Need for national export strategy

F.O.I. vice-president Joseph Pace participated in a Commonwealth/International Trade Centre Executive Forum in Trinidad on January 18-21. Thirty-two Commonwealth states took part in the forum, which was entitled 'National Export Strategies for Small States - from Vulnerability to Competitiveness'.

At this forum, which was split into five sessions debating the need for a Unique Strategic Framework, National Export Strategy, National Trade Support Network, Tourism, and Export of services, the FOI official represented the Maltese private sector, while on the public sector side, Stephen Sultana represented Malta Enterprise.

ITC and Commonwealth officials made presentations on best practice in each of the areas. These were followed by presentations from different states highlighting their specific experiences in each of the debates.

The Maltese representatives presented a paper on Malta's Trade Support Network and also gave a presentation on Malta's experiences and plans on the export of services. The latter included Malta's focus on financial services, medical and health, education, IT outsourcing, oil and gas servicing and international trading.

During the forum debates it was emphasised that it is essential for all developing countries to have a national export policy from Government, backed by a strong, realistic national export strategy.

This strategy needs to be decided on, documented and implemented by a competent and adequately empowered trade promotion organisation. Governments are not in duty bound to create jobs but have the responsibility to create the right environment conducive to investment, private initiatives and job creation.

Dr Roman Grynberg, deputy director of the Economic Affairs Division of the Commonwealth Secretariat, explained that in the past 20 years, the initiatives of the World Trade Organisation and the ITC in respect of globalisation have failed to deliver the desired results in terms of growth and development of small states in the Commonwealth.

In fact, the small developing states have lost 36 per cent of their share of world trade and have been further marginalised. In many countries part of this negative result is due to lack of political commitment and political will from the governments of these small states to create the right conditions for the countries to progress.

Reluctance on the government side to refrain from making political appointments and lack of empowerment of competent private sector initiatives, coupled with government-induced costs, increased taxation, inefficient parastatal monopolies and civil service overstaffing, are leading to a further shrinking of small states' economies.

Small countries are often faced with structural disadvantages that have an impact on the production of goods rather than services. These would include lack of economies of scale in production lines, freight and high infrastructure costs.

The forum concluded that it was opportune for underdeveloped countries to identify their strengths and opportunities in providing specialised services, possibly unique to their respective countries.

This would offer better chances of attaining and maintaining competitiveness with the much larger developed economies. For such an approach to succeed there would have to be a clear policy laid down by government and a well-thought-out national export strategy endorsed by all social partners in the economy.