WORLD TRADE
ORGANIZATIONIP/C/W/132/Add.4/Suppl.1
20 October 1999
(99-4530)
Council for Trade-Related Aspects
of Intellectual Property RightsOriginal:  English
IMPLEMENTATION OF ARTICLE  66.2:  INFORMATION FROM
DEVELOPED COUNTRY MEMBERS
Supplement
GERMANY AND IRELAND
The present document reproduces information on the implementation of Article 66.2 of the
TRIPS Agreement by Germany and Ireland.
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1. Germany
Germany's cooperation with developing countries involves many different forms of private
sector support.  This support creates better conditions for the transfer of technology and the
involvement of German companies in the developing countries.  The emphasis is on raising their
levels of technological competence.
The public-private partnership (PPP) approach involves specific backing for German
businesses' contributions to development projects.  Technology transfers to developing countries
represent a component of each project.
In addition, the following examples can be given of measures to involve German business and
stimulate technology transfers:
(a) Business establishment and technology programme
This programme aims to offer German SMEs low-interest loans to set up or expand branches
in the developing countries, reduce the risks faced by companies using new production technology in
the context of joint ventures and further encourage technology transfers.  The Kreditanstalt für
Wiederaufbau (KfW - institute for reconstruction loans) is responsible for implementing the
programme.
The guidelines for this support (2 August 1991; published in the Bundesanzeiger German
official gazette - No 142, page 5155) provide for loans of up to DEM 2.5 million to help cover
investment expenditure incurred by German compan ies with an annual turnover of up to DEM 300
million.  The loans are for a 15-year term, with repayment deferred for no more than five.  The
interest rate applied is 2.5% for "Group 1" countr ies (LDCs and other poor countries) and 3.5% for all
others.  Feasibility studies for business start-ups and technology transfer projects qualify for loans for
up to 50% of allowable costs, which may not have to be repaid in full.IP/C/W/132/Add.4/Suppl.1
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In 1998, decisions were taken on 71 credit applications, for a total of DEM 86.5 million.  33
applications were granted, involving loan commitments of DEM 32 million.  Actual loan payments
came to DEM 30 million.
A modified version of the programme will in future be part of the PPP facility.
Kreditanstalt für Wiederaufbau
Abteilung AS b/2
PO box 11 11 41
60046 Frankfurt am Main
Telephone: 069 / 7431 - 2581
Fax: 069 / 7431 - 3746e-mail: Klaus.Gihr@kfw.de
(b) Partnerships between chambers of commerce, trade associations and saving
banks
Since 1984, support has been given to programmes to forge partnerships between private
sector mutual associations in Germany and the developing countries.  Since 1990, this has also
included the countries of central Europe and the NIS, bringing the current number of programmes to
around 60.  Participants are chambers of crafts, industry and trade, trade associations and saving
banks, together with their representative organisations and institutes.
The programmes are aimed at the institutional strengthening of mutual associations in the
partner countries and, ultimately, consolidating aspects of their role that impact on economic and
social policy, e.g.  providing broader and better services (particularly for SMEs) and working with
government to create a business-friendly environment.
In 1998, the Bundesministerium für Wirtschaftliche Zusammenarbeit (BMZ - ministry of
economic cooperation) approved a total of DEM 24 146 000 for these programmes.  Responsibility
for implementation was divided up between various bodies, as follows:
German Society for technical cooperation (DEM 500 000):
Deutsche Gesellschaft für
Technische Zusammenarbeit (GTZ) mbH
PO Box 51 80 65726 Eschborn
Dag-Hammarskjö1d-Weg 1- 565760 Eschborn
Telephone: 06196/79-0Fax: 06196/79-1115
e-mail: postmaster@gtz.de
Institute for economic development and vocational training (DEM 20 301 292):
Stiftung für wirtschaftliche Entwicklung
und berufliche Qualifizierung (SEQUA)
Mozartstrasse 4 - 10
53115 Bonn
Telephone: 0228/98238-0Fax: 0228/98238-19IP/C/W/132/Add.4/Suppl.1
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Saving banks' institute for international cooperation (DEM 3 344 896):
Sparkassenstiftung für
internationale Kooperation (SIK)
Königswinterer Strasse 55053227 Bonn
Telephone: 0228/9703-0
Fax: 0228/9703630
German association of cooperatives and agricultural credit groups:
Deutsche Genossenschafts- und
Raiffeisenverband e.V. (DGRV)
Adenauerallee 127
53113 Bonn
Telephone: 0228/106-0
Fax: 0228/106-266, -356
(c) Support for activities of the Senior Expert Service (SES)
The SES was set up in 1983 as a non-profit-making service of Deutsche Wirtschaft für
internationale Zusammenarbeit (German business for international cooperation).  It is a
non-profit-making GmbH (limited company), whose shareholders are the Bundesverband der
deutschen Industrie (BDI - association of German industry), the Carl Duisberg Fördererkreis (group
of funding providers), the Deutsche Industrie- und Handelstag (DIHT - German council of industry
and commerce) and the Zentralverband des deutschen Handwerks (ZDH - central German crafts
association).  Its aim is to exploit in development work the knowledge and experience of experts andleading figures no longer active professionally.  The SES currently has a register of 4 700 such
people.  Their activities focus mainly on solving SMEs' technical and/or business problems and, at the
same time, training company staff.
SES initiatives last a maximum of 6 months; the average to date has been two.  In principle,
the "client" in the partner country is expected to cover the costs, but if he is unable to do so, travel and
project processing costs can be taken on by the BMZ.
There were 7 117 SES initiatives in 136 countries between 1983 and the end of 1998, over
half of which were subsidised by the BMZ.  In 1998 itself, 838 initiatives were carried out - 461 in
developing countries (370 with BMZ cofinancing)  and 239 in central and eastern Europe and the
former Soviet Union (172 with BMZ cofinancing).  Cofinancing of SES initiatives accounted for
DEM 4.5 million from the BMZ budget in 1998 (of which DEM 1.5 million was for the CEECs andthe NIS).
Senior Experten Service (SES)
Ehrenarmtlicher Dienst der deutschen Wirtschaft für intemationale
Zusammenarbeit GmbH - gemeinnutzige GesellschaftPO Box 22 62 D-53012 Bonn
Buschstrasse 2 D-53113 Bonn
Telephone: +49 228 2 60 90-0
Fax: +49 228 2 60 90-77e-mail: ses@ses-bonn.deIP/C/W/132/Add.4/Suppl.1
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(d) Support for technology transfer to LDCs via the DEG
The central task of the Deutsche Investitions- und Entwicklungsgesellschaft (DEG German
investment and development society) is to provide structural support to the private sector in countriesthat are developing or undergoing reform.  It does so, via finance and advice, in the framework of
German Government development policy.  Its objective is to make as many profitable investments in
private companies as possible, whilst respecting environmental concerns and development policy.
The DEG helps with private investment in developing countries where there is the absorption
capacity for entrepreneurial activity but long-ter m involvement is still considered too risky by
commercial banks and financiers.  The DEG offers its services at actual market rates; they are notsubsidised.  Only successful investments that pay for themselves and have a return can guarantee
stable incomes and long-term employment.  They generate sustainable growth and help improve
living conditions in the countries concerned.
The DEG can act in any developing country whose legislation and investment climate allow
for private investment.  The LDCs generally operate neither onerous restrictions nor particular
incentives.  The exceptions are various projects for which the German Government has set up trust
funds making money available on special terms.  DEG financing for business projects in developing
countries takes the form of share subscriptions on risk capital and long-term loans.  The DEG also
advises investors on project planning, preparation and implementation and supports measures takenby German SMEs before investing in projects (e.g.  feasibility studies).
DEG supports specifically target business partnerships between German (or other EU)
investors and local firms in developing countries.  In this way the DEG is able to mobilise business
and technical know-how, product and marketing expertise, basic and further training skills, andadditional investment capital from other sources surpassing many times over the actual DEG funds
involved.
The public-private partnerships created by coupling business investment with development
cooperation funding can produce real synergy in favour of sustainable development.
In addition to direct technology transfers under joint ventures, the DEG also fosters
technological skills by cofinancing local businesses with little or no access to long-term investment
capital.  This makes these businesses more competi tive and more eligible for future partnerships,
particularly with companies in industrialised countries.  Furthermore, the DEG contributes
significantly, though indirectly, to enhancing business potential in developing countries by support to
the financial sector.  In developing, and helping to fund, financing instruments which primarilybenefit local SMEs, the DEG is promoting the technological innovation and ability to create jobs
typical of companies of this scale.
By the close of 1998, the DEG was involved in 21 of the 48 LDCs.  It had approved financing
for investments in 53 businesses (including financial sector projects) totalling DEM 350.1 million, ofwhich DEM 257.7 million was for 42 businesses in 17 African countries and DEM 92.4 million for 11
businesses in 4 Asian or Pacific countries.  The LDCs accounted for 10.2% of the DEG's financing
activities.IP/C/W/132/Add.4/Suppl.1
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DEG - Deutsche Investitions- und
Entwicklungsgesellschaft mbH
Belvederestrasse 40 D-50933 Cologne
postal address:
PO Box 45 03 04 D-50878 CologneTelephone: +49 (0)221/49 86-0
Fax: +49 (0)221/49 86-290
e-mail: Wirtschaftskontakte@deginvest.de
website: http://www.deginvest.de
(e) KfW contributions to funds for infrastructure projects
The aim of such contributions is to help the private sector carry out infrastructure building,
operation and maintenance projects.  Private infrastructure projects receive cofinancing in the form of
long-term credit offered at market rates.  Under bilateral financial cooperation, infrastructure funds
are augmented by development aid money.
Combined financing by the KfW
Combined financing enables budgetary resources and funds borrowed from capital markets to
be used together to finance infrastructure and i ndustrial projects in developing countries without
creating significant debt problems.  The budgetary resources are made available at International
Development Association (IDA) rates and the market capital at current market rates.  Financing must
be applied for in the same way as loans under bilateral financial cooperation, i.e.  private businessescannot apply directly.
Technology transfers are encouraged in particular through the use of modem green
technology, e.g.  modernising coal-fired power stations, financing wind and solar energy generation,
supplying local transport systems.  Combined financing is also used to make funds available toinvestment banks in the partner countries to support environmental measures by the businesses
ultimately benefiting from the loans.
(f) Promoting technology via export guarantees ("Hermes guarantees")
Offering export guarantees to promote German exports often involves technology transfers.
The German Government uses these so-called "Herme s guarantees" to cover commercial export loans
against political and economic risk, thus giving many developing countries access to the capital
market.  The guarantees are also very effective in encouraging the export of capital goods.  This
entails significant technology transfer as well as opportunities for the developing countries to increase
domestic production.
In 1998, Hermes guarantees covered export contracts for a total of DEM 30.2 billion,
involving a total of 186 importing countries.  Around 68% of Germany's liabilities related to
developing countries.
About two thirds of the contracts were for inst allations, machinery and equipment.  Exports of
investment goods like this generally involve significant technology transfers.
For the 10 LDCs with the highest turnover, Hermes guarantees were given in 1998 for the
following contract amounts:IP/C/W/132/Add.4/Suppl.1
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Lesotho DEM 87 million
Mauritania DEM 27 million
Cape Verde DEM 25 million
Bangladesh DEM 24 million
Burkina Faso DEM 24 millionUganda DEM 19 million
Malawi DEM 18 million
Madagascar DEM 16 million
Ethiopia DEM   9 million
Laos DEM   6 million
2. Ireland
In 1998, Ireland's overall aid budget was Ir£139m and this figure is expected to rise to
Ir£178m this year.
Ireland fully endorses EU efforts in pursuit of  the promotion of technology transfer to least
developed countries in order to enable them to create a sound and viable technological base.  In total,in 1998, Ireland contributed Ir£34.4m to the European Union in development aid endeavour.
The focus of Ireland's bilateral aid programmes is on basic needs.  Last year Ireland
contributed Ir£86.8m in bilateral aid to the following countries: Ethiopia, Lesotho, Mozambique,
Tanzania, Uganda and Zambia.  Most of this expenditure was focused on food, water, health andeducation needs.  In addition, Ireland has recently announced a debt relief initiative and contributes to
a variety of UN programmes.
In concentrating on basic needs, bilateral Irish aid enhances the ability of developing
countries to avail of technology transfer opportunities provided in conjunction with other memberstates through our support for EU programmes in this area.
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