ASSISTANCE FOR TRA Submitted by: DE REFORM ATR MID-TERM ASSESSMENT February 26, 2004 AID/Egypt Investment Strengthened Under: No. 263-M-00-03-00006-00 Prepared by: ell ade Economist/ATR Assessment Team Leader William Thomas Senior Institional/Management Specialist Abdel Hamid Mahboub Trade Economist Heather Dale ` Development Associates, Inc. Results Reporting Support Activity 20 Aisha El-Taimoreya St., 1st Floor, Suite 2, Garden City, Cairo Submitted to: US Strategic Objective 16 Environmental for Trade and MOBIS Contract No. GS-10F-0185K Task Order Paul O’Farr Senior Tr Evaluation Specialist Development Associates, Inc. TABLE OF CONTENTS 1 ..........................1 2 Pri ..........................4 .............................4 .............................7 Coordination and Outreach .............................................................................................................8 3 ..........................9 ...........................10 4 ri ........................11 4.1 ...........................11 ......................................13 4.3 Task 3 – Institutional Development ..............................................................................................15 hops and Seminars .................................................................................................................................17 visions and ....................................22 5 d ..........................................25 6 Th ........................27 of the goal, ...........................27 and ...........................28 .3 ...........................28 6.4 Budgetary management..................................................................................................................29 5 How has GOE coordination and guidance affected the conduct of the activity? ...........................29 6.6 ...........................29 6.7 esults?...............30 6.8 What modalities have proven more efficient and effective? ..........................................................30 6.9 How has the activity reached out to relevant GOE entities and USAID activities?.......................31 6.10 Sustainability and institutionalization issues..................................................................................31 ANNEXES Annex I List of Interviews Conducted.............................................................................................33 Annex II List of Acronyms ...............................................................................................................35 Executive Summary ............................................................................................ ncipal Findings and Recommendations .......................................................... 2.1 Progress Towards Achieving the ATR’s Objectives .......................................... 2.2 Organizational and Management Issues.............................................................. 2.3 Introduction ........................................................................................................ 3.1 Approach and Methodology Used for Evaluating the ATR Activity ................. P ncipal Findings for Each of the Five ATR Activities ..................................... Task 1 – Establish a WTO Unit .......................................................................... 4.2 Task 2 –Trade Liberalization and WTO Compliance Policies................. 4.4 Task 4 – Organization of In-Country and Off-shore Training Activities, Works 4.5 Task 5 – Implementation of Information Technology Plans for Cooperation Di WTO Unit and Procurement of Equipment and Software ......................... A equacy of Reports and Documentation ....................................... e Effects of Cross-cutting Themes ................................................................. 6.1 Do the MOFT, USAID and the ATR contractor share a common understanding purpose, outcomes and inputs?............................................................................ 6.2 What flexibility exists in the activity to accommodate changes in MOFT needs conditions? .......................................................................................................... 6 What is the influence of organizational and management structures on results? 6. How has USAID’s role affected results?............................................................. How have the composition, management and support of the TA team affected r Final February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 1 1 Executive Summary OFT) under the fforts to support it to manage the opment of more gineering efforts with key units of the MOFT; provide a wide articipating units ’s support in terms of the results expected at the end of the base period as outlined in the activity’s Scope of Work (SOW). Included in this have influenced activities in all ince initiation of n for Export and Import Control (GOEIC), and the Central Department for the WTO (CD/WTO) within the Trade ct, the team has the MOFT and s affecting trade Task 1, the establishment of a WTO unit, was partially completed at the start of the activity with FT approved by h a mandate to re by the Ministry on of a mission the design of alternative ining. The team stipulated in the ort-term actions implemented. The action remaining to be done is the implementation of the final reorganization plan now awaiting Ministry approval. In the meantime, the CD WTO is substantively engaged in coordinating GOE actions that relate to the WTO and providing important information about the WTO to the business community through its website and other outreach programs. In Task 2, Trade Liberalization and WTO Compliance Policies, work has been carried out or attempts were made by ATR to carry out all sub-tasks, and most results for the base period have been achieved. Three of the five assessments of compliance have been completed and ATR is In April 2002, USAID initiated support to the Ministry of Foreign Trade (M Assistance for Trade Reform (ATR). The activity was part of USAID’s larger e the liberalization of trade in Egypt. ATR contained five tasks: Establish a un GOE’s affairs with the World Trade Organization (WTO); support the devel liberal trade policies; complete reen variety of relevant training to MOFT staff; and facilitate automation of the p with information technology (IT) solutions. This evaluation assesses the progress of ATR evaluation are assessments of management structures, reports, issues that implementation and potential sustainability problems. The evaluation finds that ATR has made significant progress in implementing task areas for the three cooperating divisions that have been active with ATR s the activity: the Foreign Trade Policy Sector (FTPS), the General Organizatio Agreements Sector (TAS). While many activities are too new to assess impa seen examples of how ATR has strengthened and improved institutions within assisted MOFT staff to develop policies aimed at improving laws and regulation liberalization and WTO compliance. the issuance of Ministerial Decree #411 (2002). The reorganization of the MO the Decree created a Central Department for WTO affairs (CD WTO) wit coordinate, disseminate, facilitate, and liaise on all matters related to the WTO. The structu and functions of the CD WTO reflected prior reengineering work carried out itself with some input from previous USAID-financed studies. ATR has continued the development of the CD WTO through the preparati statement, the development of a more comprehensive list of functions, arrangements for sub-units, and the provision of a substantial amount of staff tra found that significant progress has been made in carrying out the sub-tasks SOW, with all specific SOW immediate actions and all but one of the sh Final Page I of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 1 deeply involved in the effort to change Egyptian law to enable foreign quality and conformity marks to be recognized in Egypt. MOFT to fully the ATR in policy development work. However, as Task 2 has proceeded, the MOFT gained an appreciation of the skills available in the ATR and is now more fully utilizing the the participating ed and approved hese include comprehensive organization and management structure options for these units. In addition, proposals for TAS are under discussion. Job process reviews omplexity of the products. The s more time than alternative approaches such as Total r developing the articularly in the nal development inars for MOFT ovided or facilitated an impressive amount of training in the base period, which included training 1300 participants in various Masters Degree it refers to as g between ATR highly value this period as essential. ncerning Task 4: d and analyzed. uring the option performance of ating the impact of training should also be a critical activity for the option period. Task 5 entails the implementation of information technology plans for participating units and procurement of equipment and software. In spite of initial delays in the project, ATR has made significant steps towards completion of the majority of Task 5 activities specified in the SOW. Most information technology activities are now on schedule, with procurement proceeding and most major equipment in place. The assessment team has additionally found that in the process of developing and implementing IT solutions for the cooperating units, ATR has been highly The team noted that there seemed to be an initial reluctance on the part of the engage contractor. Task 3, Institutional Development, aims to complete the reengineering for Ministry units. Mission statements, objectives, and functions have been prepar for FTPS, CD WTO and GOEIC. T descriptions for heads of Central Departments are prepared, and two major work (administrative and technical) are underway. Reengineering efforts have taken longer than anticipated due to the size and c units and the need for many discussions and iterations of intermediate reengineering approach itself require Quality Management (TQM) since it employs a top-down sequential process fo participating units. The team feels that more progress could have been made, p area of job descriptions, if the TQM approach, which targets specific organizatio needs, had augmented the reengineering effort. Task 4 entails in-country and off-shore training activities, workshops, and sem staff in topics relevant to their responsibilities. ATR has pr programs, completing over 8,000 days of training, and enrolling 28 staff in programs. In addition to formal training, ATR is rightly proud of what “mentoring.” In the context of ATR, this refers to one-on-one, on-the-job trainin and MOFT staff. MOFT senior management told the evaluation team that they training modality and see its continuation in the option Despite these accomplishments, the team does have two important concerns co how training needs were determined, and how the impact of training is tracke The team recommends that individual training needs assessments take place d period. Additionally, the lack of benchmark indicators for defining what the individuals should be has made measuring the results of training difficult. Evalu Final Page II of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 1 responsive to comments and recommendations of USAID’s Information Resources Management (IRM) reports. also examined extent to which se, outcome and on the need to escriptions, and OW for ATR, a disagreement developed early in the project between USAID and the MOFT concerning the budget and timing of commodity procurement. While this problem has effort has been made in the areas of coordination and outreach, ATR could benefit from more institutional contacts with Egyptian universities and policy centers that ose coordination ograms and the D WTO and the il service. They are employed as ir qualifications. e into the career se these people, s” teaching them nded through the option period. While a more detailed list of recommendations follows this Executive Summary, two are worth highlighting here. First, the organizational development methodology should be less locked in to the reengineering approach. Other methodologies such as TQM should be utilized in concert with reengineering. Second, as the performance of the participation units matures during the option period, a fresh look at procurement needs would be in order, particularly related to GOEIC’s goal to clear imports within 48 hours through accredited procedures. In addition to reviewing the progress in the five task areas, the assessment team several themes that cut across all tasks. Perhaps the most important is the USAID and MOFT share a common understanding of the project's goal, purpo inputs. In this regard, the team found that there has been a shared vision streamline the MOFT, rationalize its functional responsibilities, clarify job d improve skills. However, in spite of an extensive negotiation to develop the S significant amount of not entirely gone away, it is no longer distracting management’s attention from the pursuit of the other key activities of ATR. While a substantial analyze trade policy issues. In addition, ATR needs to ensure that there is cl between its activities and the activities of other USAID export-related pr programs of other donors. Finally, with respect to sustainability, a good portion of the “brains” in the C policy unit in FTPS are not part of the career Egyptian civ contractors so that they can be paid a competitive wage, commensurate with the The team was told that the government was trying to incorporate these peopl civil service, but the process may take three years more. Should the MOFT lo the next generation of MOFT employees will have no supervisors and “mentor and pushing them to continuing pursuing the goals that are core to the ATR. Based on our findings, the team recommends that the activity be exte Final Page III of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 2 2 Principal Findings and Recommendations 2.1 e ATR activity. initial delay in d results. The quire substantial s offered below SOW for ATR. it to play its part trengthening the relationship with WTO, completing the automated work flow processes, and reducing obstacles that impair the smooth flow of imports and exports through the quality control processes. In our view, r the next period will produce measurable improvements for Egyptian exporters and importers. 2.1. 1 – Establish a WTO unit ing terms of the base period tions in the SOW. The final organizational plan for the unit is under review by the Finding ee. Conclusion O and ATR are positioned to implement the reengineering option that is While still on the learning curve, the CD WTO is engaged in all of its functional responsibilities. Recommendation Early in the option period, ATR should prepare a report that identifies all of the GOE committees related to WTO. The report should describe their composition, function and level of activity. Such a report would be instructive for determining if the CD WTO is meeting all of its coordination opportunities. Progress towards achieving the ATR’s objectives This section summarizes the findings, conclusions and recommendations of th Overall, our evaluation found that while start-up problems introduced an implementation, the activity is now on course and producing intende evaluation found no significant shortcomings in the activity which would re redesign for the option period. Rather, our report and the recommendation are meant to suggest areas for refinement and deepening within the basic Important work remains to be done in strengthening the MOFT in order for in liberalizing the trade regime in Egypt. Principal among these are s Ministry’s policy analysis capabilities, improving its management of its exercising the option fo 1 Task Find The WTO unit has been established and is operational in expecta MOFT. The CD WTO is providing secretariat support to the Interministerial Committ The CD WT ultimately approved by the MOFT. Conclusion Final Page 4 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 2 2.1.2 Task 2 – Trade liberalization and WTO compliance policies of the five assessments of compliance have been completed. The remaining two are in process. The FTPS is also providing policy analysis on a variety of issues as needed by the . sessments of compliance that have been completed are well-structured, well￾Recommendation t the compliance Recommendation Consistent with Task 2, expected results #4, undertake a fresh look at procurement needs, hin 48 hours through dited procedures. 2.1.3 Task 3 – Institutional development of the operating divisions working on foreign trade W, albeit somewhat behind schedule. ities have taken longer than expected because of early delays in this component, the complexity of the MOFT organizations, the MOFT’s need to carefully ring itself. Recommendation its approach to 2.1.4 Task 4 – Organization of in-country and off-shore training activities, workshops, and seminars Finding ATR has provided a significant amount of training for personnel at various levels in the cooperating departments and GOEIC. Finding Three Ministry Conclusion The three as written, informative and actionable. ATR should avail itself of every opportunity to assist the MOFT implemen areas that need strengthening. particularly as they relate to GOEIC’s goal to clear imports wit accre Finding ATR is now working in all of the areas envisioned in the SO Conclusion Reengineering activ scrutinize unfamiliar documents, and the stepwise nature of reenginee ATR should incorporate aspects of Total Quality Management (TQM) in institutional development. Final Page 5 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 2 Finding Training needs assessments do not fully assess the skill levels of individual training idates. ing There is no systematic method in place for measuring the improvement in skills as a result of ing. Finding as established viable mentoring relationships with the cooperating departments to chanisms and relationships are in place for ATR to continue facilitating and providing the capacity of ver training programs. fective, particularly in terms of creating a sense of “ownership” of the product in the MOFT staff. ssments should be tailored to identify specific training needs for individuals as ve. Recommendation vement monitoring system should be put in place by ATR in the option period. Recommendation be set up by ATR in mmendation ion period. 2.1.5 Task 5 – Implementation of information technology plans for cooperating divisions and WTO unit and procurement of equipment and software Finding In spite of initial delays, most IT activities are now on schedule, with procurement proceeding and most major equipment in place. cand Find train ATR h provide real-time, real-work capability enhancement. Conclusion The me training, and, in the case of the GOEIC Training Center in Dekheila, build indigenous staff to manage the training process and deli Conclusion As a method of training, “mentoring” has proven to be highly ef Recommendation Training asse compared to the expected training a person in a particular position should ha A skills achie An impact evaluation system to measure the effects of training should the option period. Reco “Mentoring” as a modality of training should be continued throughout the opt Final Page 6 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 2 Finding ATR has been highly responsive to recommendations and comments from USAID ent (IRM) division. The IT task, while initially a contentious issue for all parties, is now contributing to ATR's evelopment and trade policy reform objectives. ATR's scope of work states that the contractor shall “establish an operational computer network linking the cooperating divisions under this task…” ATR has prepared a proposal d be incorporated into the option period workplan. 2.1. The initial dispute over IT procurement delayed progress during the first six months of the and has brought us far are fragile s. USAID should approve the option period in order to complete and institutionalize the work t the continued catalytic assistance of the ATR, there is likely to be some erosion of gains made through reengineering. In addition, there is essential remaining within the MOFT to strengthen skills, institutionalize coordination and goals to be met. 2.2 ing t and functional proved in 2002. The ATR is located within the office complex of two of its principal clients and has good access to the others. Finding The Project Coordinator and Steering Committee are operational and have kept the activity from being “captured” by any of the constituents. Finding There is substantial documentation for all of the ATR activities. Information Resources Managem Conclusion institutional d Recommendation for this and this activity shoul 6 Overall conclusion regarding progress activity. However, ATR made a good effort to accelerate activities in 2003 the activity close to being on-schedule. Nevertheless, the achievements th due to the lack of operational experience and the need for stronger staff skill Recommendation started in the base period. Withou work redirect approaches from “control” to “facilitation” in order for the activity’s Organizational and management issues Find The overall organizational structure of the MOFT, including the placemen responsibilities of the CD WTO, was ap Finding Final Page 7 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 2 Conclusion The structure of the MOFT is efficacious to achieve MOFT and the ATR activity goals. ion The ATR is organizationally and physically well positioned to deliver assistance to all of its ggestion was made to the evaluation team that the MOFT was considering moving all or ly Street office. This suggestion should be resisted for the option period. 2.3 ing place but are not outreach to other USAID activities and to the larger Egyptian research community has not yet been fully established. he English and Arabic versions of the CD WTO website are completed and the English is up and running. There is little written documentation describing the activity’s relationship with other donor Conclusion period is important for facilitating the development and institutionalization of ctivities and the . Recommendation ATR should develop and maintain an institutional liaison with other related USAID activities (particularly ACTF) and Egyptian policy research centers such as the ECES. Recommendation ATR or the CD WTO website should report on the activities of other donors and the cooperation, if any, among programs. Conclus constituents. Recommendation A su part of the ATR to the Ad Coordination and outreach Find Linkages and coordination within the GOE on WTO issues are generally in yet fully effective. Finding ATR’s linkage and Finding Both t version Finding activities. The option GOE coordination. Conclusion ATR could benefit from greater linkages and interaction with other USAID a Egyptian research community Final Page 8 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 3 3 Introduction le for the private lopments have given rise to new domestic political imperatives, including wider participation in decision-making, a solid pr id1 As a result of its s its economic growth, and to a large extent public welfare, dependent on its success in expanding its trade within the et realities rather . Foreign Trade (MOFT) and he is pursuing a significant agenda to open new markets, engage in international trade e internationally modernize and ng trade. te interests are to place Egypt in the leadership role of the Pan Arab Southern Africa is in discussions with the EU and ressively engage in the formulation and negotiation of the international rules of trade. On the table at this time for intellectual ance with WTO O with regard to xporters. At the pears to have taken appropriate actions to resolve a textile trade dispute with the United States that was referred to the WTO for formal consultations. In 2002, the Minister accomplished a reorganization of the MOFT to rationalize functions, improve competence and institutionalize coordination. It is this aspect of reform that is the goal of the Assistance for Trade Reform (ATR) activity. Specifically, the ATR activity is designed to reshape attitudes and perceptions, further the reorganization and improve staff skills in both policy and technical areas. USAID has requested this evaluation to assess ATR’s progress in this regard. “Economic deregulation, progress toward a market economy, a growing ro sector, greater integration in the global economy: all these deve o-reform consensus, and a stable policy framework.” — H.E. Atef Ebe The Prime Minister’s statement provides the context for ATR activities. fundamental shift in national economic policy, Egypt now make increasingly global economy. This requires Egypt to respond to world mark than just the pressure put on by the IMF, the World Bank and bilateral donors A key member of Egypt’s reform leadership heads the Ministry of conventions, particularly the World Trade Organization (WTO), ensur accepted standards of product quality and safety to protect consumers, and streamline the government’s institutions involved in facilitating and overseei To expand trade, the Minister’s immedia of creating a free trade zone for the rest of Africa. Egypt is now a member Free Trade Agreement (PAFTA) and the Common Market of East and (COMESA). The Ministry is negotiating an agreement for West Africa and with South Africa. In addition, Egypt has initialed a Partnership Agreement seeks a free trade agreement with the United States. In international organizations, particularly the WTO, Egypt is seeking to agg is the preparation of positions for the trade agreements being developed property and for government procurement. Egypt is largely in compli requirements on other matters and successfully defended herself in the WT the remedies she imposed in the anti-dumping case against Turkish rebar e present time, Egypt ap Final Page 9 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity 1 Investing in Egypt 2004, a publication of the Ministry of Foreign Trade, Cairo, 2002. Development Associates, Inc. Section 3 3.1 Approach and methodology used for evaluating the ATR activity ary 18, 2004 to the final report. an institutional team critically work plans and nts and policy ents. Members of the team interviewed MOFT officials, USAID managers, ATR staff, private sector also visited the lexandria. The authors of this report would like to apologize for the heavy use of acronyms. While this is a common problem in government reports, the subject of foreign trade seems to have more than its fair share. (See list of acronyms in Annex II). This evaluation was conducted during a two-week visit to Egypt from Janu January 29, 2004. A final week was spent in country to prepare the draft of The evaluation team consisted of a senior economist Chief of Party, management specialist, a local trade economist and an IT evaluator. The reviewed a large sample of the key documents produced by ATR, including progress reports, reengineering proposals, training plans, IT assessme documents such as the assessments of compliance with WTO requirem representatives, and other knowledgeable observers. Members of the team training facility and inspection laboratories of GOEIC at Dekheila port near A Final Page 10 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 4 Principal Findings for Each of the Five ATR Activities 4.1 cribes approximately 11 sub-tasks grouped under two headings for the base period. The option period was intended to strengthen the WTO unit’s ional structure and responsibilities 2) Procedures and guidelines are set for the GOE to follow when dealing with WTO ce. to “…assist the sponsibilities are ed in 1999 and f 2002. This Decree was issued shortly after the ATR contractor was mobilized. Thus, the reorganization of the D WTO) reflects t from USAID￾y (DEPRA) and rm (TAPR). unit is to “…be ination between f the unit would onal notification ial Decree #411 ial Decree #226 of May 19, 2003 and Ministerial Decree #193 of April 24, 2003) is a Central Department whose mandate is primarily the WTO. The ng three General Departments (Goods, Services including IPR, and Trade Negotiations within Rounds), which relies on other offices within the MOFT and elsewhere in the GOE to prepare essential policy and strategy documents, negotiate treaties and represent the GOE at the WTO. Its director does not report directly to the Minister (except informally). The functional responsibilities of the CD WTO are in broad agreement with those suggested by the USAID-financed advisor provided by TAPR under the Bridging Activities. They also conform to the experience of other countries as reported by the same advisor. Task 1 – Establish a WTO Unit For this Task, the ATR SOW des performance. The main expected results were: 1) The WTO is established with the appropriate organizat 3) Inter-ministerial communication and coordination system is set in pla Task 1 of the Scope of Work (SOW) for the ATR requires the contractor MOFT with the establishment of a WTO unit…” whose functions and re subsequently described by the Task. In fact, the WTO unit was organiz established as a Central Department (CD) by Ministerial Decree #411 o MOFT, including the establishment of the Central Department for WTO (C prior reengineering work carried out by the Ministry itself with some inpu financed studies under the Development Economics Policy Reform Activit the Bridging Activities managed by the Technical Assistance for Policy Refo The SOW for ATR called for a WTO unit that is largely self-contained. The responsible for the formation and execution of trade policy, the coord ministries, and the negotiation of trade agreements.” Further, the head o “…report directly to the Minister,” and the unit would “…serve as the ‘nati agency’…” What emerged from the reorganization described by Minister and two subsequent amendments (Minister coordination, dissemination, facilitation and liaison on all matters related to CD WTO is a second level office within the MOFT containi Final Page 11 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 Under Decrees #411, #226 and #193, the notion of a “stand-alone” unit gav functionally specialized distribution of responsibilities throughout the MOFT attention paid to integrating work products for topical purposes and coordi among the various departments. Thus, trade policy, such as the asses compliance required by the DSP, is carried out by the policy unit of th Policies Sector (FTPS). Similarly, the cognizant office for notifying the WT Technical Regulations is the Egyptian Organization for Standards (EOS) un of Industry. While the ATR SOW outl e way to a more with significant nating activities sments of WTO e Foreign Trade O of changes in der the Ministry ined a somewhat different unit, there now appears to d functions now eral parameters ures for the CD ts established by the substantive ically through a of the Bridging ntral Agency for e favored by the quire substantial it is to be the option installed. In our conversation with senior MOFT officials, there seemed to be some reluctance on their part to reengage with the e #411 and then B.2 (Upon the awaits a MOFT ing, substantive orked on issues liberalization on y in government OW Immediate ll, except B.2, of the Short-term (years one and two) actions. The O appear to be ointed out a few e resolved upon on, adherence to procedures is likely to improve as the relatively new CD WTO staff gain more experience in their jobs and develop routine relationships with other elements of the MOFT and counterparts in other Ministries. The two principal preoccupations of the CD WTO appear to be coordination and the provision of information about the WTO. In this regard, they have become the effective “kitchen” for the Inter-ministerial Committee. This committee, which goes by various names in different documents, includes private sector participation in the form of a representative of be general agreement in USAID, the MOFT and ATR that the structure an being developed for the CD WTO are appropriate. The ongoing ATR reengineering efforts for the CD WTO are within the gen of this approved reorganization. ATR has proposed alternative sub-struct WTO. One fleshes out the responsibilities of the three General Departmen Decree #411. Another reconfigures the General Departments so that responsibilities are unified under one General Department, but managed top structure of “desks”. The concept of “desks” builds on the recommendation Activities advisor. The first alternative would not have to be sent to the Ce Organization and Administration (CAOA) for approval and may therefore b MOFT. The second may need CAOA approval and if so, will likely re dialogue and patience if CAOA so quickly after having their reorganization plan approved by Decre amended by Decrees #226 and #193. Thus, completion of the SOW’s approval of the MOFT, implement the organizational plan for the unit) now decision on which option to pick. While internal MOFT discussions of the reengineering options are proceed work of the CD is ongoing and ATR is engaged in its support. ATR has w relating to negotiations on services and agriculture, prepared assessments of services sectors, and provided intensive mentoring on IPR and transparenc procurement issues, among other. ATR has carried out all of its specific S (year one) actions and a procedures and guidelines needed by the GOE in dealing with the WT understood and followed, although the assessment of compliance studies p areas that needed strengthening. To some extent, these problems will b completion of the on-going Automated Work Processing effort. In additi Final Page 12 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 the Federation of Egyptian Industries (FEI). While the committee is a forum issues within the GOE, the private sector’s participation was nominal at f because the FEI had limited knowledge of the WTO and the implications o negotiations and agreements for the business community. As they became a to voice their views directly to the MOFT, rather than relying solely on thei committee. This approach was taken for several reasons. First, it is more traditional methods by which the private sector addresses the government to is heard. Second, the FEI feels for working out irst. This arose f the multilateral ware, they chose r presence on the in keeping with insure its voice that the Commodity Councils within the MOFT were partly uld they not like told us that the it sponsored for e CD WTO briefed the businessmen. Their presentation was described as extraordinary in terms of the information provided and FEI told us that cularly given the with ATR support, that is very informative, although for technical reasons only the English version was operating during out ral awareness of 4.2 Ta compliance policies For this Task, the ATR SOW describes approximately 19 sub-tasks grouped under five ve to trade liberalization and WTO compliance (base and option periods) the WTO (base ) ore transparent, (option period) period). Progress reports, documents and conversations with MOFT and ATR personnel indicate that work was carried out or attempts were made by ATR to carry out all of the sub-tasks. However, in terms of results, only numbers 2, 3 and 5 were expected at the end of the base period. Result 2 was achieved in that the assessment was completed and the WTO was notified. But the assessment noted that Article 19 of the Customs Law 63/1963 does not address the comprehensive non-preferential rules of origin. The assessment suggested that the GOE should adopt and implement the WTO harmonized system for non-preferential rules established to provide the MOFT with an alternative private sector view, sho the position being developed by the FEI. With respect to the CD WTO’s efforts at outreach, the FEI’s management organization’s activism on WTO issues is a direct result of a workshop members at which two young professionals from th the interest of the members that they elicited. The Deputy Director of the they had never expected that government staff could be so captivating, parti tedious nature of international trade negotiations and agreements. The CD WTO also manages a website, developed visit. In addition, as in the case of the FEI, it is reaching out to improve gene the WTO. sk 2 – Trade liberalization and WTO headings. The main expected results were: 1) An economically rational policy framework that is conduci 2) The Egyptian Rules of Origin is developed and notification is sent to period) 3) Clearly defined export promotion policies and strategies (base period 4) The conformity assessment procedures practiced by GOEIC are m clearly defined, and consistent with international norms and practices 5) Egypt makes significant movement towards WTO compliance (base Final Page 13 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 of origin. Although follow up of this finding was expected to occur in the b not yet been completed because the WTO itself has not yet adopted a f preferential rules of origin. Progress report 3 (April 2003 – September 2003 ase period, it has inal set of non- ) points out that while the ATR wanted to work on this issue using an interim set of rules, the MOFT upport the development of an ATR’s assistance d. WTO agreement nt areas of non￾e areas needing improvement. These include revising a few procedural regulations related to anti-dumping essibility to the ations related to ve. ion periods). A t to be based on ed” the policy approximates a was the cause of tudies (Rules of expected result. tions will improve the policy framework and will be one signal to the public and trading partners that Egypt is committed to trade full partner in a the specific tax requirement that arnings to banks assistance were materials. For e WTO, reviews of the existing policy framework, and suggestions for policy in light of Cancun and other international meetings, among others. While the earlier works informed policy formulation, the actual preparation of policy positions and the evaluation of their impacts were confined to GOE personnel. The assessments of compliance were somewhat of an exception because they were first seen as more important to USAID than the MOFT. Thus, in these three cases, the evaluation team was told that the MOFT contributed approximately 20 percent of the effort while ATR did the rest. This situation appears to have changed in the latter half of the period as the MOFT now has a greater appreciation of the skills and facilities available in the preferred to wait until the final rules were adopted by the WTO. Similarly, for result 3, while ATR was collecting materials to s export promotion strategy, the MOFT indicated that it was not interested in in developing a strategy at this time. This was postponed to the option perio With regard to result 5, three of the five assessments of compliance with the were finished. The findings are, in general, positive and show no significa compliance. The ATR is providing follow-up assistance to resolve thos investigations and determinations, improving public awareness and acc procedures and forms for anti-dumping claims, seven specific recommend Technical Barriers to Trade, and the Rules of Origin follow-up mentioned abo Expected result 1 is broad and long run (encompassing both base and opt determination regarding its achievement may ultimately be subjective. Is i minimum compliance with the WTO agreements? Or, how “reform framework is compared to a period in Egypt’s recent past? Or, how close it liberal trade regime such as Singapore? Or, whether the policy framework the growth (or lack of growth) in trade? Clearly, the three assessment s Origin, Technical Barriers to Trade, and Antidumping) are important to this Implementation of follow-up recommenda liberalization. However, the ATR was not invited by the GOE to be a number of policy developments and it is clear that certain measures such as on textile imports issued in early 2003 (rescinded in January 2004) and the exporters and tourist companies sell 75 percent of their foreign exchange e contradict the movement towards trade liberalization. In the first half of this twenty-month activity, the MOFT’s requests for policy restricted mainly to training in analytical techniques and the gathering of example, the ATR prepared 15 papers related to Egypt’s obligations under th Final Page 14 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 ATR and has become comfortable that the ATR is assisting their agenda rather than writing and dictating policy in isolation. enable foreign this policy will is required. In E’s government ent procurement. Through rong in this area gypt. OFT originally ) was limited to consultant firm. for MOFT staff riticism in one or more of these studies were the current counterparts themselves. The modus operandi of the ATR as facilitator, mentor and source EPRA approach creasingly being ation. As in the were pervasive, tries would be in ould expect the lations until the r. In particular, strategies and positions to be taken in negotiating international agreements will likely remain generally hidden from the until the GOE emain for some a. Clearly this e ATR with its fter Decree #411 was published. arries over to the option period, MOFT officials seem to be an development assistance provided to GOEIC. ATR’s collaboration with USDA to develop the Meat and Poultry Laboratory was particularly valued. This package of assistance, from their perspective, addresses one of the most important obstacles to trade, namely, the need to improve the facilities, staff skills, timeliness and the credibility of inspections. 4.3 Task 3 – Institutional development For this task, the expected results were: Currently, ATR is deeply involved in the effort to change Egyptian law to quality and conformity marks to be recognized in Egypt. If adopted, dramatically reduce the amount of conformity assessment activity that addition, ATR has provided training to the staff of the CD WTO and the GO procurement organization on the issue of transparency in governm that training, these staff members came to realize that Egypt’s law is very st and that engaging in WTO-related negotiations on this issue would benefit E We were given several explanations for this change. One is that the M distrusted the motives of the ATR because the previous project (DEPRA providing studies done by outside experts. It was also managed by the same Not only did the MOFT feel that DEPRA was a missed opportunity development, but the objects of c of skills training, is now seen by the MOFT as diametrically opposite the D and consistent with their needs. Thus, we were told that the ATR staff is in brought into the policy formulation process. A second explanation arises from the confidential nature of policy formul US, the GOE has internal rules of confidentiality. In the past, these preventing any outsider from access to data and papers, which in most coun the public domain. While significant improvement has occurred, one sh MOFT to keep confidential the development of policies, strategies and regu government has reached agreement on the matte ATR and other providers of assistance who do not have security clearance decides to make them public. The legacy of internal secrecy is likely to r time to come, even on matters that are not in the policy or strategy aren behavior was evident in the unwillingness of the MOFT to provide th reorganization plans until a With regard to result 4, which c quite satisfied with the hum Final Page 15 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 1) Reengineering efforts are completed for the cooperating divisions (base and option periods) (base period) 3) The reengineering plans for the CRS and GOEIC shall reflect the GOE’s trade the cooperating ission and goals; (base and option periods) ing divisions are s) rocedures and defined responsibilities as related to export promotion (option period) hat enable it to d and are under er the ATR SOW except for the ivity for most of program. The ior studies were ement structures nts to functional o the size and iterations and to institutional use of USAID’s Reengineering nd effectiveness. of the organization and works down. That is, mission statements must precede functional statements which must precede job descriptions. Given the entrenched nature of the Egyptian bureaucracy and the immediate counterparts’ different assessment of needs, the organizational development aspects of ATR were slow. Had a Total Quality Management (TQM) approach, which is not sequential, been taken, technical assistance could have been more focused earlier in the period on the key areas which needed organizational strengthening. A TQM approach may have made more sense given the extent of reengineering embodied in Decree #411 and the MOFT’s reluctance to go back to the CAOA with another revision of its structure. 2) Practical tools are in place for FTS staff to analyze trade-related data liberalization reform agenda (base period) 4) Procedures, guidelines and manuals will be developed for use by divisions to attain their new m 5) The research capabilities of economic researchers within the cooperat enhanced (base and option period 6) CRS has an established system for work p 7) GOEIC has defined organizational structure and responsibilities t participate in a liberalized trade regime (option period). Reengineering proposals, including structural options, have been prepare discussion for all of the units of the MOFT included und Egyptian Commercial Service (ECS). The ECS removed itself from the act the base period but is now in discussions with ATR to rejoin the documentation indicates that the relevant laws, decrees, regulations and pr consulted and informed the preparation of the proposed reengineered manag and functional responsibilities for the FTPS, TAS, CD WTO and GOEIC. The process of moving from organizational assessments to mission stateme statements to organization options was lengthier than anticipated due t complexity of the units, particularly GOEIC, and the need for many discussions of the intermediate products. In addition, ATR’s approach development may have been made more difficult (and less effective) beca use of the term “reengineering” and the encouragement of this approach. requires a sequential approach to improving an organization’s efficiency a It starts from the most encompassing descriptions Final Page 16 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 The above is not to imply that the participating units of the MOFT did not benefited from the development of mission statements intrinsic to reengin certain specific problems, particularly at GOEIC could have been addresse through a TQM approach. While reengineering and TQM are rivals in acade combined on the ground. To some extent, without k need or have not eering. Rather, d simultaneously mia, they can be nowing the name, the MOFT may have been arguing for the TQM approach, although this may have been masked by their drawing sion statements, , and GOEIC. n and are under el. Job descriptions of heads of Central Departments are nsibilities, since e head of the CD nt of the annual prepare an anti￾dumping case). These activities are significant in themselves to efficiency improvement. ze that the kinds for their needs. the participating tivity. utcome requires In the Egyptian , is essentially a a 7,000-year-old its structures, statements and onal statements is a major achievement. That they now welcome further assistance in organizational development is a major achievement. Attitudes of the management of departments have changed and this change is captured by the Minister’s decision that the “C” the man on the street may “certification,” or the assurance of quality, is a far more responsibilities than “control” of trade. While the design and implementation of this activity has been difficult, the process can take credit for making this possible. 4.4 Task 4 – Organization of in-country and off-shore training activities, workshops, and seminars For this Task, the expected results were: the battle line between the approaches in terms of IT equipment. Despite these conditions, the project did achieve some milestones. Mis objectives and functions have been approved by FTPS, CD WTO Comprehensive organization and management structure options are writte discussion at the senior ministry lev prepared. These job descriptions have focused on management respo previously job descriptions had paid little attention to these concepts. Th WTO has found this to be extremely helpful. Two major work process reviews are underway: administrative (developme work plan for the Central Departments) and technical (the steps needed to But they are also valuable exercises in helping the participating units reali and amounts of IT equipment and software procured thus far are adequate While not yet ready to fully give up their desire for more IT equipment, units now appear satisfied that their immediate needs have been met by the ac As a final comment, whether one reengineers or applies TQM or both, the o that one have the capability and the freedom to “think outside the box.” context, this is very difficult. A key variable, the number of employees given. Further, the pride Egyptian bureaucrats have in their membership in bureaucracy offers a real challenge to anyone who suggests modifying processes and mandates. That the participants have accepted new mission functi in GOEIC be changed from “Control” to “Certification.” While not appreciate the difference, accurate description of GOEIC Final Page 17 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 1) Technical capacities of the cooperating divisions and the newly established WTO unit is elevated (base period) eriods) roved (base and of MOFT staff are FT’s capacity to promote Egypt’s rights in WTO is enhanced (option period). ated through ATR so far in this project is 2004 Briefing Notes identify the following achievements: Over 1300 participants in various training programs rs) of training ee programs s 6) Ministry staff given day-to-day mentoring. ntil five months ally agreed upon e two important determined and ing. With regard to the need for training and how it was determined, ATR identified “possible training needs” in the November 2002 HR Review and a proposed program of training interventions in the ATR/DT2 Training Plan 2003. The genesis of these needs was less than optimal because of a convergence of factors. When the project began, ATR had to balance the administrative needs of DT2 (which was funding much of the training) with the desires of GOE counterparts. DT2 required a significant amount of lead-time in order to arrange for training, meaning that ATR had to move forward quickly in identifying possible training are improved (option period) 2) Private/public awareness in respect to trade and WTO issues 3) Negotiation skills for MOFT staff are strengthened (base and option p 4) Skills used in economic modeling and quantitative analysis are imp option periods) 5) Analytical, writing & reporting as well as management skills strengthened (base and option periods) 6) MO The amount of training provided by or facilit impressive. The Project’s January 15, 1) 2) Over 8,000 days (25 person-yea 3) 28 staff enrolled in Masters Degr 4) Over 50 Ministry staff enrolled in other diploma or certificate program 5) 47 people provided with overseas training This is all the more impressive given that the workplan was not approved u after the project began and there were initial difficulties in establishing mutu priorities for project activities. Despite these accomplishments, there ar concerns we would like to raise. The first concerns how training needs were the second is the “so what” question, or what has been the impact of the train Final Page 18 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 needs with less than optimal input from counterparts. Because of this, A between the desires of the counterparts and the administrative needs of conversations with the counterparts produced the 2003 plan. GOEIC had a lot m TR was caught DT2. Further ore specialized training needs and one ATR staff person worked closely with GOEIC, but did not A short-term consultant report prepared in February 2003 took issue with the earlier plans on a num ng for sp ement heavily towards recisely that in pabilities and knowledge, and when the newly-informed or skilled employee returns to the ompromising wledge attained nly interested in th sustainability. individual needs TR did prepare he training plan situation, is that ition did not yet . The process, es for people in ever, given the the project, this approach was probably the most expeditious. With the exception of language courses, there o determine the C did state that he program. We g program more responsive to actual needs, but also for placing individual development within the rubric of institutional development. In his February 2003 report, the consultant also mentioned the lack of benchmark indicators for defining what the performance of individuals should be. This lack of benchmarks has an important impact on assessing the “so what” of training in any quantitative way. In other words, it is difficult to say if individuals have improved their performance if there is no standard by which to measure them. Ministry representatives agreed in the interviews we do an independent assessment. ber of points. For example, it said: The list of technical traini ecific individuals is very thin on “manag tools” training themes. The risk of weighting the training so individual technical training interventions for specific individuals is p doing so, the Project will end up improving individual technical ca workplace, he/she will be going back to the same system which is c his/her performance in the first place, despite the new skills and kno in training.2 The question pertaining to the purpose concerns whether the activity is o training individuals to meet immediate needs or is it also concerned wi Generally, there seems to be little evidence of a needs analysis based on the of persons holding specific positions and competencies required, although A an individual skills assessment for the CD WTO and used it to formulate t that is currently being implemented.. One difficulty, which may explain this good job descriptions used for identifying core competencies for each pos exist, as identified by the author of the February 2003 report cited above therefore, seemed rather “menu-driven.” That is, typical training cours similar positions are identified and then established as needs. How requirement to take advantage of DT2 training funds in the early months of is little evidence that trainees are assessed or “pre-tested” in any way t appropriateness of their taking a certain course. The Director of GOEI individual training needs assessment would take place in the option year of t concur that this would be a critical activity not only for making the trainin Final Page 19 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity 2 ATR document, “Proposal for Training Interventions”, February 2003. Development Associates, Inc. Section 4 conducted that the training had been beneficial to their staff members, but specific cases. Further anecdotal data included the comments of one shor who returned in 2003 to work with a group he had did not identify t-term consultant assisted in 2002 and found them asking option period. It of the project. It project and the d. For example, be collated and uld be assessing mple times after A third way to assess impact would be to coordinate data tracking with the ting departments oward the end of ccess by various the art computer d and equipped its name and its i.e., experiential ents reviewed, a turing. There is describing when approach to the y will come.” In oach may be the most realistic, given the level of other HR systems and ed to bring their techniques, and e the center self￾ourse would be Arab Academy, mber of sources, sources. During our tour, for example, we looked at a USDA-produced self-tutorial CD for use by grain inspectors. In this case, the inspection lab was set up so that an individual could practice the steps of the inspection on the actual equipment portrayed on the CD. While the personnel showing us the training centers were knowledgeable in the use of the equipment for self￾paced learning, we hope that capacity is being transmitted to students. One striking omission in the training plans and materials was a significant emphasis on industrial health and safety. We recognize that the most immediate training need is that much more sophisticated questions than they had before training. Evaluating the impact of training seems to us to be a critical activity for the will provide both the GOE and USAID with a clearer sense of the efficacy would take coordination with the institutional development efforts of the compilation of some benchmark data in the early stages of the option perio the English language proficiency levels for individuals within the groups can compared with levels after the training. Even more to the point, however, wo work processes in terms of the amount of time required and comparing sa training. customer satisfaction surveys being prepared. Using data from the coopera in the ATR project as benchmarks, these customers could be sampled again t the project. The establishment of the Dekheila Training Center was cited as a project su sources and it certainly is an impressive facility. It contains a state of training room and a computerized language laboratory. A well-appointe “lecture” room contains state of the art audio-visual equipment as well but physical layout belie a knowledge and use of adult education techniques, exercises. However, their use is not precluded. In some of the docum proposed Training of Trainers contains modules on facilitation rather than lec a detailed strategic plan for the center but the details seem to stop before training will be held and who will attend it. This raises the issue of the development of this facility, which seems to have been “if you build it, the this case, this appr processes in the MOFT. There is a training plan for 2004 based on the ne staff up to speed on English language ability, computer skills, inspection especially the management of such a facility. One long-term goal is to mak sufficient with respect to providing training. The Training of Trainers c essential for this objective. At present, the center is using resources from the AUC and other groups. In terms of training resources, this center has access to materials from a nu including other parts of the MOFT as well as other GOE agencies and US Final Page 20 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 inspectors be qualified to meet accreditation standards, but in the labs we vis noticeable absence of eye, ear, and other protections for working in poten areas, such as those employing chemical or radiological equipment. If thi ited, there was a tially hazardous s concern is not treated in separate training, hopefully it could be integrated into equipment procedure ining Center but asured on their edge and skills or what remediation might be available if a person were deemed to have “failed” a course. This bears further attention from ATR in the option period GOEIC’s goals lls “mentoring.” erson within the ot just technical ore one-on-one, management of cooperating divisions. The manager of the CD WTO particularly mentioned its value and it is clear from observed interactions that he is working closely with ATR staff. Another at more work is s to be a natural ual development new head of the or ATR. He is ld also welcome provided a plan step. This is a y important contact point for impacting future Egyptian Ministry and diplomatic personnel. The director recalled some of his early training and development experiences and e a similar long￾ng experience in , we recommend s suggestion. Also, since these personnel would be new￾hires, the approach provides a “tabula rasa,” as it were, for development initiatives within the scope of ATR. ADS 253 says that in training plans, “distance learning must be investigated and utilized to the fullest extent possible.” Given the hardware already in place at GOEIC’s Dekheila Training Center as well as at the MOFT in Shoubra, this option should certainly be explored in the option period. This would offer more flexibility in training, especially given the time demands on personnel cited by the CD WTO. training, as is done in similar facilities elsewhere. We did see examples of certificates granted for training by the Dekheila Tra did not receive satisfactory answers about how participants were me acquisition of knowl since it directly relates to the capabilities of inspection personnel and impacts to reduce inspection times. In addition to the formal training, ATR is rightly proud of what it ca Although not referring to what this term normally implies (a senior p organization taking an employee under his or her wing and providing n guidance but also an appreciation for the organizational culture), but rather m on-the-job training, it has nevertheless proven effective in the minds of the the manager did mention that he would prefer to see the focus shift a bit so th done by his staff with review by ATR than vice versa. This would seem to u progression as more competency-based training is integrated into individ plans. The situation with regard to ECS and training bears special note here. The Commercial Representation Service seems to be a very viable client f particularly interested in developing the performance of his people and wou help around developing the structure of the organization. ATR has already for delivery of initial training and it seems that this will be a good first particularl the positive view it gave him of the host country. He feels there would b term benefit to the US if his commercial representatives had a similar traini the US. Since the bulk of the assistance to be given to ECS is yet to come serious consideration of the director’ Final Page 21 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 4.5 Task 5 – Implementation of information technology plans for cooperating nd procurement of equipment and software 1) IT system is established in the cooperating divisions, within the budget limit (base and software) is ds completion of gy activities are place. ating units, ATR D’s Information Resources Management (IRM) reports. For example, in December 2002 IRM evaluated the commendations.3 ing addressed by mmendations for development of a network-based aring, and access ns with standard a trial basis in January 2003. While the Arabic version of the website has been ready since November, difficulties with the FTPS server have delayed launch. ATR has submitted a S. This website nd relevant trade e staff from CD WTO who are now responsible for maintaining and updating the content of the website. and updated by Within GOEIC, ATR is assisting in the establishment of the Dekheila Training Center, the Duty Drawback and Temporary Admissions System and the Trade Service Center. At the Dekheila Training Center, site preparation and procurement were completed in September divisions and WTO unit a For this Task, the expected results are: and option periods). 2) The usage of IT is increased and the established IT system (hardware improved in the cooperating divisions (base and option periods). In spite of initial delays in the project, ATR has made strong moves towar the majority of activities specified in the SOW. Most information technolo now on schedule, with procurement proceeding and most major equipment in In the process of developing and implementing IT solutions for the cooper has been highly responsive to comments and recommendations of USAI Duty Drawback and Temporary Admissions system, and issued 16 re When IRM returned in July 2003, 14 of the 16 recommendations were be ATR. The evaluation team has found similar responsiveness to IRM reco the other IT activities. In the CD WTO, ATR has worked on two primary tasks: procurement and the CD WTO website. ATR is in the process of providing each analyst with workstation to improve analysts' access to information, permit document sh the internet. By March 2004, all analysts will have their own workstatio office software package. The CD WTO website has been operational on English since proposal to IRM for the necessary upgrade of equipment for FTPS and TA provides information about the WTO, contact points related to grievances, a related studies. To promote sustainability of the website, ATR has trained fiv Utilizing forms designed by the project, the website can be fully maintained the assigned staff. Final Page 22 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity 3 USAID Information Resources Management, “Appendix F: Independent Verification and Validation Review of the Duty Drawback and Temporary Admission System,” Cairo, Egypt, July 13 – 26, 2003. Development Associates, Inc. Section 4 2003, and network and hardware installation was finished in October. The Center has been operational since the end of 2003. y drawback and Suez, Port Said, of the hardware ational, awaiting al GOEIC acceptance. Damietta will be ready in the near future. The delay at Damietta is due to a problem in the Egyptian Customs authorities with the wireless link equipment. The s on January 26, ents for the Trade Service Center were drafted and approved in early 2003, and physical space for the Center was allocated and is en defined and ovations of the ated edies cases and . This system is to reduce ongestion, improve efficiency, and promote transparency. It is intended urately followed. subcontractor is ompletion. The ptance testing in Center that will he ability of the staffs of those two organizations to analyze trade policy issues. The focus of the Center has been on providing access to information and analytical tools to g in trade policy e them available nd opportunities staff and the staff of the Ministry. All of the hardware equipment and software was received by October, and the ERC has been in operation since January 2004. The second result listed in the SOW concerning usage of IT cannot be evaluated at this time, as IT procurement and installation are too recent. There is also a question of how to measure “usage,” which will need to be explored by the contractor and USAID. As with our recommendation concerning training, ATR should establish baseline indicators of IT “usage” to measure change and impact over time. In October of 2002, the Ministry requested ATR to assist GOEIC implement a new system for recording data on the import and export of goods involved in the dut temporary admissions systems. ATR began work with three field offices: and Damietta. Procurement of hardware started in August and most equipment was in Egypt in October. Suez and Port Said are now fully oper fin equipment arrived on October 10, 2003 but was only released from Custom 2004. Objectives, functions and organizational arrangem undergoing renovation. Information technology requirements have be equipment has been procured. ATR is waiting for GOEIC to finish ren Center’s space before installing and commissioning equipment. Within the TAS, ATR is working with the trade remedies group to implement an autom work flow system to improve the maintenance of records on trade rem provide better access to automated tools for analyzing trade remedies issues designed c to ensure that the myriad procedures of the WTO related to disputes is acc This has not always been the case under the current manual system. The starting customization of the software, and hardware procurement is near c final version of the system is expected the last week in February, with acce early March. ATR is working with FTPS and CD WTO to create an Electronic Research improve t the staff of FTPS and the CD WTO as well as providing support for trainin analysis. Initially, ATR acquired key data and software resources and mad to the staff through computers in the ATR offices, increasing interaction a for mentoring between the ATR Final Page 23 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 4 The one activity stipulated in the SOW not included in ATR's current establishment of an operational computer network linking the coopera integrated computer network will facilitate communication and the exchang between cooperating divisions, and will contribute to coordination efforts MOFT. ATR has prepared a proposal for central IT infrastructure for upgr websites. This activity should be incorporated into the option period work this process, ATR will need to work with the management of cooperating un they have a clear understanding about the nature of an integrated network s the potential benefits such a system would provide. While GOE officials d understanding of IT systems and their impact on participating divisions' func and reporting, the team heard from more than one official that they would division networked with other cooperating MOFT divisions, nor did the available on the division's own n Final Page 24 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity workplan is the ting units. An e of information underway in the ading e-mail and plan. As part of its to ensure that ystem as well as o have a general tions, structures, not want their y want all files etwork. They explained that some information was confidential, and should not be made public either vertically within the division or horizontally between divisions. This reticence reflects a lack of understanding of a network's capabilities, as well as its security functions.4 4 A network system can encompass several levels of security permissions and privileges according to the hierarchy of the organization. Development Associates, Inc. Section 5 5 Adequacy of Reports and Documentation this evaluation. W. They are f structures and king documents for its approval e feel that the r (more concise) osed functional y. For example, CD WTO to be ance with WTO related obligations…” In the working draft for the CD WTO, this same responsibility is s (3.1)…”. This arious readers of Annex C is not cts Decree #411, preparation after tly drawn in the n the Arabic version. This could produce a misunderstanding e distribution of ation CD to have d to ensure the aphical error, but Finally, the evaluation team feels that the mission statements are cumbersome. In particular, itably described angements leading to job creation and derive maximum economic and social benefits for Egyptians,” which appears in ncompass other be made to deal The above comments do not apply to the assessment of compliance reports. The three that have been completed are well structured, well written, informative and actionable. Technical reports produced by ATR staff have become more detailed and comprehensive over time. For example, the initial action plan for GOEIC’s trade service center lacked detailed information of hardware and software requirements, and provided only a general vision of the steps to be taken to finalize completion of the center. Action plans and A sample of ATR’s reengineering documents was reviewed in the course of Overall, the proposals are consistent with the requirements of the SO comprehensive and present the MOFT with alternative configurations o functions. The evaluation team understands that these documents are wor and even when “finalized” would not be the document submitted to CAOA of the proposed changes if that step becomes necessary. Nevertheless, w interaction between the contractor and the MOFT would benefit from smalle documents that more clearly distinguish between the current and prop statements and have been more carefully edited for content and consistenc the working draft for reengineering the TAS states one responsibility of the “3.1 Follow up implementation of FTPS strategy for systematic compli stated as “Develop strategy for systematic compliance with WTO obligation editorial error could introduce a substantive misunderstanding among the v the two proposals in terms of the responsibility for strategy development. In the working document for reengineering FTPS, the organization chart in the organization approved by Ministerial Decree #411. While the text refle stating the Sector to have four CD’s, the chart shows three, suggesting its Ministerial Decree #193. The proposed reengineered structure is incorrec English version but correctly i among the English only readers. More importantly in this document, th functions presented in Annex I shows both the policy CD and the administr parallel responsibilities for developing and managing the systems require enforcement of policy, laws and regulations. Hopefully this is only a typogr it is a source of confusion nevertheless. the complex relationship among trade, benefits and employment is not cred by the phrase “…attaining maximum benefits through trade arr the statements for FTPS and TAS. The statement does not adequately e actions that must accompany trade reform, particularly efforts which must with structural unemployment. Final Page 25 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 5 technical documents produced more recently have provided more in-depth, complete solutions with technical requirements more carefully specified. ed, do convey a . The SOW’s ns and progress order to gain an accomplishments in the various time periods, there is not a clear link back to what was expected to be accomplished and any details on whether goals were missed or achieved. The contractor’s work plans and progress reports, while tedious and detail sense of the level of effort being made and the problems encountered distinctions between the tasks are reflected in the structure of the workpla reports, but require the reader to go through the sections simultaneously in understanding of what has been accomplished. While progress reports indicate Final Page 26 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 6 6 The Effects of Cross-Cutting Themes 6.1 on understanding purpose, outcomes and inputs? How have they dealt with any FT. During the ocurement of IT After much discussion, USAID agreed to increase the amount for this line item from $300,000 to $3 million. Thus, from USAID’s perspective, the agreement that was y’s content and to streamline the d improve skills. R contractor, informed the group that the posed structural tractor, the fy functions and ntational dispute t. This dispute oach to improve s that the formal lopment of the . The procurement of IT equipment was planned to meet e modernization and institutional was a perception lved in USAID’s ersonnel and a ement but at its g the remaining objectives. Moreover, the resolution left a negative legacy. One senior official at the MOFT told the evaluation team quite bluntly that he feels very little sense of “ownership” and very little sense of collegiality with USAID in the management of the activity. Rather than a cooperative effort, he viewed the debate as reaching a “win-lose” conclusion, with the MOFT losing. The evaluation team’s conversations with each of the parties suggest truth to the old adage that “time cures all ills.” The units of the MOFT that most firmly believed in a technical Do the MOFT, USAID and the ATR contractor share a comm of the goal, disagreements? The SOW for the ATR took a year to develop and negotiate with the MO process, there had been disagreement over the amount budgeted for the pr commodities. ultimately reached implied that a common understanding of the activit objectives existed. In fact, there was consistency between USAID and the MOFT on the need MOFT, rationalize its functional responsibilities, clarify job descriptions an The Minister, in his opening meeting with the AT Ministry was shortly to receive approval from the CAOA of its pro reorganization of the Ministry. While their plan was not shared with the con Minister felt there was ample room in the plan (once approved) to clari responsibilities and strengthen the effectiveness of the Ministry. However, as implementation got underway, a significant, lengthy and confro arose again between the parties over the commodity procurement budge reflected the continuation of a fairly deep-seated divide on the correct appr the performance of the participating units of the MOFT. USAID’s view wa establishment of the WTO unit, the policy work and institutional deve participating units was the priority the basic needs of these three priorities. The MOFT felt that a comprehensiv of their IT capability was essential (“the backbone”) to achieve their policy objectives and they felt that even the revised budget was inadequate. There that the ATR contractor abetted this view. Ultimately, the dispute was reso favor after substantial and difficult discussions, changes in two ATR p decision by the MOFT to just stop arguing. This dispute negatively affected the activity. It not only delayed procur height, it seems to have distracted the leadership from aggressively pursuin Final Page 27 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 6 solution to efficiency problems now concede that aspects of the reengine helpful and their interest in this work has increased. The training, both through mentoring is highly valued. And those involved in the Sharm el S were demonstratively appreciative of the activity. However, a genuine diffe still remains regarding the importance of IT commodities and related technic achievement of the mutually understood objectives. In the case of GOEIC include laboratory equipment as this is seen as essential to ering have been formalized and heikh workshop rence of opinion al training to the , IT is defined to their strongly held desire to have re still affecting for the improvement in the project during 2003. A key factor has been the current Chief of Party of the ATR team. All of Party as the ponsible for renewing their interest and involvement in the activity. 6.2 MOFT needs The Project Coordinator would like to see the activity expanded to most of the rest of the est of the MOFT ot seem to share EIC’s interest in boratories. recording import tems. While not the Ministry to identified activity into Task 5. The request was issued in October, and by December ATR had contracted a team of experts to analyze the proposed system and the effort. Two of operations in the in the project to to the activity’s 6.3 What is the influence of organizational and management structures on results? The organization and management structures of each of the partners pose no obstacle to the implementation of the project, particularly in light of the reorganization of the MOFT under Decree #411. However, the personality and position of individuals in the structures do influence operations and outcomes. When disagreements arose early in the activity among forceful personalities, the implementation schedule became a second priority until the conflict was resolved. With some personnel replaced and with greater experience with each their laboratories accredited. Differences on the need for IT procurement a the mutual level of trust needed to collaboratively implement the activity. The evaluation team feels that time is not the only explanation MOFT personnel interviewed during this evaluation pointed to the Chief individual res What flexibility exists in the activity to accommodate changes in and conditions? MOFT. He feels that the disparity between the participating units and the r will become too great and will affect morale. The participating units did n this view. Rather, they were anxious to expand their own needs, such as GO having the activity more involved in specific assistance for accrediting the la In 2002, ATR was asked to assist MOFT in implementing a new system for and export data involved in the temporary admissions and duty drawback sys initially part of ATR’s workplan, the project worked with USAID and incorporate this newly provide the necessary documentation for USAID to authorize financing of the three centers are now operational, and the third is scheduled to begin near future. In our view, this demonstrates that there is sufficient flexibility handle new ideas and urgent requests, as long as they are closely related intent, i.e., facilitating trade. Final Page 28 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 6 other’s interests and methods of operation, the pace of implementation has noticeably improved. of work within the ATR is acceptable. While this has been suggested as an explanation for the late delivery of some deliverables, we do not believe this esponsibility for od idea since it al development, mplications for taff, but it would so concur in the plan to hire an Arabic-fluent person for nt work. As this work proceeds further down into the day-to-day operations, the advisor will encounter less fluency in English and will need to be able to 6.4 et, and the contractor's annual financial planning is sound. The activity will in fact be leaving some savings on the table. At the end of the budgetary period, isely, with savings coming largely from the short term technical consultant budget and funds allocated to ECS. udgets and costs 6.5 the activity? the activity, the MOFT appointed a member of the Minister’s staff to be the “Project Coordinator” with the mittee.” The Project Coordinator clearly sees his job as coordination and not the micromanagement of the activities. The MOFT personnel involved ities offered by since there was ement issue, the ith USAID. 6.6 How has USAID’s role affected results? USAID’s management of the project has focused on reengineering and skills training. USAID staunchly resisted efforts to shift resources from these categories to procurement. The team feels that this stance was appropriate during the base period as it was unlikely that a correct assessment could have been made of the long term, comprehensive IT needs of the Ministry. As the organizations mature and become fully conversant with their The delegation and distribution seriously affects the project at this time. For the option period, ATR is planning to assign staff to have overview r each of the cooperating departments. We concur that this would be a go would allow for closer interaction with each and insure that the institution training and IT activities are in sync with each other. There are some i staffing in this approach, with regard to the mix of Egyptian and expatriate s not affect the level of effort. We al institutional developme communicate easily for maximum efficiency. Budgetary management ATR's budget is on targ ATR will have run down the training and procurement budgets almost prec Overall, ATR has effectively utilized staff without exceeding the overall b allocated to manage the activity. How has GOE coordination and guidance affected the conduct of In order to prevent one or two units from capturing all of the assistance under unit heads acting as a “Steering Com in this oversight structure appeared satisfied with its operation and the facil the activity seem to be disbursed in accordance with the SOW. However, such consistency of views within the structure regarding the IT procur structure was not capable of efficiently resolving the IT procurement dispute w Final Page 29 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 6 responsibilities, a fresh look at procurement needs may be in order during th Included in this review, whether done under ATR or a companion activi assessment of the need e option period. ty, should be an s of GOEIC to help it meet its goal of 48-hour clearance of imports e who had prior ared for the close oversight and ity. Today, this 6.7 team affected to have been so t get underway r a good match on and approval. nior home office representative of the contractor made only one visit to Egypt. While activities are on-track ject could have mong the parties the contractor to or example, the dinator records participation of staff from the cooperating agencies but does not include any evidence of assessment of the training’s impact on these participants. It may be should be remembered that Project cted by the GOE re, is an internal evidence of the 6.8 ctive? activity, one can only speculate on which modality was the most efficient and effective. Long term training is universally regarded in the GOE as efficient and effective in improving skills. However, at this stage in implementation, the MOFT has become quite enthusiastic over the “mentoring” modality. The evaluation team was told by all MOFT managers that the approach has had positive results and they plan to utilize it more heavily in the option period. The Sharm-al-Sheikh retreat seems to have been a very productive and positive experience. Those who we spoke with who were involved had nothing but praise for this event. Similar using accredited procedures. The role of USAID has been a learning experience for the MOFT. Thos experience with donor-assisted activities were not prep frequent interaction with USAID staff that occurs on a USAID-funded activ close oversight does not seem to be a problem for the participation units. How have the composition, management and support of the TA results? The contractor’s leadership in the initial period of the activity appears consumed by the IT dispute that other components of the ATR did no expeditiously. There is a consensus that the original COP did not make fo with the parties involved. Also, the workplan itself was late in submissi While these problems are not unique to this activity, we noticed that the se now, a greater presence of home office management earlier in the pro produced a greater adherence to the schedule for all activities. Differences a could emerge in the future and we believe it would be in the best interest of have more frequent visits to the activity. There does not seem to be any internal evaluation function in the project. F training coor that this function would be beyond her scope. It management had recommended hiring a training specialist but this was reje in favor of a macro-economist. The loss to the project and the GOE, therefo capacity for measuring the impact of their interventions and immediate addition of value. What modalities have proven more efficient and effe Since there is little documentation on the effectiveness of training under the Final Page 30 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 6 comments were made about the GOEIC retreat. It helped get managers on terms of the activity’s approach and objectives and it afforded an opportunity to identify areas for coo the same page in for departments peration and synergism. It would make sense to use this modality 6.9 How has the activity reached out to relevant GOE entities and USAID port of MOFT its studies and However, this is and deepen its the Egyptian Center for Economic these centers are conclusions and interaction with other USAID activities that assist exporters would also be R reality-test the oordination will on of effort with r activities. For Trade Training ICA funded). This center is presently offering training for traders and could become a locale for basic training for Ministry personnel in Cairo. The possible relationship it might offer another vehicle for sustainability of on, we could not TR. While ATR is subject in the 6.10 As noted above, the 7,000 year legacy of the Egyptian bureaucracy poses a formidable challenge to policy reformers and reengineers. Egypt’s reform leadership has known this for quite some time but little was done until the early 1990’s. Then a decision was made to hire a carefully selected group of young college graduates as “contract” staff. These individuals were some of the best graduates from some of the best schools within Egypt. They were paid substantially higher than regular civil servants and were given special training (originally with help from the World Bank). However, they had no tenure in the civil service. more often. activities? ATR has reached out to most of the relevant entities through its sup interministerial committees, its public awareness programs and through assessment which examine the work of other ministries and organizations. an area which could be strengthened. In particular, ATR could broaden interaction with other Egyptian policy centers, such as Studies and local universities, for the mutual benefit of all parties. Often more involved in trade policy research than the MOFT and their recommendations are not bound by the corporate culture of the MOFT. A more regular valuable as these activities have data and evaluations which could help AT effectiveness of trade policy reforms to date. Special attention and close c have to be given to the ACTF activity as there is a real potential for duplicati this project and ATR. Finally, the evaluation team heard comments from the MOFT of other dono instance, ATR is being urged to channel their training through the Foreign Center (J with ATR deserves to be explored since the training interventions and resources developed by ATR. In our evaluati find a clear description of other donor activities and how they affected the A has made contact with EU activities, more attention needs to be given to th option period. Sustainability and institutionalization issues Final Page 31 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Section 6 The MOFT now has 55 of these “contract” employees in FTPS and TAS. W percentage of the 523 civil servants in these two departments, they are a lar the “brains” of the CD WTO and the policy unit in FTPS. These people tenure and, if it were not for the recession, their retention would prove ch MOFT. The Project Coordinator said that the government is working on this believes that it will be resolved “in three years.” Ultimately sustainability people, not the organizational structures or IT equipment. Should the hile still a small ge percentage of still do not have allenging to the problem and he is embodied in MOFT lose these people, the next generation of MOFT employees will have no supervisors and “mentors” teaching them and pushing them to continuing pursuing the goals that are core to the ATR. Final Page 32 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Annex 1 ANNEX I Interviews Conducted IGN TRADE sef Boutros Ghali or gn Trade gy e Minister on Policy l Banna IC Head of Food Laboratories Osama Abdel Moneim NING CENTER Ibrahim Abdallah ad of Training Center MINISTRY OF FORE H.E. Yous Minister of F ei Ali El-Meli ATR Coordinator Amina Ghanem Special Assistant to th GOEIC General Mohamed E Chairman of GOE Youssef Labib DEKHEILA TRAI He l Komsan S y CD WTO Walid El Nozahy Head of the Central Department of Central Department/WTO ECS Sharkawy Mohamed Hefny Head of Commercial Representation Sector FTPS Sayed Abu E First Undersecretary of Foreign Trade Sector TA Abdel Rahman Fawz First Undersecretary of TAS Final Page 33 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Annex 1 ASSISTANCE FOR TRADE REFORM (ATR) Timothy Buehrer arty hamy acro Economist egazy alist IT Specialist Institutional Development Specialist Rachid Benjelloun Anthony Chan ector Policy and Privatization el ASER Contracting Officer FEDERATION OF INDUSTRIES Mr. Khaled Abdel Azim, Deputy Director Mr. Mohsen, Public Relations Director TECHNICAL ASSISTANCE FOR POLICY REFORM (TAPR) Yomna Mustafa Deputy Chief of Party Chief of P Sahar To Senior M Amr H IT Speci Nadir Satti Rasik Joshi Trade Specialist USAID Division Chief S Ali Kam Team Leader T Manal El Samadony Economist/ATR CTO Hani Takla EGYPTIAN Final Page 34 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity Development Associates, Inc. Annex 2 LIST OF ACRONYMS F toms and Trade Facilitation and Administration rganization SA st and Southern Africa RA olicy Reform Activity t Program T S for Economic Studies C Service ion for Standards esearch Center dustries S ector ypt EC port and Import Control D Center in Dekheila Fund gement ology y T Trade TA rade Agreement TAPR Technical Assistance for Policy Reform TAS Trade Agreements Sector TQM Total Quality Management USAID United States Agency for International Development USDA US Department of Agriculture WTO World Trade Organization ACT Assistance for Cus ADS Automated Directives System ATR Assistance for Trade Reform CAOA Central Agency for Organization CD WTO Central Department World Trade O COME Common Market of Ea DEP Development Economics P DSP Development Suppor D 2 Development Training 2 ECE Egyptian Center E S Egyptian Commercial EOS Egyptian Organizat ERC Economic R EU European Union FEI Federation of Egyptian In FTP Foreign Trade Policies S GOE Government of Eg GOI General Organization for Ex GTC GOEIC Training IMF International Monetary IRM Information Resources Mana IT Information Techn JICA Japan International Cooperation Agenc MOF Ministry of Foreign PAF Pan Arab Free T Final Page 35 of 35 February 26, 2004 ATR Mid-Term Assessment Results Reporting Support Activity