INT/Aid for Trade in Central Asia

Description What is done in the programme or project and why, what results are pursued, who benefits from the activities and who are involved in the implementation.

The Development Cooperation Program Aid for Trade, implemented by UNDP, was commenced in 2009, initially covering nine countries in Eastern Europe, the Southern Caucasus and Central Asia. During the phases I-II (2009-2013) country-specific pilot projects were launched in order to develop foreign trade in the private sector, in particular within the agricultural sector. Phase III (2014-2018) focused to the least developed countries in Central Asia, Kyrgyzstan and Tajikistan, and through border trade also to Uzbekistan. The program has achieved good results, and small and medium sized enterprises have succeeded in increasing their exports and creating new jobs. During phase IV of the project (2018-2021) cooperation has continued in Kyrgyzstan and Tajikistan. According to the original plan, Uzbekistan was also supposed to be kept as one target country of the project. Due to the cuts in development cooperation funds, the Uzbek component was excluded from phase IV. The aim is now to reintegrate the Uzbek component into the project and by doing this to develop the country's expertise in trade policy. The aim is also to boost the competitiveness of small local agro-food and other entrepreneurs by improving their product quality and marketing. In addition to increasing exports, the aim is to create decent jobs. Agricultural product development will focus on organic products. Efforts are being made in order to increase the proportion of female entrepreneurs. The extension of phase IV of Aid for Trade to Uzbekistan will support the country's economic reforms and increase cooperation between Central Asian countries. The duration of the Uzbek component of the project is four years (2020 - 2023). The project contributes to Finland's development policy priority II "Strengthening the economic base of developing countries and creating jobs". Finland has financed phases I-IV with approximately 20 million euro. The budget of phase IV in Uzbekistan is 1 215 000 euro.