

Global just-in-time production sharing and intensified global competition highlight crucial importance of TRADE FACILITATION key component of LLDCs trade policy strategy

WTO negotiations on Trade Facilitation are expected to produce a win-win solution for business, consumers and Governments which can look forward to reaping higher revenues from modernized and more streamlined border procedures

Importance of trade facilitation for LLDCs is reflected in their very active engagement at the negotiating table

LLDCs to strengthen concerted engagement with a view to reaching an agreement with binding rules that ensures improved conditions for transit, harmonized standards and a smoother flow of goods across the borders

2009 Annual Report: Progress - Priority 3

Increased International financial support is needed to assist LLDCs achieve the Almaty goals, particularly to fill the enormous gaps in infrastructure resource needs

ODA continues to represent the most significant source of external financing for LLDCs -- Since 2003, increased from $12 billion in 2003 to $18.6 billion in 2007. However, most was for debt relief, technical assistance and emergency relief, which do not entail long-term investment in raising domestic productive capacities. Only 4 % allocated to transport, storage and communications infrastructure development in LLDCs

Private sector’s participation in infrastructure development remains heavily concentrated in ICT -- The global economic crisis is expected to negatively impact on private participation in infrastructure.AID for TRADE Initiative entered more operational phase (LLDCs in GMS and Southern Africa have benefited from pilot projects) -- best practices show that success depends on creating closer cooperation at the national level among relevant Government authorities in the areas of trade and finance

2009 Annual Report: Progress - Priority 4

Follow Up to High Level Midterm Review

Inter-Agency Consultative Group on Almaty Follow-Up

UN System-wide Coordination

• About 20 inter-agency partners committed to undertake research and technical assistance programmes, designed to assist the LLDCs and their transit neighbours in implementing the APoA and the midterm review declaration, in the following areas:

1. Coordination and intergovernmental processes 2. Transit policy issues 3. Transit transport infrastructure4. International trade and trade facilitation 5. Resources mobilization

• Endorsed Matrix which outlines activities and programmes to be implemented by UN and other international organizations

• Enable greater coordination and streamlining of efforts to ensure maximum utilization of resources

UN-OHRLLS

Thank You