Developing Eight (D-8): The road map for enhancement of trade and investment

21 Nov, 2012

The idea of the establishment of the Developing Eight Organisation for Economic Co-operation, which has come to be known as D-8, goes back to the "Co-operation for Development" Conference, held in October 1996 in Istanbul at the initiative of late Professor Necmettin Erbakan, then Prime Minister of the Republic of Turkey.
Subsequent to the conclusion of the Conference in which the eight countries (Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey) had agreed on the creation of the new grouping, preparations were made for its official establishment. The gathering for this purpose, held at the level of Heads of State and Government of the Member Countries, took place on 15 June 1997 in Istanbul - which has been referred to ever since as the First D-8 Summit.
2. The preparatory process for the First Summit included a number of meetings on political, organisational and technical matters, which agreed, among others, on the structure and functioning of the D-8. Envisioning the new grouping as a "co-operative mechanism" for socio-economic development, it was agreed that the following principles would guide its spirit and activities:
-- Peace instead of conflict
-- Dialogue instead of confrontation
-- Co-operation instead of exploitation
-- Justice instead of double standards
-- Equality instead of discrimination
-- Democracy instead of oppression
3. Moreover, agreement was reached on the broad areas of economic and industrial co-operation, with due emphasis on the need for the engagement of both public and private sectors in the member countries. The preparatory process also reached agreement on the establishment of a co-ordinating secretarial mechanism in Istanbul, Turkey - which developed later as the permanent seat of the D-8 Secretariat.
4. Apart of the collective efforts towards institutionalisation and facilitation of economic co-operation within D-8 community, between and among member countries, the following legal instruments have been developed during the last fifteen years. Full implementation of these agreements will certainly help expand and strengthen the state and level of economic co-operation within D-8 community:
a) Agreement on simplification of visa procedure for the businessmen of the D-8 members states;
b) Preferential Trade Agreement (PTA);
c) Multilateral Agreement on administrative assistance in Custom matters.
5. The D-8 countries are rich with natural resources and high population, characterised by economic potency, huge and beautiful geographical endowment for tourism, and close religious, historical and cultural ties of developing countries. D-8 has a vast potential for development, given large amounts of land, abundant inexpensive and skilled labour, diversified human capital, rich natural resources, and a large market of more than 900 million people.
6. Recognising these potentials, the member countries of D-8, besides co-operation in D-8 organisation have also economic and trade co-operation within regional groupings and other international organisations.
7. The D-8 co-operation has been set by exploiting underlying complementarities and comparative and competitive advantages; enhancing the regions' competitiveness for investment and exports; promoting tourism; lowering transport and transaction costs; and reducing production and distribution costs through greater economies of scale. Since its establishment in 1997, D-8 has grown in both scope and activities, supported by the vigor and dynamism of the private sector, which built many partnerships and alliances. At the same time, people-to-people contact has increased, helping build trust and confidence and instill a feeling of community in the D-8 regions. There were also significant gains in trade, industry, investment, travel and tourism, as well as improvements in physical projects within the D-8 regions.
8. Continuing globalisation and recent trends in global and regional economic environment affecting trade and investment have also increased the strategic importance of well-designed economic grouping co-operation measures. Thus, during the 5th D-8 Summit Meeting held in Bali in May 2006, the member governments reaffirmed their commitment to the D-8 and its continuing growth and development.
9. In order to foster a pragmatic and results-oriented approach to co-operation, the 23rd D-8 Commission Meeting in May 2007 in Jakarta, Indonesia, and also the 24th Commission Meeting in Yogyakarta, Indonesia, on November 2007, agreed that the D-8 Roadmap should be formulated to guide co-operation in the next ten years (2008-2018).
The D-8 Roadmap (2008-2018)
10. This D-8 Roadmap (2008-2018) has been accordingly prepared:
(i) to provide a vision and framework for enhancing co-operation among the D-8 countries, so that all D-8 instrumentalities are not only moving in the same direction, but also in a mutually reinforcing manner
(ii) to guide the formulation and ensure the implementation of D-8 programs and projects; through continuing improvement of mechanisms for effective implementation, co-ordination, monitoring and evaluation
(iii) to help in mobilising resources from various governmental and non-governmental quarters such as development agencies, potential investors and financial institutions for the implementation of D-8 programs and projects; and
(iv) to broaden the support of the D-8 general community, including the private sector, in the D-8 economic grouping co-operation initiative.
11. Along these lines, the D-8 Roadmap for 2008-2018 provides both a framework, as well as a plan of action, with specific milestones to facilitate monitoring and evaluation of progress, as well as to ensure that follow-up measures are pursued. Actual accomplishments in various programs and projects will be match against targets and planned actions in the course of implementing the Roadmap, and adjustments will be made as required by the circumstances. At the same time, mechanisms will be established to foster clearer lines of responsibilities in the implementation of D-8 programs and projects.
Key Programs of Trade and Investment within the D-8 Roadmap
I. TRADE
-- Tariffs
Full implementation of D-8 Preferential Trade Agreement.
-- Non-Tariffs Barriers
Negotiation of an agreement on technical barriers to trade, sanitary and phyto-sanitary and import licensing including criteria to identify measures that are classified as non-tariff barriers to trade, establishment of D-8 Database of Non-Tariff Measures and a work program for the removal of the barriers.
-- Trade in Services:
(i) To assign the High Level Trade Officials(HLTO) to discuss the possibility of setting up targets and/or schemes to enhance trade in services and explore the possibility of potential liberalisation among D-8 countries in this sector
(ii) Member countries to specify which area of services could be subject to liberalisation
(iii) Co-operation in areas of ship building, repairs and carriage of cargo among D-8 countries
(iv) Establishment of a professional exchange mechanism to promote the use of D-8 professional services
-- Intellectual Property Rights
(i) Achieve greater public awareness of IPR and IPR issues and capacity building
(ii) Ensuring that all D-8 member countries achieve levels of IPR protection and enforcement consistent with international standards (on-going)
(iii) Increasing the level of knowledge among a broader section of IPR professionals so that they may contribute to business growth and development.
-- Rules of Origin (RoO)
Full implementation in good faith of the RoO protocol.
II. TRADE FACILITATION
-- Customs
i) Sharing of experience, close co-operation and mutual assistance among members' customs administrations to more effective control for optimising revenue collection, trade facilitation, community protection and national security; and
ii) Member countries to use their utmost efforts for full implementation of the existing international convention on customs co-operation.
III. INVESTMENT
(i) Establishment of working group on investment including the possible agenda on the protection of investment and co-ordination and exchange of information between the investment promotion agencies of D-8 countries;
(ii) Conduct annual strategic analysis and review to identify policy measures and actions in order to improve global competitiveness of D-8 members;
(iii) Publish and provide information pertaining to all investments related measures undertaken to improve the investment environment both unilaterally and regionally;
(iv) Conduct research and 'commission investment barometer studies' comparing the competitiveness and ease of investing in D-8 vis-à-vis other regions;
(v) Organise annual discussion on key FDI issues such as regional integration, FDI development dimension for sustainable growth and to facilitate regional production networks intra-D-8 as well as with Dialogue Partners;
(vi) Organise investment seminars/workshop to strengthen D-8 institutional capacity on all investment related measures as and when required;
(vii) High-level dialogues, consultation and investment forum;
(viii) Information dissemination of investment opportunities available in member
Countries; and
(ix) Strengthen FDI statistics data collection system.
By:
Malik Muhammad Afaq, Director, BOI (Email: malikafaq@yahoo.com)
Source:
D-815th Anniversary Booklet
IV. INDUSTRIAL COOPERATION AND STANDARDS
(i) Undertake more promotional activities on industrial co-operation in D-8;
(ii) Exploration and exploitation of new areas of industrial co-operation; and
(iii) Encourage and facilitate the private sector to participate in identifying the inherent strengths and weaknesses of each D-8 Member Country that others can complement and supplement.
Standards and Conformity
(i) Accelerate the development of sectoral mutual recognition arrangement for priority sectors, as appropriate; and
(ii) Encouraging mutual recognition agreements on standards and conformity assessment between D-8 member countries.
V. SMALL AND MEDIUM SIZED ENTERPRISES (SME)
(i) Full implementation of the systematic programs developed by D-8 relevant working group to empower potential as well as existing entrepreneurs, and to improve SME access to credit and finance, modern technology, e-commerce and establish a network of existing SME support institutions in member countries;
(ii) Development of information systems and registers on SME capabilities and competitiveness for the promotion of enterprise clustering, inter-firm networking, subcontracting arrangements and information sharing;
(iii)Promotion of public-private sector synergies in the provision of business development services and infrastructure for SMEs;
(iv) Development of an environment of policies and regulations conducive to SME dynamism and competitiveness; and
(v) Exchange of information of market opportunities and exhibitions to enhance the development of SMEs among D-8 countries.
VI. TOURISM
(i) Development of D-8 region as a tourist destination by providing world class facilities;
(ii) Guiding the working group on tourism to work out a comprehensive action plan on the promotion of tourism in D-8 countries;
(iii) Encourage the private sector to engage in a joint promotion and marketing of D-8 tourism activities;
(iv) Provide diverse D-8 tourist attractions by promoting a collective tourism package;
(v) Organise D-8 Tourism co-operation in international tourism fairs to continuously promote tourism in D-8 countries;
(vi) Set up criteria for D-8 Tourism Heritage site and procedures for a D-8 Heritage Award;
(vii) Provide incentives in the development of tourism infrastructure so as to encourage private investment to D-8 member countries;
(viii) Provide support and facilitate implementation for the tourism projects approved under the D-8 Pioneer Project Scheme;
(ix) Undertake a study to identify tourism areas in respective countries that can be attractive for investment and measures to be pursued to promote investment in tourism;
(x) Tourism quality and sustainable tourism development, souvenir packaging, etc.
(xi) Develop a list of tourism priority investment projects and undertake measures to promote investment opportunities; and
(xii) Create a D-8 webpage to provide precise and timely information on tourism safety and security for public, private and media as well as foreign governments.
VII. FINANCE COOPERATION
(i) Strengthen financial surveillance mechanism;
(ii) Enhancement of domestic financial system;
(iii) Develop and cooperate in the financial markets;
(iv) A regional network for capital market research and training; and
(v) Exchange of experience among D-8 countries on modalities of Islamic finance.
VIII. TRANSPORTATION
(i) Encourage shipping companies, ship owners, ship building and repair yards of member countries to enter into mutual agreements including joint venture arrangements in order to promote and develop maritime transportation;
(ii) Harmonisation and simplification of customs procedures and documentation for the facilitation of transportation of goods in transit;
(iii) Adoption of D-8 action plan for enhancing transport logistic services;
(iv) Enhancing maritime safety and security and protection of the marine environment by implementation of relevant International Maritime Organisation (IMO) instruments;
(v) Adoption of a regional policy framework for promoting and strengthening of intra D-8 shipping service; and
(vi) Strengthening co-operation in civil aviation and air transportation with programs and projects defined by the Working Group as established on the basis of the MoU.
IX. TELECOMMUNICATIONS AND IT
(i) Enhance the D-8 Information Infrastructure through high speed connections among all national information infrastructures and promote interconnections among them;
(ii) Promote the security and integrity of D-8 information infrastructure through development of national computer emergency response teams and its capacity building programs;
(iii) Develop convergence guidelines and best practices. Create an integrated D-8 connect information portal with appropriate D-8 and local content;
(iv) Provide a co-operation on wide range of government services and transactions on-line by usage of ICT applications to facilitate linkages between public, private sectors and civil and international organisations;
(v) Co-operation on telecommunications and IT policies and regulations that are consistent with international standards and norms;
(vi) Implement capacity building programs to improve ICT literacy and professional ICT skills amongst others through use of distance learning technologies and to enhance the e- Readiness of D-8 member countries;
(vii) Develop common reference framework for e-Commerce and e-Government technical architectures, so as to ensure interoperability of information systems and networks and enhance co-operation to develop applications in free and open source software.
X. SCIENCE, TECHNOLOGY AND INNOVATION (STI)
To establish a D-8 working group on science, technology and innovation (STI) to develop programs and projects to initiate and enhance co-operation, as needed by member countries and maintain a regular annual meeting to monitor and evaluate the programs and projects including to co-ordinate meetings related in STI fairs within the member countries. The working group will consider the technical aspects inter alia of the following issues:
(i) D-8 S&T indicators;
(ii) D-8 science and technology network;
(iii) Capacity building;
(iv) S&T public-private co-operation;
(v) D-8 Network of technology foresight practitioners;
(vi) Establishment of virtual institutions for development of education activities with regard to new technologies;
(vii) Promotion of co-operation on science and technology with the aim of institutionalising the subjects of co-operation through establishment of research centers of D-8 institute/university;
(ix) Establishment of science and technology network of the D-8 Group (D-8 net) for more co-operation among members;
(x) Establishment of an independent nanotechnology network of the D-8 Group (D-8 NANONET) for more co-operation by consideration of the role of this technology in welfare and development of the member countries; and
(xi) Establishment of the D-8 techno-market in order to offer and introduce high production commodities of the member countries.
XI. ENERGY AND MINERALS
(i) Establishment of a D-8 Energy Database;
(ii) Co-operation among members for exchanging experiences on optimal use of energy and new types of energy;
(iii) Increase the share of renewable energy in D-8 countries;
(iv) Enhancing joint research and development of renewable energy;
(v) Co-operation and activities relates to international conferences, congresses and etc;
(vi) To enhance the co-operation on programs and projects as suggested by the Working Group on Energy; and
(vii) To establish a working group on mining and minerals;
XII. AGRICULTURE AND FORESTRY
(i) Conduct collaborative research to develop new/improved technologies in food, agriculture and forestry production, post-harvest and processing activities and sharing of research results and available technology;
(ii) Conduct Research and Development (R&D) in critical areas to reduce the cost of inputs for food, agriculture and forestry production;
(iii) Strengthen programs in food, agriculture and agro-forestry technology transfer, training and extension to increase productivity;
(iv) Exchange of information and best practices on:
Strengthening technical co-operation in the field of organic agriculture; developing common policies towards accessing to the current organic agriculture markets world-wide;
Development of new/improved technologies in food, agriculture and forestry production, post-harvest and processing activities and sharing of research results and available technology;
Strengthen agricultural data collection and management of D-8 Countries;
Increase agricultural production of major crops to reduce importation bill;
Accelerate irrigation development to reduce dependence on rain-fed farming of D-8 Countries; Promote fisheries and livestock development;
Plan strategy for production/ input services to eliminate current constraints of agricultural inputs (fertiliser, seeds and agro-chemicals)among D-8 Countries; and
Promote commercial agriculture among D-8 Countries.
(v) Exchange of experiences and information on producing, labelling and marketing halal food among D-8 countries;
(vi) Exchange of information on the impact of climate change on crop degradation;
(vii) Exchange of information and best practices on international quality standards and regulations for food, agriculture and forestry products; and
(viii) Promote trade, investment and services incidental to agriculture and forestry to increase trade in agro-based and wood-based products in D-8 and D-8 Trade in these products with the rest of the world.

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