Memorandum of Understanding

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Memorandum of Understanding between the Department of Economics - Addis Ababa University (UoAddis), the Faculty of Commerce and Management - University of Dar Es Salaam (UoDar), the Multidisciplinary Center of Excellence in Trade and Development - University of Mauritius (UoMaur), the School of Economics - University of Nairobi (UoNairobi), the African Trade Policy Centre - UN Economic Commission for Africa (ATPC), the European Centre for Development Policy Management (ECDPM), the Centre for International Cooperation and Development - University of Pavia (CICOPS), the International Trade Policy Unit - The London School of Economics (LSE) to establish a North-South training, research and policy Network on trade and development 1/7

Background ACP countries face serious capacity gaps for the design and implementation of sound economic policies, due to a number of reasons, including: -Lack of relevant qualifications and expertise among involved stakeholders; -Scarce financial and human resources available for training; -Insufficient relevance of research for present policy debates; -Weak linkages between research and policy-making institutions. These difficulties are particularly evident in the case of formulation of trade policies, participation in trade negotiations and effective implementation of international trade agreements. This is of serious concern, given the increasingly recognized link between trade and development policies at the international level as well as the growing importance and multitude of trade negotiations. From a European perspective, many academic institutions dealing with trade and development do not offer sufficient contribution to the policy debates through their research programmes. This is often due to the theoretical focus of Universities in Europe, as well as their scarce links with counterpart institutions in ACP countries. There is therefore an urgent need for more trade-related capacity-building as well as increased involvement in such activities of academic and policy-oriented institutions in ACP and Europe, through the strengthening of North-South training and research networks. Many trade-related capacity-building activities have been addressed at short term training courses for ACP students and practitioners. But many stakeholders point to the need for a more strategic framework within which real analytical capacities can develop which can contribute effectively to policymaking and development practice. Such a framework should foster research results to be used by policy makers and the research community to be enriched by direct contact with policy issues. Taking the above into account, and benefiting from their respective areas of expertise and existing work programmes, the parties agree to establish such a strategic framework: a North- South training, research and policy Network on trade and development. In the process of establishing such Network, the parties commit to promote their cooperation and collaboration in teaching, research and policy-oriented activities. The following is agreed upon. Aim The long term goal of the Network is to contribute to creating in ACP countries a cadre of professionals able to provide sound policy advice on trade and development matters, through the strengthening of linkages and interaction between the ACP and European training, research and policy communities in the area of development and trade. Objectives In order to achieve its aim, the Network will pursue the following specific objectives: to create a North-South training, research and policy Network on trade and development, bringing together universities and policy-oriented institutions from European and ACP countries; to build the capacity of ACP researchers, lecturers and specialists in governments and non-government organizations, through both academic and on-the-job training; to facilitate dialogue and exchange of information between researchers in Europe and ACP countries, through joint research programmes, staff exchanges and other common 2/7

initiatives; to contribute to better informed decision-making processes in Europe and ACP, through mechanisms for feedback and dialogue between researchers and policy-makers; Approach and methodology These important objectives call for a wide range of activities in terms of capacity development, joint research initiatives and engagement in policy debates. With the long term goal of promoting ACP countries ability to formulate well informed trade and development strategies through a cadre of local experts, the parties establishing the Network will adopt a flexible methodology, to be reviewed yearly, ensuring the link between the academic and the policy worlds, with a combination of: direct training for trainers; development of training materials; organization of summer schools; conducting joint research and exchanging experts; publishing of research papers that feed the policy processes; providing on-the-job training to ACP students to enable them to put the academic training to use. This will be achieved through a step-by-step approach on the basis of the value added that each institution can bring to the Network. Membership of the Network is open and any organization with demonstrated expertise in training, research or policy-oriented activities in the field of trade and development can join. The methodology and specific activities to be implemented by the Network members will be reviewed yearly, to avoid duplicating the efforts of similar trade research and capacity building networks. The Network will be implemented in two phases, with clear demarcation of roles and responsibilities among involved partners. Activities in Phase I During Phase I, UoAddis, UoDar, UoMaur, UoNairobi, ATPC, ECDPM, CICOPS and LSE will constitute the North-South Network and implement a mix of capacity building and policy oriented research activities, including: -the Universities and the policy-oriented institutions from the North will provide training for lecturers of the Universities from the South (with modalities and length of training to be determined by involved partners); -PhD candidates and lecturers from the South will spend a research period at the Northern University or at the policy-oriented institutions (or a combination of the two) attending selected modules of identified post-graduate training courses (visiting students or visiting lecturers programmes) or contributing to policy-oriented activities; -the policy-oriented institutions through their existing programmes will provide on-the-job training for post-graduate students from the partner Universities in North and South, including the opportunity to translate their relevant analytical work into policy-relevant publications (fellowship programmes); -the Universities from the North will provide post-graduate training (masters level) to students from the Southern Universities (entry requirements and selection criteria will be determined by involved partners, and cooperation will be sought with external funding agencies to offer scholarships for masters degrees in the North); -Network members will integrate and use their available training material and resources on trade and development to meet specific needs of graduate programmes in the South -in close cooperation with Universities from the South, Network members will organise self standing short term technical training sessions and summer schools (on the basis of existing modules) to respond to the needs of trade policy experts in the South. The first activity organized by members as a Network will constitute the launching event for the North-South training, research and policy Network on trade and development. 3/7

Roles and responsibilities of Network Members in Phase I The existing programmes and activities of Network members that will form the basis for implementation of Phase I are the following: Economic and trade cooperation Programme (ECDPM); Trade Fellows Scheme (ATPC); Master of International Trade (UoDar); Masters in Trade and Trade-related Studies (UoAddis); MSc Applied Economics with specialization in International Trade and Economic Diplomacy (UoMaur); Master of Arts Economics, Master of Arts Economic Policy Management, and PhD Economics (UoNairobi); Master Degree in Cooperation and International Economic Integration (CICOPS); Masters in International Political Economy (LSE); During Phase I, members will finalize all administrative and financial arrangements required to implement the Network activities, including additional Memorandum of Understanding for specific activities and submissions for external funding to interested donors. The quantity and the selection of beneficiaries from ACP countries taking part in the Network programmes as well the actual location of activities will be determined by mutual agreement among the parties. Every year, the partner institutions will jointly identify topics that could constitute the focus of the training, research and policy-oriented activities of the Network on trade and development. In general, the responsibilities will be allocated as follows. The Universities from the South will pre-select ACP lecturers, post-graduate students, civil servants, and professionals to attend the training courses or participate in the visiting or fellowship programmes, and provide orientation of a selected number of research dissertations towards the topics jointly identified. The Universities from the North will undertake research in the same areas as well as the final selection of participants for the visiting programmes, and provide expertise, methodology and human resource for the training activities. The policy-oriented institutions will offer their expertise and human resources for training activities, conduct final selection for those involved in fellowship programmes, as well as provide to them on-the-job-training and opportunities to turn their analysis into a policy paper. Activities in Phase II Taking into account the work undertaken by similar trade and development research and capacity-building networks to avoid duplication of efforts, during Phase II both membership and range of activities of the North-South Network will be enlarged to achieve its objectives. Depending on funding and networking opportunities, more universities and policy-oriented institutions in European and ACP countries will be contacted to become partners in the Network. In addition to the activities implemented in Phase I, academic partners may expand their collaboration, establishing joint research programmes and related publications, exchanges of researchers and students, and common training programmes. Similarly, policy-oriented institutions, especially from ACP countries, will be involved in the determination of policyrelevant research agenda, dissemination of analytical work to a wider audience (including through conferences and workshop, or packaging of relevant academic research outputs for particular audiences, especially policy makers, but also NGOs, development actors and media), and strengthening of ties between research and policy making processes at national/regional level (e.g. tabling of particularly relevant policy papers at ACP technical working groups meetings for preparation of trade negotiations). 4/7

Timetable and target audiences Phase I will start in September 2006 with the beginning of the academic year 2006/2007 and activities are meant to be replicated and extended each year. The target audience benefiting from the activities of the North-South Network on trade and development will comprise lecturers, postgraduate students and PhD candidates from ACP countries. Phase II is expected to start in 2007 once membership of the Network is enlarged and the details of any new activity have been finalized and agreed upon. The number of universities and policyoriented institutions in European and ACP countries to be contacted and the scope of the North- South Network s activities will depend on funding and networking opportunities arising from both Phase I and the usual programmes undertaken by each involved partner institution. The target audience will be expanded accordingly, to cover graduate and post-graduate students from the partner Universities in North and South, academics, researchers, professionals, as well as negotiators and policy-makers from ACP and European countries. Sustainability and funding The sustainability of the project is ensured by the nature of the Network itself: demand-driven, based on existing human and financial resources, and designed as a partnership with full ownership of all stakeholders. As increasingly recognized through recent experiences with training and research in Africa, networks are important as they address problems of small pool of resource persons, weak human and financial resource bases, lack of policy receptivity and human capital flight. In particular, many ACP universities rely extensively on external lecturers to service their training programmes. Training the trainers, one of the key Network activities, will therefore reduce dependence on part-time staff and foreign experts and thus help achieve long-term sustainability of the programmes offered by Southern Universities. In terms of funding, Phase I is expected to be implemented and funded through existing structures and resources of the Network partners. Phase II will require more funding and administrative resources, and supporters will be identified within the enlarged North-South Network as well as the Donor Community at large. Expected outcomes and products Phase I will impact mainly on capacity development of students, lecturers, researchers, civil servants, and professionals from ACP countries. The specific outcome will be a contribution towards the creation of a pool of ACP researchers and specialists in governments and nongovernment organizations able to provide sound policy advice on trade and development matters. Specific products will include targeted training courses, qualitative and quantitative analytical work on trade and development and relevant policy-oriented publications. The longer term impact of the North-South Network is expected to be the enhanced ability of ACP countries to participate effectively in trade negotiations and the improvement of economic development policies in ACP. Specific outcomes and products of this Network though the activities of Phase II will cover three important areas: 1) Capacity development. Outcome: improved research capacity in ACP; the creation of a pool of ACP researchers and specialists in governments and non-government organizations able to provide sound policy advice on trade and development matters. Products: targeted training courses; qualitative and quantitative analytical work on trade and development; policy-oriented publications; internships, exchanges, and on the job-training for researchers and academics. 2) Joint research programmes. Outcome: relevant research programmes jointly developed by ACP and European academic institutions; enhanced ability of individual institutions to benefit 5/7

from the use of research networks; strengthened ability of academic institutions, both in ACP and Europe, to contribute to policy debates through more focused training and research. Products: joint academic publications, workshop and conferences; mechanisms for regular feedback and dialogue between researchers. 3) Contribution to decision-making processes. Outcome: results of joint research programmes will be packaged and disseminated so to feed into policy-making processes; better focus of policy-making on the actual economic situation and needs of ACP and more appropriate policy responses; closer and more effective communication and interaction between research networks and policy makers. Products: mechanisms for regular feedback and discussion between policy and research domains (including towards better informed trade negotiations); better conceptual and empirical information available to policy makers and other actors; packages of academic research outputs for particular audiences (policy makers, NGOs, development actors and media). Matthew Luhanga Chancellor, University of Dar es Salam Indur Fagoonee Vice-Chancellor, University of Mauritius Dar es Salaam, Date --------------------------- Peter Kimuyu Director, School of Economics (UoNairobi) Reduit, Date ------------------------------------ Adeyemi Dipeolu Chief, African Trade Policy Centre (UNECA) Nairobi, August 10, 2006 Paul Engel Director, ECDPM Addis Ababa, Date ----------------------------- Gianni Vaggi Director, CICOPS (UoPavia) Maastricht, August 4, 2006 Steve Woolcock Head, International Trade Policy Unit (LSE) Pavia, August 14, 2006 Alemayehu Geda Head, Department of Economics (UoAddis) London, Date ----------------------------------- Addis Ababa, Date ----------------------------- 6/7

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