Impact case study database

{Text removed for publication} is a European wholesaler to retailers, mainly petrol station shops, kiosks and convenience stores. Food and logistics are its core business. It has over {Text removed for publication} retail customers in {Text removed for publication} European countries and revenues {Text removed for publication} per year. {Text removed for publication} benefits from SBS research by having the Competence Centre for on-the-go Consumption as a key partner.

Impact on new store concept {Text removed for publication} : Benoit’s research on consumer behaviour [R1, R2] led to substantial changes in {Text removed for publication} target group focus and product range. It changed {Text removed for publication} convenience store consumer target group focus from young, single, price-sensitive consumers to small, higher-income households and created a focus on small-size food-to-go items (e.g., bakery products or coffee) [S1]. The re-orientation yielded {Text removed for publication}, a new store concept the company licenses to petrol station clients that offers more fresh food and bakery items, leading to increased sales of petrol and store goods. According to {Text removed for publication} former Senior Vice-President Corporate Strategy and Development, Benoit’s research “substantially and positively influenced the design of the store concept. The results on age patterns of the convenience target group triggered us to rethink our approach. We considered these results when the assortment [product range] of our concept store was designed” [S1]. Benoit’s clarification of the different dimensions of convenience [R1], and identification of the relationships between shopper mission, store design and service level [R2] underpinned changes to the layout of the concept store. {Text removed for publication} states Benoit’s research inspired the company “to rethink the store layout and implement a fast and a slow lane to allow for different consumer purposes [missions] in the store” [S1].

The new store concept resulted in an increase in sales. Within 15 months of rollout, sales of all shops increased 9.1% (18.4% without tobacco) [S2]. Sales of Foodservice (food-to-go freshly prepared on site, e.g., sandwiches or coffee) increased by 50-100% [S3]. Data from Statista [S3] shows Aral and Shell foodservice sales are €70-100k per store per year, suggesting a sales uplift of €350k - €1m per year for all updated stores since 2018. {Text removed for publication} believes “the increase in sales figures follows logically from the refurbished {Text removed for publication} store” [S2]. This is corroborated by a consumer survey in which 96% of respondents rated the stores “very good” or “excellent” after refurbishment compared to only 39% before refurbishment [S2]. The success of the {Text removed for publication} store concept directly impacts the company’s ability to remain competitive and to meet its strategic goal of making their retail clients stronger.

Since the launch of {Text removed for publication} the new store concept has received an honourable mention at the International Convenience Retailer of the Year Award, presented by the US-based National Association of Convenience Stores (NACS), which considers convenience stores globally [S4]. The concept was elected “Shop of the year” by the main {Text removed for publication} newspaper the “Convenience Shop” [S4]. {Text removed for publication} states: “We are very proud to have received various awards for this store […] and thank Sabine Benoit for her contribution to this.” [S1]

Impact on price management practices: research on price management [R3] led to changes at {Text removed for publication} and one of their clients, {Text removed for publication} company {Text removed for publication}, operator of {Text removed for publication} petrol stations with {Text removed for publication} convenience stores across Germany. In 2018, prior to publishing [R3], Benoit ran workshops explaining research results and implications for both companies [S4]. One major impact on {Text removed for publication} was the appointment of a price manager {Text removed for publication} to restructure the wholesale pricing system [S6] and transform the intuition-based approach to pricing among some independent store managers [R3]. {Text removed for publication} states: “{Text removed for publication} operated on the assumption that a more fine-tuned wholesales pricing system will indirectly also professionalise the retail pricing by the store owners and support their client’s business” [S6]. The price manager appointed {Text removed for publication} was very successful and the department has grown, as at Spring 2020 their five staff members now oversee 20,000 {Text removed for publication} market client stores. This new pricing system has a positive economic impact on both {Text removed for publication} and their retail clients. The 20,000 retail clients (convenience store owners and tenants) have an annual turnover of €2.5bn, with an overall sales increase of 3% [S6] and a client-side sales increase of €75m in 2019. {Text removed for publication} reports that the new pricing system had “a positive impact on {Text removed for publication} own operations having led to increased margins of around {Text removed for publication} with a planned increase of around {Text removed for publication} in margins in 2020” [S6].

Research created change in the pricing structure and price communication at {Text removed for publication}. The company was one of the research partners enabling data collection for the consumer survey at the point of sales [R3]. The presentation of results at {Text removed for publication} in 2018 resulted in a greater “focus on dealer pricing”, ensuring {Text removed for publication} headquarter managers influence the pricing their dealers set. The company’s then {Text removed for publication} and the {Text removed for publication}, {Text removed for publication} state in {Text removed for publication} that “thanks to the results from the study of Prof. Benoit {Text removed for publication} adjusted parts of the pricing and advertising strategy inside the shop assortment [product range] ” [S7].

Impact on Association of Convenience Stores (ACS) service portfolio and sector capacity building: ACS, a UK-based organisation, benefited from Benoit’s research by improving the services it offers to its 33,500 members. First, building on her consumer behaviour and technology knowledge, Benoit supported ACS’s ongoing events and study tours [S8]. Study tours rely on insights from research: they enable the members to learn from international experience and generate revenue for ACS [S8]. Second, the success of this activity was instrumental in setting up the “ACS explorers” membership group, a capacity-building network formed of “forward-thinking, innovative and tech-savvy independent convenience retailer ACS members” [S8]. The group gathered at the University of Surrey for an event and was accompanied by Benoit to two Convenience-related trade fairs in 2018/2019 (in Germany and the US). “For the ACS [this] was an important new initiative that enhanced member benefits and generated increased revenue and Sabine’s contribution and support in all of these activities was invaluable for the ACS and its members” [S8]. Third, the ACS and the University of Surrey jointly developed the ‘Convenience Leadership Programme’ (CLP) “to support our members through capacity building” [S8], as a result of the SBS research. The CLP is a 9-day executive education programme supporting retailers in taking their business forward [S9]. The programme started in January 2020 with 10 participants from firms including {Text removed for publication}. Participants were asked after one 2-day session what they would change in their work the following week and many reported a shift in thinking to consider consumer perspectives, be more innovative, and have more confidence to present their own ideas to senior management [S10]. One participant said they would “aim for 80/20 ranges within stores and local areas”, giving local store managers discretion to choose 20% of their product range to enhance competitiveness. One participant noted the programme “has made me see a different side to this as I’m understanding the business sector I work in and this is vital to my job and my role as a leader” and concludes this was “an excellent programme with so much context and so many learnings to help shape my future and the business I work for.” In October 2020, after the first cohort successfully completed the programme, the ACS Board decided to continue the programme in 2021 and are about to start the second cohort in March 2021.

Professor Hilson uses his research findings to engage and empower stakeholders capable of effecting the change on the ground needed to make ASM formalisation a reality across SSA.

Hilson’s research has resulted in capacity building, data collection, and direct engagement with donors and policymakers, with the aim of establishing a platform to facilitate formalisation of ASM in SSA.

The international/regional level

As a result of his research, Hilson was asked to advise on the EU/UNDP/ACP Development Minerals Programme (Phase I, 2015-2018; €13.1m; Phase II, 2019-2022, €11m). The project provides practical support to harness the continent’s mineral wealth to alleviate poverty across 40 African, Caribbean and Pacific (ACP) countries. Hilson was commissioned to produce the background and strategy-steering report [5.1] described as the ‘technical foundation for delivery’ [5.2]. In 2016, Hilson was appointed to the Programme Technical Committee, and as Academic Chair of the International Conference on Artisanal and Small-scale Mining and Quarrying. The Development Minerals Programme Director states that;

“The sheer scale and reach of the contributions of Professor Hilson to international mineral policy making and the reshaping of the global minerals and materials development agenda through this program are hard to overstate”, highlighting several examples where his interventions have had impact such as legal and policy reform, creating of cooperatives and associations, and also outlines his impact at the mine, country and global level from better operating standards, to increased employment and “enhanced resource diplomacy” [5.2].

In 2017, Hilson collaborated with the World Bank, the world’s largest supporter of technical assistance for ASM, informing its ASM formalisation policy. World Bank’s Senior Mining Officer stated “Professor Hilson’s work has heavily informed a remade World Bank Policy approach to ASM formalization” [5.3]. A significant development was the April 2017 launch of the DELVE database/online platform funded by the Bank ( https://delvedatabase.org/). DELVE builds on Hilson’s conceptual and empirical research, including survey tools for data collection [5.4], to gather and share data on ASM to improve decision-making related to sector formalisation. As a result of Hilson’s research activity DELVE has been used to gather data on 1,200 miners across Ghana, Mali and Mozambique [5.3].

Since April 2020, Hilson has coordinated baseline COVID-19 data collection in five countries (Ghana, Mali, Sierra Leone, Liberia and Malawi). His findings underpin a US$5.5m Emergency Response Window from the World Bank’s Extractives Global Programmatic Support (EGPS) Trust Fund, supporting work addressing short and medium-term impacts of COVID in ASM communities’ globally [5.3].

Hilson continues to collaborate with the World Bank and has written its inaugural State of the Small-Scale Mining Sector report [5.5], a 2019 manifesto identifying the sector’s priority concerns and areas where more ASM data/nuance is needed. The report responds to the need for ASM data, particularly in SSA, where World Bank’s Senior Mining Officer Dr Perks indicates, ‘In sub-Saharan Africa alone, better data would contribute to the implementation of more than 10 active mining technical assistance projects in sub-Saharan Africa with over US$100 million in support of ASM formalisation’ [5.3]. Hilson and Perks co-authored The Guidance note for ASM reporting in EITI, the global standard for open and accountable management in extractive industries implemented by 53 countries [5.3].

Since 2020 Hilson has played a significant role in the US$180m planetGOLD project led by the United Nations Environment Programme and implemented in partnership with the United Nations Industrial Development Organization, United Nations Development Programme, and Conservation International. Executed by 19 government agencies and other organisations in 9 ASM active countries, it aims to make gold-mining safer, cleaner and more profitable. Hilson co-authored the Access to Finance Options for Artisanal and Small-Scale Mining report, which provides models for the planetGOLD activity; ‘Piloting a range of models for access to investment and finance for small- scale miners and their communities’, essential for ensuring the long-term viability and development of a legalized ASM sector [5.6].

In addition to work with inter-governmental bodies, Hilson developed a framework for formalising ASM on behalf of the International Institute for Environment and Development (IIED) [5.7], which piloted Hilson’s formalisation approach now being implemented in Ghana by the World Bank [5.8].

Capacity Building

Recognising that change must be welcome at all levels, Hilson focused capacity building on “government officials from developing countries where ASM is widespread, as well as individuals who are stationed at the country-level offices of major donor organisation and the NGOs that deliver technical support to the sector” [5.9]. These individuals, who attended Hilson’s sessions at the National Mining Seminar, are recognised as “individuals who are in the greatest position to facilitate important policy changes in the ASM sector of their countries” [5.9]. Since the seminar’s 2016 inception, he has educated 89 participants from 34 countries. As a direct result, in 2016 several attendees formed ‘The Association of Mine Closure Ambassadors’, registered in Nigeria, to examine more closely ASM issues [5.10]. They secured their first grant of AUS$99,600 in 2018 from AUSAID to fund an ASM formalisation project in Cameroon [5.10]. Hilson’s training also impacted the Ghana-based NGO, ‘Friends of the Nation’, whose Communications, Advocacy and Campaigns Coordinator, Solomon Kusi Ampofo, attended the 2018 session. The organisation has since won over US$500,000 in grants to assist the formalisation of ASM in Ghana under the auspices of the Minamata Convention [5.11].

Country-Level Support

In Ghana, policymakers have been attempting to reform the ASM sector for over ten years, including banning ASM for nearly two years during 2017-2018. Policy initiatives following the ban included developing a National Action Plan, the Artisanal and Small-Scale Gold Mining (ASGM) Sector Profile for Ghana, [5.12]. In 2019 the World Bank launched a project ‘Ghana: Artisanal and Small-Scale Mining Formalization’, to develop and fund a formalisation programme worth US$60m [5.13]. Hilson’s conceptual model of the Ghana sector [3.3] underpins this project, and the approach he published through IIED [5.7, 5.8]. The model is used to build the case to formalise the sector, then facilitate change through project funding [5.8].

Possibly the most critical area of impact is work with local ASM operators to establish platforms to increase their visibility and formalisation, initiating much needed change from within. For example, the launch of the women’s extractive industries NGO, ‘Alliance pour la Recherche et le Développement Integre’, which aims to connect with women miners, assist them in formalising their activities, and support them [5.14]. Following Hilson’s tutelage, the Alliance has connected with 50 of Mali’s most influential women orpaillage (gold panners), providing the bedrock for making the orpaillage sector more visible, and through a national mining forum, connected 200 women miners from 50 different operations across the country [5.14]. He helped create similar platforms in Ghana, specifically in Prestea, one of its most important ASM communities. Hilson’s efforts culminated in the registration of the ‘Wassaman Small-Scale Mining Association’, a legal platform since 2017 that has since benefitted 5,000 people directly (those who are now mining with licenses) in Prestea, making it safer to maintain their livelihoods. These 5,000 people fall under approximately 100 small-scale mining licenses [5.15].

Dr Ying Zhou’s cross-national comparative research on job quality has informed national and international policies designed to improve job quality through the OECD, the European Commission and in England and Wales.

OECD policy

In 2013, Dr Ying Zhou and Professor Duncan Gallie were invited to present their research on job autonomy and work intensity [3.6] at the OECD in Paris, in preparation for the development of the OECD Job Quality Framework. This workshop was attended by Jean-Paul Tricart (Head of Unit for Social Dialogue and Industrial Relations, European Commission), Marco Mira D’Ercole (Head of Household Statistics and Progress Measurement Division, OECD) and Mark Keese (Head of Directorate for Employment, Labour and Social Affairs). Mark Keese oversaw the subsequent development of the OECD Job Quality Framework [5.1], while Alexander Hijzen, who moderated the Q&A at the workshop, drafted the Framework. The Framework identified three broad dimensions of job quality: earnings, labour market security and quality of the working environment. Job autonomy, as identified in Dr Zhou’s presentation, was recognised as a key aspect of a good working environment [5.1, p18-19] [5.2]. The OECD Job Quality Framework was officially adopted in the G20 Labour and Employment Ministers’ Ankara Declaration in 2015 [5.3]. At the Heads of States Summit, Ministers of Labour and Employment from G20 members and invited countries accepted the importance of job quality as a policy goal, acknowledging that ‘quality jobs are important as a key driver of greater well-being for individuals and society” [5.3 Clause 23 Annex IV].

To facilitate the implementation of the policy recommendations from the Job Quality Framework, the OECD was asked by the G20 members to create Guidelines on Measuring the Quality of the Working Environment [5.4]. The Guidelines were launched at the EU’s Social Summit for Fair Jobs and Growth in Gothenburg in 2017 which gathered heads of state and social partners to work on well-functioning and fair European labour markets, effective and sustainable social protection systems and the promotion of social dialogue at all levels. Dr Ying Zhou’s research on the distribution and trends in employee involvement in Europe was cited five times in the Guidelines document [5.4, Chapter 3]. The research is cited in support of the fact that ‘reliable data available for monitoring the quality of the working environment is essential for policy […] to improve working conditions’ [5.4 p58]. In particular, knowledge of the sectors of the workforce which are particularly vulnerable to poor working environment is essential for developing effective policy interventions to improve employee well-being.

European policy

Dr Ying Zhou was invited to present her research at Eurofound (European Union’s main research agency on working conditions) at a series of meetings held in Dublin and Brussels [5.5]. In 2014 her research [3.3] was presented at a joint workshop by the European Commission and OECD in Brussels and cited in the subsequently published 2015 European Commission policy document Employment and Social Developments in Europe [5.6] ‘which informed EU policies to improve organisational effectiveness and employee welfare.’ [5.5]. The research was used to indicate that work intensity can be beneficial when combined with choice, and to recognise that job autonomy is embedded in wider institutional structures.

In 2019 Dr Ying Zhou presented her research in Dublin to Eurofound’s Senior Advisory Committee which consists of representatives from governments, employers and trade unions from EU member states. The research was later presented to the Dutch Prime Minister’s Scientific Council and the European Council’s Working Party on Social Questions during the Finnish Presidency. In June 2020, the EU released Council Conclusions on Enhancing Well-being at Work which used the research [3.3] to support the call for enhanced employee involvement [5.7] and more broadly called on member states to develop policies to support the well-being at work agenda. This is acknowledged by Eurofound as “a significant achievement, in particular, as work organisation issue traditionally falls under the concept of subsidiarity, highlighting thus the original and ground-breaking contributions that the report is making.” [5.5]. The Conclusions are supported by a policy brief [5.8] published by Eurofound and co-authored by Dr Ying Zhou, which is used to ‘inform EU labour market policies’ [5.5].

UK policy

Dr Ying Zhou’s research has also influenced UK government policy on job quality and employee well-being. In 2013, Professor Duncan Gallie presented their joint research [3.3, 3.6] on the impact of economic recession on job quality in Europe to the Cabinet Office at No 10 Downing Street, with a particular focus on employee involvement. Their research was cited in the subsequently published 2014 UK Wellbeing and Policy Report authored by the former Cabinet Secretary Lord Gus O’Donnell and other prominent social scientists [5.9]. More recently Dr Ying Zhou drafted the Good Work Index Report [5.10] for the Chartered Institute of Personnel and Development (CIPD) which uses it to support its 150,000 members in HR to improve the quality of working lives.

Finally, Dr Ying Zhou’s research [3.3, 3.6] has also influenced Welsh Government policy. Recognising the importance of fair work for achieving a modernised and inclusive economy, the First Minister commissioned Professor Linda Dickens MBE to Chair the Fair Work Commission and make recommendations to improve job quality. ‘Fair Work Wales’ was published in May 2019 on the Welsh Government website [5.11]. Ying Zhou’s work was cited, and her contribution acknowledged in the report. Since the publication of the report, the Welsh government has set up the Social Partnership and Fair Work Directorate and secured a Social Partnership Act in Wales through the parliament to take forward the recommendations of the Fair Work Commission [5.12].

Despite the recognised potential of digital technologies to improve government efficiency, accountability and relationships with citizens and business, digital transformation in Latin American governments remains limited. Regional governments face challenges including: i) a lack of government transparency and associated lack of trust; ii) citizens and businesses lack access to or face inefficient public services; and iii) a lack of technical capacity within governments and their ecosystem of digital and data related skills. Researchers addressed these challenges, impacting government agencies, citizens and businesses in Latin America in three areas: improving digital government and open data policies; transparency and open data mobilisation and engagement; and capacity building for public servants.

Improving digital government policies in OECD and Colombia

CoDE’s research [3.1, 3.2] underpinned Bonina’s advisory work for the OECD and the Colombian Government - Assessing the Impact of Digital Government in Colombia [5.1]. Bonina was commissioned to design an impact assessment framework [5.1, chapters 1 and 2], a tool creating two distinctive contributions. First, impact on the OECD itself: the OECD’s Council on Digital Government issues directives to ensure governments support the development and implementation of strategies bringing governments closer to citizens and businesses. Using the tool, Bonina enabled the OECD to assess its digital government directives in Member countries. Barbara Ubaldi, OECD Lead of Digital Transformation stated the impact assessment work in Colombia “is helping the OECD to strengthen the work we are doing with other countries, and we see a fundamental value in its availability and measurement strategy” [5.2a]. Second, for governments deploying the OECD directives: the Colombian Government adapted their Digital Government Strategy, including new indicators and policies in line with OECD recommendations made by Bonina, for example, linking financial resources with policy goals, and developing a clear logic model, and metrics communicating the value of the Strategy for citizens. “Colombia became the first country that, without being a member of the OECD, has adopted the recommendations of the OECD Council on Digital Government”, Government of Colombia [5.2b]. Research was timely as Colombia was negotiating its accession as a member country to the OECD, which later happened in May 2018.

Improving open data practice and policy in Argentina

National and city level policies in Argentina were influenced by [3.3, 3.4, 3.5] under Bonina’s lead. The National Government of Argentina acknowledged Bonina contributed to stronger open data policy both as a direct advisor to the Government and working for the World Bank assessing Argentina’s open data strategy. The Undersecretary of Modernization in Argentina commented “Carla’s close collaboration, and her recommendations regarding how to engage the private sector in Argentina, was invaluable in setting the right direction for the next stage of our open data policy” [5.3]. [3.3] served to build the World Bank report on open data for business, authored by Bonina, with recommendations to be adopted by the country [5.4]. In 2017, Argentina was amongst the top 17 open data performers of the world ( https://index.okfn.org/place/ar/).

Buenos Aires, a leading city in deploying open data in the region, recognised the unique contribution of Bonina’s work to their new open data portal ( https://data.buenosaires.gob.ar/) and the Open Data Strategy to engage innovators in building services with open data, launched in November 2019 ( https://datosgcba.github.io/guia-datos/politica-datos-abiertos/). Bonina’s work “ has had immense value in how we construct a more responsive, transparent and innovative government with open data. Her work has not only been invaluable to our city but to many others in the region who take the open data policy of Buenos Aires as an exemplar to follow” [5.5].

Fostering open data policies and community engagement across Latin America

Bonina’s research informed advice given by Latin American Open Data Initiative (ILDA), a regional think tank promoting inclusive development through collaboration, use of open data and active participation of communities. Bonina’s work [3.3, 3.5] supported and encouraged leaders in governments, civil society organisations and the private sector to harness open data for development in an inclusive and sustainable way. ILDA’s Executive Director [5.6] recognised work “has been crucial to grow the institutional capacity and long-term sustainability of ILDA, and ultimately contributing to achieve our region-wide mission” [5.6]. Specifically, Bonina’s research led to: (i) new legal norms, such as in the case of Costa Rica where Bonina’s contribution “was invaluable to support the passage of our Executive Decree on Open Government, a milestone for transparency and democracy in our country.” [5.7]; (ii) community development and agenda mobilisation around open data, being a regular referent for data re-utilisation and private sector engagement in a group of 600+ representatives from governments, civil society, academia and the private sector (growing from 40 in 2012); and iii) developing new practical tools to inform open data policy, including an impactful map gathering 600+ organisations and 700 projects of open data in the region ( www.exploralat.am) [5.6], used to build collaborations regionally, as stated by the Inter-American Development Bank (IADB): “governments, civic entrepreneurs or donors will be using [this map] to recognize, escalate or learn about the social and economic value that these projects and organizations are generating in Latin America” [5.8].

Capacity building in digital transformation and open data across Latin America: Costa Rica, Uruguay and Argentina

Bonina’s work directly contributed to capacity building in three countries. Between November 2017 and July 2019, over 300 public servants from Costa Rica, Uruguay and Argentina were trained in Open Government and Open Data through an online course co-designed by Bonina for ILDA. The course builds directly on [3.3] and [3.5], with Bonina overseeing the course and supporting data re-users and innovators in the community, a contribution acknowledged by ILDA [5.6] and Inter-American Development Bank (IADB) [5.8]. Training was sponsored by the IADB and deployed in partnership with local universities. The 40-hour course equips public servants with key skills to lead open data projects in their organisations and improve the services they provide to the public [5.9, 5.10]. Course retention (76%) and completion (76%) rates are almost double those of massive open online courses (e.g., Coursera ~45% and 40% respectively) and has a high satisfaction rate (78%). A year after the course ended in Costa Rica, 75% of attendees reported they had become open data advisors in their organisations, and 67% had greater responsibility for open data and open government [5.9, 5.10]. A community of practice of 100+ member’s on Facebook was established in Costa Rica as a result [5.7, 5.9]. In Mendoza, the Government created the first provincial commission of its kind in the country for Open Government and Open Data, building on [3.3, 3.4 and 3.5], recognising the “invaluable contribution of Dr Carla Bonina in the set up and developmen t” of the Commission that “will bring together government, private sector, academia and civil society to work together to enhance innovation, efficiency and transparency” [5.11].

Achieving “intelligent insertion into the world” was a key objective of Argentina’s government during Mauricio Macri’s Presidency (December 2015 – December 2019) [5.1a], which took office after over a decade of economic isolation [3.6]. At the heart of this objective was import-tariff reform to allow local firms’ participation in global value chains and to reap the opportunities provided by globaliszed production [5.1b].

Carluccio worked in Argentina from April 2018 to April 2019 as Director of Research with the National Foreign Trade Commission - Comision Nacional de Comercio Exterior, (CNCE), alongside local economists, transferring knowledge and capabilities gathered during his extensive experience as an academic. His research conducted at the University of Surrey was decisive in the decision by the Ministry of Production and Labour of Argentina to appoint him [5.2a] and charge him with developing a proposal for a thorough reform of import tariffs. The President of the CNCE stated “ I proposed the authorities that Juan Carluccio join our research unit under the belief that the state-of-the art ideas developed in his academic works would materialize in sound applied research with strong impact in the decision-making process” [5.3].

Argentina is part of MERCOSUR, a trading bloc where Common External Tariffs (CET) apply to goods imported from third countries. MERCOSUR tariffs had remained unchanged since 1995 and were amongst the world’s highest [5.4]. Reforming the CET required consensus by all members. Individual countries are allowed to unilaterally change tariffs of a limited set of products (100 in the case of Argentina) via the ‘Lists of Exceptions to the CET’.

The decision process for tariff changes in the Ministry for Production and Labour of Argentina is composed of three steps. In a first step, technical teams within the International Trade Secretariat provide recommendations based on economic and data analysis. These proposals are then presented to high-rank officials, and eventually to the Secretary and Minister who make the final decisions [5.3]. In the case of unilateral decisions, the process requires a Decree implementing the changes. In the case of MERCOSUR’s common tariffs, Argentine representatives propose changes to the bloc’s members and, if consensus is reached, changes are made effective through MERCOSUR Resolutions.

Establishing the foundations for tariff reforms

Carluccio first developed a study of the tariff structure of Argentina and MERCOSUR, drawing on his research [3.1-3.6]. The study, consolidated in an official government White Paper [5.4], contains a general diagnosis and priorities to guide reform. Products were grouped according to their position in the value chain, following concepts and data-analysis methods developed by Carluccio [3.1, 3.2, 3.5]. Tariffs were compared to international standards, and the implications of the tariffs for productivity and competitiveness were explained. High tariffs for intermediate goods are highlighted as particularly harmful because these goods represent a large share of production costs [3.1].

The diagnosis highlighted the abnormally high levels of tariffs in Argentina (four times higher than international averages), and identified high tariffs applied to intermediate goods as the key deficiency of the tariff structure. Importantly, the White Paper [5.4], stresses that high input tariffs hinder the expected beneficial effects of free-trade agreements, thus emphasising the need for a coherent approach to trade openness [3.1, 3.2, 3.5].

The diagnosis and policy recommendations from Carluccio’s White Paper garnered consensus amongst senior officers following presentations to the Minister of Production and Labour and various State Secretaries, Under-secretaries and mid-rank officials with policy-making influence. The Trade Under-secretary stated: “ The messages of this research gathered consensus among senior policy-makers and were influential in highlighting the need to modernise the structure of tariff protection in MERCOSUR, as well as the priorities that should guide the reforms” [5.5]. The Economic Policy Secretary stated in March 2019 that Carluccio’s work “ is currently gaining consensus within our administration, evidenced by the fact that he presented his recommendations to me on behalf of the Secretary of International Trade in my capacity of Secretary of Economic Policy” [5.6].

Impact on tariff change decisions by Argentina’s and MERCOSUR’s authorities

Impacting policy-making in Argentina through three channels:

1. Revision of MERCOSUR’s Common External Tariff (CET).

Senior officers’ consensus around the diagnoses and recommendations resulted in Carluccio being tasked with elaborating a detailed tariff-reform proposal for around 10,000 products in the MERCOSUR product classification (NCM), by directing a team of specialists in different sectors of the economy. This work impacted the decision-making process in two instances. In late 2018, it led to the decision by MERCOSUR to reduce tariffs for 49 inputs used in the chemicals sector [5.1d, 5.8b]. The average tariff for these goods was reduced from 10% to 2%, implying estimated yearly savings of over £100m in tariff costs for firms in the industry [5.11a]. In early 2019 a cross-country expert group with Member States representatives was instructed to study and revise the CET under the conviction that it is “ fundamental for the consolidation of the Customs Union” and that the tariff structure has to “ promote competitiveness and productivity in the region” [5.1c], [5.7a, 5.7b, 5.7c, 5.7d, 5.8a]. The proposals from Carluccio and his team represented the position of Argentina in the negotiations. The International Trade Secretary stated it “ serves as the basis of our country´s position in talks with MERCOSUR partners, guides senior officials in the process of negotiating in our country´s best interest, and provides a lens for the study of our partners´ positions in the talks” [5.9].

1. Unilateral tariff reductions

The research influenced the programme of unilateral tariff reductions. The officer in charge, Under-secretary for Trade Facilitation, stated: “ I have devoted strong efforts to the optimization of the exception lists. This work requires to be grounded in a general strategy to ensure that the decisions maximize the potential impact of tariffs on the economy” and that Carluccio’s work was “ very valuable, as it has helped organizing priorities, optimizing our strategy and communicating the decisions convincingly to both the authorities in the Ministry and representatives of the private sector” [5.10]. The implementation of the strategy resulted in concrete measures, notably the reduction of tariffs for 10 key intermediate goods widely used in the textile, apparel, steel, paintings and bicycle sectors [5.1e], [5.7e]. Tariffs were reduced from an average of 19% to an average of 5%, generating estimated yearly savings of over £53m for firms in highly employment-intensive sectors [5.11b]. This was achieved with no damage to local workers because goods were selected for having nil or little local production, as research had shown that trade liberalisation can hurt employment and wages of the less-skilled [3.1, 3.2, 3.3].

1. Negotiations of trade agreements with external countries and trading blocs

Carluccio’s work influenced Argentina's position in negotiations between MERCOSUR and other trading blocs, notably the EU-MERCOSUR free-trade deal, for which an agreement in principle was signed in June 2019 after 20 years of negotiations, paving the way for the creation of the world’s biggest free trade area [5.1f] (an agreement ‘in substance’ with the European Free Trade Area (EFTA) was reached in August 2019 and negotiations with Canada are underway). The Economic Policy Secretary (and former Secretary of Commerce) affirmed that Carluccio’s research provided theoretical and empirical evidence that guided the negotiations: “ The research highlighted that a reform of the tariff structure was essential to succeed in our main objective of achieving the “intelligent” integration of the Argentine economy into the world, a pillar of which is the signing of free trade agreements” [5.6], and the International Trade Undersecretary noted that “ the research informed the process of trade agreement negotiations, on the one hand, by highlighting the kind of tariffs reforms necessary to achieve successful integration via free trade agreements and, on the other, by providing guidelines for the determination of our country´s offers in the negotiations.” [5.5].

The overall nature of the impact is summarised by the Economic Policy Secretary, who stated that Carluccio’s work in Argentina allowed him to “ bridge between the theoretical ideas, concepts and empirical methods developed in his academic research and the particular cases of our country and MERCOSUR, enhancing our policy-making <…> and shaping the direction of fundamental reforms” [5.6].