Project Title

Capacity Building Workshop on Strategic Framework on Measurement of APEC TiVA under GVCs and its Action Plan 

Project Year

2016   

Project Number

CTI 06 2016A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

CTI 06 2016A 

Project Title

Capacity Building Workshop on Strategic Framework on Measurement of APEC TiVA under GVCs and its Action Plan 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Free Trade Area of the Asia-Pacific and Global Value Chains (FTAAP and GVCs) 

Project Year

2016 

Project Session

Session 1 

APEC Funding

76,098 

Co-funding Amount

70,000 

Total Project Value

146,098 

Sponsoring Forum

Committee on Trade and Investment (CTI) 

Topics

Trade Facilitation 

Committee

Committee on Trade and Investment (CTI) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

United States 

Co-Sponsoring Economies

Australia; Canada; Chile; China; Malaysia; Mexico; Papua New Guinea; Peru; Philippines; Thailand 

Expected Start Date

01/06/2016 

Expected Completion Date

31/12/2016 

Project Proponent Name 1

William Powers 

Job Title 1

Chief Economist and Director, Office of Economics 

Organization 1

US International Trade Commission 

Postal Address 1

500 E St. SW, Washington, DC, 20024, 1777 N Kent Street 

Telephone 1

1-202 7085405 

Fax 1

Not Applicable 

Email 1

William.Powers@usitc.gov 

Project Proponent Name 2

Ann Katsiak 

Job Title 2

Deputy Chief of Party 

Organization 2

US-ATAARI 

Postal Address 2

Not Applicable 

Telephone 2

1-703 5167700 

Fax 2

Not Applicable 

Email 2

akatsiak@nathaninc.com 

Declaration

William Powers and Ann Katsiak 

Project Summary

In 2014 the APEC TiVA Database Work Plan, under the Strategic Framework on Measurement of APEC TiVA under GVCs, was endorsed by the APEC economic leaders and ministers. To follow up on capacity building essential for the success of the initiative, the U.S. plans to implement a five-day workshop focused on building capacity to measure TiVA across APEC economies. The workshop will provide in-depth training in compiling benchmark year supply use tables (SUTs), time series SUTs, conversion of SUTs to input-out tables (IOTs), as well as the calculation of trade in value added (TiVA) indicators and its applications in GVC analysis. The workshop will also serve as an opportunity to evaluate participating economies’ progress in producing necessary quality statistics for the construction of the APEC TiVA database in 2018, and identify additional technical assistance and training needs for the upcoming years.

Relevance

Recognizing the importance of Global Value Chains (GVCs) to the APEC member economies in terms of achieving three development goals - sustainable economic development, promoting good governance, and building human capital, in 2013, APEC Leaders agreed to promote GVCs development and cooperation among the APEC region on the basis of work on connectivity.

Having better measurement of trade in value added (TiVA) is critical, as it enables more accurate GVC analysis, measurement of the performance of APEC economies engaging in GVCs, and assessment of the potential benefits and challenges from new policies. Therefore, in 2014, APEC economic leaders and ministers endorsed the APEC Strategic Blueprint for Promoting Global Value Chains Development and Cooperation and the Strategic Framework on Measurement of APEC TiVA under GVCs (the Framework) and its Action Plan, and instructed the APEC TiVA Technical Group to complete the construction of the APEC TiVA Database by 2018. The Work Plan and the Term of Reference on the Operational Mechanism of the technical group that specify the objectives, tasks, and deliverables during the course of the APEC TiVA Database Initiative were endorsed at the meeting of APEC Ministers Responsible for Trade (MRT) and APEC Ministerial Meeting (AMM) in  2015.

One major challenge is that the domestic statistics of the APEC member economies for measuring GVC activities are limited and the quality is uneven. For example, domestic input-output tables (IOTs) that describe inter-industry relationships within an economy are an important starting point to measure GVCs; however, seven economies (Chile, Malaysia, Mexico, New Zealand, Russia, Thailand, and Viet Nam) don’t produce IOTs regularly. In addition, Brunei, China, Indonesia, Papua New Guinea, and Peru need to improve their domestic account statistics or value-added data.  Finally, only Japan and the U.S. have complete bilateral trade data for all sectors on FDI and services trade. Consequently, capacity building is necessary to achieve the ultimate goals of the APEC TiVA Database Initiative.

Capacity building is an important and critical success factor in establishing the APEC TiVA database. Acknowledging that APEC participants came from different background and with different expertise, this capacity building will emphasize in the following areas:

i) Compilation of supply-use tables (SUTs)/ IOTs;

ii) Compilation of TiVA; and

iii) Analysis.

Understanding the basic concept and methodology of compiling SUT/IOT and TiVA is a must to the all participants before exploring further to extended SUT/IOT.

The Capacity Building Program provides focused, action-oriented technical training workshops to participating APEC economies to address issues concerning data collection, compilation, reconciliation, and confidentiality. The Capacity Building Program also serves as a platform to identify and share best practice. At the conclusion of the workshop, the technical group will implement a data sharing mechanism via a working website, for the storage and dissemination of key data and documents for the development of extended SUTs and IOTs. This website is an important deliverable of the Work Plan and further promotes capacity building.

This project falls under APEC Funding Criteria Rank 1 in multiple categories: Activities outlined in Global Value Chains (GVCs) Blueprint; Trade Facilitation and Liberalization; Supporting the Multilateral Trading System and the Bogor Goals Services Trade and Investment Facilitation and Liberalization; and Connectivity, including the implementation of the APEC Connectivity Blueprint on enhancing physical, institutional and people-to-people connectivity.

Activities outlined in Global Value Chains (GVCs) Blueprint: The project will contribute towards the capacity building workshop requirement of the Capacity Building Program. The Capacity Building Program is required under the APEC TiVA Database Initiative Work Plan. China and the U.S. are the co-leading economies of this project. China sponsored the 2015 capacity-building workshop. The U.S. is currently organizing the 2016 capacity building workshop.

Objectives

The key objectives of the workshop are to provide capacity building training to members of the technical group from participating APEC member economies on best practice regarding: 

1) Developing  domestic SUTs or IOTs, collecting goods and services data, reconciling trade statistics with domestic account, and harmonization of 2008 SNA and BPM6;

2) Compiling the time series of SUTs;

3) Constructing an IOT from an SUT, in particular the assumptions, and the methods for converting all prices to basic prices;

4) Collecting and utilizing firm level data, determine common firm type classification and time coverage;

5) The data collection and compiling techniques for constructing the extended SUTs or IOTs;

6) Calculating and using trade in value added (TiVA) indicators; and

7) The use of SUTs, IOTs, and TiVA indicators to calculate forward and backward linkages, map international production chains, identify interdependencies with trading partners, and conduct impact studies.

Alignment

In 2013, APEC Leaders agreed to promote GVC development and cooperation among the APEC region on the basis of work on connectivity. At the 22nd APEC Economic Leaders' Meeting in 2014, leaders endorsed the Strategic Framework on Measurement of APEC TiVA under GVCs and its Action Plan, as well as the objective of building the APEC regional TiVA database by 2018. Given the technical complexity of building such a database, APEC economies agreed that a technical group will be established for the life of the project that will draw upon experts from APEC member economies, academia, and interested international organizations.

In May 2015, the Terms of Reference of the Operational Mechanism and Work Plan for the Technical Group on Measurement of APEC TiVA under GVCs were approved at the first meeting of the Technical Group and CTI2, and consequently endorsed by SOM2 and MRT. Furthermore, in a November 2015 joint ministerial statement, APEC ministers urged officials to implement the Terms of Reference on the Operational Mechanism and Work Plan of the Technical Group.

These documents instruct the technical group to lead and guide the participating economies to achieve this objective of building the APEC TiVA database by 2018. As a part of this effort, the technical group has laid out the plan for different stages of technical work, frequently solicit and identify technical assistance and training needs from participating economies, and is developing the structure to meet such needs (e.g. workshops). This capacity building workshop is a part of ongoing effort by the technical group.

TILF/ASF Justification

The Action Plan on the Strategic Framework on Measurement of APEC TiVA under GVCs lays out the objectives and deliverables of the APEC TiVA initiative through 2018. However, most APEC economies lack sound statistical capacity in collecting and generating quality data needed for achieving the goals of the APEC TiVA Database Initiative. As a crucial component of this project, the Capacity Building Program provides focused, action-oriented technical training workshops to APEC economies to address issues concerning data collection, reconciliation, and confidentiality. It also serves as a platform to share best practice and provide targeted technical support. In particular, for developing economies such as Malaysia, Viet Nam and Thailand that are missing domestic input-output tables (IOTs) for certain years; as well as developing economies such as PNG and Peru that need to improve their domestic account statistics or value-added data this capacity building is necessary to achieve the goals of the APEC TiVA Database Initiative. This project will thus provide developing economies with capacity to standardize the process for reconciling trade data asymmetries that will ensure they can be on par with developed  APEC economies.

Beneficiaries and Outputs

Outputs: From October 17-21, 2016, the United States will host a five day workshop in Bangkok: a four and a half day technical training workshop and a half day technical group meeting. On the first day, participating APEC economies will present the progress in developing SUTs or extended SUTs and receive feedback and suggestions from experts. Over the following two days, experts in the field will give lectures on relevant GVC topics, discuss challenging technical issues; and share best practices. The workshop will incorporate perspectives from international organizations such as the ADB, OECD, WTO, and others.

The workshop is designed to:

· provide capacity-building training for members of the technical group;

·  evaluate the data availability based on survey questionnaires by each member economy;

· determine the way to access ADB and WTO/OECD confidential data;

·  determine a common industry, product, and firm type classification, as well as, time coverage;

· help all other member economies understand the framework, route, and method on the construction of SUT/IOT in the work plan; and

·  conduct capacity building for best practices regarding goods and services data collection and reconciliation with trade statistics in domestic account data.

This event represents an opportunity for APEC economies to gain a better understanding of data requirements and methods to construct extended SUTs and IOTs and develop capacity of TiVA measurement and GVC analysis. To augment the capacity-building workshop, the U.S. will conduct a stock taking study to answer the following questions:

1) What is the capacity for developing APEC economies to produce necessary statistics for completing the APEC TiVA database?

2) What capacity has been built and what spill over benefits have been generated for other parts of domestic accounts statistics?

3) What is left to do to advance developing economies’ current statistical capabilities into best practices? 

Outcomes: The capacity building workshop is designed to provide information and skills building to enable APEC economies to overcome technical challenges that prevent them from completing the 2016 and 2017 APEC TiVA deliverables. These deliverables are:

1) Produce SUT/IOT or Extended SUT (or IOT) for each of the APEC economy based on economic census or survey data;

2) Complete the data reconciliation of bilateral Trade in Goods by each member economy of APEC with other APEC economies and rest of the world.

3) Conduct the data reconciliation of bilateral Trade in services by each member economy of APEC with other APEC economies and rest of the world to the extent of available data; and

4) Explore the data collection of profits of multinational enterprises such as FDI flows or other measures of their profits in determining the appropriate allocation of profits to domestic and foreign firms.

The project will have the following impacts on the process of data preparation, SUT/IOT construction, data dissemination, and TiVA calculation and analysis:

1) The workshop will train participants in standardized methods of reconciling data asymmetries across APEC economics in preparation for construction regional SUTs/IOTs;

2) The workshop will teach each APEC economy, according to the international standard approach, how to construct SUTs/IOTs and extended SUTs/IOTs from economic census or survey data following the standard. Constructing these tables according to a common standard is essential because economies must make a series of assumptions when putting the tables together. If two economies make differing assumptions when creating their IOTs, for example, then the resulting output will not be comparable. Therefore, it would be impossible to use these IOTs to construct a regional IOT between the two economies; and

3) The workshop will teach the international standard approach for data collection of profits of multinational enterprises. This is critical because the method of data collection, in part, determines the estimated profits of these firms. Having a common standard for estimating profits is critical because if economies wish to understand where and how multinationals in their economy earn profits, they need to utilize data from the other economies in which the multinational operates. If the economies are collecting the data to estimate profits in a different way from each other, then the estimates, of where and how a multinational earns its profits, will be biased and give a potentially misleading picture to policymakers, who rely on accurate information. 

Beneficiaries: This capacity building workshop would invite experts from developed APEC economies, international organizations such as the Asia Development Bank, OECD, and WTO, academic institutions to provide targeted and in-depth technical training to the participants. 

The participants of the capacity building workshop will be nominated by the participating APEC economies, preferably two members from the Technical Working Team in each participating APEC member economy. They could be the technical officials from statistical agencies, central banks, international economics and trade ministries, or experts from relevant academics or organizations. However, they must currently work in the field that is directly relevant to this APEC TiVA database project, which could be either domestic account (e.g. SUTs, IOTs), or international trade and economic policies, or global value chain analysis. And they must possess some basic degree of knowledge or expertise in above fields. 

Through this capacity building workshop, these participants will be able to expand their knowledge in compiling SUTs and IOTs, calculating TiVA indicators, and applying tools to conduct relevant analysis. They will serve as the key technical experts in their own economies, spill the knowledge to their colleagues, and enhance the quality of their products as well as their statistical capacities. 

Major members of the Core Expert Working Team (mainly from international organizations and academic institutions) as well as the Coordination Working Team, Chair of CTI and Program Director / APEC Secretariat, and leader of FoTC on GVCs will be invited to attend the workshops either as experts or as participants.

Dissemination

In November and December 2016, the workshop organizers will store and disseminate the workshop agenda, official conference meeting minutes, data, technical documents, training material, and technical group report via the Technical Group working website maintained by China on behalf of the technical group. The technical group will submit the report electronically to the CTI. 

Storing all of the data, example SUTs, training materials, methodology documents, conference report, etc. online will allow all economies to submit, have equal access to materials and, at low cost, be able to share this material with their relevant home economy parties for producing SUTs, IOTs, and TiVA statistics. The target audiences are the participants of the workshop, themselves, and the staff in their home economies that are pertinent to the APEC TiVA project. The website allows for both of these audiences to have equal and unfettered access to the resources necessary to complete the 2016 deliverables. Participants will be reminded to adhere to code of conduct pertaining to data usage. 

We have no intention to sell outputs arising from this project.

Gender

The project will ensure a conducive environment is created during project planning and implementation stages to enable the effective representation of the views of both men and women. In particularly, the views and involvement of key women who are subject matter experts will be sought in the research, data collection and generation conducted to develop the APEC TiVA Database. Sex aggregated data will be used where available/possible to inform the project. 

The workshop organizers will ensure that invitations sent to Technical Group on Measurement of APEC TiVA under GVC as well as the Committee on Trade and Investment (CTI) will take due consideration of gender concerns by encouraging the nomination of female speakers and participants.  The call for nominations from economies will place due consideration in ensuring that there are no gender biases in selection of participants from economies and that there are sufficient numbers of women nominated for the event. In addition, the project proponents will ensure that the evaluation forms to be distributed at the end of the workshop will include information on gender for disaggregating of data for project assessment and will help in evaluation of specific responses of women and men. 

The project is currently managed by a team of females and this ensures that gender considerations are taken into careful consideration during all stages of the project.

Work Plan

April 2016: APEC TiVA work plans for 2016 submitted by APEC economies at the end of 2015 will be reviewed and requests for capacity building will be collated along major themes and subject areas. Based on the capacity building requests and additional information that was included in the work plans about potential challenges for completing 2016 deliverables, the project team will draft capacity building workshop agenda and design the syllabus around priority gap areas. The beneficiaries of this activity are all of the APEC economies that attend the October capacity building workshop. 

May - June 2016: The project team will undertake an APEC-wide survey through the APEC TiVA Technical Group to identify training priorities, other technical assistance needs in measurement of TiVA in GVCs across APEC member economies. The survey will collect information from economy representatives to rank a proposed list of topics and to determine the extent to which agenda should focus on each priority topic during the workshop. Responses will be tabulated and the Workshop Agenda will be drafted based on the priority topics identified by the economy representatives. The project team will ensure that they reference the agendas from last year’s APEC TiVA capacity building workshop and the ADB’s current programs in June 2016 to ensure that our agenda does not duplicate topics and sessions already covered.  The project team will also finalize the workshop location. 

June - September 2016:  The project team will partner with the relevant multilateral organizations to identify and invite workshop expert speakers and nominate participants and work to finalize the agenda.. The team will ensure that relevant decision making experts and economy representatives are engaged in the workshop. In inviting economy nominations for participants, the team will issue clear guidelines to for selecting participants based on background knowledge, experience, and technical skills to ensure that attending staff are effective at receiving training at the workshop and transferring this training back to their home teams. 

October 2016: The workshop will take place from October 17-21 in Bangkok, Thailand. The workshop will include four and half days of technical training for participating economies and a half day technical group meeting on the 21st. On the 17th the participating economics will present progress in developing their SUT or extended-SUTs, report remaining challenges and estimated timeline to completion, and receive feedback and suggestions from assigned experts. Over the following three and a half days, experts will provide lectures on relevant GVC topics, discuss challenging technical issues, share best practices, and provide hands-on, focused technical training. In addition to this instruction, the workshop will also include periods for Q&A and roundtable discussions on best practices regarding data reconciliation, data dissemination, and SUT compilation.

On the afternoon of the 21st, the technical group will hold its meeting to summarize the results of the workshop, discuss remaining challenges to completing the 2016 deliverables, and agree on steps to be taken by the next technical group meeting in 2017. The technical group will also write a report summarizing the outcomes of the workshop, the findings of capacity building sessions regarding best practices and the status of each economy’s progress, the remaining challenges to completing upcoming deliverables, and the action items for the next six months. The technical group will submit the report to the CTI and circulate it among the participating APEC economies via a website maintained by China. 

November/December 2016:  In November and December 2016, the workshop organizers will store and disseminate the official workshop meeting notes and technical report via the website maintained by China on behalf of the APEC TiVA Technical Group. The technical group will submit the report electronically directly to the CTI.

Risks

The following are some potential risks that would need to be appropriately managed and mitigated:

1) Standards/quality of outputs – This can be managed by ensuring that the consultant has clear terms of reference for the stock taking study and that expectations on quality and standards are communicated prior to the commencement of the work.

2) Interest in initiative or workshop – This will be managed by engaging CTI members (and other related fora) continuously throughout the different stages of the project.

3) Appropriate participants/experts/quality speakers – This will be managed by contacting speakers early and also actively engaging multilateral organizations (OECD/ADB/WTO) in seeking nominations from member economies for targeted officials and experts with the skills and experience to implement the recommendations put forth in the study.

4) Adoption of recommendations by member economies – The results and recommendations of the workshop will be included in a technical report to encourage participants to promote these best practices in their respective economies. Each economy will have to consider independently whether it is able to adopt the recommendations presented.  In accordance with the APEC pathfinder approach and APEC principles and practices, interested economies that require capacity building assistance to implement the recommendations, will be duly supported.

Monitoring and Evaluation

At the start of the workshop, a brief self-assessment sheet would be circulated for participants’ input and to assess any improvements or increases to participants’ knowledge and appreciation of the subject matter. This would be followed by a questionnaire (at the end of the workshop) to gauge improvements in knowledge and skills as a direct result of the workshop. This will be done with a simple 1-10 self-knowledge rating scale. To assess the extent to which the project is directly responsible for changes in policy initiatives or recommendations in specific economies, follow up surveys will be sent to attendees (six-nine months after completion) to also assess any flow on benefits and knowledge transfers from this project. 

The project overseers will also design and distribute an evaluation questionnaire to be distributed at the end of workshop.  The questionnaire will allow participants be an opportunity to provide qualitative feedback on the workshop agenda, including suggestions for areas of follow up. The project overseers will review these evaluations and finalize the feedback prior to finalizing the workshop report and deliverables. All results will be disaggregated by sex. 

We anticipate between 35-40 participants with likely more than half from developing economies to attend the workshop.

Linkages

This project is a cross-fora collaboration, addressing an issue that requires cross-ministerial, interdisciplinary attention. Currently there is a cavity in domestic statistics of the APEC member economies for measuring GVC activities and where data does exist, the quality remains uneven across the region. While China and United States completed their sample supply use tables (SUTs) and extended SUTs, and presented their preliminary results as well as the methodologies at the November 2015 workshop in Shanghai, APEC economies still need to compile two benchmark their SUTs or input output tables (IOTs), and if feasible, provide extended SUTs/IOTs. The project will build upon the outcomes of previous work including the circulated questionnaire on SUTs and feedback from seventeen APEC economies as well as the assessment prepared by the Technical Working Team (MTWT). The project team will also coordinate closely with experts from multilateral organizations including WTO, OECD, UN and ADB to align with preexisting TiVA related databases.

Sustainability

To the extent possible, the PO will endeavor to engage the same participants in all follow up activities.  As noted earlier, based on the outcomes of the workshop in October as well as the recommendations placed in the follow-on report, capacity building work will identify priorities for 2017. Any gaps in implementation, support needed for beneficiaries to carry forward results and lessons from the project and future actions will be developed as part of this broader initiative. The engagement of the private sector and multilateral organizations, such as ADB, WCO, and OECD, will also assist in leveraging the benefits of this project to ensure sustainability.

Project Overseers

Mr. William Powers is a Chief Economist and Director of the Office of Economics at the U.S. International Trade Commission. Mr. Powers joined the USITC as an International Economist in 2005, and has published on empirical trade topics including trade agreements, trade financing, and global value chains. Mr. Powers holds a Ph.D. in Economics and a Master of Arts degree in Economics from the University of Michigan and a Bachelor of Science degree in electrical engineering from the University of Virginia. 

Ms. Katsiak is Deputy Chief of Party of the US-APEC US – APEC Technical Assistance to Advance Regional Integration (US-ATAARI) and has managed and implemented more than ten APEC workshops over the last three years. She has more than 8 years of experience in trade facilitation and economic development issues, and presently provides program management and technical expertise on ASEAN and APEC programs for USAID. Ms. Katsiak holds an MA in International Affairs from George Washington University.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

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Fax 2

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Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

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