Approach

The Competitive Industries approach harnesses the ability of firms and industries to attract new investments and to increase their market share in goods and services through improved productivity. Modern competitiveness strategies, having analyzed the shortcomings of past attempts to implement pro-growth plans, have gained traction by focusing on the industry level of the economy. They prioritize economic reform policies; channel public investments; catalyze private investments; and foster innovation systems with the goal of expanding targeted industries and thus spurring job creation.

CIIP’s approach emphasizes that the bundling and delivery of support for basic elements of Private Sector Development, within an industry context, can help accelerate growth and can help intensify development impact – especially when such interventions are centered on spatial solutions (including Special Economic Zones, innovation clusters, growth poles, Competitive Cities and even geographically dispersed value chains). These integrative solutions leverage financial input, promote institutional know-how and build development knowledge in ways that can create an enabling environment for stronger industry growth. As industries become more innovative and more competitive, they tend to attract increasing amounts of private investment, thus strengthening productivity gains, generating jobs and creating “spillover effects” that reinforce their growth trajectory.
 
By helping propel a virtuous cycle of growth, CIIP operations support the twin goals of the World Bank Group: contributing to the elimination of extreme poverty and promoting shared prosperity. CIIP provides vitally needed support in response to requests from client governments, allowing for the incorporation of a wide array of operational instruments across its activities. In this respect, CIIP finances the following types of inputs:
 
  • ANALYSIS -- CIIP provides the resources to conduct analyses that identify market failures and constraints that limit firms’ growth within and across industries. Throughout its portfolio, CIIP funds have been used to ensure that expert and diverse technical inputs are informing market analytics, institutional capacity assessments, and policy and regulatory reviews that have the ability to influence the policy dialogue and design of government programs.
     
  • TECHNICAL ASSISTANCE -- CIIP provides structured Technical Assistance (TA) programs for a variety of country clients’ ministries and beneficiary enterprises. The most successful TA engagements have been providing inputs into the design and implementation of comprehensive reform programs. Such TA also contributes to the establishment of new institutional frameworks and regulatory regimes that help drive global integration, enable investment, enhance technology transfer and release financing constraints. Technical assistance is also commonly taking the form of client/beneficiary training, which is aimed at empowering external stakeholders to advance institutional reforms and improve private-sector capacity by facilitating knowledge transfer from world-class experts.
     
  • PUBLIC-PRIVATE DIALOGUE MECHANISMS - CIIP provides the catalytic resources that enable collaborative governance arrangements with public and private stakeholders, helping them engage in effective, transparent and consultative decision-making at the country and sub-national levels. Each CIIP engagement necessarily involves collaborative governance with key decision-makers, private-sector representatives, labor representatives, investors and citizen groups in the design of large-scale reform programs and project preparation.
     
  • SUPPORT FOR PUBLIC FINANCE AND FIRM INNOVATION FINANCING  -- As the necessary analytics and consultations have taken place, CIIP also finances the project-design phases to ensure that government expenditures are informed by global “best practice.” As clients move toward implementing their programs, CIIP further provides support to ensure that the implementing authorities are properly incentivized, that the work is meticulously monitored, and that outputs are measured. Ensuring that projects are properly financed throughout their preparation and implementation greatly enhances the chance of success, particularly for investment opportunities that have higher-than-average risk ratios.
     
  • EVALUATION AND FEEDBACK  -- To gain an understanding of the causal link between the change in outcomes and specific policy actions, CIIP is helping clients and the broader development community by measuring cause-and-effect relationships. Financing such work helps CIIP understand the economic pathways that lead from integrated solutions to job creation by supporting systematic feedback loops and real-time learning.
     
  • GLOBAL KNOWLEDGE PLATFORMS  -- CIIP has established a number of global knowledge platforms that engage the development community, policymakers and practitioners in an open exchange of knowledge. Specific activities include supporting the design and maintenance of web-based tools for the creation of specialized databases; conducting targeted research; developing best-practice materials and analytical tools; conducting knowledge-exchange activities; and convening training sessions, workshops, seminars, conferences and web-based dialogues.
 
CIIP provides funding for these instruments at various stages of engagement with clients including, project identification, preparation and implementation. Such instruments are integrated through a number of government-owned development operations, including through public finance and governance arrangements. Public financing instruments not only serve as a necessary catalyst for enabling the private sector, but also serve as a vehicle for sustained, global knowledge transfer and technical assistance. Countries that are not yet ready to implement public programs are supported with CIIP’s Knowledge and Advisory Services to ensure that their institutions are ready for governance of such competitiveness programs.