PL01.01.06 National Export Development Strategy 1. Basic Information 1.1. Désirée Number: PL01.01.06 Twinning number: PL/IB/2001/EC/02 1.2. Title: National Export Development Strategy 1.3. Sector: Private sector development 1.4. Location: Poland 2. Objectives 2.1. Wider Objective The wider project objective being in line with the Copenhagen Criteria is to direct and strengthen the national export development and promotion policy and its institutional framework leading to the increase of the capacity of Polish Economy to cope with competitive pressure and market forces within the EU. 2.2. Immediate Objective To develop modern and effective National Strategy of Export Development and Promotion. To develop and effectively manage the national institutional system of export development and promotion binding into the systematised, coherent and effective framework the activities conducted by the present or newly established institutional structures (central, regional, local) and present or newly formed instruments and tools of export promotion and development. 2.3. Accession Partnership and NPCC Priority The project of elaboration of the National Export Development and Promotion Strategy in the apprehensive situation of Poland s decreasing share in international division of labour and the growing negative foreign trade balance, strictly corresponds to the priorities identified in the AP and NPCC documents as well as the Accession Criteria agreed in 1993 at the Copenhagen European Council. The objectives defined in the second priority of the AP is to reform and upgrade the economic policy in order to create the basis for the effectively functioning market economy capable of standing up to international competitive pressure and market forces functioning within the EU. The particularly close correlation between project objectives and priorities is reflected in priority 16.1 of NPCC in which the processes to create conditions indispensable for increasing the competitiveness as well as investment inputs and export capacities are defined, for the SME sector in particular. 3. Description 3.1. Background and justification Since 1996 the Polish negative foreign trade deficit has been rising and in the last two years, in particular has reached perturbing following proportions of: 18.8 bln$ in 1998 (8,3% of GDP), 18.5 bln$ in 1999 (7,9% of GDP), threatening the long term growth of the Polish economy and its socio-economic stabilisation. In the experts opinion a number of circumstances have caused and influenced this situation, of which the most relevant are: Structural, reflected as a relatively low international competitiveness, weakness of the Polish export offer, stemming from the obsolete production assets and a traditional production structure dominated by homogeneous, easily replaceable and market sensitive products; The low level of export development and promotional funds provided both by the enterprises themselves and the public institutions; No coherent support system for Polish enterprises and entrepreneurs enabling them to identify and set aside the problems they face in their international economic activity; Insufficient coordination of activities of the institutions at the central, regional and local levels responsible for elaborating of export driven economic development strategy. The existing system of spending export development and promotional funds covering a large number of the small as regards the scope and value of promotional initiatives calls for the elaboration of the system of coordinated and directed activities enabling the effective spending of export development and promotional funds. This situation leads directly to the need of founding the systematic, long-term approach towards export development and promotion. The economic promotion, what has been proven in the long standing economic practise of the EU member states, plays a vital importance and creates favourable conditions for the development of the whole spectrum of international economic cooperation, in particular in the field of foreign trade and investments. National long-term International Economic Treaties, participation in the World Trade Organisations or use of the traditional financial or custom instruments is not sufficient to achieve a high level of international economic activities and to maximise its benefits. Those activities must be accompanied by effectively organised and executed system of economic promotion comprising both export, foreign investment and technological promotion, not mentioning the other important aspects of international economic cooperation which altogether determine the further economic development. Due to the assumptions of considerable increase of public funds for export development and promotion
in the 2001 budget and in the consecutive years. The coherent and modern strategy of export promotion and development must be elaborated. 3.2 Linked activities The immediate objective of the submitted project within PHARE 2001 is the elaboration of the coherent, modern and effective National Export Development and Promotion Strategy. Its assumptions and background stem directly from the experiences and activities of other programmes co-financed by PHARE in the previous years that supported export development and promotion at regional and local levels. The close cooperation and joint effort with the Project Teams of the following PHARE programmes is prerequisite and foreseen in order to use to its highest potentials the complementary activities of the programmes as well as to facilitate the synergy effect among them; PL 9202 EXPROM & PL 9603 EXPROM II: Of particular importance towards programming PHARE 2001 is the ongoing sub-programme PL 9603-01-02 (0.1 MEUR) within EXPROM II which aims at elaborating main directions of export promotion strategy for SMEs as the support to the Ministry of Economy. Its preliminary results points to the conclusion that there is a growing need to formulate and develop the National Strategy of Export Development and Promotion, of which the Export Development and Promotion for SMEs will be an indispensable part. The results of this programme will constitute the firm basis in the formulation of the policy assessment and strategy formulation of the submitted PHARE 2001 programme, however due to the fact that it concentrates mainly on SMEs sector its results will need to be redefined and tuned to cover the broader scope of business environment including all sectors of national economy. The twinning project within the framework of PHARE 2001 is going to work out the new export development and promotion strategy to complement and integrate the results of the previous and ongoing PHARE programmes. PHARE 2000 - The National Export Development EXPROM III: The programme converses the activities from one centrally managed programme to a number of regional windows influencing at the regional and local level not only the enterprises but also the regional and local authorities (government and self-government administration) and creates a channel for the dissemination of the experiences and lessons of the previous PHARE programmes mentioned earlier. This programme concentrates its effort on regional and local level of SMEs sector in the form of Classical Technical Assistance and Investment. One of its aims is to network the regional and local institutions responsible for export development and promotion to the form of national export development scheme for SME sector by introducing and promoting use of the new instruments of export development like export clustering and export contract mutual insurance funds as well as by strengthening those institutions and SMEs by providing advisory and training programmes. The National Institutional Framework for Small and Medium Enterprise Development Polish Agency for Entrepreneurship Development: This PHARE programme aims at new institutional development introducing legislation related to the transformation of the Polish Foundation for SME Promotion and Development into the Polish Agency for Entrepreneurship Development. Undoubtedly the new institution will be a key player in developing and promoting export of the SME sector and the programme of developing the new national strategy of export development and promotion will be developed in close cooperation with the Agency. The regional programmes under PHARE 2000 Economic and Social Cohesion Programme: The assumptions and experiences of this regional programme of SME export development projects ( Warminsko-Mazurskie, Podlaskie, Lubelskie, Podkarpackie and Slaskie voivodships) will be taken into considerations in formulating the national guidelines for export development and promotional strategy for the whole economy. Teleinformatic System of Export Promotion TISPE: This is the new initiative undertaken by the Ministry of Economy that constitutes an essential element in project implementation. Being the Internet portal TISPE will supply the enterprises and institutions with the information about international markets and conditions of access to those markets and business circles. It will also gather and present the multichannel import as well as cooperation and subcontracting offers for Polish exporters, being at the same time a platform for placing the Polish export offers on virtual international market. By its network of institutions supporting the development of entrepreneurship and regional development TISPE will offer its information resources also to those enterprises that at the moment do not have the direct accesses to Internet. By using Intranet and Extranet TISPE s institutional network will control the quality and reliability of the information offering the value added services. (E.g.specialised reports, translations, analysis etc.) Conclusions: Developing a national export development and promotion strategy is a national issue that must include the effective participation of the Ministries in its formulation. The founding within the framework of the submitted project of the cross-ministerial and cross-institutional Project Management
Team (Steering Committee) is the prerequisite and the guarantee of the broad approach to the export development and promotion directly leading to the formulation of the National Export Development and Promotion Strategy. It is foreseen that the team founded by the Prime Minister on 19.07.2000 in order to develop a programme to improve the situation in Polish foreign trade is going to constitute the core base for the PHARE 2001 Steering Committee. 3.3 Planned results Within the framework of the Twinning Covenant the following results are expected to be achieved: Developed National Strategy of Export Development and Promotion covering central (Ministry of Economy and its institutions), regional (voivodship authorities) and local levels; Ready to be implemented defined logical, coherent system of export development and promotion; Worked out procedures of elaboration and implementation of suitable strategies (also sector oriented) of export and foreign investment development and promotion; Adoption to the changes in the system institutions with a special consideration given to human resource development, team building and team management. 3.4 Activities Twinning Covenant: 24 man-month Preaccession Adviser, 12 man-month Project leader level expert, and 90 man-day of medium and short term advisers. The Twinning activities will concentrate on: The analysis of the existing Polish institutional solutions and functioning promotional instruments and tools with a special emphasis given to the analysis of the potentials of the Polish Foreign Commercial Departments; Selecting of model solutions functioning within Member States (MS), which could be a reference point for the Polish model; Training, study visits and traineeships in the MS model institutions responsible for export development and promotion; Elaborating of functional and logical structure of export development and promotional system; Reengineering and perfecting of existing and new instruments and tools; Elaboration of financial schemes as regards the costs of instrument implementation to the tasks at a certain level of logical structure; The possibilities of system financing by commercial and public funds at different levels of logical structure; The possibilities of co-financing with a thorough consideration of financial restriction regarding SME sector; Developing of the profiles for export facilitator (EF) and promoter (EP) as well as the employee of the Polish Foreign Commercial Departments; Training and study visits for EF and EP as well as employees of the institutional system of export development and promotion. Classical Technical Assistance (CTA): 100 man-day medium and short term of expertise to the Ministry of Economy; 200 man- day medium and short term expertise for the appointed institutions that execute the system provisions; Study visits, training and traineeships for the appointed institutions; Elaboration and implementation of the pilot projects, into which 100 man-day medium and short term of expertise will be included. CTA activities will concentrate on pilot projects. Within the framework of the developed profiles of Export Facilitator, Export Promoter and the Employee of the Polish Foreign Commercial Trade Departments as well as verified and reengineered system instruments and tools the pilot projects will be developed and implemented. The projects will concentrate on providing the integrated and complex presentation of Polish export offer on selected, due to their high import potentials, foreign markets and selected due to their export potentials, Polish enterprises. The projects aim is to initiate the system approach in the field of export development and promotion (product, finance, business-to-business and market-to-market relations both on national as well as regional and local levels). Monitoring of implementation of pilot projects and evaluation of its results within the framework of the accepted project assumptions. 4. Institutional framework The project will be executed within the Ministry of Economy (ME) by the Department of Economic Promotion. The Ministry of Economy will be responsible for the overall coordination of the project and will supervise its implementation. Implementation supervision will be executed by Monitoring Committee headed by the ME representative and consisting of the representatives of the Ministry of Economy, Twinning Institution and other Ministries involved. The exporting enterprises being the beneficiaries of the pilot projects will be identified through open and public procedures with full transparency and specific measures for ensuring the visibility of the EU and Polish public funding of the support. 5. Detailed budget (M ) Investment IB S Phare Poland IFI Total Contract I Twinning 0 1.3 1.3 0.2 1.5 Contract II TA 0 0.7 0.7 0.4* 1.1 0 2 2 0.6 2.6 * 40% will be covered by public funds, 60% will be covered by the enterprises. The co-financing funds for the project implementation will be available.
6. Implementation arrangements 6.1. Implementing Agency: PAO: Pawel Samecki Undersecretary of State, Office of the Committee for European Integration, Al. Ujazdowskie 9, 00-918 Warsaw, Poland, ph. (+48 22) 455 52 41, fax (+48 22) 455 52 43. The Central Financing and Contracting Unit: CFCU, Foundation Cooperation Fund, 6/12 Nowy Swiat St., 00-400 Warszawa, Tel.: (48 22) 661 79 27, Fax: (48 22) 661 72 26, will be responsible for tendering procedures, contracting, payments due to the contractor on behalf of the Ministry of Economy, which is responsible for the preparation, the management and the implementation of the project. The Ministry of Economy representatives will participate in tendering and contracting procedures handled by the Central Financing and Contracting Unit. 6.2. Twinning The project will be executed by the Twinning Covenant and Technical Assistance. Within the framework of the Twinning Covenant the following inputs are expected: 24 man-month of the Preaccession Adviser; 12 man-month Project leader level expert; 90 man-day of medium and short term advisers; Study visits and training in MS government institutions responsible for export development and promotion. The multilevel expertise and experience of the MS central institutions (ministers) achieving the systematic export increase based on the modern institutional solutions is expected. It should be offered by the high-class experts having the practical achievements in interinstitutional aims redefinition reflected by the implementation of the new methodological and organisational solutions. The multi level experts experience in institutional building of economic promotion system based on the cooperation and identification liaison among the departments of the Ministry of Economy and its institutional environment is very essential as well as the practical ability to reengineer and create the organisational structures in accordance with the determinate project aims. The experts personal achievements and participation in successful projects will be given the highest consideration. Contact person: Igor Mitroczuk The Director of the Economic Promotion Department, Ministry of Economy, Pl.Trzech Krzyzy 3/5, 00-507 Waszawa, Phone: +48 22 625-08-95, Fax no.+48 22 625-51-59. Anna Will-Szczepankowska, Department of Economic Promotion, Ministry of Economy, Phone: +48 22 693-52-64, Fax no.+48 22 625-51-59. 6.3. Non-standard aspects: Dis and twinning manual will be followed. 6.4. Contracts: two contracts will be concluded: twinning (1.5M ) and TA (1.1M ). 7. Implementation schedule 7.1. Start of project tendering: Q1/2002 7.2. Start of project implementation: Q3/2002 7.3. Project completion: Q3/2004 8. Equal opportunity At all stages the project will involve the activities that respect the equal chances for women and men alike. 9. Environmebnt: n/a 10. Rates of return: n/a 11. Investment criteria: n/a 12. Conditionality and sequencing The will of cooperation and implementation of institutional and formal changes within the framework of institutional environment responsible for development and promotion of export at central, regional and local level is a prerequisite condition for the project success. Milestones: Activities start by July 2002; System, its logical structure and righteous instruments elaborated by December 2003; Pilot projects start by July 2003; System implemented by September 2004.
Annex 1: LOGFRAME PLANNING MATRIX FOR PROJECT Date End Contracting: 15/12/2003 - End Disbursement: 15/12/2004 Period 01.2002-09.2004 Project Number Project Title National Export Development Strategy Budget Phare 2,0MEUR Total 2,6 MEUR Wider Objective Indicators of Achievement Sources of Information Assumptions and Risks To direct and strengthen the national export development and promotion policy and its institutional framework. leading to the increase of the capacity of Polish Economy to cope with competitive pressure and market forces within the European Union. Export increase; Competitiveness of the Polish export offer increase Central statistical data; Reports, studies and analysis Immediate Objectives Indicators of Achievement Sources of Information Assumptions and Risks To develop modern and effective National Strategy of Export Development and Promotion; To develop and effectively manage Elaborated, implemented and functional national system of export development Project documents and reports; Market research and analysis The priorities of export driven national development sustained. the national institutional system of export development and and promotion and its instruments and The will of cooperation and promotion binding into the systematised, coherent and effective tools implementation of institutional and framework the activities conducted by the present or newly Increased level of export support and its formal changes within the environment established institutional structures (central, regional, local) and availability to the established and of export development and promotion at present or newly formed instruments and tools of export promotion emerging exporters. central, regional and local level and development. sustained. Results of Project (Outputs) Indicators of Achievement Sources of Information Assumptions and Risks Within the framework of Twinning Covenant the following outputs will be achieved: Developed National Strategy of Export Development and Promotion Export development and promotional system at central, regional and local level elaborated, implemented and functional. Project reports and evaluation Expertise quality within the framework of Twinning Covenant and Classical Technical Assistance guarantee the covering central (Ministry of Economy and its institutions), regional achievement of project aims and (voivodship authorities) and local levels results. Defined logical, coherent system of export development and promotion Outlined procedures of elaboration and implementation of suitable strategies (also sector oriented) of export and foreign investment development and promotion. Adoption to the changes in the system institutions with a special consideration given to human resource development, team building and team management. Activities (Inputs) Indicators of Achievement Sources of Information Assumptions and Risks Within the framework of the Twinning Covenant the following activities are foreseen: The analysis of the existing Polish institutional solutions and Cross-departmental and crossministerial functioning promotional instruments and tools with a special emphasis given to the analysis of the potentials of the Polish Foreign Commercial Departments; Selecting of model solutions functioning within MS, which could be a reference point for the Polish model; Training, study visits and traineeships in the MS model institutions; Elaborating of functional and logical structure of export development and promotion system; Reengineering and perfecting of existing and new instruments and tools; Elaboration of the financial schemes; Developing of the profiles for export Project Management Team created within the existing National Promotional Council Budget and PHARE funds available facilitator (EF) and promoter (EP) as well as the employee of the Polish Foreign Commercial Departments; Training and study visits for EF and EP as well as for the employees of the institutional system of export development and promotion; Within the framework of Classical Technical Assistance the following inputs are foreseen: Preparing and implementing of pilot projects. Monitoring of implementation of pilot projects and evaluation of its results within the framework of accepted project assumptions.
ANNEX 2 Cumulative Implementation, Contracting and Disbursement Chart National Export Development Strategy Date of drafting Planning period 01.2002-09.2004 Cumulative Implementation, Contracting and Disbursement chart (by quarter) Cost Estimate Phare 1Q2002 2Q2002 3Q2002 4Q2002 1Q2003 2Q2003 3Q2003 4Q2003 1Q2004 2Q2004 3Q2004 EUR million Total Project D D C/I I I D/C/I C/I I I I I Contracting total 1.3 2.0 2.0 Disbursement total 0.2 0.4 0.6 0.9 1.2 1.6 1.8 2.0 2.0