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Case story on Aid for Trade and SVEs

Case story on Aid for Trade and SVEs. The Caribbean Rum Programme. Kathleen Van Hove, Senior Policy Officer, ECDPM Quentin de Roquefeuil, ECDPM. Background. Caribbean Rum Producers loosing preferential access to the EU market.

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Case story on Aid for Trade and SVEs

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  1. Case story on Aid for Trade and SVEs The Caribbean Rum Programme Kathleen Van Hove, Senior Policy Officer, ECDPM Quentin de Roquefeuil, ECDPM

  2. Background • Caribbean Rum Producers loosing preferential access to the EU market. • Concerted lobby effort by Caribbean rum producers, governments and regional negotiators for appropriate response • December ‘99: EU commits to finance “an integrated sector specific programme for the development of ACP exporters of rum”. • €70 Million 8th EDF Programme over 7 years. • A succesful case of private sector support facing challenges of trade liberalisation.

  3. Programme architecture • Enhance competitiveness and profitability of Caribbean rum sector, by assisting them in transition from production/export of bulk rum to high quality-high value branded rum • Three specific objectives: enhancing competitiveness, creation of a distinctive Caribbean Rum Marque, design and implementation of marketing campaigns. • Four elements of the programme: Cost sharing grant scheme 46,6 mn Caribbean Rum Marque 16,9 mn Support to WRISPA 3,5 mn Technical assistance. 2,1 mn

  4. Rationale behind the architecture • Context of liberalisation and increasing competition. • A clear vision of the sector’s future, based on a coherent analysis of market trends, lead the adjustment process. • Vision/objective: moving away from bulk and undifferentiated production and targeting “luxury” markets with differentiated products.

  5. Factors for success • Private sector ownership of the programme throughout all stages of the process • Technical assistance provided to regional industry association. • Constant dialogue with target beneficiaries who had full trust and confidence in WRISPA • Dedicated grant facility for SMEs with lighter procedures. • Development of business plans as a prerequisite for accessing funds.

  6. Lessons for other AfT programmes Lesson one: vision & audacity • External assistance cannot be a substitute for visionary industry leadership, which was based on understanding of changing market conditions and scope for market-led policy and programme response • The level of donor co-financing by the EC should be sufficiently high to foster a risk-taking, demand driven and market led adjustment process.

  7. Lessons for other AfT programmes Lesson 2: role of and dialogue with stakeholders • Devolve design, management and implementation to the industry association (state/REC as facilitator rather than driver). • Help the private sector with business plans, aid procedures and consolidate industry association. • A continuous dialogue with stakeholders helps to identify problems early and speeds up their resolution.

  8. Lessons for other AfT programmes Lesson 3: Built-in flexibility • Deal with tendering and procurement issues up-front • Make sure that local accountancy systems match donor “paper trail” requirements (a manual of best practice) • Flexibility at the design stage so as to permit shifting the allocation of funds between various components of the programme. • Adjustment takes time, and might require the programme to be prolonged.

  9. Thank you www.ecdpm.org/dp97 www.ecdpm.org/dp52 www.cta.int www.wirspa.com For further information: kvh@ecdpm.org or qd@ecdpm.org

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