WEDF 2012 Lunch Address: Dr. Heinz Walker-Nederkoorn

Excellencies, Ladies and Gentlemen

I know that, at this moment of the day, you are not particularly keen to listen to my speech, but rather expecting the lunch buffet to be opened. Therefore, I do not want to take much of your time to dwell further on the topics that will frame the discussions of the WEDF 2012.

The short and austere menu I am going to serve you takes its inspiration from UNIDO's formula how to approach trade-related challenges in a systemic way, condensed into three points: compete, comply and connect.

Under each of these "C"s, I will highlight one aspect that seems particularly relevant from the perspective of our economic development cooperation.

Compete

In the past, the bulk of TR TA focused on trade facilitation, and little on supply capacity, assuming that the tradeable goods were there anyway. But for a broad range of products, agro-based / SME-based ones in particular, developing productive capacities and linking them to global markets is an ambitious endeavour that requires the cooperation of all stakeholders along a particular value chain or in a sector. Before we can even talk about trade and export, we need to specifically focus on supply capacities. Developing such competitive supply capacities requires practical action, for example to increase productivity on the farm level for agricultural commodities, to introduce innovations in production methods etc.

Comply

To know where a product comes from and how it has been produced is a frequent urge of the modern consumer. Thus, consumers and Retailers demand reliable, transparent, and internationally recognized information regarding production and processing methods. This can take the form of traceability "from shelve to farm", and it is taken on a higher level with the various (voluntary) sustainability standards such as eco-labels that consumers, producers and industry have created over the past decades. We need to develop the institutions - for example for certification - that can ensure the quality and consistency of implementation.

Connect

Value chains are increasingly global. Improving production at the farm or enterprise level without progress in logistics and supply chain management is not a workable proposal for the private sector, nor for policy makers. But "connecting" had a second implication, as important as the first one: if we design interventions, we need to be as comprehensive as possible with regard to the value chain and actors involved.  This leads me to my final "C" which is

Cooperation

Trade development is a complex activity involving a diversity of players and a multitude of actions at the policy, institutional and enterprise levels. Concerted and coherent action is therefore key. We need to place the private sector very prominently at the table when working on this agenda. In particular when we design projects along a specific value chain (e.g. cocoa), we can only work successfully when we engage the private sector. In addition, we need to interweave multilateral and bilateral technical cooperation even better. I am glad to say that is has always been Switzerland's objective to work in partnership with multi- and bilateral agencies. Our long-standing cooperation with Geneva-based ITC is proof of this, but we also work closely with UNIDO, UNCTAD, the Worldbank to name but a few. In addition, we work with many countries in this area, particularly with our eight priority countries, including Indonesia.

I know that I have just scratched the surface with these comments and I am looking forward to intense and productive discussions over the coming three days.Thank you and enjoy your lunch.