international relations for growth and development presentation to the joint budget committee 03...
TRANSCRIPT
International Relations for Growth and Development
Presentation to theJoint Budget Committee
03 November 2004
Overview of Presentation
• Strategic considerations
• Policy rationale
• Engagements on the continent
• NEPAD
• Negotiating agenda – post 2000
• Negotiating issues
• Challenges
• Conclusion
Strategic Considerations
• Creation of favourable economic conditions for advancing SA’s developmental objectives
• Recognition that globalisation is a force for SA to contend with
• Multilateralism, including WTO engagements, are appropriate for pursuing economic growth and development
Strategic Considerations (cont..)
• Need to work with other developing countries in the WTO to promote common objectives around market access for exports, economic development & constructing a global economic system that is balanced and responsive to developing country interests
• An appreciation of the fact that regional trading arrangements & free trade agreements can promote economic development and integration into the global economy
Policy Rationale
Contained in: • Global Economic Strategy 2001 – currently under
review• Integrated Manufacturing Strategy 2002
Objectives:• Promote domestic economic reform• Isolation to global integration/re-positioning• Enhance competitiveness
exports + industrial competitiveness• Export growth (market access)
Policy Rationale (cont…)
• Reduce high production costs
• Allocate resource more efficiently
• Reverse anti-export bias
• Diversify by market and product (value added)
• Create sustainable employment growth
Strategic overview of the Strategic overview of the continentcontinent
Need to foster deeper relations on a bilateral basis.
Focus on regional investment, infrastructure development, intra-regional trade.
Diversification and the production of value-added products.
Technology transfer and skills development.
Utilization of the NEPAD framework to attain set objectives.
Engagements on the continentEngagements on the continent
• Derives from the global economic strategy• Aligned to the NEPAD framework• Pursues a developmental agenda in Africa• Underpins the need for regional economic integration• Needs a strategy of engaging the multilateral institutions
that are dominant in the continent, e.g. World Bank, ADB,UNCTAD, etc
• Takes cognizance of exogenous factors• Focuses on intensive bilateral engagement on the
continent
Regional strategies (Africa)
• Over-arching strategy premised on regionally-focused (sub-) strategies:
Southern Africa Equatorial Africa, i.e West, Central and East North Africa and the Middle East
• Intensify mutually-beneficial bilaterals within regions• Forge and consolidate strategic alliances with
strategic countries
Regional strategies (Cont.) (Cont.)
• Economic development and integration
• Collaboration on cross-border projects e.g. SDI’s
• Develop financing instruments/institutions
• Build capacity
• Develop complementary industrial strategies
• Build and enhancing regional institutions
Negotiations: Post-2000
Rationale• Political and Strategic considerations
• Advance domestic trade reform (pace/sequencing)
• Further enhance competitiveness
• Build on previous negotiating outcomes (further negotiated market access)
• Threats to multilateralism
• Proliferation of FTAs (competitive position)
Negotiating Issues
All Negotiations contain:
Tariffs Agriculture/industrial
Standards SPS, TBT
NTBs Quotas, Rules of Origin, Customs
Remedies Safeguards, AD, countervail
Dispute Mechanism
ChallengesChallenges
• Market Access : external ( WTO) » internal ( Intra-Africa
• Trade Facilitation – export finance» Customs» Logistics» Ports and documentation» Standards» Export promotion
ChallengesChallenges
• Production – diversification,
» expansion and
» beneficiation
• Infrastructure : assist in identifying projects,
» Scoping the project
• Investment facilitation : access to finance,
» reduce risk for potential development
partners
• Economic governance – technical co-operation
• New areas – regulatory framework
Conclusion
Growth Employment SMME’s BEE Competitiveness
Geographic spread
Investment Exports Women
Empowerment