M.Indices for benchmarking productive capacities for evidence-based
policymaking in landlocked developing countries
United Nations Conference on Trade and Development, in
collaboration with the Economic Commission for Africa and the
Economic and Social Commission for Asia and the Pacific ($599,000)
Background
103.
Unlike other developing countries, landlocked developing countries find themselves in
multiple development challenges. On the one hand, their geographical disadvantages,
such as remoteness from international markets and the resulting high transit -transport
costs and relatively small domestic markets, continue to undermine their international
competitiveness. On the other hand, their heavy dependence on low -value, high-volume
primary commodities for exports, weak productive capacities and the overall lack of
structural transformation in their economies have compounded further their prospects for
growth, poverty reduction and overall development.
104.
There is recognition that the key for sustained development and poverty reduction in
landlocked developing countries is to build their productive capacities and promote
structural economic transformation. This effort requires, among other things, a paradigm
shift in development policies in those countries and fundamental changes in the
development partnership in support of their development. In particular, it requires putting
productive capacity-building at the centre of domestic and international policies related
to landlocked developing countries. This means that macroeconomic, industrial,
agricultural, rural and infrastructure policies should be geared towards the development
of productive capacities and accelerating structural economic transformation.
105.
Placing productive capacities at the centre of development policies and strategies
(“mainstreaming”) is, however, not easy or straightforward. For instance, although weak
productive capacities and lack of structural transformation are recognized as causes and
consequences of poor socioeconomic performances and underdevelopment in landlocked
developing countries, to date, these have not been measured or benchmarked, nor have
there been indicators for measuring and benchmarking productive capacities in those
countries. Identifying indicators and constructing productive capacity indices for
measuring and benchmarking productive capacities have therefore become absolutely
indispensable in the recent years. The indicators and indices will assist in placing
building productive capacities at the centre of domestic development policies and
strategies of landlocked developing countries.
106.
The project plans to work in three landlocked developing countries, two from Africa and
one from Asia. The main beneficiaries of the project will include po licymakers, advisers,
experts, statistical offices, programme evaluation and monitoring agencies, research and
development, and science and technology centres, private sector and civil society actors,
including academic and research institutions in beneficiary countries, regional
organizations and relevant United Nations agencies. National training and capacity building workshops at the policy and expert levels could be organized to share and
validate the findings, conclusions and specific outcomes of the p roject.
107.
The project has a direct link with several years’ analytical and conceptual work of
UNCTAD in advancing the development of productive capacities and structural economic
transformation in developing countries, especially least developed countr ies, landlocked
developing countries and small island developing States. A major output of the project
will be the productive capacity index, which will guide efforts to mainstream productive
capacities into national development policies. The index will al so help to identify
domestic gaps and limitations and to articulate specific actions for implementation by
landlocked developing countries and their development partners in building the
productive capacities of those countries.
Objective of the Organization: To strengthen the capacity of
selected landlocked developing countries to develop productive
capacity indices and use them to support evidence-based
policymaking
Relationship to the biennial programme plan for the period
2016-2017: Trade and development subprogramme 5 (Africa,
least developed countries and special programmes); Economic
and social development in Asia and the Pacific subprogramme 1
(Macroeconomic policy and inclusive development); Economic
and social development in Africa subprogramme 1
(Macroeconomic policy)
Summary budget
(Thousands of United States dollars)
General temporary
assistance
Consultants
Travel
Operating expenses
Workshops/training
Total
Expected accomplishments of the Secretariat
Indicators of achievement
(EA1) Increased capacity of relevant ministries
and entities to measure and benchmark
productive capacities with the help of productive
capacity indices
(IA1.1) Productive capacity indices
constructed and validated in the three targeted
countries
(EA2) Increased capacity of policymakers in
beneficiary countries to understand, interpret and
use productive capacity indices as a tool to
formulate and monitor policies and strategies
aimed at enhancing productive capacity and
structural transformation
(IA2.1) 75 per cent of trained policymakers
in the three targeted countries confirm
increased capacity to use productive capacity
indices in formulating evidence-based policies
and strategies and monitoring their progress
(EA3) Improved capacity of selected countries to
regularly collect statistics and related
information in key areas of productive capacities
(IA3.1) Institutions dealing with statistics in
the three project countries confirm improved
capacity to collect statistics and related
information in key areas of productive
capacities
(IA2.2) Policymakers in all three targeted
countries have taken steps to improve policies
and strategies aimed at enhancing productive
capacity and structural transformation based on
productive capacity indices
Main activities
108.
60.0
126.0
150.0
8.0
255.0
599.0
The main activities of the project will include:
(A1.1)
Defining the conceptual, methodological and statistical framework for
identifying, selecting and validating indicators that will be used in the
construction of productive capacity indices;
(A1.2)
Systematically collecting and organizing statistical data and related
information on key issues and developing productive capacity indices on the
basis of available data and statistical information;
(A1.3)
Undertaking national case studies in selected landlocked developing countries
to assess the state or conditions of policy and institutional framework for
building productive capacities in the selected countries, the synthesis of which
will be included in a publication;
(A1.4)
Validating indicators identified and productive capacity indices constructed by
undertaking consultations, through advisory missions, with key ministries and
relevant entities in beneficiary countries. This activity is intended to identify
crucial ministries as “champions” of the work undertaken and the findings and
conclusions of the project, which is the key to ensuring ownership and
mobilizing wider stakeholders as to the benefit of the exercise;
(A2.1)
Organizing national training workshops at the expert level on the conceptual,
methodological and statistical issues, and on the construction and
interpretation of productive capacity indices. The workshops enable
participants to clearly understand conceptual, methodological and statistical
issues behind productive capacity indices;
(A2.2)
Organizing national training workshops at the policy level on the
interpretation, validation and use of productive capacity indices in the
formulation of domestic development policies and strategies, and monitoring
their implementation;
(A2.3)
Establishing national advisory services with the aim of reorienting policies
and strategies towards building productive capacities;
(A3.1)
Developing a portal for online publication of the productive capacity indices
together with key indicators used in the construction of the indices. The portal
will be useful to continuously update the indices and share experiences and
best practices throughout countries and regions in building productive
capacities. In an effort to disseminate the productive capacity indices, the
portal will be launched and the information will be made available at national
workshops and various meetings outside this project;
(A3.2)
As part of national statistical capacity-building, organizing workshops for
intensive “training of trainers” in updating and maintaining productive
capacity indices. The trained trainers will subsequently train technocrats from
selected
ministries
and
institutions.
M: Indices for benchmarking productive capacities for evidence based policymaking in landlocked developing countries
Implementing entities: UNCTAD in collaboration with ECA and ESCAP
Duration: 2016 – 2019
Objective: To strengthen the capacity of selected landlocked developing countries to develop Productive Capacity Indices (PCIs) and use them to
support evidence based policy making
Summary budget
Detailed budget (US dollars)
(Thousands of United States dollars)
General temporary
assistance
Consultants
Travel
Operating Expenses
60.0
126.0
150.0
8.0
Workshops/training
Total
255.0
599.0
General Temporary Assistance

Temporary statistical assistance is required for collecting basic data and
information to help identify key indicators as basis for constructing Productive
Capacity Index in support of activities A1.2, A3.1 and A3.2, 5 WM x $6,000
per month = $30,000

General temporary assistance is required to assist in organizing national
workshops and to provide secretarial and clerical support for the project (A1.3,
A2.1, A.2.2, A3.1 and A3.2) (5 WM x $6,000 per month = $30,000)
Consultants
International consultants

One international consultant will be required for the preparation of conceptual,
methodological and statistical framework for identifying, selecting and validating
indicators for constructing Productive Capacity Indices. S/he will also participate
in the national workshops to assist in the use and interpretation of PCI (Activity
A1.1, A1.2, A2.1 and A2.2) (3 WM x $ 10,000 per month) + 3 travels to national
workshops (3 x $5,000) = $ 45,000)

One additional IT Specialist for designing portal for web publishing (including the
design of brochures and flyers on the key findings and recommendations of the
project) in support A3.1 [3 WM] x $10,000 = $30,000
National Consultant

Three national consultants, one for each target country will be selected, who will
be required for the preparation of national case studies (A1.3) to assess the state
or conditions of policy and institutional framework for building productive
capacities in their respective countries (2 [WM] x 3 national consultants x $6,000
per month = $36,000 )
Evaluation consultants

External evaluation: International consultant to cover 1 WM ($10,000) plus travel
and DSA to one national training workshop (1 x $5,000) = $15,000
Travel of Staff
60 000
126 000
150 000
30

Three national training workshops in support of A2.1, A2.2 and A3.2 in the
three target LLDCs each for two days: Travel +DSA for two staff ($5,000 per
mission x 2 staff x 3 workshops) = $30,000

Three advisory missions aimed at reorienting policies and strategies in three target
countries in support of A2.3 (each for two days): Travel + DSA for 4 staff from
key participating agencies for a total duration of 6 days (two days per country)
( travel + DSA = $5,000 per mission x 4 staff x 3 target countries = $ 60,000)

Technical consultations for validation of PCIs in three target countries in support
of A1.4: for three days each involving 4 staff from implementing agencies (3 x 4
x $5,000 (travel + DSA) = $60,000). In the case of African countries 2 staff from
UNCTAD, 1 staff from UN-OHRLLS and 1 from UN-ECA. For Asian Countries,
2 from UNCTAD, 1 From OHRLLS and 1 from UN-ESCAP
Operating Expenses

Operating expenses $8,000 (for editing, translating into French and formatting an
online publication)
Seminars, Workshops and Study Tours

Three national expert level training workshops in support of A2.1 for an in-depth
and technical discussions on underlying concepts, rationale and methodology;
sources of data and techniques of measurement (benchmark) and interpretation
and use of indicators and Productive Capacity Indices (with 50 experts outside of
government institutions such as academia and the private sector in each target
country for three days (3 x $ 30,000 per country) = $90,000. This sum is required
for securing conference facilities, languages interpreters, resource persons
(facilitators) as well as conference logistic.

Three National policy-level training workshops on interpretation, validation and
use of indicators and Productive Capacity Indices as a policy tool for senior
officials and policy makers drawn from various relevant institutions (50
participants for two days) in support of activity A2.2. The budget will be used for
securing conference facilities, languages interpreters, resource persons
(facilitators) as well as conference logistics (3 x $30,000) = $90,000

Three workshops for intensive "Training of Trainers" in updating and maintaining
PCIs as part of the national statistical capacity building training workshops in
support of A3.2 (3 x $25,000 per country= $75,000). This involves the training of
core group of statisticians and specialists on conceptual framework, data sources,
methodology and techniques used in measuring or benchmarking productive
capacities and developing PCIs
8 000
255 000
31
32