STAKEHOLDERS IN TRADE
POLICY FORMULATION
OUTLINE
1. Introduction
2. Stakeholders: Roles and Means of
participation
3. Concluding Remarks
4. Appendix: Some Factors that
Affect/Shape Trade Policy Outcomes
INTRODUCTION
• First Republic and Second Republic were
characterised by no consultation of local
stakeholders
• Third Republic (post 1991 multi-party elections)
characterised by
– increased acceptance of democratic principles of
inclusiveness, acknowledgement of rights and
freedoms
– Political and economic activities (including trade)
were liberalised and public enterprises privatised
– Consultation and participation of non-state actors in
management of public affairs was very limited
– Institutions, facilities and regulatory regime virtually
absent; skills, knowledge and experience lacking
Introduction ….
– Consultation was limited to GRZ and Donor
representatives
• Unfavourable outcome of programmes
devised by GRZ and donors coupled with
protests of dissatisfaction with
“unfavourable” programs and
arrangements led to:
– Opening up the process of formulating
development programmes to local non-state
actors
– Civil society organised according to
theme/sector of interest (CSPR, Jubilee 2000,
CSTNZ)
Introduction…..
• In second part of the Third Republic
– GRZ and donor support and encouragement
of non-state actor participation in
management of public affairs – PRSP, FNDP,
Vision 2030 and line Ministry Plans and
Strategies
– Post HIPC/MDRI discourse on accountability
and transparency – effectiveness of public
expenditure, debt strategy and aid
effectiveness (Paris Declaration and JASZ)
– Standard requirement for Ministries to carry
out extensive stakeholder consultation before
preparing Cab Memos
STAKEHOLDERS:
ROLES AND MEANS OF PARTICIPATION
• National Level stakeholders
• Regional Level stakeholders
• Multi-lateral International Stakeholders
• Bilateral International Stakeholders
NATIONAL LEVEL
• Ministry of Commerce, Trade and Industry (MCTI)
is mandated to prepare the Trade Policies and
Strategies (like National Export Strategy). It has a
number of institutions that facilitate trade (ZABS,
ZDA, Weights and measures). It hosts a number of
donor-funded projects as well – PSD, PSDCBP,
JITAP/IF
• Ministry of Finance and National Planning
(MoFNP) prepares overall national development
plans/strategies in which is one of the components.
MoFNP views trade policy proposals in terms of
their impact on the fiscal and monetary objectives.
Proposals that adversely affect fiscal and monetary
policy objectives are usually not taken on unless
there is very high political commitment – as is the
case with COMESA, SADC regional trade
liberalisation agenda.
National Level …….
• Ministry of Agriculture and Cooperatives
(MACO) is a major stakeholder, but not as
active; may contract trade policy position
because of food security, health, sanitary and
phyto-sanitary concerns. Has trade facilitating
institutions Mt Makulu, SCCI
• Ministry of Foreign Affairs (MoFA) is more
concerned with arrangements that touch on
international relations and political governance
such as NEPAD, ACP-EU, SADC and AGOA
• Ministry of Justice (MoJ) renders legal opinion
and advice on Trade policy positions taken by
the Zambian Government. Its increasingly being
involved in the formulation and negotiation of
trade policy
National Level …..
• Private Sector has participated in government
policy formulation for some time, but not as
consistently when the discussions are protracted
– Little time, financial and human resources
– Some times have conflicting interests
– No proper representation of weaker interest groups
(out-grower schemes)
– MCTI engages private sector through associations
(ZACCI, ZNFU, ZCSMBA, PSDA, ZBF) or through the
different sector interest groups (Chamber of Mines;
ZAM; ZEGA; Tobacco, Timber, & Honey Producers
Association of Zambia; OPPAZ, Kaleya Smallholder
Scheme; wildlife interest groups)
National Level …..
– Some companies spend a lot of resources in
trade policy discussions. Zambia Sugar (ACPEU Sugar protocol); Swarp Spinning Mills and
Clark Cotton (AGOA); Kalungwishi and Kafue
Sugar probably interested in Great Lakes
Region Market through SADC/COMESA
– In mining sector, large-scale miners are more
concerned with international metal price
movements, but small-scale miners
participate more in trade policy processes
– Generally businesses show up when supply
capacity issues are being addressed through
various incentive schemes or possibility of low
cost capital
National Level …..
• Non-Governmental Organisations (NGOs)
– Local NGOs (PELUM, ZCSD, ODCM, ZARD,
CSPR) participation have not always been
consistent. Now there is CSTNZ whose core
business is trade related issues and is more
active and consistent in following up issues
– International NGOs (JTCR, Caritas, Oxfam,
CUTS, Ms, FEZ/GTZ, KEPA) have supported
local stakeholders participate in trade policy
process through capacity building and
sponsorship.
REGIONAL LEVEL
•
•
•
•
SADC
COMESA
NEPAD
Civil Society (Africa Trade network,
SEATINI, Economic Justice Network,
Southern Africa People’s Solidarity
Network)
MULTILATERAL
ORGANISATIONS
• GATT/WTO is the main international body that
specifically promotes open, free and rule-based
world trade regime. WTO is very influential as it
s used by big economies to secure more market
shares around the world. Zambia can make use
of waivers for LDCs to shape its trade policy.
• Other United Nations organs
– UNCTAD (Blue Book, JITAP/IF,)
– UNDP (MDG 8:Global Partnership for Development)
no coherent approach to achieve it through Aid, Trade
and Debt Relief). Strong case that these are
addressed through Aid-for-Trade, Monterey
Consensus, HIPC/MDRI
– World Bank influences trade policy through various
studies and publications (Doing Business Survey,
World Trade Indicators) and programmes (PSD)
BILATERAL ARRANGEMENTS
• Bigger economies attempt to capture
sources/markets of raw materials in small
economies through unilateral offers of trade
preferences, or try to by-pass WTO rules,
regulations. Others seek political support on
international issues they have vested interests.
• However these may not affect official trade
policy of the beneficiary country
• European Commission: preferential treatment
and development assistance offered by the EC
to the ACP countries under the Lome
Convention or Cotonou Agreement. LDCs can
benefit from EBAs as well
Bilateral Arrangements …..
• USA: AGOA and programs like MCA-ZTP,
MATEP, PROFIT
• Japan: Japanese International Conference
on African Development (TICAD) and
Triangle of Hope (ToH) in Zambia that is
focussed on investment promotion of
export-oriented industries, efficient public
service and incentives to enhance
competitiveness on international market
• Chinese Initiative
• Canada Initiative
• India-Africa
CONCLUDING REMARKS
• Zambian stakeholders have a fair chance
to participate in trade policy formulation
• How effective/influential depends on:
– Increased Political/Economical Will of decision
makers
– Ability of stakeholders to make regular, technically
informed contributions. Trade policy formulation or
negotiation is complex, therefore requires a lot of
dedication and resources to effectively participate
– Regular, timely feedback of developments by dutybearer to all stakeholders. Don’t leave this to nonstate actor representatives
• Better coordination, harmonisation of
policies is important to avoid sending
conflicting signals
Concluding Remarks ….
• Ensure that provisions under PSD, DTIS,
JITAP/IF, Blue Book complement each
other and in conformity with what is trade
policy and FNDP, Vision 2030
• Any preferential market access treatment
bestowed given should be equitably
distributed among private sectors of
various supply capacities as incentive to
stay engaged with capacity to supply