such industries, these have bucked the trend. The more positive outcome is in the interdependencies

between OIC countries as manifest in the growing intra-OIC trade, helping larger volumes of South-

South business activity and a reduction of dependency on European and North American buyers.

The axes of intervention outlined by COMCEC to ease intra-OIC trade are expected to benefit SMEs

in particular. In this regard, the Strategy acknowledges that improvement of general framework

conditions needs to be combined with active policies targeting SMEs, to enable them to reap the full

benefits from increased OIC commercial integration. In particular, COMCEC highlights that i) the

current framework of cooperation does not provide an enabling environment for SMEs to develop and

establish trade partnerships and new contacts, and explore new business opportunities in other OIC

countries, and; ii) SMEs in Member States often lack the capacity to develop international markets and

export strategies. Accordingly, some of the actions mentioned by the Strategy, such as reduction of

tariff and non-tariff barriers, simplification and streamlining of trade procedures, or increasing

awareness about available support instruments, address general trade obstacles which however hit

SMEs disproportionately. In addition, specific actions for SMEs are foreseen under the “trade

promotion” axe, recognising that external and internal barriers exist that limit the benefits SMEs may

accrue from increased OIC-trade. Increasing awareness of on-going trade projects, enhancing

communication among the private sectors representatives and institutions of OIC member states,

building online networks for business communities address the lack of information about market

opportunities, business partners, export channels and tools that typically limit SMEs’ investments in

this area; improving SME export strategy and international marketing capacities address the

competence and management constraints of small businesses; and developing capacity of Trade

Promotion Organisations responds to the need for upgrading the institutional infrastructure in support

of SME internationalisation and for improving the quality and accessibility of services for a broad

population of SMEs in member states.

In recommending policy development, strands of action could be promoted:

Strand 1

: Greater emphasis on intra-OIC trade activities through the development of multilateral

agreements or possible free trade zone agreements. The best export growth prospects lie in these kind

of agreements, although their implementation may present with significant difficulties. Supportive

instruments should be developed to increase exchange and interdependencies, in view of greater

commercial integration. In this respect, intra-OIC trade could be enhanced by the development of

specific instruments concentrating on the development of a common platform of technologies,

information sources, and skills development focusing on those sectors where interdependency works.

Strand 2

: Institutional focus on developing soft infrastructure of skills development and of

entrepreneurship. This action should foster local business and development, which following the

Uppsala model of incremental international business activity, i.e. firms gradually intensifying their

activities in international markets, could lead to firms being better able to operate in the exports

market. This means that there should be an emphasis on scaling up and improving the capabilities of

firms to operate efficiently at the local level through the adoption of new technologies, new skills and

better market orientation within their countries and at the intra-OIC level. Such an approach could help

firms increase their earnings potential, generate a solid revenue and capital bases (with retained

earnings) and enhance their capital leveraging capabilities for external financing.

Strand 3

: Strengthening and development of an exclusive front on new technologies, especially those

with low entry threshold prospects such as the internet and mobile telephony which should enable

greater access to global information sources and interaction. SMEs would be the main beneficiaries of

trade facilitation through new technologies that reduce the costs of accessing information and

transacting, which hit them disproportionately. This would necessitate changes in the physical

infrastructure to allow for the location of, for example, remote servers. It will also necessitate the

opening up of the ‘information world’ and access to global sources of information.