Download Increased Trade - UWI St. Augustine

The 4th Biennial International
Business, Banking and Finance Conference
June 22-24, 2011
Hilton Trinidad and Conference Centre, Port of Spain, Trinidad & Tobago
Hosted by
The University of the West Indies
Department of Management Studies (DMS) ● Caribbean Centre for Money and Finance (CCMF)
Sir Arthur Lewis Institute of Social and Economic Studies (SALISES)
SUBMISSION FORM
PARTICIPANT INFORMATION: (IN BLOCK LETTERS)
NAME
: Bony-Lévy KADIMA Tshimuanga
ORGANIZATION :
- ECES/Brazzaville : Teacher of management and technology
- AE-FOAD/RDC : Secretary of support and monitoring
ADDRESSES: 130, av. de France – Poto-Poto/Brazzaville, Congo.
44, av. de la Démocratie, C/Gombe, Kinshasa-RDC
TELEPHONE WORK: 00242053133528
FAX
CELL: 002439999996573 OTHER: ………………..
…………………………… EMAIL : [email protected]
Special dietary requirements ……………………………………………………………………………….
Other special requirements
………………………………………………………………………………..
Author : Bony-Lévy KADIMA Tshimuanga
Teacher and researcher in management, business and international trade
Université de Nantes/France, Insitut Supérieur de Commerce de Kinshasa/RDC
Title of submission: Increased Trade
DATE : 21.05.11 SIGNATURE : Bony-Lévy KADIMA Tshimuanga
Title of submission: Increased Trade
Since the birth of economic society, society in which the economic sphere appears to be dominant,
we
have taken, logically, the habit of thinking economically. This means that social problems appear to us almost
entirely economic problems. We do not seek them a cost effective solution. However by giving back to a less
economically dominant, we can see that many economic problems that we seem to do really are not.
Moreover, some economic problems can be considered as having non-economic solutions. To put it another
way, it should mobilize all the constituent spheres of society hope to find answers through relationships that
maintain these different spheres. Currently, for example, it would seem that our development model can no
longer accommodate a read-only economy. Indeed, faced with increasingly acute environmental issues (green
sphere), questions about the meaning of our lifestyles (poietic sphere, the need to adjust some attitudes
(politics), the need to better use information ( dialogic sphere) ... That's why no desire for completeness, we
will bring the idea of a new development taking into account the concepts and actions around the sustainable
development, socially responsible corporate responsibility, governance ...
Production and trade
This is necessary in the life of the population. It must meet its needs. The production process is the exchange
of goods is called an economic system. The fundamental questions that they know: What do we produce?
How is production organized?
Overview on Latin America and the Caribbean
The countries of the region are diverse in terms of size and age structures, and they differ considerably
among themselves not only on their respective average incomes, but also about the distribution of wealth
within their societies .
Caribbean combines extremes: poverty and wealth, open spaces and micro-states, non-independent territories
and sovereign countries, specialization and diversification. The area economy is a reflection of this
heterogeneity.
The Caribbean is a set of 38 territories of more than 5.2 million km ² (10 times the size of France) while the
Caribbean islands are about 235 000 square kilometers (the size of the United Kingdom) .
Population and languages of the Caribbean
The population of 38 states and territories of the Caribbean area is around 250 million inhabitants in 2002,
with a density of 47 inhabitants per km ². It represents 4% of world population. Mexico occupies a prominent
place. It is the most populous country with over 41% of the population of the Caribbean region in 2002.
The 25 states and territories of the Caribbean islands together more than 38 million inhabitants in
2002, representing 0.6% of world population. The density reaches 163 inhabitants per km ².
The economic
If during the 60s and 70s, the GDP grew at a rate of 2.5 t 3.5 per year, the '80s were marked by a widespread
economic crisis. Real income per capita has fallen to commence work on only one occasion during the period
with a 90-99 average growth rate slightly above 1% per year.
Consequences
External debt
Prices of commodities have increased
agricultural and mineral resources have effrondrées
hyperinflation (Argentina and Brazil), etc. ..
At the end of defeating inflation and encourage the return to a situation of sustainable growth, all countries,
including Cuba, to varying degrees, liberalized their economies.
The results of these economic reforms in the region remained overall average because of the difficulties to
carry out institutional reforms and the problems they cause.
The economy of the Caribbean
GDP: Gross Domestic Product (GDP) of the total Caribbean area in 2001 is 762 billion dollars which is
equivalent to a per capita GDP of 3126 dollars. It represents 42% of GDP in France and 8% of U.S. GDP.
The GDP grew by over 39% between 1990 and 2001 and GDP per capita of nearly 15%.
However, the islands of the Caribbean account for less than one fifth of total GDP of the Caribbean area
(80% of GDP in the area are made by 4 countries (Mexico, Colombia, Venezuela, Puerto Rico). In addition,
Within these islands, Puerto Rico, Cuba and the Dominican Republic account for nearly two thirds of GDP
islands.
In the end, the French Antilles to contribute 2% of the wealth of the Caribbean area but over 10% for the only
islands in the area.
GDP / Capita: a Caymanians 100 times richer than Haiti
In terms of wealth per capita, the scale ranges from 1 to over 100 between Haiti and the Cayman Islands. In
the top 12 ranking, we find that an independent State the Bahamas in 10th position. The first continental
state, Costa Rica, leading to the 21th spot. Mexico, first to the GDP, is only 22nd. The Cayman Islands,
Bermuda and the BVI have a GDP per capita exceeding $ 35 000, well above many Western countries. Four
states have a GDP per capita below U.S. $ 1000: Guyana, Honduras, Nicaragua and Haiti.
French Departments of America belong to the top 10 GDP per Capita:
the fourth Martinique
the seventh Guadeloupe
Guyana 8th
Six non-independent territories totaling more than 11% of total GDP (although they represent only 2%
in terms of area and population of the Caribbean area). They took advantage of economic.
Geography of the Caribbean Space
The Caribbean is a set of 38 territories of more than 5.2 million km ² (10 times the size of France) while the
Caribbean islands are about 235 000 square kilometers (the size of the United Kingdom) .
The Caribbean "continental"
“The Caribbean islands”
Belize
Colombia
Costa Rica
El Salvador
Guatemala
Guyana
Guyana
Honduras
Mexico
Nicaragua
Panama
Puerto Rico
Suriname
Venezuela Anguilla
Antigua and Barbuda
Netherlands Antilles
Aruba
Bahamas
Barbados
Bermuda
Cuba
Dominica
Grenada
Guadeloupe
Haiti
Cayman Islands
Turkey and Caicos Islands
U.S. Virgin Islands
BVI
Jamaica
Martinique
Montserrat
Dem. Dominican
Saint Lucia
Saint Kitts and Nevis
St. Vincent and the Grenadines
Trinidad and Tobago
Effects of 2008 crisis
Latin America and the Caribbean are affected by the global economic crisis of 2008, after six consecutive
years of positive economic performance and stability. The region is better prepared to cope with this crisis
than past crises through the general improvement its macroeconomic situation. In addition, many countries
are implementing important social programs such as conditional cash transfers , which encourage the
granting of financial assistance to poor families, provided that they comply with certain requirements, such as
schooling of children. Today, almost 85 million Latin Americans receive such aid.
But in 2009, the region and continue to grow poorer. The most optimistic projections, those of the Economic
Commission for Latin America and the Caribbean (ECLAC), are growing at 1.9%, marking a significant
decline compared to previous years: 5.5% in 2006 ), 4.6% in 2007 and 4.6% in 2008. The International
Monetary Fund (IMF) forecasts growth of 1.1% for 2009, while other sources, including private banks, are
forecasting negative growth.
The transmission channels through which the global economic crisis will come to the region are numerous
and the actual costs of the crisis will in all likelihood high and unevenly distributed in the region and within
countries. The sharp reduction in global demand for exports from the region, such as oil, soybeans and
copper, resulting in a decline in commodity prices, reduced output and rising unemployment. Meanwhile, the
reduction in global demand for manufactured goods and services will affect some key industries in the
region, such as tourism in Mexico, the Caribbean and Central America. All this accompanied by a decline in
foreign direct investment, mainly caused by the liquidity crisis affecting the money markets and a significant
reduction in remittances from abroad which is already being felt in Mexico , El Salvador and Jamaica.
According to a recent study by the International Labour Office (ILO), over the period 2007-2009, the number
of newly unemployed could reach 4 million. This deterioration of living conditions of the population,
especially for already vulnerable urban groups and young people, could mutate into a social time bomb in the
region. Experience has shown that in times of crisis, poverty is rooted, and that results in permanent negative
effects on the welfare of future generations. It is important to prevent millions of people fall into poverty
from which they had managed to escape. The achievement of the Millennium Development Goals is
involved.
In chinese, the word "crisis" (wei ji) is composed of two characters, "says Senegalese economist Moustapha
Kasse. The first means "danger, "the second "opportunity. " in their response to the global economic crisis,
governments have placed too much emphasis, in his first sense of the term. Yet it is the second meaning is
critical, because every crisis brings with it an opportunity, a chance to change and adapt.
How is it that the Caribbean can it increase its local and international market?
1. Strengthen links exchange
Trade can play a powerful catalyst for development. International trade can give a strong impetus to the prog
business.
The big problem in trade, it would be unjust rules and sometimes uneven within countries and between
countries. It is also worth noting that poor infrastructure, tariff barriers and the level may be too high customs
duties seriously impede trade and exchange TCO within the Caribbean and between countries.
Fairer trade rules would help, especially with regard to market access.
The trade policies of some countries are difficult. We see the European Union noted in its commitment to
open markets to poorer countries. However, rules that determine eligibility for trade preferences, minimize
the opportunities for much of the country.
Applied measures
1.1The protect the political space for human development
The rules laid down should not impose any obligations inconsistent with national strategies in this area. More
specifically, the right of each country to protect their farmers against such unfair competition ...
1.2Un commitment unduly agreements
Avoiding trade agreements that impose obligations that exceed all WTO rules, especially in the areas of TCO
and intellectual property.
1.3 Redirecting service negociations
The focus should be on the mid accelerated liberalization of financial sectors ...
1.4 Greater transparency in managing resources
Management must be sound and transparent. Control structures and audit should be implemented, as audit
committee held accountable by outside.
1.5 Capacity Building (Regional)
A good information policy and training to all actors involved in terms of local and regional levels.
A restructuring of a bank sub-regional development, financed by all member countries, to prevent any
eventuality and also to support trade.
1.6 Committee subregional
A strategic framework to support and ensure the achievement of common goals.
Trade allows nations that are welded, enabling millions of people out of poverty and to also enjoy the wealth.
2. Trade plan
To control the opening measures, the Caribbean area must be managed in its diversity. Especially reform of
basic education to cultivate the mindset. Laws or standards to improve the climate for business.
In addition, large groups must commit to implementing the charter, codes of conduct that are in principle
objectives for advancement, such as the presence of an evaluator who collects information on social behavior
including what are the changes in career earnings of staff, how they work, working conditions? What are they
doing in terms of reducing pollution, timber quota, etc..
So, the opening must seek trade liberalization with the following results: the reduction of poverty.
3. Reducing inequalities
Participation in trade can result commecial exacerbate inequalities in the extent of adjustment costs arising
from greater competition from imports, are passed on to poorer tandisque the labor force and economically
powerful uses the capabilities offered by exports.
4. Management of the market
Supply and demand
Make an assessment of actual needs with respect to the business demand for services and trade promotion.
Support fair competition
The fair competition deals not only questions the identification of market development, but also to facilitate
the adaptation of firms to changing business methods and the growing expectations of the market.
Business clients adequate
Choose the type of clients and guide them through categorization.
Training and new opportunities
Promote initiatives to create additional capacity within the country.
Professional group and agencies
Create networks of manufacturers or producers, and complementarities programs. Companies collaborating
to promote fair competition.
Lower transaction costs
Reduce the costs of doing business,such us certification, ...
These export costs can be reduced through innovative financing mechanisms, such as:
- Skill Training
- Strategy for internal financing, small loans, microcredit, small bank stabilization ...
Illustration of a typical planning strategy for trade promotion
Foreign Office
Ministry of Planning
Professional Associations
Cooperation
(Private sector)
National Steering Committee
for exports
Ministry of Small and Medium Enterprises
Department of Commerce
Panel exports
(Public Sector)
Export council
(Private Sector)
Professional Associations
Chamber of commerce
of Private sector
Success Factors of a national trade promotion
EXTERNAL
National commitment to the export development
National strategy for export development
Accompanying measures about the future
Proper institutional links
INTERNAL
Guidance to the private sector
Autonomy
Adequate and predictable funding
Professional staff
Responsive Services
Organizational strategy and work plan (with targets)
Flexibility to adapt to a changing environment
Mechanism for ongoing evaluation
MONITOR AND EVALUATE THE RESULTS
- Monitoring Tools Evaluation
Consider the development of the strategy as a continuous process and ensure regular monitoring.
Applications and utilities available
(proposed)
CCS (Carabbean Market System)
Electronic system for facilitating market.
CTIP (Carabbean Intregrated Trade Program)
Integrated control and monitoring of trade in the Caribbean.
How to implement a national strategy opens to the internationalization
In a document entitled "Chilean Export strategy: 25 Years of export success" by Maricel Galleguillos
and Moraga (Consultants Santiango), we see this one:
Over the past 25 years Chile has transformed its export sector. The value of exports has increased tenfold
(from 75 to 99).
His economic strategy was oriented towards economic liberalization, openness and internationalization of the
economy. In 1975, before the implementation of this strategy, 200 enterprises exported 200 products to 50
countries. In 1998, nearly 6,000 companies exported more than 3,800 products in the direction of 172
countries, with direct consequence for this time 19 billion dollars in export value.
for the success of the strategy make a model partnership such us:
Partnership management Strategy Model
Planning and
Design
Feed Back and
development
Partnership
management
strategy
Coordination and
Implementation
Monitoring and
evaluation
Planning and Design
 Public Sector
Needs analysis /
Prioritization by
sector/
iniate
dialog
 Private sector:
Prioritization by
sector / exporter
plan
Monitoring and
evaluation
Coordination and
Implementation
 Public Sector:
Methodology
and Analysis
 Public Sector:
facilitation and
support
 Private sector:
Information
 Private sector:
implementation
Feed Back and
development
 Public sector:
adjustment of
the strategy /
public
information
 Private Sector:
Advice
/
direction
Business trend
Trade facilitation has the potential to bring considerable economic benefit to developing countries and
LDCs in enhancing their competitiveness commecial and diversifying their export base. The lifting of trade
barriers provides significant benefit, as shown some signs are superior to those induced by lower tariffs.
According to the Asia-Pacific Trade and Investisment Report 2009, most developing countries spend 50
percent more time than the developed countries to meet the requirements of the procedures for import and
export. A reduction of one-day time limit for export increases by one percentage trade.
The same source, TradeNet in Singapore, the time required to process business cases has been reduced from
4 days to 15 minutes, as well as U-TradeHub Republic of Korea to return to the 1.82 billion business
community.
The National Export Strategy of Romania
To prepare to enter the European Union in 2007, the Romanian government admins need to strengthen the
export sector to cope with the intense competitive pressure within the EU in developing a national strategy
export. The private sector has assumed 50 percent of the cost of export promotion activities.
The development of a National Export Strategy has begun in 2000 by developing a road map meant to
integrate Romania into the EU, then by the 2004 creation of a council composed of national export parity 30
members of the public, private and co-led by a representative of each board. His role was guaranteed by law,
thereby strengthening its legitimacy and credibility of both sectors.
This strategy was launched in 2006, following this Romanian capacity has been strengthened. The strategy
facilitates inter alia the setting of realistic targets for export development, and strengthening the confidence
of buyers and foreign investors to Romania...
Liberalization of tourism in the caribbean
The tourism sector in Barbados and the Caribbean to be much more effective, we believe that this must be
solved as a whole in the new strategy requires a comprehensive work and the essential tools that promote the
liberalization of tourism services because, whereas the major international players in this area many are
based in the EU.
Ultimately,
The definition of trade facilitation based on the terms of ITC, it should be noted five major
imperatives.
Thus, trade facilitation is generally referred to the measures implemented at the border to facilitate trade,
reduce costs and improve efficiency. A consensus around the principles governing trade facilitation.
1.A include logistics for recovering the goods in ports;
2.The documents for border crossing;
3.La transparency of customs operations and regulatory agencies;
4.The harmonization of standards;
5.La compliance with international regulations, non-tariff barriers and commecial environment in
which the transactions are commecial.
The trade facilitation projects through PPPs, public-private partnership, are based on many success factors,
suchas we have seen previously. They include a solid trust between regulatory agencies and the private
sector, a realistic assessment by the public and private sectors, the role of each party and their ability and a
strong legal framework supporting the needs of the project and the environment General trade facilitation.
The success of trade favors the creation of new banks, new capital and small loans to the poorest. The
banking system stabilization is to prevent the financial blockade smallholders and markets to reap the
benefits of exports. The internationalization of trade obviously responds to the imperatives of sustainable
development at the turn.
The sixth conference of the least developed countries in Istanbul (Turkey) from 7 to 9 May 2011, to identify
the opportunity that solutions to development are key solutions at hand, given the diversity of each least
developed country, each country must consolidate a national strategy to promote trade to reduce poverty
through the production.
---Information Source:
UNDP, World Bank, ITC, CARICOM Intracen.org, unescape.org, doingbusiness.org
Cr-guadeloupe.fr
World Trade statistics
International Trade Forum
Strategies of technological education, UNESCO
EC-CARICOM economic Partneship
How to Access Trade Finance: A Guide for Exporting SMEs