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United Nations Conference on Trade and Development - Institute for ...

United Nations Conference on Trade and Development - Institute for ...

Rutgers Model

Rutgers Model ong>Unitedong> ong>Nationsong> 2006 15 other programs, TTFSE seeks to reduce transport costs while minimizing smuggling and illegal border crossing. Funding from this program comes primarily from the World Bank and the ong>Unitedong> States. 39 Once fully implemented, the TTFSE program will move into a second phase, which aims to achieve higher goals, including an increase in “the trade competitiveness of Southeast Europe through improving the availability of adequate logistics services connecting the region with its neighbors.” 40 Increasing cooperation between trading states, heightening border security, and maintaining stronger logistical management will help in the achievement of these goals. Business Interests Cooperation between non-governmental organizations (NGOs) and public organizations is a key factor in the development of transit trade. Public-private partnerships (PPP) are a collaborative effort between “public organizations and corporations, companies, or non-governmental organizations working in collaboration to achieve mutually beneficial results.” 41 This partnership enables the improvement of the transport system by improving the efficiency of public and private “management of the international supply chain ... [these] supply chains are created by businesses for the efficient manufacturing, transfer, and trade of goods.” 42 The primary purpose of these groups is to reduce the costs of trade while improving its efficiency. Both the government and traders seek transparency in trade to promote economic growth. Traders must comply with the trade regulations of government agencies, and it is incumbent upon government officials that the rules of procedure are clear and can be implemented by companies, regardless of size. By having transparency in trade procedures, there is an increase in efficiency of trade. 43 39 Ibid. 40 Ibid. 41 “Public-private partnerships in trade and transport facilitation”. Global Facilitation Project for Transport and Trade. June 2005. 42 Ibid. 43 “Trade Logistics: Practical Measures.” Global Facilitation Project for Transport and Trade

Rutgers Model ong>Unitedong> ong>Nationsong> 2006 16 Until recently, most of the world largest companies provided numerous services to many different markets. As the global economy develops, small and medium sized enterprises (SMEs) increase the effectiveness of international supply chains, as local companies can provide supply-chain management functions to multinational corporations. According to the Global Facilitation Project for Transport and Trade, SMEs account for “60 to 70 percent of employment [in the areas in which they operate] … and in developing countries, this number is often much higher.” 44 There is, however, one notable limitation in SME’s, in that they are more likely to fail in developing countries due to a variety of barriers that limit their organic growth. Therefore, while it is important to focus development on these local businesses, large trading operations need also focus on established trading networks to ensure price and logistical stability. 44 “Enabling SMEs to Enter the International Supply Chain..” Global Facilitation Project for Transport and Trade. July 2005.

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