Upload
professor-tarun-das
View
222
Download
0
Embed Size (px)
Citation preview
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
1/60
1
Promoting Agro-based andResource-Based Export-Oriented
SMEs in Asia and Pacific
Presented by
Tarun Das
Economic AdviserMinistry of Finance, India.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
2/60
2
An Overview of the Study
1. Objectives and scope of the study2. Main characteristics of Resource based and agro based
industries3. Rationale for development and their contribution to
poverty alleviation4. Policies and strategies for development of agro-based
and resource-based industries
5. Role of International Organizations6. Conclusions and Recommendations
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
3/60
3
1.1 Objectives
To examine prospects and challenges forpromoting resource-based and agro-basedSMEs for export-promotion, employmentgeneration and poverty alleviation
To identify areas for policy orientations,institutional capacity building and privatesector led rural enterprise development
To suggest measures in promoting integrationat the regional and global levels.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
4/60
4
1.2 Scope of the Study South Asia comprising Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan and Sri Lanka.
NIEs comprising Hong Kong, China; the Republic of Korea;Singapore; and Taiwan, China.
Selected economies in the Southeast Asia viz. Cambodia, Indonesia,Lao PDR, Malaysia, Myanmar, the Philippines, Thailand, Vietnam.These with Brunei and Singapore now constitute the Association of
Southeast Asian Nations (ASEAN) and ASEAN Free Trade Area(AFTA).
Three other economies in East Asia viz. Japan, Mongolia andPeoples Republic of China.
These countries cover 55 per cent of the world population and 15 percent of area, and display a number of contrasts.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
5/60
5
1.3 East and South-East Asia
1. Despite serious financial crisis in some of the East Asiancountries in 1997-1999, Asian developing economies hadshown remarkable economic vigor and dynamism in1990s.
2. They outperformed other developing regions andindustrial countries by wide margins in industrial andoverall economic growth.
3. The continued robust growth in Asia was attributable toa number of factors such as:
Sustained policy reforms in industry, trade and financialsectors andContinued surge of foreign capital.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
6/60
6
1.4 South Asia1. Despite rich natural resources South Asia is characterized
by widespread poverty and unemployment and low levels of living.
2. While accounting for a fifth of the worlds population,South Asia is also home to nearly half the worlds poor.
3. It has lower life expectancy than in any other region except
Africa, high infant mortality rates, high rates of malnutrition and low levels of literacy (except Maldives andSri Lanka).
4. The share of South Asia in world trade is negligible being
less than one per cent.5. Exports consist of mainly labour-intensive products like
textiles, clothing, gems and jewelry.
6. Imports consist of mostly crude oil, petroleum products andcapital goods.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
7/60
7
1.5 Policies for Growth Dynamism
An open door policy for trade, FDI andforeign technologyStrong role for the private sector
A trinity of openness to trade, highinvestment and high savings rates
Export-oriented investment-led growth
Catch-up type economic growth.Virtuous circle of development
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
8/60
8
1.6 Broad Lessons for Development Countries with more market-friendly and outward-
looking policies do better in both generating growthand reducing poverty.
Both well governed state and orderly functioningmarkets are essential for high growth and
development. Government should withdraw from sectors whereprivate participation is more efficient and moreproductive.
But, scope of government remains large in social andinfrastructure development.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
9/60
9
1.7 Sectoral Growth RatesRegions GDP GDP Ind Manf Services
1980s 1990s 90s 1990s 1990s
East Asia & Pacific 7.9 7.2 9.3 9.9 6.4
South Asia 5.6 5.6 6.2 6.6 7.1
Europe & Cent Asia .. -1.5 -3.8 .. 1.6Latin Am. & Carib. 1.7 3.3 3.3 2.6 3.4
Mid. East & N.Afr. 2.0 3.0 0.9 3.8 4.5
Sub-Sah. Africa 1.6 2.5 1.6 1.6 2.6
World 3.3 2.7 1.5 .. 2.9
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
10/60
10
1.8 Structure of GDP (as % of GDP)
Regions GDI Exports1990 2000 1990 2000
East Asia & Pacific 35 30 26 42South Asia 24 23 9 15Europe & Central Asia 28 21 23 44Latin America & Carib. 19 20 14 17Mid. East & N.Africa 24 20 33 38
Sub-Saharan Africa 15 17 27 32World 24 22 20 23
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
11/60
11
1.9 Structure of GDP (as % of GDP)Country Imports Savings
1990 2000 1990 2000East Asia & Pacific 26 37 35 35South Asia 13 18 20 20
Europe & Central Asia 24 39 26 26Latin America & Carib. 12 18 21 19Mid. East & N.Africa 35 28 23 30
Sub-Saharan Africa 26 32 16 17World 20 23 24 23
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
12/60
12
1.10 Sectoral shares in GDP (percentage)Country Agriculture Industry
1990 2000 1990 2000East Asia & Pacific 20 13 40 46South Asia 31 25 27 26Europe & Central Asia 17 10 44 35Latin America & Carib. 9 7 36 29Mid. East & N.Africa 15 14 39 37Sub-Saharan Africa 18 17 34 30
World 7 5 36 31In East Asia and Pacific, the shares of industry,manufacturing and services increased in 1990s atthe cost of agriculture.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
13/60
13
1.11 Sectoral shares in GDP (percentage)
Country Manufacture Services
1990 2000 19902000East Asia & Pacific 28 32 40 41South Asia 17 16 43 49Europe & Central Asia .. .. 39 57Latin America & Carib. 23 21 55 64Mid. East & N.Africa 12 14 47 48
Sub-Saharan Africa 17 14 48 53World .. 22 57 64
In South Asia, the share of services in GDPimproved in 1990s at the cost of other sectors.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
14/60
14
1.12 Structure of manufacturing output
In general, the shares of agriculture andprimary sector based traditional goods (such asfood, beverages, tobacco, textiles and clothing)in overall MVA declined in 1990s.
The shares of chemicals, machinery, transportand equipment increased in 1990s.
Agro-based sectors had significant shares inMVA in Hong Kong, China, Indonesia,
Philippines, Thailand, India, Bangladesh,Nepal, Pakistan and Sri Lanka.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
15/60
15
1.13 Structure of merchandise trade
Manufactures have predominant share inboth merchandise exports and imports inall the countries.
Agricultural products, raw materials andprimary goods (such as ores and minerals)have significant shares in total merchandisetrade in China, India, Malaysia, Myanmar,
and most of South Asian countries.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
16/60
16
1.14 Export Dynamism in AsiaRegion Manf. Exports (%) Manf. Income (%)
1980 1997 1980 1997Developed countries 82.3 70.9 85.5 73.3Developing countries 10.6 26.5 14.5 23.8Latin America 1.5 3.5 7.1 6.7South and East Asia 6.0 16.9 7.3 14.0
NIEs 5.1 8.9 1.7 4.5Hong Kong, China 0.2 0.6 0.3 0.2Republic of Korea 1.4 2.9 0.7 2.3Singapore 0.9 2.6 0.1 0.4Taiwan, China 1.6 2.8 0.6 1.6ASEAN-4 0.6 3.6 1.2 2.6Indonesia 0.1 0.6 0.4 1.0Malaysia 0.2 1.5 0.2 0.5Philippines 0.1 0.5 0.3 0.3Thailand 0.2 1.0 0.3 0.8China 1.1 3.8 3.3 5.8
India 0.4 0.6 1.1 1.1
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
17/60
17
1.15 Structure of exports (per cent)Product category DC Exports World Exports
1980 1998 1980 1998A: 51 19 26 15B: 22 23 15 15C: 6 7 10 8
D: 8 17 27 30E: 12 31 20 30Unclassified 2 3 3 3A: Primary commodities,B: Labor-intensive and resource based manufactures,C: Manufacture with low skill-technology intensity,D: Manufacture with medium skill-technology inten.E: Manufacture with high skill-technology intensity
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
18/60
18
1.16 Most Dynamic Export Products in Asia
ASEAN- Computers, office machines, opticalinstruments, automobiles, telecom, audio andvideo equipment.
NIEs- Electronic and electrical goods.
Textiles and labour-intensive manufactures, inparticular clothing, are important in China, India,the Philippines, the Republic of Korea, Taiwan,Thailand.
Primary commodities are important in India,Indonesia, Malaysia, the Philippines, Thailand .
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
19/60
19
2.1 Types of Industries
a. Food processing industries and beverages (ISIC 311-313)b. Tobacco and tobacco products (314)c. Textiles (321)
d. Wearing apparel, leather and leather products andfootwear (322-324)e. Wood and cork products (331)f. Paper (341)
g. Printing and publishing (342)h. Rubber and plastic products (355-356)i. Non-metallic mineral products (361-362, 369)
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
20/60
20
2.2 Share in MVA in Developing CountriesCountry groups Share in MVA Share in pop
1985 2001 1985 2001South & East Asia 43 67 71 69
China 13 30 29 26 Africa 6 4 14 16Latin America 38 22 11 11West Asia & Europe 13 7 4 4Developing countries 100 100 100 100
Memo Item :LDCs 2.4 1.6 11.7 13.3
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
21/60
21
2.3 Share of Asia in developing countries MVA Branch (ISIC) 1985 20001. Food/beverages (311-13) 32 372. Tobacco (314) 39 443. Textiles (321) 54 594. Wear.app., leather, footwear (322-324) 43 445. Wood and cork products (331) 55 556. Paper & paper products (341) 38 457. Printing and publishing (342) 43 468. Chemicals (351-352) 36 489. Petroleum inc. coal products (353-35 34 4410. Rubber and plastic products (355-356) 54 5411. Non-metallic Mineral products (361-2, 369) 40 4812. Basic metals (371-372) 45 5413. Metal products (381) 46 4914. Non-electrical machinery (382) 48 5915. Electrical machinery (383) 60 7516. Transport equipment (384) 47 59
2 4 Chi i i i ld (i %)
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
22/60
22
2.4 Chinas position in world exports (in %)SITC code Product groups Type China's exports World exports894 Toys and sporting goods B 4.5 24.5851 Footwear B 4.4 23.0
845 Knitted outergarments B 3.7 16.7843 Women's outergarments B 3.6 16.1842 Men's outergarments B 3.3 19.0846 Knitted undergarments B 2.7 17.3
831 Travel goods B 1.8 31.0848 Apparel and clothing B 1.7 26.4652 Woven cotton fabrics B 1.6 12.3762 Radios E 1.5 18.9658 Made-up textiles B 1.5 18.6821 Furniture and parts B 1.5 5.0653 Woven fibre fabrics B 1.4 8.6844 Textile undergarments B 1.2 17.0651 Textile yarn B 1.2 6.5
885 Watches and clocks E 1.0 12.0
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
23/60
23
2.5 Structure of the sectorIn both industrialized and developing countries
the shares of agro based and resource basedproducts increased in 1985-2000.
In 2000, agro-based and resource-basedmanufacturing had a share of 45% in total
MVA of developing countries compared withonly 28% in industrialized countries.
In developing countries, food products andbeverages had the highest share (13.3%) intotal MVA, followed by chemicals (12.8%),electrical machinery (12.1%) and transportequipment (9.5%).
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
24/60
24
2.6 Structure of the sectorin Developed countries
In contrast, in 2000 the industrialized countrieshad
Dominant share in non-electrical machinery(19.7%) followed by
Electrical machinery (18.9 per cent),
Chemicals (9.6 per cent),
Food products and beverages (8.9%) and
Transport equipment (8.5 per cent).
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
25/60
25
2.7 Contribution of MVA to GDP in 2000Among regions, share of MVA in GDP in
2000 was highest at 30.4 per cent inSouth and East Asia.Among countries, highest share at 42.8%
in China35 per cent in Korea,32.4 per cent in Malaysia,
31.7 per cent in Thailand and30.1 per cent in Mongolia .
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
26/60
26
2.8 Contribution to EmploymentIn NIEs, services had predominant share in both
male and female employment followed by industryand agriculture in that order,
In South Asia and South East Asia, agricultureand allied sector had the predominant share in
both male and female employment.Female employment had higher share in totalsectoral employment than male employment intobacco, textiles, wearing apparel, footwear,leather and fur products, chinaware and potteries.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
27/60
27
2.9 Contribution to ProductivityFor almost all the countries, iron and steel has thehighest productivity of labour,While the sector with the lowest value added peremployee is not uniform across the countries.However, productivity of majority of agro-based andresource-based industries such as food products andbeverages, textiles and clothing, apparel, leatherproducts and footwear were relatively high in most of the countries.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
28/60
28
2.10 Constraints for developmentAsian SMEs suffer from age-old problems:
Low level of productivity and outdated technologyLack of skilled labour and managerial skillLow economies of scale
Inadequate access to capital and high credit cost;Constraints on infrastructureHigher costs of raw materialsDifficulties in marketing and distributionLack of foreign investmentIncreased internal and external competition
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
29/60
29
2.11 Government Support Programs
Government support programs suffer from thefollowing deficiencies:
Involvement of too many government and privateagencies with minimal coordination;
Short run and unfocused approach for thedevelopment of SMEs;
Absence of continuity or frequent revisions of policies and programs;
More benefits accrued to large and mediumindustries compared to small industries.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
30/60
30
2.12 Major issues for considerationIntegration of agriculture and agro-basedindustriesAvailability of raw materials and creditsLocation of industry and transport costs
Economies of scale and size of marketsAvailability of skilled labour & capacity buildingUpgradation of technology
International barriers on tradeRole of multinationals and foreign investment
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
31/60
31
3.1 Rationale for development of SMEsSMEs make Valuable contributions to employment
generation and poverty alleviationSMEs provide effective safety nets to rural poor against the income fluctuations.Provide opportunities for the growth of economic
activities in the informal sector.Agro-based industries open up new channels of distribution and marketing.Help to earn foreign exchange through exports,
Upgrade the quality of the labour forceHelp to mobilize and utilize domestic resourcesAgro-based and resource-based manufacturing unitsaccount for major shares in value added.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
32/60
32
3.2 Contribution of SMEs in USA 53 per cent of the private workforce;99 per cent of all employers;96 per cent of all US exporters.50 per cent of GDP;
28 per cent of jobs in high technology sectors;55 per cent of all innovations;47 per cent of all sales in the country;35 per cent of federal contract deals;51 per cent of private sector output.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
33/60
33
3.3 Contribution of SMEs in Germany and India
In Germany , SMEs account for :64 per cent of all employment48 per cent to the Gross National Product27 per cent to exports for the year 1990.
In India, SMEs account for:93 per cent of employment40 per cent of the manufacturing output,
45 per cent of manufacturing exports and40 per cent of total exports.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
34/60
34
3.4 SMEs account for:95% of establishments in Bangladesh,98 per cent in Thailand,93 per cent in Malaysia,70 per cent in Indonesia,
80 per cent in the Philippines,90 per cent in Taiwan,98 per cent in Korean Republic,99 per cent in Japan,
99 per cent in China.
3 5 Contribution of SMEs in Japan and
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
35/60
35
3.5 Contribution of SMEs in Japan andKorea
In Japan, SMEs account for:
78 per cent employment99% of all business establishments,
52% of manufacturing output/ exports,
64 per cent of wholesale business and
78 per cent of retail sales.
SMEs in Korean Republic account for:99% of all manufacturing enterprises
69 per cent of total employment.
3 6 C ib i f SME i Chi d
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
36/60
36
3.6 Contribution of SMEs in China andTaiwan
In China SMEs account for:
99 per cent of total enterprises78 per cent of employees,75 per cent of urban job opportunities
64 per cent of industrial turnover,52 per cent of corporate profits and52% of fixed assets held by industry
SMEs in Taiwan account for:90 per cent of enterprises and65 per cent of exports.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
37/60
37
4.1 Business environment All countries have specialized organization and very
elaborate system of rules and regulation Small Business Administration (SBA) in USA SME Basic Law in Japan
SPARK programme on rural industrialization inChina South Korea- a comprehensive SME legislation on
its statute book
Development Commissioner for SSI and separateministry for food processing industries in India.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
38/60
38
4.2 External environmentDeveloping countries face significant barriers for
exports of agro-based productsIn Canada and the USA, peak tariffs are concentratedin textiles and clothing. In the EU and Japan, inagriculture, footwear and food products.Developing countries manufactured exports encounterhigh tariffs, and increased contingent forms of protection, such as anti-dumping actionVarious technical and non-tariff barriers for SSIexports on grounds of environment, health, labour etc.
The roadblock towards technological upgradation andtransfer of technology to SSI because of:GATT, GATS, TRIMS, TRIPS, ISO standardsIPRs- copyrights, patents, trademarks and designs.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
39/60
39
4.3 Policy Support to SSI Sector in IndiaPriority Sector Lending Program by the banks.
Specialized bank branches for SSI.
Laghu Udyam Credit Card Scheme since Nov 2001.
Various fiscal and other incentives to SSI sector.
Product reservation and dereservation for SSI sector
Price and Purchase Preference by govt departmentsSupport for technology upgradation and R&D
Entrepreneurship Development Programmes,
Encouraging Ancillaries and Sub-contracting
Credit Guarantee Fund Trust for SSI sectorTechnology Development and Modernization Fund
Technology Upgradation for textiles and jute industries
Tannery Modernization Scheme
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
40/60
40
4.4 Role of Export promotion schemesand Special Economic Zones
India, China, Korea, Taiwan, Indonesia, Malaysia andThailand have various export support instruments
First developing country EPZ was set up at Kandla in Indiain 1965.
More than 200 EPZs in 60 developing countries in 1996
Nearly half of EPZs were located in Asia. In general, one dominant industry in each country such as
textiles and garments industry in Bangladesh, China,Dominican Republic, Egypt, India, Jamaica, Mauritius andSri Lanka;
Electronics industry in Barbados, Brazil, Republic of Korea,Malaysia, Mexico and Taiwan, China.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
41/60
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
42/60
42
4.6 Development of TechnologyMost of the Asian developing countries do face obstacles to technology
transfer due to:
Poor infrastructure and utilities;
Strict laws and regulations on foreign firms, and inefficiencies in theimplementation of deregulation policies;Shortage of trained technical and managerial workforce;
Weak local supporting industry for parts and components;Low rate of diffusion of technology to the rest of the economy;
High cost of technology agreements;
Transfer of environment unfriendly technology.
The Chinese has made considerable success in technological
upgradation of its SMEs through transfer of technology.India has also built a wide array of institutions to support thedevelopment and diffusion of industrial technologies.
4 7 Access to Capital
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
43/60
43
4.7 Access to Capital In Korea, USA, Japan, China, India, the Credit Guaranteeprogrammes help small enterprises to have access to bank loans
without collateral support.India and Korea have set up special finance institutions andtechnology development fund and other programmes forsupporting venture capital.
Korean Technology Banking Corporation, Korean Technology
Credit Guarantee Fund, the Small and Medium IndustryPromotion Corporation, and the Korean DevelopmentInvestment Corporation provides substantial financial supportto SMEs.
India has an organised system under which public sector banksprovide various financial help to SSIs.Small Industries Development Bank of India provides variouskinds of technical and financial help to SSIs.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
44/60
44
4.8 Specialized Financial Institutions
Industrialized countries have large numbers of specialized financial institutions:Factoring companies,Leasing companies ,
Trade credit companies,Mortgage finance companiesMicro-finance Institutions
In most developing countries there are very fewleasing or trade credit entities.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
45/60
45
5.1 Role of International Organizations1. Role of World Bank, ADB and IMF2. ESCAP
Exchange of national experiencesPromotion of endogenous capacity-buildingResearch on sectoral restructuring
3. Asian and Pacific Centre for Transfer of Technology(APCTT)Environmentally Sound Technologies (ESTs)Technology fairs and promotion of ESTs
Technology Bureau for Small Enterprises (TBSE)
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
46/60
46
5.2 Role of WTO General Agreement on Trade and Tariffs (GATT) focused
mainly on manufactured goods. In addition to goods, WTO covers cross-border flows of
services and knowledge, while a collective agreement oncapital flows is also on the agenda.
Available evidence suggests that trade liberalization hasbeen limited and slow in agriculture, textiles and clothing;compared to other sectors.
Access to markets for these products continues to be muchmore restricted.
Agricultural subsidies, particularly in the EU, restricts thegrowth of exports of a number of agriculturalcommodities from developing countries.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
47/60
47
5.3 WTO and Market Access Main market access barriers include:
Import tariffs and other price-based border measuresNon-tariff border measures:Quantitative restrictions;Contingency measures (antidumping, countervailing, safeguardmeasures);
Technical barriers to trade (TBT) (regulations, standards, testing andcertification procedures);Sanitary and phytosanitary measures (SPS) (food, animal and planthealth and safety).Domestic policy measures
Developing countries generally face higher barriers to theirexports than industrial countries .
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
48/60
48
5.4 Agreement on Agriculture
Tariffication and BindsMinimum import access
Reduction of domestic support, as
measured by the total AggregateMeasurement of Support (AMS),
Phasing out of export subsidies
Special safeguard provision,
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
49/60
49
5.5 Agreement on Textiles & ClothingMFA quotas are to be phased out progressively over a 10-year period.Products not yet integrated are subject to a specialtransitional safeguard mechanism.The ATC accelerated the growth rates for remaining quotas.T&C imports are subject to exceptionally high tariffs in bothdeveloped and developing countries.ASEAN, China, and South Asia all have tariffs in the rangeof 20-33 per cent on textiles, and of 30-35 per cent onclothing.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
50/60
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
51/60
51
6.2 Development strategies and policies(a) Macro-economic policies(b) Fiscal incentives(c) Science and Technology policy(d) Foreign investment policy
(e) Reservation policy(f) Infrastructure and human development(g) Establishment of competent and committed
bureaucracy(h) Strengthening legal, institutional and
regulatory system
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
52/60
52
6.3 National level policiesMarketing supportMandatory purchase policyTechnology upgradationEstablishment of Technology Bank for SMEsDevelopment infrastructure and IT
Development of Clusters and NetworksDevelopment of specialized bank as in IndiaInnovative Financing TechniquesVenture Capital Funds, Leasing companiesMortgage finance companies, Micro financeFactoring companies, Trade credit suppliers
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
53/60
53
6.4 Role of external trade(a) Trade and technology policies of large
economies- Japan, China, India etc.(b) Export promotion policies(c) Free Trade Zones
(d) Improved market access in developed countries(e) Diversification of markets and export products
by middle income countries(f) Expansion of domestic markets by developing
countries themselves(g) Flying geese paradigm
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
54/60
54
6.5 Regional Economic Co-operationESCAP in association with APCTT, RNAM, and
CGRPT can help for the following:FDI related technology transfer
FDI related Export promotion
Multilayered bilateral cooperationStrengthening Cooperation at Sub regionallevel- ASEAN and SAARCEncouraging Role of NGOsPreparation of Source book on ESTsCo-operation among country associations
6.6 Co-operation among country
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
55/60
55
p g yassociations
Organization of seminars and workshopsStrengthening the existing informationnetworks on technology transferHarmonization of national policiesEstablishment of national and then regional
data banks on imported technologies and aninformation-sharing network.Establish linkages among research institutions,technology brooking agencies, and concerned
government departmentsStrengthen cooperation among APCTT,CGRPT, RNAM, ESCAP and between ESCAPand other international organizations.
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
56/60
56
6.7 Role of WTO Phasing out of tariff peaks and multiplicity of rates. More technical assistance to implement product and process
standards. Improved market access to developed countries for labour
intensive products. To accelerate the removal of import quotas on T&C. Lower tariffs on T&C trade, in both industrial and
developing countries. Review anti-dumping actions and trade related rules Reforms on agricultural subsidy in OECD Reform of market access in developing countries.
Food security issues and the concerns of poor countries mustbe addressed as part of overall poverty-reduction anddevelopment strategies by the multilateral organizations.
6 8 Technical Assistance (TA)
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
57/60
57
6.8 Technical Assistance (TA)The World Bank, IFC, ADB, ESCAP, UNDP,
UNIDO and UNCTAD can provide TA for the
following: Promotion of regional cooperation in
development of human resources, R&D, S&Tand use of IT.
Consultancy and training aimed at technologyupgrading and skill improvement for SMEswith attention to rural and backward areas,ethnic and minority groups, and women andyoung entrepreneurs.
Technical assistance programs onharmonization of national and regional policieson trade, tariffs, taxation, investment andbusiness regulations.
6 9 T h i l A i t
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
58/60
58
6.9 Technical Assistance Promotion of technology management, assessment
and enterprises cooperation for the blending of indigenous technology with imported technology.
Improve institutional, administrative and legalframework with a view to facilitating privateinvestment including foreign investment
Advisory services for developing countries and LDCsto strengthen capital markets and to attract foreignportfolio investment.
Technical support for developing countries toupgrade their institutional capacity to identify,design, negotiate and implement schemes on BOT forinfrastructure development .
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
59/60
59
6.10 Action Points for ESCAP
On the basis of deliberations of thisExpert Group meeting :
ESCAP may set up a task force at theregional level
May formulate a regional capacitybuilding program
May identify some pilot programs
8/14/2019 Promoting Agro-Based and Resource Based SMEs in Asia by Tarun Das
60/60
THANK YOU