ࡱ> AC@g bjbjVV 8r<r<` ` ` ` ` t t t t t 9 {!! !k9m9m9m9m9m9m9$;J>r9` !{!{!!!9` ` 9S"S"S"!j` ` k9S"!k9S"S"6D9 psG""7W99098>1"">,9>` 9@!!S"!!!!!99S"!!!9!!!!>!!!!!!!!! &: Third Global Review of Aid for Trade - Day 1 Summary of Discussions Session 5: Aid for Trade: Accessing Global Private Sector Value Chains The session revolved around the importance of involving the private sector early on in the capacity-building process to ensure the sustainable impact of AfT. The private sector contributes extensively to enhancing countries' trade capacity, mainly through developing human capacity through training, introducing innovation and technology, supporting the integration of producers in global value chains, and undertaking trade facilitation programmes. Co-operation with the private sector creates better impact and generates higher returns. However, communication channels often seem disrupted, and too often, private sector actors are not aware of the AfT initiatives, or might not realize that their activities fall under the AfT banner. AfT should help the private sector take the risk of investing in development projects in developing countries. The advent of large scale corporate philanthropy or "philanthro-capitalism" was defended as a choice that makes business sense, especially as consumers increasingly value traceability, and environmental and social sustainability. The point was made that it is no longer sufficient for companies to do well, they also need to do good. In this context, dialogue with non-governmental organizations (NGOs) and civil society groups has been positive in spurring private companies to venture and make progress into new areas of social and environmental corporate responsibility. That said, the element of corporate social responsibility (CSR) does not mean that companies can ignore core business needs. Companies such as Walmart and Danone have started down the path to sustainable development by introducing sustainable methods in their day-to-day business activities. In many cases this is sanctioned by their shareholders, recognizing that no economic outcome can be obtained without engaging in social and environmental development. The move of many global companies into more emerging markets is reinforcing the need for CSR. The sentiment that today's customers would be tomorrow's shoppers was expressed. Chairman Kim of Sae A Trading Company (Korea) said companies invest to make a return. The company has invested with the hope that this public-private partnership would increase employment opportunities in Haiti. He said there would be scope for 20,000 workers to be employed. The existence of private-public partnerships has also proved successful in value chain interventions, but their effectiveness at delivering for all is highly dependent on the presence of an enabling public policy environment for business to get involved. The discussion looked at coffee value chains in detail. Some of the experiences offered positive examples of good practice, though there is no single recipe. Ethiopia explained how it marketed its coffee. Trademarks were established to protect Ethiopian coffee and to ensure ownership of the three main brands so that it could actually start to market it as gourmet coffee. Growers in Ethiopia are now price makers. Export income has risen as well as income for the farmers, sometimes up to 300%. The International Trade Centre case study on Ethiopian coffee described how it established centres to taste coffee in various parts of the country and to select the better quality coffees and to train people to grow higher quality coffee. The capacity building programme is very successful. Also on standards, the importance of safety and standard requirements was underscored as a precondition for seizing market opportunities. But standard compliance also depends on the presence and accessibility of internationally-recognized quality infrastructure. The proliferation of different standards and technical requirements creates further barriers to trade and increases costs for producers. It was stressed that companies should not be the ones who pass the standards, but acknowledged that the current situation is one in which consumers place private companies under pressure. In this regard, panellists called for the creation of common codes that take into consideration the concerns of all stakeholders and help minimize compliance costs. The ϲʹ was indicated as a possible forum for common standard-setting, where a common mechanism for standard compliance would help exorcize the spectre of disguised protectionism that lingers when standards are set individually by countries/companies. EG( + h k u y S s w x *Eo23ŽŽŽŽŽŽŽŽŽŽŲh~-h=mH sH h~-mH sH hJ1h~-mH sH "hJ1h~-5>*CJaJmH sH hJ1h~-5mH sH "hJ1h~-5>*CJaJmH sH .EFG  ^ gd~- & F gd~-^gd~- & F gd~- & Fgd~-gd~-$a$gd~-6&P 1h:prLl. 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