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83

b)

For MICs we recommend a strong focus on soft infrastructure development which can enable

people and firms ready to adopt new ideas and technologies to enhance existing industries

where there is export potential. Entrepreneurship development which allows new small firms

to engage directly in intra-OIC trade activity could be of immediate interest;

c)

For HICs, the export orientation could be on the development of hard infrastructure and

greater flexibility in the employment market to allow for strategic FDI. This could enable the

setting up of regional ecosystems and global production networks that could connect HICS to

both MICs and LICs.

5.4 Evaluation of SMEexport-support policies: a framework for further study

In OIC member countries, assessment evidence on trade promotion policies, and SME export

promotion policies in particular, is rather scarce. The evaluation of SME policies encounters important

limitations in the lack of hard data on SME population, dynamics and performance, and in the lack of

comprehensive information on institutions and programmes supporting SME development and export.

To promote SME participation in foreign markets, it is essential for policy makers to have a

comprehensive view of SME characteristics, their business environment, their strength and

weaknesses when approaching international markets. Effective SME export promotion policies

demand that policy makers identify the specific barriers that SMEs encounter when planning

international business and operating in foreign markets. Furthermore, as the number of institutions and

organisations dealing with SME development and/or trade promotion increase, at international,

national and local level, their monitoring and assessment become an essential part of the policy

making process. In order to identify good practices and areas for improvement, there is an urgent need

for more in-depth evaluation of their effectiveness in addressing the obstacles encountered by SMEs

and increasing their participation to regional and global markets in a sustainable way.

Following the established OECD methodology to monitor and assess SME policies (OECD 2008,

2013), it is suggested that a rigorous evaluation of SME export support policies is conducted in OIC

Member Countries. This policy evaluation should include the following steps:

A questionnaire survey of OIC Member States’ trade promotion and SME support agencies,

designed to:

i.

Gather a list of central government-funded programmes designed to enable firms, and

SMEs in particular, to overcome (either specifically or explicitly amongst other

objectives) barriers to selling/trading goods or services to markets outside of their own

economy. Where an economy considers that a regional, state or local programme –

either public or private sector funded – significantly contributes to reducing barriers to

SMEs internationalising, then information on that programme should also be

provided.

ii.

Obtain from each member economy a description of the wider context in which its

programmes geared to SMEs wishing to internationalise, should be understood;

iii.

Gather details of the parameters of the schemes, funds available, delivery mechanisms,

types of assistance, direct or external delivery, charging, targeting and, where

possible, data on the uptake of the programme by SMEs;

iv.

Obtain a description of the barriers facing firms (and especially SMEs) that the

programme is designed to enable them to overcome and how it is expected to do that;

and

v.

Gather from each member economy, outcomes of programme evaluations in terms of

demonstrated benefits, and, if possible, evidence of how SMEs in particular have been

helped by the programme.

A questionnaire survey of a carefully selected sample of SMEs in OIC Member States. This

may include both current and potential exporters. The survey would intend to: