CIIP Strategy and Interim Business Plan

Strategy and Interim Business Plan

Prepared for the 2nd CIIP Steering Committee Meeting Ministry of Finance, Vienna February 19, 2014

Table of Contents Part 1. FY13-18 Strategy 3!

I.! Meeting the Competitiveness Challenge 3!

Vision and Purpose 4!

Launch and Operational Roll-Out 4!

Strategy and Business Planning Process 4!

II.! Operational Strategy 5!

Emerging Competitive Industries Approaches 5!

How CIIP Adds Value 6!

Results Framework 7!

Part 2. Interim FY14 Business Plan 9!

I.! Implementation Framework—How It Works 9!

Resource Allocation Framework 10!

Staffing and Support 11!

Monitoring and Evaluation 11!

Reporting 12!

Communications and Partnerships 12!

II.! Program Implementation 14!

FY13-14 Commitments and Disbursements 14!

Early Achievements and Emerging Themes 15!

FY14 Priorities 15!

Implications for FY15 and Beyond 17!

Boxes Box 1: Portfolio Review and Annual Report Preparation Process 12!

Box 2: CIIP Partnership Website 13!

Figures Figure 1: Results Chain – From Integrative Solutions to Job Creation Impact 8!

Figure 2: New Program Commitments Depend on Future Donor Pay-Ins 14!

Figure 3: Future Commitments Will Happen Primarily in ACP Country Operations 14!

Table Table 1: Commitments by Sources and Uses (USD millions) 16!

Annexes Annex 1: CIIP Timeline: Launch and Operational Roll-Out 18!

Annex 2: Results Framework 19!

Annex 3: Multitrack Approach to Country Engagement 20!

Annex 4: Project Selection and Peer Review Procedure 21!

Annex 5: CIIP Structure and Staffing 22!

Annex 6: Strategic Communications: Activities and Tools 23!

Annex 7: Financials 26!

Annex 8: References 31!

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Part 1. FY13-18 Strategy I. Meeting the Competitiveness Challenge 1. Expanding sustainable sources of income is essential to ending extreme poverty and boosting shared prosperity. At its heart, the challenge for developing countries is to rapidly create more and better jobs. Job creation contributes to improved productivity and living standards. It also promotes social cohesion and political stability. Yet, the task appears daunting.

2. According to the World Bank’s 2013 World Development Report, no fewer than 600 million new jobs are needed over the next 15 years just to keep pace with the rapid growth of the world’s working-age population. In Africa and South Asia alone, an average of 1 million jobs per month will need to be created in the next decade. Countries in Eastern Europe, the Middle East, and Latin America and the Caribbean face similar challenges. The urgency around jobs has been fueled by the slower-thanexpected recovery from the global economic crisis.

3. Policymakers around the world agree that economic growth is a necessary condition for job creation.

They also recognize that macroeconomic and investment climate reforms are a sine qua non of growth.

However, both theory and practice suggest that such reforms do not by themselves lead to increased investment and employment. More often than not, market and governance failures—characterized by infrastructure bottlenecks, lack of access to finance and technology, administrative barriers to entry, and skills gaps—persist within and across specific industries. They in turn forestall real sector investment and employment growth.

4. Notwithstanding these hurdles, a growing number of developed and developing countries have shown that progress can be made. They have created jobs by focusing on competitiveness—the ability of firms to generate new investments and to increase market share in goods and services through improved productivity. Contemporary competitiveness strategies have gained traction by focusing on specific industries. They target policies and public investments, catalyze private investments, and foster innovation systems with a view to growing those industries and therefore, jobs.

5. Effective strategies match the ambition of industry level efforts to country capacities and political economy realities.1 Key elements include meaningful sector or industry diagnostics;2 inclusive dialogue between public and private sectors; strategic prioritization of public investment; sequencing of reforms across sectors;3 and learning and accountability during implementation.4 Unlike traditional industrial policy, more recent efforts rely on open processes to demonstrate results, manage fiscal costs, and limit risks of capture.5 Success is revealed in the incubation of new firms, virtuous cycles in the performance of firms, and spillovers to the larger economy.6

World Bank (1997).

Hausmann (2009); Porter (1990, 1998).

3 Stiglitz (2013) 4 Mazzucato (2013); Khan (2009).

5 World Bank (2005, 2013); Acemoglu (2012); Sabel (2005).

6 Chang (2008); Rodrik (2004); Lin (2012); Khan (2009); Aghion (2012); Hausmann (2009).

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Vision and Purpose 6. The World Bank and other development partners such as the European Union (EU), the African, Caribbean and Pacific Group of States Secretariat (ACP), and the Governments of Austria and Switzerland recognize the potential of competitive industries and innovation approaches. This multidonor partnership, the Competitive Industries and Innovation Program (CIIP), seeks to provide valuable support to high potential country initiatives, and to expand the global knowledge frontier on “how to” effectively design and implement competitiveness strategies as part of a new and emerging growth paradigm.

7. CIIP’s vision is for developing countries to boost shared prosperity and eradicate extreme poverty by creating 100 million quality jobs by 2030. To realize this vision, the Program helps enhance country growth and employment prospects by supporting public policies and investments that promote competitiveness and innovation within and across industries. CIIP achieves impact by mobilizing global expertise, applying cutting-edge knowledge, and catalyzing investments in support of transformational projects and frontier knowledge initiatives.

Launch and Operational Roll-Out 8. CIIP was formally launched through establishment of multi-donor and single donor trust funds over the November 2012-July 2013 period. Within its first year, CIIP moved quickly to approve 12 high potential country operations that are currently under implementation. These early movers were selected on a competitive and transparent basis, consistent with CIIP’s Operational Procedures— Coordination with European Commission and Other Partners.7 In parallel, an ambitious knowledge agenda is gaining momentum as a result of CIIP’s flagship October 2013 conference, a number of publications, and training events. The operational and knowledge priorities underpinning CIIP’s rapid roll-out are reflected in this Strategy and Business Plan (Annex 1). They indicate high demand for CIIP on the part country clients and their development partners.

Strategy and Business Planning Process 9. CIIP’s strategy development and business planning process was launched in earnest at the 1st Steering Committee Meeting in Brussels in September 2013. What followed were a series of formal and informal consultations with donor partners, country clients, leading thinkers (including members of the CIIP “brain trust”), and World Bank operational staff and senior management. In addition, the CIIP team sought early feedback from Steering Committee members during a December 2013 visit to Brussels, Berne, and Vienna. The final Strategy and FY14 Interim Business Plan has been reviewed

by World Bank management prior to submission to the CIIP partners for review. Their endorsement of the plan is sought at the 2nd Steering Committee Meeting in Vienna on February 19, 2013.

10. This document provides a shared vision and approach to achieving the main objectives set out in the two trust fund agreements and the Administrative Agreement. The accompanying Interim Business Plan explains how the strategy is being implemented over the course of CIIP’s first year. Going forward, the FY15 Annual Business Plan for CIIP will be progressively aligned with the Bank’s own planning cycle—as required by the Bank’s trust fund policies—to enhance oversight and transparency.8 The FY15 plan will be submitted for review and approval over the July-September 2014 period, and will include a retrospective on the previous year’s achievements including the management of resources, other aspects of program implementation, and operational results (based on indicators identified in the CIIP results framework).

The CIIP Steering Committee approved the Operational Procedures in September 2013. As a live document, the procedures are periodically updated, in consultation with the partners, to reflect the evolving needs of the program and good practice.

8 World Bank (2013).

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II. Operational Strategy Emerging Competitive Industries Approaches 11. In recent years, a number of countries have experimented with various implementation modalities to correct market and governance failures within and across industries: for instance, economic zones, growth poles, value chain development, city-level competitiveness strategies, and innovation systems.

Each of these modalities integrates and sequences basic elements of private sector development: regulatory and business environment reforms, public investment in basic and industrial infrastructure as well as skills development, institutional strengthening of public agencies and cluster institutions, and catalytic mechanisms to enhance access to finance for private firms.

12. At the heart of these efforts is a new growth paradigm that seeks to motivate collective action by public and private actors at the industry level, and to forge linkages to the larger domestic economy through cross-sectoral and spatially-targeted efforts. Their innovative aspects lie in the ability to bundle and deliver support to industries in a cost-effective manner; to coordinate macro, mezzo, and micro-level reforms; and to convene public and private sector actors. In the process, such interventions promise economies of scope and scale, as well as magnified impact. Increased private sector investment, greater entry of new firms, higher productivity in select industries will result in positive spillovers to the broader economy and significant sustainable job growth.9 13. At the same time, such approaches can be complex and challenging to implement. The associated risks can be managed through programmatic design, prioritization of activities (for example, through sector sequencing), use of innovative fiscal and financial instruments (for example, challenge and matching grants, risk management instruments, supplier development programs); and reliance on third party monitoring and short feedback loops. In addition, such interventions require considerably more resources during their design and implementation, a heavy emphasis on private and public sector capacity building, and a keen awareness of political economy dynamics.

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World Bank (2013).

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How CIIP Adds Value 14. CIIP’s added value to country and global efforts to boost shared prosperity and eradicate extreme poverty is three-fold. First and foremost, it provides countries with integrated solutions for the design and implementation of industry-level competitiveness initiatives in high potential sectors. These solutions in turn motivate investment, enhance firm level productivity, enable value chain integration and cluster growth, and create jobs. Second, it pushes the knowledge frontier on “what works” in competitiveness and innovation by sharing lessons in real time from its active country engagements and by motivating cutting edge operational research across its global network of academic, policy, and industry actors.

Third, CIIP raises the awareness of practitioners on contemporary industrial policy across countries.

15. To this end, CIIP initiatives are designed with the following characteristics: •

Transformational Impact: CIIP-financed country operations focus on sectoral and spatial entry points with high potential for transformational job growth based on industry prioritization scenarios. Similarly, CIIP knowledge activities aim to impact the dialogue among global thought leaders and regional actors through cutting edge operational research and high profile events.

•

Cross-Sectoral Design: Industry-level constraints as well as their remedies are inherently cross-sectoral. For instance, a cluster of firms may be more acutely constrained by poor access to electricity and transport infrastructure relative to their access to finance and skilled personnel.

CIIP country operations tackle these binding constraints through well-sequenced and coordinated public and private actions. The resulting economies of scope and scale enhance the likelihood of impact on firm-level competitiveness. Over time, cross-sectoral efforts can be strengthened with advancements in knowledge on the design of coordination mechanisms such as delivery units and subnational capital grants.

•

Efficiency and Timeliness: When they open, windows of opportunity to foster competitive industries must be seized. CIIP financing enhances the rapid response capability of the World Bank Group and its development partners across a range of countries. It also provides the critical mass of support—for instance, in the form of technical assistance or just-in-time analytics— needed to manage the risks typically associated with cross-sectoral operations. Through its multiple country engagements, CIIP aims to capture, disseminate, and apply knowledge in realtime of ‘what works’ within and across industries.

•

Complementarity and Jointness: In keeping with CIIP’s role as a new and emerging partnership, country operations are developed jointly with partners. CIIP resources and expertise are leveraged through existing lending or analytical activities supported in the context of World Bank Group Country Partnership Frameworks. Activities are developed jointly with—and often co-financed by—CIIP partners as well as private sector actors at the country level. The global knowledge agenda also fully leverages expertise across CIIP’s network of experts and practitioners, the World Bank Group and the other partners’ staff. Joint approaches are intended to limit duplication and redundancy, and also to enhance the quality of knowledge and operations.

•

Sustainable: It is important that CIIP projects are not only transformational but also sustainable—that is, their stream of benefits continue to accrue beyond the life of a particular operation. To promote institutional, social, and environmental sustainability, CIIP projects follow best practice safeguards policies and procedures, including those governing World Bank Group operations. For similar reasons, CIIP supports programmatic—rather than piecemeal— knowledge efforts that add value across the country, industry, and regional levels.

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Results Framework 16. CIIP’s theory of change holds that the bundling and delivery of support for basic elements of private sector development (see para 11) in an industry context can help accelerate impact. As Chart 1 illustrates, these integrative solutions help to transform financial, institutional, and knowledge inputs into an enabling environment for industry growth. As industries become more competitive and innovative, they attract private investment, spur productivity gains, and generate jobs and social spillovers. In this way, CIIP operations help boost shared prosperity and eradicate extreme poverty.

17. The above-mentioned results chain is supported by a more detailed results framework (Annex 2). The results framework ensures that CIIP is achieving its overarching objectives by tracking four tiers of indicators. Tier 1 (impact) indicators measure CIIP’s triple bottom line of investment, jobs, and industry growth, and also track social spillovers. These impacts derive from improvements in the quality of policies, the performance of public and private institutions, and access to basic services and finance: these are tracked by Tier 2 (outcome) indicators. Outcomes are obtained in part from Tier 3 (output) indicators, which track policies, services, institutional capacities, and financial and hard assets that are produced by CIIP’s menu of integrative solutions (for example, economic zones, growth poles, value chains, and competitive cities). These solutions and associated levels of financial and capacity building are tracked using Tier 4 (input) indicators. To the extent possible, these indicators are standardized across CIIP-financed projects.

18. In keeping with CIIP’s theory of change, the following impact indicators are used to assess progress towards the achievement of its high level objectives: Indicator 1 – Gross number of jobs (disaggregated by gender and age cohort) Indicator 2 – US$ value of private investment leveraged (of which, domestic share) Indicator 3 – Net number of new firms (of which, share headed by women) Indicator 4 – Number of people with access to improved services 19. These data will be discussed in annual reports and other key documents. It is important to acknowledge the myriad attribution questions associated with CIIP’s cross-sectoral and policy-based interventions. Therefore, in its reporting on results, CIIP emphasizes its contribution to impact through its key inputs and relevant outputs (tracked by Tier 3 and 4 indicators). Where feasible, country examples inform a narrative of different country trajectories for enhancing competitiveness and creating jobs. Program reporting draws on the project-level efforts to track relevant Tiers 1-4 indicators based on CIIP’s tailored response to country constraints.

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Results Framework

Figure 1: Results Chain – From Integrative Solutions to Job Creation Impact Input

Basic Elements

Instruments

Institutional Strengthening Infrastructure Innovation

Labor and Skills Access to Finance

Public-Private dialogue Technical assistance Public finance Catalytic support for firms Evaluation and feedback

Industries

Agribusiness Manufacturing Extractives Tourism and other industries

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Outcome

Impact

Regulations and policy reforms

Time and cost to comply with regulations

Private investments

Roads and electricity

Access to markets

Industrial infrastructure

Access to and reliability of electricity

Teachers trained

Access to skills

Menu of Integrated Solutions

Analytics

Business Environment

Output

Value chains Economic zones Clusters Cities Growth poles and corridors

Growth in supported sector Social spillovers

People trained Cross-institutional coordination mechanisms

PPD impact on reform process

Institutional capacity-building

Effectiveness of institutions

Financial instruments and volume committed

Access to financing

Gross number of jobs

Increased firm skill

SME support programs Funding spent on innovation and R&D

Patents for innovation

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Part 2. Interim FY14 Business Plan 1. Since its first proposals were reviewed in March 2013, CIIP has rapidly grown a portfolio of high potential country operations and a rich global knowledge agenda. By the 1st Steering Committee Meeting in September 2013, the Program had institutionalized most elements of a robust implementation framework – its machinery for delivering on its operational strategy. This interim FY14 Business Plan explains how CIIP works, its program commitments and early deliverables, and the priorities that guide its efforts over the remainder of FY14.

I. Implementation Framework—How It Works 2. To deliver on its operational strategy, CIIP relies on a robust implementation framework, described below. The key elements of this framework include: CIIP’s multi-window funding structure, its resource allocation framework, staffing and support, monitoring and evaluation, as well as strategic communications and partnerships.

3. Funding Structure. As noted earlier, CIIP funding is structured around two World Bank-executed trust funds. The Multi-Donor Trust Fund (MDTF: TF071975), supported by the governments of Austria and Switzerland as well as the EU, was established on November 15, 2012. The SingleDonor Trust Fund (SDTF: TF072037), financed through the EU European Development Fund (EDF) and hence with the specific geographic focus on the African, Caribbean, and Pacific states, was established on July 18, 2013. Taken together, both funds allow CIIP to finance operations across most geographic regions as well as a wide array of global knowledge activities. As Trustee and Administrator for both the funds, the World Bank is responsible for program development, implementation, and monitoring and evaluation. The Bank also is responsible for secretariat functions that support CIIP as a unique partnership.

4. While the above-mentioned fund structure is discreet for accounting purposes, CIIP resources are managed seamlessly across the two trust funds in order to ensure predictable, transparent, and efficient financing of both country and global knowledge priorities. To this end, CIIP uses a set of financing windows under the trustee level parent funds for the MDTF and SDTFs respectively: (i) a Country Operations Window for high potential country operations, (ii) a Knowledge Management Window to support cutting-edge analytics as well as dissemination and networking activities; and (iii) a Program Management Window that support secretariat functions.10 5. In keeping with good practice, funds’ flows through these windows and associated child grants are aligned with the pay-in cycle for donor contributions at the trustee level. As of January 30, 2014, 70 percent of MDTF commitments and 50 percent of SDTF commitments were paid into the trustee fund, and 96 percent of paid-in funds were committed. Nearly US$15 million in pending tranche contributions from the EU & Switzerland will be needed over FY15-16 to allow sufficient time for commitment and execution by the FY18 program completion date.

Child trust funds under each window are established to finance CIIP projects approved by the Steering Committee. Similar funds have been established to fund “support services” comprising portfolio-wide actions on M&E, strategic communications, training and learning, and project development TA (Annex 7c). These funds also support sensitization and training of clients from countries at early stages of engagement on competitiveness issues (Part 2, para 8).

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Resource Allocation Framework 6. The CIIP allocation framework prioritizes the use of scarce donor resources (i) at the program/trustee level, between operational and knowledge priorities; (ii) at the window level, between countries and between knowledge themes; and (iii) at the project level, between individual operational and knowledge proposals. This framework, described below, aims to ensure that CIIP funds are used efficiently and effectively.

7. Program-Level: CIIP’s overall resource envelope is split between country operations and global knowledge initiatives. Since transformational country initiatives are intended to drive program results, CIIP aims to allocate 75 percent of its funds (excluding program management costs) to its Country Operations Window. The remaining 25 percent are assigned to the Knowledge Management Window to finance global and regional initiatives.11 8. Window-Level: Resources for country operations are allocated using a multi-track engagement system based on country readiness (Annex 3). Readiness is evidenced by leadership interest, track-record on competitiveness issues, institutional capacity, and level of organization of the private sector.

•

Countries with limited exposure to competitiveness issues are best served by Track 1 (which supports awareness-raising and training financing under the Knowledge Window) or Track 2 (which finances preliminary scoping missions and dialogue under the Country Operations Window). Track 1-2 activities by definition involve affirmative efforts to foster future new client countries, for example, in some African, Caribbean, and Pacific countries. A provisional allocation for affirmative efforts under Tracks 1 and 2 over the program life are made under the Knowledge Management and Country Operations Windows respectively.

•

Remaining resources under the Country Operations Window are eligible, on a demand-driven basis, for Track 3 (substantial stakeholder engagement, intensive market analytics, and pilot interventions) and Track 4 (comprehensive efforts to support design and implementation of high potential, industry level interventions). Track 3 and 4 countries are those with deep leadership commitment and broad base of support, mature competitiveness and innovation strategies, and bankable interventions.

•

The bulk of funds under the Knowledge Management Window support relevant research on competitiveness and innovation. To help identify activities that would push the knowledge frontier, CIIP relies on a tripartite governance structure comprising Bank and donor operational teams,12 the World Bank’s Competitive Industries “brain trust” of scholars, and where necessary, industry leaders. While half these resources help identify lessons on “nuts and bolts” implementation issues, the other half is devoted to applied research that advances the state of theory and empirical research on competitiveness. These themes, for instance, the effectiveness of industrial policy instruments and the determinants of growth at the industry and cluster level, are identified in consultation with members of brain trust and industry leaders.

9. Project-Level. Both country and knowledge priorities are organized into projects and selected on a rolling basis in accordance with project approval and coordination processes illustrated in Annex 4, consistent with the Operational Procedures. Selection criteria include inter alia alignment with CIIP objectives and industry level approaches; consistency with standard fiduciary and operational requirements (including Paris Declaration Principles on Aid Effectiveness); potential for The current breakdown between Country and Knowledge Windows is 72 and 28 percent respectively.

Brain trust members are Dani Rodrik (Institute of Advanced Studies, Princeton), Ricardo Haussman (Harvard University), Charles Sabel (Columbia University), Mushtaq Khan (University of London), Francis Fukuyama (Stanford University), and Alan Gelb (Center for Global Development, Washington DC).

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transformational impact (for instance, investment generation and job creation); and coordination with donors. Approvals follow a series of internal reviews within the World Bank, and then a formal peer review by the CIIP Steering Committee. These rigorous project review processes are intended to ensure selectivity, quality-at-entry, relevance of design, and likely impact. Once approved, proposed interventions are financed through child trust funds.13 10. Ultimately, resource allocations are contingent on performance. Once CIIP proposals are approved, a child trust fund is created, a disbursement timeline and annual grant tranching schedule is established based on planned activities. Tranching is then based on fund utilization and activity completion, as monitored in the World Bank’s Grant Reporting and Monitoring (GRM) system. In the event of non-performance, tranches may be withheld until course corrections are made or CIIP projects are restructured. In some cases, resources may be re-pooled and reallocated within the Country Operations or Knowledge Management Windows.

Staffing and Support 11. CIIP’s rapid launch and its ongoing success depend on a robust support structure and high quality staff. A small self-standing secretariat ensures coherence across the portfolio, alignment with partners’ priorities, as well as lean and quality management. It is responsible for program strategy and management, financial management, knowledge and learning, monitoring and evaluation, strategic communications, and risk management. In CIIP’s first year of implementation, the secretariat has responded flexibly to CIIP’s dynamic and evolving needs—for instance, program launch, development of this strategy and business plan, project development and review, donor engagement, and support for high profile knowledge activities. In addition to experienced secretariat staff, the CIIP team now includes 5 additional global experts that actively support Bank project teams in country dialogue, analytics, as well as operational design and implementation (Annex 5).

12. The CIIP team is embedded within the World Bank Group’s recently established Trade and Competitiveness (T&C) Global Practice, which places competitiveness issues at the forefront of country dialogue on private sector development. CIIP aims to fully utilize these Bank Group institutional resources to further its goals. For instance, it works through 54 competitive industries staff affiliates and 73 secondary affiliates currently supporting World Bank operations around the world. It also draws on the knowledge sharing, training, and e-learning capacities of T&C and other Global Practices to expand its client base and enrich its country dialogue. CIIP is further deepening its collaboration with the World Bank’s Development Economic Group on research relating to competitiveness and innovation.

Monitoring and Evaluation 13. CIIP’s monitoring and evaluation (M&E) objectives are three-fold: (i) to foster results-orientation in both country operations and knowledge activities; (ii) to promote accountability to country stakeholders and development partners; and (iii) to encourage learning in real-time. Discussed below are the design and implementation of project and program M&E, as well as their intended uses: •

Project M&E for CIIP operations build on the mainstream of development practice. As such, these operations contain project-level results frameworks that delineate causal links, from inputs to outcomes. They identify standardized and customized indicators with baselines and targets, as well as the M&E instruments and resources needed to measure and verify them over the project life. Given the cross-sectoral nature of competitiveness operations, project level M&E will need to

Child trust funds under CIIP’s Country Operations Window are linked to—and coded under—either World Bank Investment Lending (IBRD/IDA, SF, RE, IF) or Non-Lending Technical Assistance (NL-TA) product-lines. Child trust funds under the Knowledge Management Window are coded as Economic & Sector Work (ESW), Research Services (RF), Impact Evaluation (IE) or External Training (TE). Product-line codes determine the types of quality review process for TF inputs and outputs. CIIP’s Steering Committee will be appropriately consulted during these processes.

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rely on and strengthen country M&E systems. These include traditional public sector evaluation systems as well as demand-side measures—for instance, third party monitoring, public-private dialogue mechanisms, and firm-level surveys—that give voice to private sector and local stakeholders. These mechanisms promote feedback loops and motivate mid-course corrections.

Additionally, for discrete components of CIIP operations such as SME matching grant schemes or city-level capital grants, impact evaluation methods should help to identify good practice.

•

Program M&E aims to assess the CIIP’s overall efficiency and effectiveness across country operations and global knowledge activities. Drawing on the CIIP results framework (Part 1, para 16-17), the secretariat regularly aggregates project-level data on inputs, outputs, and outcomes.

Efficiency data on program-wide processes and portfolio quality are also collected. Periodic program evaluations in turn rely on both quantitative and qualitative field based assessments to test causal links, to assess relevance of program objectives and design, and to review achievement of discrete objectives. From time to time, CIIP undertakes reviews of emerging operational topics, for instance, the sustainability of economic zones, or the efficacy of matching grants.

Where appropriate, reviews rely on meta-evaluations of project-level impact evaluations.

Reporting 14. CIIP ensures timely submission and disclosure of financial and operational reports at the proect and program levels. At the project level, Bank operational teams provide regular updates through the GRM cycle on completion of activities and utilization of trust funds. In parallel, the Bank’s Implementation Status Reports provide detailed, semi-annual published reports on the physical and financial performance of lending operations to which CIIP projects are linked. CIIP aims to fully leverage these institution-wide Bank Group processes to support its own reporting and portfolio review objectives (Box 1). A newly launched CIIP website gives partners the ability to directly track project and program-level progress and results (Box 2).

Box 1: Portfolio Review and Annual Report Preparation Process Between June and July each year, World Bank task team leaders are required to report on the implementation of child trust funds through the GRM system. They are also required to complete the annual Letter of Representation (LOR) exercise to confirm compliance with the Bank’s fiduciary obligations in the expensing of the trust fund. GRM and related data consolidated in the World Bank’s annual trust fund report, and LORs are consolidated in annual single audit report to donors. The CIIP secretariat will conduct an annual portfolio review using GRM reports, and synthesizes them into an Annual Report & Business Plan that covers progress through June of each year. Problem projects are addressed in the report and when necessary, recommendations are made to adjust the size and schedule of tranches. The report is presented to the Steering Committee over July-September each year.

Communications and Partnerships 15. Effective communication among CIIP’s partners and its broad range of public and private stakeholders is critical to program success. Using a wide range of corporate tools and channels, CIIP ensures the visibility of both individual contributing partners and the partnership as a whole. It also fosters its global network of practitioners and experts, and promotes operational learning. Described below, these three pillars of CIIP communication are supported by a wide range of tools and activities listed in Annex 6: 16. As part of its visibility efforts, CIIP has developed an official logo (in the header above) that identifies the contributing partners. It is prominently displayed on official print and online products, marketing and press information, knowledge products and formal publications, visual, on-line and multimedia

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materials. Common visibility rules, branding, and communications standards developed for CIIP are systematically employed for local outreach and communications efforts in client countries. Templates for promotional, knowledge, and outreach materials are shared with World Bank Group operational teams and are posted on the CIIP website for easy access (Box 2). Active participation of partner representatives is sought at global knowledge and country project events. Strategic communications across the Bank Group, development community, and networks of competitiveness experts aim to further raise CIIP’s global profile.

Box 2: CIIP Partnership Website The CIIP partnership website provides detailed information on CIIP country operations and knowledge initiatives. It aspires to become a comprehensive and interactive online resource on industry focused efforts in private sector development. The website aims to serve multiple purposes. Most immediately, it provides key materials that are relevant to the smooth function of the Steering Committee.

Contributing partners are given access to confidential information on operations and knowledge products in real-time through a password-protected space. The space allows partners to deliberate and comment on project design and implementation, or on various knowledge products. They can also monitor progress to date. In addition, the website supports knowledge exchange across networks of practitioners and thought leaders on cutting edge research, good practice or innovative approaches, and results from competitiveness strategies around the world.

17. A second communications priority is to foster a global network of World Bank staff working on competitiveness issues, public and private sector actors, as well as academics and policymakers around the world. CIIP organizes periodic high profile knowledge and training events (including an annual conference) and actively disseminates knowledge products to this ever expanding network. It also employs a range of channels and interactive tools (for example, a self-standing website as well as social, print, and broadcast media) to support networking.

18. Finally, CIIP promotes operational learning through active knowledge sharing among project teams, partners, and country stakeholders. Emerging lessons and good practice notes are disseminated by CIIP to teams working on competitive industries projects in a wide array of countries. Seminars, presentations, and “clinics� provide opportunities for project teams to share innovations and seek feedback on project design and implementation approaches (for instance, on economic zones, growth poles, and matching grant schemes). In addition, embedded in most CIIP operations are publicprivate dialogue mechanisms and harmonized donor processes all of which in principle enable partnerships and open dialogue on competitiveness issues. Such in-country processes can be enriched by timely disclosure and publication of evaluation results on industry level efforts. These efforts in turn can encourage feedback loops and virtuous cycles.

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II. Program Implementation FY13-14 Commitments and Disbursements 19. Rapid activity and portfolio growth reflect considerable demand for CIIP initiatives. A total of US$20.34 million— or 96 percent of paid-in funds—have been committed to 16 approved projects and portfolio-wide support services. Seven of these grants, amounting to US$6.91 million in commitments, are helping to mobilize significant investment from official sources, including US$617.6 million in World Bank lending.14 20. Among major geographic regions, Africa has the largest share of current commitments with 4 projects totaling US$4.235 million. Eastern Europe and Central Asia follows with 5 projects totaling US$3.559 million. Latin America and the Caribbean as well as East Asia and the Pacific each have one project— one in Haiti (US$1.8 million) and the other in Vietnam (US$1.0 million) respectively. In the Middle East and North Africa Region, a project amounting to US$0.78 million has been approved in Tunisia.15 21. As noted earlier, commitments are made under both the financing windows of the MDTF and SDTF. A total of US$6.91 million have been made under the SDTF Country Operations Window. Another US$5.57 million in commitments have been made under the MDTF Country Operations Window. In addition, US$4.41 million in commitments have been made to MDTF Knowledge Window including for support services (M&E, strategic communications, learning, and training).

22. Disbursement projections through the end of FY15 remain robust and will be further bolstered by tranching. While there is still headroom to respond to growing demand, early efforts to support implementation of active projects would benefit CIIP’s young portfolio. Starting in FY15, new commitments will be made primarily under the MDTF Knowledge Management and the SDTF Country Operations Windows (Charts 2-3).

Figure 2: New Program Commitments Depend on Future Donor Pay-Ins

Figure 3: Future Commitments Will Happen Primarily in ACP Country Operations

Data do not include non-lending resources mobilized by Bank operations. The overall leveraging impact of these CIIP projects, in terms of public and private investment, is expected to become evident within 1-2 years.

15 Global activities cover 4 knowledge products (US$2.988 million) and support services.

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Early Achievements and Emerging Themes 23. In its first year, CIIP has experienced a high level of demand for its support. It also made progress towards early results, especially on the knowledge front. An October 2013 CIIP flagship conference, “Making Growth Happen,” provided an important opportunity for the development and academic communities to take stock of the current thinking on industrial policy and competitiveness. A joint World Bank-OECD initiative, the Innovation Policy Platform (IPP), promotes knowledge exchange through an interactive platform that helps researchers and practitioners identify good practice approaches to build innovation systems. CIIP has also supported training of policy leaders and practitioners through the Competitiveness Summer School. It has published papers and blogs on a number of themes—from site selection for industrial parks to agribusiness in Africa (Annex 8). These knowledge initiatives are expected to influence country efforts as well as academic research.16 24. Even though CIIP-financed country efforts are still in their early stages of design and implementation, indications are that these competitive industry approaches can gain traction. Participatory processes and market analytics (Tier 3-4 indicators) are being used to support sector selection, for example, in Cote d’Ivoire and Tunisia. Similarly, spatially-targeted public investments are being planned and augmented in Ethiopia, Haiti, Tanzania, and Sierra Leone. The establishment of public agencies in Georgia is supporting smart specialization and innovation systems. As implementation proceeds, CIIP anticipates progress on Tier 1 and 2 indicators such as improvements in business regulation, enhanced efficiency of public spending, leveraging of private investments, and job expansion.

FY14 Priorities 25. The development of CIIP’s implementation framework and the launch of several CIIP projects have set the stage for priorities in the interim FY14 plan (Table 1). Over the September 2013-June 2014 period, CIIP has focused on three priorities – implementation support for active operations; ‘leveling the playing field’ for small and fragile states; and strengthening stewardship of donor resources: •

First, CIIP will focus on implementation to active operations to fully exploit their transformational potential. Activities will include proactive outreach to country clients and partners, close monitoring of CIIP grants and associated World Bank operations, and support for real-time evaluations of selected components. CIIP has set an ambitious target of accelerating disbursements to 20 percent of commitments of the program life. In parallel, a US$1 million cap is proposed on new commitments for the remainder of the third and fourth quarters of FY14.

•

Second, CIIP’s hitherto demand-driven focus (Tracks 3-4) will be complemented by affirmative efforts (Track 1-2) in fragile and small states in the ACP. Approximately US$2 million have been provisionally allocated for these affirmative efforts over the program life. A regional conference on competitiveness and industry level efforts in Africa is planned for March 2014. Preparations for FY15 knowledge events in the small states of the Caribbean and Pacific are also underway.

Taken together, Tracks 1-2 aim to ‘level the playing field’ before additional commitments are made through Track 3 and 4.

•

Third, CIIP will continue to institutionalize good stewardship practices across the partnership program inter alia through regular financial and physical reporting, compliance with established procedures and processes, systematic tranching of disbursements, and communications efforts. In addition, the secretariat envisages resource mobilization efforts to broaden CIIP’s base of support.

For instance, CIIP recently provided inputs to the Invest in Cote d’Ivoire 2014 conference, which was convened by the country’s president to galvanize its industrialization efforts. The conference brought together over 1500 investors, high level representatives from multilateral institutions, and officials from several African and European countries. Based on CIIP’s early engagement, Ivorian leadership has sought ongoing advice on the design of growth poles and value chain development initiatives.

16

Competitive Industries and Innovation Program

15

Table 1: Commitments by Sources and Uses (USD millions) FY13

FY14

FY15

FY16-18

Total

11.1 70%

1.6 80%

2.5 96%

0.642 100%

15.9 0%

1.6 6.4 3.0

1.6 -

2.5

0.642

3.228 6.454 6.223

Single Donor Trust Fund (cumulative % pay-in)

-

10.0 50%

7.9 90%

1.99 100%

19.98 100%

EC (ACP Secretariat)

-

10.0

7.9

1.99

19.98

2.39 10% 21.444

12.487 52% 11.347

13.387 56% 10.447

56% -

23.834 13.387 56% 10.447

Africa (% Commitment of Window Allocation)

0

4.24 18%

-

-

4.24 18%

East Asia & the Pacific

0

1.025 4%

-

-

1.025 4%

Latin America and the Caribbean

0

1.875 8%

-

-

1.875 8%

Middle East & North Africa

0.788 3%

0

-

-

0.788 3%

Europe & Central Asia

1.602 7%

1.957 8%

0.9 4%

-

4.459 19%

South Asia

-

-

-

-

-

Track 2: Project Development

-

1.0 (4%)

-

-

Knowledge Management Committed (Cumulative) (% of Window)

1.057 11%

6.008 66%

66%

66%

1.0 (4%) 9.121 6.008 66%

Uncommitted (Cumulative)

8.064

3.113

-

-

3.113

0.585 6%

0.3 3%

-

-

0.885 9%

Competitive Cities

-

0.880 10%

-

-

0.880 10%

Industry-Specific Global Value Chain

-

0.75 8%

-

-

0.75 8%

0.472 5%

-

-

-

0.472 5%

Track 1: Training & Learning

-

1.0 10%

-

-

1.0 10%

Support Services

-

2.021 22%

-

-

0.553 25%

1.853 83%

1.853 83%

2.216 100%

2.021 22% 2.216 2.216 100%

SOURCES | Donor Commitments Multi-Donor Trust Fund (Cumulative % pay-in) Switzerland Austria European Commission

USES | Project Commitments Country Operations Committed (Cumulative) (% of Window) Uncommitted (Cumulative)

Innovation Policy Platform (% Commitment of Window Allocation)

Implementing Industrial Policy

Program Management Window Committed (Cumulative) (% of Window)

Competitive Industries and Innovation Program

16

Implications for FY15 and Beyond 26. Middle and lower income countries as well as fragile states are eager to generate quality jobs in their productive sectors. Demand for CIIP-style country operations continues to grow, as does global interest in actionable knowledge on competitiveness and innovation strategies. While CIIP has the capacity to respond in a number of areas, it remains constrained in others. For instance, as Table 1, there is urgent need for CIIP to develop the financial capacity to respond to demand from South Asian clients, and possibly augment funding for small and fragile states in the ACP depending on the success of early Tracks 1-2 efforts.

27. This strategy and interim business plan provides the basis for broadening CIIP’s base of support. Likeminded donors will be consulted with a view to mobilize an additional US$65-85 million—based on estimated needs—to support program objectives over FY13-18.

Competitive Industries and Innovation Program

17

Timeline

Annex 1: CIIP Timeline: Launch and Operational Roll-Out Austria and Switzerland join European Union joins European Union - European Development Fund joins

Partnership

Trust Fund Closing

Steering Committee meeting Consultations on Strategy and Business Plan Strategy and Interim Business Plan Annual Report, FY15 Business Plan

Planning

Call for proposals Selection Process completed

Operations Nov

Jan

Mar May

2013

Jul

Sep

Nov

Jan

Mar May

2014

Jul

Sep

Nov

Jan

Mar May

2015

Jul

Sep

Nov

Jan

Mar May

2016

Jul

Sep

Nov

Jan

Mar May

Jul

Sep

Nov

2017

Innovation Policy FYR Macedonia Lessons Learned Tunisia ACP Russia Non-ACP Knowledge Sierra Leone Côte d’Ivoire Vietnam Kazakhstan Croatia Ethiopia Georgia Tanzania Competitive Cities Haiti Value Chain Analysis

Competitive Industries and Innovation Program

18

Annex 2: Results Framework Input – Tier 4

Output – Tier 3

Outcome – Tier 2

Impact – Tier 1

Basic elements

Integrated solutions

Direct project deliverables

Changes in conditions/behavior resulting from outputs

Long term changes for end beneficiaries

Business environment

Analytics

! # of strategy/reform program designed (esp. with input from PPD) ! # of laws/regulations approved and enacted or policy reforms implemented (including SEZs)

Business regulation ! # of days, procedures, and cost to comply with business regulation (incl. entry/exit)

Investment ! $ of total private investment in supported industries (of which domestic) ! (financial efficiency – private investment leverage of public funds)

Public-private dialog Policies and regulations

Infrastructure

Public Investment

Import/export ! # of days and cost to export/import Tax reform ! # of days and cost for tax compliance

Roads ! $ committed and approved for infrastructure investment ! Km of all-weather roads constructed ! Km of bridges constructed

Access to markets ! # of hours to get to market ! $ cost to get to market ! (estimate new entrants)

Electricity ! $ approved and committed for electricity generation or grid upgrading/expansion ! MWh of electricity generation capacity

Access ! # of new connections to targeted industry

Skills ! # of strategy/ reform program designed (esp. curricula with input from PPD) ! # of teachers/specialists trained/certified ! # of people trained/certified (by skills type)

Access to skills (reduced skills mismatch) ! # of students/trainees with a job or self-employed in supported industry one year after completion of education/training program

! # and $ funding for cross institutional coordination mechanisms (PPD, PIU, intergovernmental working group) created and operational ! $ approved and committed for capacity building of specific institutions (gov’t agency, regulator, industry body, stats agency) - IT upgrade, people trained, governance etc.

PPD impact on reform process ! # of reforms enacted through the PPD mechanism (evaluation wheel to measure impact on reform)

Access to finance

! # of catalytic/innovative finance instruments (matching grants etc.) designed and $ volume committed ! # of SME support programs developed and $ committed (e.g. training for SMEs on financial literacy, management practices etc.))

! $ of finance (from a wide range of instruments) approved and disbursed ! # of firms in focus industries accessing additional finance ! #SMEs trained or supported

Innovation

! $ value of budget spent on innovation and research and development (R&D)

! # of firms with approved patents on process or product innovation ! $ of financing for innovative activities (VC, angel financing)

(hard infrastructure, land, industrial utilities)

Matching grants and credit lines Value chains Economic zones

Labor and skills

Growth poles and corridors Clusters Cities

Institutional strengthening

Competitive Industries and Innovation Program

Reliability ! # hours of electricity outages per week

Growth in supported sector ! # of direct beneficiaries of the project (of which women) ! # net of new firms (of which headed by women) ! $ net increase in output of beneficiary enterprises ! % increase in labor productivity ! % increase in total factor productivity ! % share of exports of supported sector/industry ! % share in GDP of sector/industry ! Gross number of jobs (direct - of which women) Growth in linked sectors ! % share in GDP of linked sectors/industries ! Number of people with access to improved services ! Gross number of jobs (indirect – of which women)

Public sector management and state capacity ! Agency effectiveness – e.g. process times, response rate etc.

19

Annex 3: Multitrack Approach to Country Engagement LOW

TRACK 1: TARGETED SENSITIZATION

Country Readiness: ! No sign of leadership interest or a champion ! No formal strategy or policy on CI issues ! Little or no track-record of CI efforts ! Weak policy and institutional framework (e.g., CPIA) ! Fragmented, unorganized private sector Bank Readiness: ! Lack of awareness of CI issues ! Lack of appropriate CI competencies in team

Track 1 aims to familiarize country leaders and sector counterparts with the basics of industrial policy and competitiveness strategies. CIIP proactively signs up ACP countries to Track 1, with a special focus on IDA countries & Fragile and Conflict Affected States.

Provisions for regional initiatives among small states will be made.

MODEST

TRACK 2: EARLY CI DIALOGUE

Country Readiness: ! Expressed leadership interest and identified champion ! Elements of formal strategy or policy ! Little or no track-record of CI efforts ! Modest policy and institutional framework (e.g., CPIA) ! Elements of an organized private sector Bank Readiness: ! Early interest in CI issues ! Willingness to tap Global Practice for CI competencies

Track 2 involves proactive efforts to initiate dialogue with country counterparts on CI issues.

The objective is to assess the potential of CI efforts.

SUBSTANTIAL

TRACK 3: SUSTAINED COMPETITIVE INDUSTRIES DIALOGUE

Country Readiness: ! Leadership commitment, established champion(s) ! Formal industrial policy/strategy with supporting institutions ! Modest track-record of CI efforts with PPD experience ! Modest-to-substantial policy and institutional framework (e.g., CPIA) ! Organized pvt sectors within and across industries Bank Readiness: ! Commitment of key country team stakeholders to industry-focus ! Potential for CI-related pipeline of lending and analytical work ! Commitment to tap into Global Practice for CI competencies

Track 3 involves a substantial stakeholder engagement and knowledge development. It also builds the funding platform for designing policy reforms and scalable public and private investments. Track 3 “stress-tests� institutions through pilots and M&E of existing CI efforts.

HIGH

TRACK 4: IMPLEMENTATION SUPPORT FOR INDUSTRY LEVEL EFFORTS

Country Readiness: ! Deep leadership commitment, multiple champions, broadening base of support ! Formal industrial policy/strategy with supporting institutions ! Strong track-record of CI efforts with well-developed PPDs at national and industry levels ! Substantial policy and institutional framework (e.g., CPIA) ! Functioning public investment and public procurement systems, and high potential to leverage private flows Bank Readiness: ! Commitment of key country team stakeholders to industry-focus ! Established CI portfolio and pipeline of lending and analytical work ! Substantially leveraging Global Practice for CI competencies

Track 4 is designed for countries with a mature (or rapidly maturing) domestic dialogue on competitiveness and industry level issues. It ramps up CIIP support to scale with a full menu of AAA, and implementation support activities. Track 4 is for countries poised to leverage substantial public and private flows to CI efforts.

Competitive Industries and Innovation Program

RESOURCES Commitment: $12K each Duration: 1 day - 1 week

Examples. Training delivered centrally; global knowledge events and conferences on competitiveness strategies, industrial policies, and industry-specific initiatives.

Examples. High-level scoping mission to engage with key stakeholders, undertake rapid sector screening, take stock of past industry level efforts, and make recommendations for ongoing dialogue and a possible path to Track 3 (below).

Examples. Launch of sector specific Public-Private Dialogues or bottom-up competitiveness initiatives that help identify reforms and investments. The outputs of these efforts could include inter alia self-standing CI assessments, inputs to formal Bank ESW, and/or key design elements of donor-financed operations.

Examples. Design and implementation of policy-based and/or investment lending operations that support various CI entry points (for instance, economic zones, growth poles, value chain and/or cluster development). Emphasis is on institutional strengthening, execution of public investments, leveraging of private investments, and M&E. Support for existing PPDs is amplified to promote learning by doing.

Commitment: $25-50K Duration: 2-6 weeks

Commitment: $50K-300K Duration: 3-12 months

Country Operations Window

Demand-driven Support

CIIP ENGAGEMENT TRACKS 1-4

Knowledge Window

Affirmative Efforts

COUNTRY-LEVEL READINESS

Commitment: $300K-above Duration: Multi-year

20

Project Selection and Peer Review Procedure

Annex 4: Project Selection and Peer Review Procedure Initial coordination World Bank approval process

Client interest in CIIP activity

Coordination with development partners

Formal consultations

Peer review process

Task team leader involves Global Practices in project design

Task team leader drafts concept note, Sector Manager and Country Director support

Task team leader submits application to CIIP management

CIIP alerts task team leader to engage with local staff of partners to explore possible CIIP activities

1. CIIP management advises donors of possible activity

Partners consolidates review comments

2. Partners HQ units alert their country offices to encourage coordination

Local office review

All CIIP interventions are based on client demand as expressed by governments in discussions with World Bank Group teams and other CIIP partners in the country.

Approval

No objection by Trade & Competitiveness Global Practice management committee

Global Practice Sr Director approves or rejects all projects

Partners inform field offices of project implementation status

Applications for CIIP funding come from World Bank Group project teams, with all CIIP projects implemented under the guidance of the World Bank Country Director or Manager and executed jointly with other CIIP partners.

World Bank responsibility Donors responsibility T0

T + 15 business days

T + 20 business days

T + 25 business days Disburse to project

Select and prepare proposal Email proposal

Comment, consolidate and decide

Integrate comments

Approve Request revision Reject

Revise proposal

Email revised proposal

Revise, comment and decide

Approve Reject Explore alternatives

" Competitive Industries and Innovation Program

21

Organizational Chart

Annex 5: CIIP Structure and Staffing

Klaus Tilmes Acting FPD VP/ Director, Strategy & Ops

MANAGEMENT SUPPORT Sujata N. Lamba Sector Director, SAR & CI, Delhi Gerardo M. Corrochano Sector Director, ECA & ITE, DC

Ivan Rossignol Head & CTS, DC

Navin Girishankar Adviser, DC

Secretariat

Technical Specialists

Patrizia Poggi Senior Ops Officer, Brussels

Diana Hristova M&E Specialist, DC

Emiliano Duch Lead PSD Specialist, DC

Ify Onugha PSD Specialist, DC

Shiny Jaison Program Assistant, Delhi

Karolina Ordon Comms Officer, DC

Martin Norman Senior PSD Specialist, DC

Yannick Saleman PSD Specialist, Delhi

Imtiaz A. Sheikh Program Assistant, DC

Blair Lapres CIIP Analyst, DC

Priyam Saraf PSD Specialist, Delhi

Katerina Koinis PSD Consultant, DC

Trade & Competitiveness Global Practice (CI, PREM, ITE, IC) World Bank Group IBRD/IDA, IFC, MIGA, WBI, DEC

Competitive Industries and Innovation Program

22

Annex 6: Strategic Communications: Activities and Tools PILLAR 1 | VISIBILITY (INTERNAL TO THE PARTNERSHIP) Audience(s)

Tools

Details

Timeline

CIIP Partners

Visual identity for the Program

• CIIP logo clearly identifies all of the contributing partners

January 2014

Common visibility rules, branding, and communications standards

• Partnership logo is prominently displayed on all official print and online products (knowledge products and formal publications, and visual, on-line and multimedia materials) • All press information, publications, and events acknowledge that the activity was financed by the CIIP by displaying its logo and acknowledging it in writing

Ongoing

Templates for promotional, knowledge and learning, and marketing materials

• Designs for: generic PPT presentation, informational brochure, project profile, results story, news release, and media advisory are developed and shared with partners and WBG staff

February 2014

Partner engagement

• CIIP partners are invited to participate in conferences, workshops and other Ongoing events funded by the partnership - including signing ceremonies and launch events held in countries

Password protected space for “CIIP Partners” on the Partnership website

• Accessible for partners only, the collaborative space will make available information about progress, funding, current and new projects, operating procedures, priorities going forward, etc.

February 2014

Bi-monthly newsletter/update

• A tool for regular updates to all partners on progress of CIIP supported operations

Launched in February 2014

Steering Committee Meetings

• Presentations highlighting progress, new and upcoming initiatives, new or revised procedures, priorities going forward, roll-out of new initiatives, budget, etc.

• Featuring of new knowledge products

February 2014

Partnership Annual Report

• Presented at Steering Committee Meetings, distributed to partners, clients and wider development community – main tool for sharing accomplishments in a comprehensive way

September 2014

Less detailed quarterly updates

• Quarterly or more/less frequent updates to all partners – shared via website, newsletter and Steering Committee Meetings

Ongoing

Competitive Industries and Innovation Program

23

Operational stakeholders at WBG (Affiliates and staff engaged in private sector development work)

WBG senior management

Online/social media outreach

• Regular updates about CIIP activities/programs (fliers, briefs, results stories, multimedia products, blogs) featured on Bank’s internal communication and social media channels (WBG intranet, collaboration spaces, regional/country websites, internal blogs)

Ongoing

General information kit about CIIP

• Basic information about the Program: 4-page brief, results stories, project profiles, etc.

April 2014

Generic PPT about CIIP

• Standard presentation (featuring key highlights + results) to share with project leads, country directors, sector and program managers, sector boards, and during other regular sector/regional/network meetings

Available, and continuously updated

Country/sector/industry specific informational materials

• Materials for Country Directors and project staff to use meetings with government officials, donors, private sector in their countries

Throughout the year when needed

Quarterly informal lunch presentations about the Program

• Informal presentations and discussions to share information about the Program, present results, debate challenges, etc. --- depending on topic – inviting wider or more targeted group of participants • All materials shared immediately with participants and affiliates

Ongoing

Communication strategies for individual CIIP projects

• Project-level operational communications support offered to individual WBG country teams on the ground – to enhance overall program effectiveness through targeted communication/outreach and information sharing

When needed

Regular updates by CIIP management

• Updates on CIIP projects and progress provided during regular management meetings

Ongoing

CIIP referenced by WBG leadership in their outreach/communications

• References to CIIP approach and CIIP supported projects included in relevant briefs, conference speeches, presentations, Board technical briefings, and other channels – both at HQ and in country dialogue

Ongoing

Competitive Industries and Innovation Program

24

PILLAR 2 | FOSTERING A GLOBAL NETWORK OF PRACTITIONERS AND EXPERTS Audience(s)

Tools

Details

Global and local opinion leaders and policy makers WBG staff

Outreach (using social media, web, • The aim is to engage local opinion leaders and decision makers in print, regular media, and other tools) dialogue about broader issues related to private sector development in coordination with regional/country (through social media, and other tools for interactivity and staff during high-level global, engagement), and support dissemination of information about the regional, and/or in country Program knowledge sharing events • Communications and outreach will support development of stable and effective local public-private dialogue mechanisms

First regional event planned in Africa for Spring 2014

Outreach supporting specialized training and learning programs offered to CIIP clients, and/or WBG staff working on CIIP programs or engaged more broadly in private sector development work

When needed

• Specific tools that may be used include web, social media, broadcast, and/or print

Timeline

Two other - in ACP countries planned for FY15

PILLAR 3 | PROMOTING OPERATIONAL LEARNING Audience(s)

Tools

Details

CIIP Partners WBG staff

Detailed communications plans developed for all knowledge products (good practice notes) and outreach events (seminars, presentations, and “clinics”) funded by CIIP

Ongoing • Disclosure and dissemination plans will outline which specific channels will be used to reach target audiences – web, social media, print, events, media outreach, other

Online and social media outreach (feature stories, multimedia products, blogs, other)

• Continuous outreach to WBG staff, partners and clients will provide updates about CIIP activities and new knowledge products (WBG intranet, internal collaboration spaces, regional/country websites, prominent internal and external blogs, and other)

Competitive Industries and Innovation Program

Timeline

Ongoing

25

Annex 7: Financials 7a. Program and Window Level Commitments Program Budget Breakdown by categories Categories

MDTF (World) Allocation

SDTF (ACP) Allocation

Program Budget

Program Management Admin Fee

2.00%

$

318,132

2.00%

$

399,700

2.0%

$

717,832

Program Management

4.98%

$

792,148

7.13%

$

1,424,137

6.2%

$

2,216,285

1.26%

$

200,000

4.00%

$

800,000

2.8%

$

1,000,000

49.50%

$

7,873,85117

74.86%

$

14,960,770

63.6%

$

22,834,621

Strategic Communications

5.50%

$

874,862

4.00%

$

799,720

4.7%

$

1,674,581

M&E

5.50%

$

874,862

4.00%

$

799,718

4.7%

$

1,674,579

Training & Learning

1.26%

$

200,000

4.00%

$

800,000

2.8%

$

1,000,000

30.00%

$

4,771,973

0.00%

$

-

13.3%

$

4,771,973

100.00%

$

15,905,828

100.00%

$

19,984,045

100.00%

$

35,889,872

Country Operations Project Development Country Operations Knowledge Management

Knowledge Management Total

It was anticipated that at least the equivalent of the Austrian contribution less support service and program management fees ($5.29m) would be funneled to the ECA or MENA regions. Currently CIIP has 6 projects in ECA/MENA totaling $4.347m and so at least an additional $900,000 is still to be allocated to ECA/MENA over the course of the program’s duration.

17

Competitive Industries and Innovation Program

26

7b. Yearly Breakdown of Program and Window Level Commitments Actual

Projections

FY13

FY14

FY15

FY16

FY17

FY18

Total

$11,161,067

$1,602,820

$2,500,000

$642,689

$-

$-

$15,906,577

Swiss

$1,625,653

$1,602,821

$-

$-

$-

$-

$3,228,474

Austria

$6,454,500

$-

$-

$-

$-

$-

$6,454,500

EC

$3,080,915

$-

$2,500,000

$642,689

$-

$-

$6,223,604

$-

$10,034,99 8

$7,960,000

$1,990,000

$-

$-

$-

$10,034,998

$7,960,000

$1,990,000

$-

$-

$19,984,998

Country Operations

$2,390,000

$10,093,391

$5,000,000

$5,000,000

$1,000,000

$351,230

$23,834,621

Knowledge Management

$1,058,222

$4,951,661

$2,000,000

$1,000,000

$100,000

$11,251

$9,121,134

$553,505

$1,300,000

$-

$362,780

$-

$-

$2,216,285

Sources MDTF

SDTF EC (ACP Secretariat) Uses

Program Management

"

Competitive Industries and Innovation Program

27

7c. Support Services and Project Level Commitments & Disbursement Projections Child Trust Fund Grant Name

Child Trust Fund #

Country

Associate d Project #

Bank Product Line

Grant Amount

Projected Disbursements FY13-14

FY15

FY16

FY17

FY18

Country Operations Multi-Donor Trust Fund (TF071975) Vietnam: Regional competitiveness of Thanh Hoa and petrochemicals value chain

TF015384

Vietnam

P144825

IBRD/ID A (SIL)

$1,025,000

$160,000

$240,000

$325,000

Tunisia: Sector Competitiveness Diagnostics and PPD

TF015016

Tunisia

P132381

IBRD/ID A (SIL)

$788,000

$385,000

$325,000

$78,000

Kazakhstan Competitiveness and Economic Diversification project

TF015585

Kazakhsta n

P147704

NL-TA

$750,000

$300,000

$355,000

$95,000

FYR Macedonia Competitive Industries and Innovation Support Program

TF014914

Macedonia

P130847

IBRD/ID A (DPL)

$1,602,000

$700,000

$400,000

$350,000

Croatia: Smart Specialization

TF015836

Croatia

P127308

IBRD/ID A (SIL)

$262,500

$230,000

$32,500

Georgia Competitiveness and Innovation

TF016020

Georgia

P146270

NL-TA

$525,000

$150,000

$180,000

Russia: Stimulating investment and jobs through innovative clusters in Russia

TF015279

Russia

P147989

NL-TA

$420,000

$260,000

$160,000

Project Development (Track 2)**

TF014843

Global

TF071975

IO

$200,000

$70,000

$100,000

$30,000

$37,500

$300,000

$152,000

$195,000

Single Donor Trust Fund (TF072037) Haiti: Value Chains and SEZ for Investment Mobilization

TF016213

Haiti

P14720518

NL-TA

$1,875,000

$837,500

$1,000,000

Ethiopia Competitiveness and Jobs Creation (CJC)

TF015998

Ethiopia

P143302

IBRD/ID A (IPF)

$1,365,000

$400,000

$965,000

Sierra Leone Growth Pole Diagnostic

TF015439

Sierra Leone

P132874

ESW

$994,641

$994,641

Tanzania: Developing local

TF016164

Tanzania

P143623

IBRD/ID

$676,250

$366,250

$110,000

$100,000

$100,000

P123974 - The "Haiti: Strengthening Competitiveness Implementation Capacities CIIP" is a Bank Executed NL-TA Trust Fund that is being implemented through a financially independent NL-TA Project, however it will be running in parallel to the Bank IBRD/IDA (SIL) Lending operation entitled, “Haiti Business Development and Investment Project (P123974).

18

Competitive Industries and Innovation Program

28

Child Trust Fund Grant Name

Child Trust Fund #

Country

Associated Project #

Bank Product Line

Tanzania: Developing local industries connected to Tanzania’s natural gas discoveries

TF016164

Cote d'Ivoire: Flagship Transformational Growth, Competitiveness, and Jobs Program (Phase I) ACP Project Devt (Track 2)**

Grant Amount

Projected Disbursements

Tanzania

P143623

IBRD/ID A (SIL)

$676,250

$366,250

$110,000

TF015440

Cote d’Ivoire

P115398

IBRD/ID A (SIL)

$1,200,000

$1,000,000

$206,523

TF015764

Global (ACP)

TF072037

IO

$800,000

$300,000

$200,000

$225,000

FY13-14

FY15

FY16

FY17

$100,000

$100,000

$200,000

$100,000

FY18

Knowledge Management Multi-Donor Trust Fund (TF071975) Implementing Industrial Policy Lessons Learned

TF014950

Global

P146254

Knowl.

Mgmt

$472,500

$247,500

Innovation Policy Platform

TF014858

Global

P131764

External Training (TE)

$885,722

$885,722

The Industry-Specific Global Value Chain Analyses

Forthcoming

Global

Pending

ESW

$750,000

$400,000

$350,000

Competitive Cities

TF016040

Global

P148372

ESW

$880,000

$550,000

$300,000

$30,000

MDTF: Monitoring and Evaluation**

TF015664

Global

TF071975

IO

$875,000

$250,000

$230,000

$150,000

$150,000

$95,000

MDTF: Training and Learning (Track 1)**

TF014477

Global

TF071975

IO

$200,000

$110,000

$90,000

MDTF: Strategic Communications**

TF014376

Global

TF071975

IO

$875,000

$250,000

$230,000

$150,000

$150,000

$95,000

$150,000

Single Donor Trust Fund (TF072037) SDTF: Monitoring and Evaluation**

TF015753

Global (ACP)

TF072037

IO

$800,000

$200,000

$150,000

$150,000

$150,000

SDTF: Training and Learning (Track 1)**

TF015764

Global (ACP)

TF072037

IO

$800,000

$200,000

$200,000

$200,000

$200,000

SDTF: Strategic Communications**

TF015764

Global (ACP)

TF072037

IO

$800,000

$200,000

$150,000

$150,000

$150,000

Competitive Industries and Innovation Program

$150,000

29

Child Trust Fund Grant Name

Child Trust Fund #

Country

Associated Project #

Bank Product Line

Grant Amount

Projected Disbursements

Global

TF071975

IO

$792,148

$560,000

$75,000

$90,000

$90,000

$37,147

Global (ACP)

TF072037

IO

$1,424,137

$300,000

$400,000

$400,000

$200,000

$124,137

FY13-14

FY15

FY16

FY17

FY18

Program Management Multi-Donor Trust Fund (TF071975) MDTF Program Management**

TF014443

Single Donor Trust Fund (TF072037) SDTF Program Management**

TF016084

**Indicates Support Services

Competitive Industries and Innovation Program

30

Annex 8: References Acemoglu, D. and James Robinson. (2012). Why Nations Fail: The Origins of Power, Prosperity, and Poverty. Crown Publishers.

Aghion, P., Dewatripont M, Du L, Harrison A, and P. Legros. (2012). “Industrial Policy and Competition.” Background Paper.

Chang, H-J. (2008). Under-explored Treasure Troves of Development: Lessons from the Histories of Small European Countries, in M. Kremer et al. (eds.), Doing Good or Doing Better – Development Policies in a Globalising World, Amsterdam University Press.

Hidalgo, C. and R. Hausmann. (2009). Building Blocks of Economic Complexity. PNAS. Khan, M. (2009). “Learning, Technology Acquisition and Governance Challenges in Developing Countries,” DFID, Unpublished.

Lin, J. (2012). New Structural Economics: A Framework for Rethinking Development and Policy. World Bank.

Mazzucato, M. (2013). The Entrepreneurial State: Debunking Public vs. Private Sector Myths. Anthem Press.

Porter, M. (1990, 1998). “The Competitive Advantage of Nations,” Free Press.

Rodrik, D. (2004). Industrial Policy for the Twenty-first Century. CEPR Discussion Paper.

Sabel, C. (2005). Bootstrapping Development: Rethinking the Role of Public Intervention in Promoting Growth.

Stanford University Press.

Stiglitz, J. (2013). “Industrial Policy and Creating a Learning Society,” Presentation.

World Bank. (1997) World Development Report: The Role of the State in a Changing World. . (2005) World Development Report: A Better Investment Climate for Everyone. . (2013). Trust Fund Reforms: Progress to Date and Future Directions. Report to the Board of Executive Directors of the World Bank.

CIIP Knowledge Products Jordan, L.S. and Saleman, Y. (2013). Industrial Parks Where Firms Need It: A New Way To Attract Investment. Competitive Industries Note: Issue No. 2. World Bank.

Jordan, L.S. and Koinis, K. (2013). Flexible Delivery: Organizations That Can Fail And Still Succeed. Competitive Industries Note: Issue No. 3. World Bank.

Speakman, J. and Koivisto, M. (2013). Africa Competitiveness Report 2013. World Bank.

Competitive Industries and Innovation Program

31

Byerlee, D, Garcia, A., Giertz, A, and Palmade, V. (2013). Growing Africa: Unlocking the Potential of Agribusiness. World Bank.

Ferrantino, M. and Mukim, M. (2013). Gazelles and Gazillas in China and India. World Bank.

Rijkers, B., Freund, C., and Nucifora, A. (2013). The Perils of Industrial Policy: Evidence from Tunisia.

World Bank.

Cadot, O., Fernandes, A., Gourdon, J., and Mattoo, A. (2013). Are the Benefits of Export Support Durable? Evidence from Tunisia. World Bank.

Jordan, L.S., Turban, S., and Wilse-Samson, L. (2013). Learning within the State: A Research Agenda.

World Bank.

Kraemer, K. and Dedrick, J. (2013). Who Captures the Value in Technological Innovation? The Distribution Of Benefits In The GMR-Based Global Storage Industry. World Bank.

Competitive Industries and Innovation Program

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