APEC Project Proposal

Project No.CTI 14 2012T
Project TitleRetailing Services - Potential for and Challenges to Enhancing SME Participation in Supply Chains in APEC
Project StatusCompleted Project
Publication (if any)
Fund AccountTILF Special Account
Sub-fundNone
Project Year2012
Project SessionSession 2
APEC Funding84,864
Co-funding Amount21,216
Total Project Value106,080
Sponsoring ForumGroup on Services (GOS)
TopicsServices Trade
CommitteeCommittee on Trade and Investment (CTI)
Other Fora InvolvedNot Applicable / Other
Other Non-APEC Stakeholders Involved
Not Applicable
Proposing Economy(ies)Indonesia
Co-Sponsoring EconomiesChina;Chinese Taipei;Thailand;United States
Expected Start Date14/07/2012
Expected Completion Date31/12/2013
Project Proponent Name 1Dr. Iskandar Panjaitan
Job Title 1Deputy Director for Directorate of Trade-in Services Negotiation
Organization 1Ministry of Trade, Indonesia
Postal Address 1M.I. Ridwan Rais Street No. 5 Block I 7th floor Jakarta 101110 Indonesia
Telephone 162-21-3452621
Fax 1+62-21-3452621
Email 1jbdk-runding@kemendag.go.id / parlinis@yahoo.com
Project Proponent Name 2Not Applicable
Job Title 2Not Applicable
Organization 2Not Applicable
Postal Address 2Not Applicable
Telephone 2Not Applicable
Fax 2Not Applicable
Email 2Not Applicable
DeclarationNot Applicable
Project Summary

The proposed project has the goal of improving understanding on the role of retailing services including the current developments in APEC economies on facilitating supply chain of products. Specifically, it is aimed to examine the role of SMEs in retail services as it is vital especially in developing economies. This expectation will be achieved through sharing experiences and discussing good practices among members of APEC. By exploring how a developed, efficient and effective retailing sector is necessary to support broader economic development, the discussion may show that its development is intimately linked to the transition in many economies from lower income to higher income. 

The Project proposes activities as the following: A Workshop done in [at the margins of APEC GOS 2 Meeting in 2013] in [Indonesia]. Before it is done, a survey will be developed and  distributed to all economies to examine their good practices on developing this sector. A visit to traditional markets as well as other special small retailing shops, besides modern and big retailing ones, will be arranged during the workshop.


The activities will lead the participants to share views and discuss the current trend of globalization of retailing sector, historical experience of its development in more developed economies, the strategic role of SMEs and larger players in this industry and good practices for economies to develop this sector in views of trade liberalization and facilitation. Future work is also expected to be recommended by this project.

Relevance

Retailing services are an important part of each economy and their position in supply chain is strategic in connecting producers to consumers. An effective, developed and efficient retailing system supports the welfare and quality of economies through, among others, price formation and various products availability. This sector plays an important role to economies, and is even the largest industries in some economies in terms of income/ output share, as well as employment, especially in developing economies in the APEC Region. Without prejudice to the positive role of more modern and developed players in retailing services, in many economies, especially developing ones, small and medium enterprises constitute a large portion of this industry. Eventhough the role of modern retail increases as economies develop, the role of SMEs continue to remain important.

Considering this fact, the proposed project addresses to the objective of APEC Osaka Action Agenda(OAA) regarding the service improvement in the region of seeking collective actions in services sectors.

Further, the relevance of this project is to respond to current APEC Leaders’ and Ministers’ guidances on the assessment of supply chain connectivity delivered in 2009 in Singapore and in 2010 in Yokohama. These guidances affirm their intention to accelerate APEC work on strengthening REI in Asia Pacific by, among others, enhancing supply chain conectivity. It was also confirmed a year later in 2010 in Yokohama, where the Leaders addressed impediments to moving goods and services through Asia-Pacific supply chains.

In Russia, APEC set four priorities for its work in 2012. One of these priorities is establishing reliable supply chains. It is expected from this priority that members could discuss and find any outputs addressing and tackling impediments to supply chain. In addition, this year’s work programme could contribute to the improvement of related coordination on supply chain across related stakeholders.

Work on issues related to SMEs have also been strategically reiterated by the Leaders and Ministers in APEC Meetings. In Singapore in 2009, the Meeting stated their intention to support and develop small and medium enterprises inthe APEC Region. APEC Leaders and Ministers also continue to recognize the importance of SMEs by deciding areas of cooperation on the enhancement of SMEs participation in global production chains as stated in their Declaration in Honolulu 2011 under the agenda itemStrengthening Regional Economic Integration and Expanding Trade.


Considering both the critical role of retailing sector and guidance from APEC Leaders, the Project addresses the need of understanding the role of SMEs in the retailing sectors in APEC economies, especially in developing ones, and how to enhance their participation in the supply chain. By doing so, it is expected that this activity provides views of good practices for concerned economies to improve their understanding on how to develop this sector while promoting international trade and investment in this region.

Objectives

 i.       To increase understanding on the role of retailing services for facilitating supply chain of products and on its recent development in APEC Region as well as elsewhere;
 

ii.       To examine the historical patterns of the development of retailing industry in more developed economies in views of the role of small-medium enterprises;


iii.       To explore gains influenced by globalization for retailing sector in an economy including how SMEs have successfully been integrated into modern and competitive retail sector;


iv.       To exchange of experiences on economies’ good practices on developing this sector including their related SMEs in views of modernization of this industry; and


v.       To develop recommendation of good practices on encouraging growth and development of this sector considering both the different level of its development and varying characteristics between APEC economies.

Alignment

The Project aims to address the implementation of the APEC Osaka Action Agenda (OAA) by continuing to seek collective actions in other sectors, which in this instance is the retail sector. As aforementioned, the Project is proposed as a response to Leaders and Ministerial guidances for APEC work especially related to supply chain and SMEs under the agenda of regional economic integration as well as inclusive growth. Justification for this project is also based on at least two APEC priorities for 2012 namely; trade and investment liberalization, regional economic integration and establishing reliable supply chains.

TILF/ASF Justification

The project addresses to the objectivestated in the part of Services of the APEC Osaka Action Agenda (OAA) regarding the service improvement in the region of seeking collective actions in services sectors. In this regard, the services concerned to address is retailing services. It is expected that this project will enhance the understanding of APEC economies on the important role of retailing services and its liberalization and facilitation. By having this, it is expected that the project will contribute views and experiences of good practices of some economies on developing this sector in the framework of market opening and regulations for competition.

Beneficiaries and Outputs

The beneficiaries of this project will be persons from concerned parties to retailing services variedly  from goverment officials, business  and academician/ researchers. These participants are hoped to capture the substance of the project and disseminate them to concerned elements in each economies.

Dissemination

The outputs of the project will be optimally utilized if they are disseminated to widely concerned parties. The committee would assure that the materials and information of the project be available to be accessed by them.

A complete report will be composed and will be offered to all member economies due to APEC prevailing conditions and rules.

Gender

It is expected that there would  be a sound balance of participants in terms of gender. Besides the consideration of each economies appointing its representative, technically, the proportionality of the participants will be arranged under eligibility scheme.

Work Plan

The activities proposed in the Project is a Workshop scheduled to be done in the margins of 2nd GOS Meeting in 2013 in Indonesia. Active participants including women to be invited to join the Workshop will be from from various and related offices and organizations in retailing sector: APEC GOS delegates, regulatory agencies, research and scholars,  professionals, modern retailers who have successfully integrated SMEs into their supply chains and relevant SMEs. In order to have the active and representative participants, conditions related with some criteria such as, among others,  professional position and gender issues will be set up and they will be informed to all economies when inviting candidates of workshop participants.

Selection of topics of the Workshop as well as speakers/ resources persons would be one of very important steps on supporting the optimization of the achievement of the proposed goals. Overall, the following schedules are proposed to guide the implementation of the project eventhough the precise time as well as the place for Workshop has not yet been determined due to the finalization done by the Government of Indonesia as the host for 2013.

Phase 1: December 2012 – January 2013

·       Establishmentand organization of overall committee and committees

·       Coordination with related offices and stakeholders regarding proposed activity

·       Finalization of the workshop topics

·       Identification of speakers/ resources persons

·       Confirmation of venue and selection of suppliers

·       Creation of informative website

·       Establishing  criteria for selection of beneficiaries/ participants

·       Developing a preliminary survey

Phase 2: February 2013- March 2013

·       Invitation to speakers/ resources persons

·       Travel arrangement for speakers and beneficiaries/ participants

·       Information of the activity and its progress of preparation

·       Distribution of the survey to all economies

Phase 3: March  2013 – April 2013

·       Invitation to beneficiaries/ participants

·       Travel arrangement for beneficiaries/ participants

·       Information of the activity and its progress of preparation

Phase 4: May 2013 (itinerary)

·       Workshop in [...] at the margins of APEC GOS 2 Meeting

·       Visit to some retailing locations

·       Identification of best practices/ models of modern retailing industries

·       Short report to APEC GOS 2 Plenary Meeting

Phase 5: June – Agustus 2013

·       Possible discussion of best practices/ models at APEC GOS 3

·       Adoption of the best practices

·       Draft final report

Phase 6: September 2013 – before November 2013

·       Finalization of the Report

·       Submission of post-activity report

·       Dissemination of conference output to participants and other stakeholders

Risks

It is predicted that there would not be disturbing risks so far except that the date and place of APEC GOS 2 meeting are still under discussion by the 2013 APEC Meeting Host.

For other possible problems that may exist will be related to schedule problem of prospective speakers, representative site of visit due to yetundecided the place of GOS 2 meeting as well as possible more challenging topics proposed as feedbacks from participants. Thecommittee should be aware of these possibilities and provide contingency plans.  These risks will be mitigated by selection of the location for GOS2 occurring before the end of 2012, allowing sufficient time to properly organize the event.

Monitoring and Evaluation

The committe will be established  and its related tasks will be formulated to organize the project since its preparation, implementation and to its finalization. The committee will develop a terms of reference (TOR) as a guidance for this purpose.

TOR may cover  a project timetable that will guide the committee to be on track in implementing the project and will ensure that the said phases of schedule will be smoothly done.

TOR also will cover all items of the substance of the project including goals to be achieved and details of topics or themes developed under this goals. These items will be used as a guidance for speakers/ resource persons for developing their papers/ presentation.

General guidance of the Workshop also will be developed for speakers/ resocrce persons of which contains general information  on the execution of the Workshop not only at the time of its implementation but also before arrivals in the place of the Workshop.

The project proponent will regularly inform the progress as well as possible problems to the co-sponsors of this project, all economies as well as for their awareness and responses. This also will also use administartive tools or documents of evaluation provided by APEC Secretariat.

Linkages

This project will be a pioneer in terms of sectoral topic and this will be a special point for collective action plan implementing OAA . It is expected that its output will add the valuable activities to APEC service action plan (SAP). It is expected also the results of it activities will complement previous activities related the general discussions on services, supply chain as well as SMEs.

Close connection in terms of discussion and works of issues with SMEWG is important to achieve the said objectives optimally. Besides the deliberation of project results to this working group, participants whose interests are related with SMEWG are expected to join the workshop.

Sustainability

Selective participants would assure that output of the Project will be sustainably disseminated in each economies. Some outputs produced by the Project may raise issues that could be considered for further discussion in APEC meetings.

Project Overseers

A special committe for this Project will be established by the Ministry of Trade and it will comprise of members from related elements that are government offices, bussiness associations and academicians/ research institutions.

Cost Efficiency

First, it is confirmed at the starting process of proposing that the project itself that is its goals and topics as well as its activities will contribute at minimum as the value of the project. Then, the output of the Project would be optimized if both speakers and participants invited at the Workshop areappropriately connected to the goals and topic of the Workshop.

Finally, the implementation of the Project i.e the Workshop that will be done back to back to the APEC SOM related meetings will ensure the maximum attendance of active participants.

Drawdown Timetable
Not Applicable
Direct Labour
Not Applicable
Waivers
Not Applicable
Are there any supporting document attached?No