Country Operations

Within its first two years of operation, the Competitive Industries and Innovation Program (CIIP) moved quickly to approve twelve high-potential country operations that are under implementation, as well as an ambitious knowledge agenda. During the fiscal year 2015, the program approved 7 new promising projects (see below) and 4 ambitious global knowledge initiatives. All its country operations were selected on a competitive and transparent basis. Projects in the African, Caribbean, and Pacific countries are funded through the Single-Donor Trust Fund (SDTF) supported by the EU along with the African, Caribbean and Pacific Group of States Secretariat (ACP).

MAJOR ACHIEVEMENTS
In FY15 CIIP has continued to support client countries with their objectives of transforming their economies. CIIP has contributed to major policy changes in countries like Ethiopia, Haiti, etc. that have triggered a systemic change in the policy environment for private investment. Most of these policy changes have resulted in decrees, regulations and cluster strategies. While most of these reforms will demonstrate an impact in private sector jobs or investments beyond the Grant cycle, some impacts are already being reported by Task Teams in some countries, i.e. Macedonia and Georgia. 
 
The main trust of CIIP activities this year has been the development of the institutional capability and the establishment of public private dialogue. This is particularly satisfying as it bodes well for the sustainability of the reform beyond the funding period and because it enables countries to develop their own industrial strategies, according to their position within the global economy. In FY15 CIIP operations leveraged 554 million in public investment. Through CIIP operation in Georgia $27 million was committed to SME support in FY15. With support from CIIP, $8.1 million was committed for institutional capacity building in FY15. With CIIP’s support 102.2   million USD of additional finance was approved and disbursed to private sector in Georgia and Tunisia. CIIP helped leverage $79 million of private investment in Macedonia. The CIIP operation in Georgia supported creation of 102 new firms. 
 
SUPPORT TO COUNTRY OPERATIONS
During the fiscal year 2015, the program’s second full year of operation, CIIP-funded activities have continued to support the design and implementation of industry-focused competitiveness strategies and policy reform initiatives in the first wave of 12 country operations. Coordination between CIIP partners at country level has improved significantly and will continue to be strengthened. Going forward, it will be tracked to ensure that best quality advice is offered to clients. 
 
Over the course of FY15 the institutional framework related to industrial parks and investment in Ethiopia has been revamped and strengthened with support of CIIP. Reforms supported by the CIIP engagement contributed to substantial green-field investments in high value-added manufacturing in Macedonia, especially in the fast-growing automotive value chain. In Georgia, CIIP has supported the creation of the Research and Innovation Council that serves as a strategic coordinator of the country’s innovation policies as well as the Investors Council tasked with promoting constructive dialogue between the private and public sector. CIIP also provided critical technical assistance to strengthen capacity of the newly established GITA - Georgia’s Innovation and Technology Agency. Over the past year, the Enterprise Support Services (ESS) Program in Haiti was launched and became fully functional across the country. In Russia the CIIP funded a number of knowledge sharing events which led to much better understanding of the essence and value of industry clustering. During the implementation of the CIIP program, Sierra Leone was hit by the deadly Ebola virus. CIIP’s multi-sectoral analysis undertaken in the previous year was not fully operationalized. However due to CIIP grant and analytical work the team was well positioned to swiftly work with government counterparts and develop an Ebola response for private sector recovery. The CIIP team’s analytical activities as well as the policy dialogue on local content in Tanzania are expected to inform the Government’s policy formulation process by feeding into the final version of the Local Content Policy and the Natural Gas Act, as well as the second Five Year Development Plan (2016/17- 2020/21). In Tunisia the CIIP has focused its efforts on helping strengthen a number of promising clusters. Through sectoral PPDs the team identified and prioritized the most binding constraints to competitiveness and exports in each of these sectors, and helped develop specific action plans that have been adopted by the government and the private sector as one of the main objectives going forward.
 

FIRST TWELVE CIIP-FUNDED COUNTRY OPERATIONS

 In Cote d'Ivoire, a CIIP program supports the government's industrial zone strategy in five strategic sectors.  Specifically, it helps identify the existing constraints to the development of these sectors, and will propose a series of action plans to remove these constraints.  It will also support the establishment of integrated multi-sector interventions deriving from these plans. Read more about the project ...

 In Croatia, CIIP assisted the government in catalyzing a governance structure to manage the smart specialization agenda.  It also facilitated consensus building and providied advisory services, and helped project preparation through establishing a pilot design facility with dedicated M&E structures to facilitate feedback loops for project learning. The project closed in fiscal year 2014. Read more about the project ...

  In Ethiopia, CIIP is accelerating the preparation and implementation of the World Bank Group Competitiveness and Job Creation Project as part of the country’s Growth and Transformation Plan. CIIP component will strengthen the legal and institutional framework for industrial zones, develop a strategy to finance industrial infrastructure, and support investment generation. Read more about the project ...

 In Georgia, the Program supports the country’s competitiveness agenda by helping establish effective Public-Private Dialogue mechanisms that will guide implementation of reforms in high value-added manufacturing, ICT, agribusiness, and other sectors. Read more about the project ...

 In Haiti, CIIP is supporting a more inclusive approach to industrial development by motivating local entrepreneurs in emerging industrial clusters such as garments (short cycle light manufacturing), coffee, mango (organic), essential oils (vetiver), organic cocoa, and construction materials.  It will also build public sector capacity to support industry-specific capital investments; and by expanding fiscal and financial instruments to mobilize public and private investment. Read more about the project ...

 In Kazakhstan, a CIIP project will support the development of higher value-added production systems, and increased competitiveness of private sector activities in non-extractive industries.  These goals will be achieved through interventions aimed at strengthening the business environment and addressing gaps in the value chains. Read more about the project ...

 In FYR Macedonia, CIIP helps to enable the economy to transition to a higher growth trajectory through industry-specific reforms that promote productivity growth in manufacturing, agriculture, and tourism, while strengthening enabling factors such as skills and innovation. It also provides complementary resources to strengthen government capacity to implement new policies and programs and deepen regulatory reforms. Read more about the project ...

 In Russia, working with cluster organizations at the sectoral and regional level, the CIIP project helped enhance the enabling environment for firms in selected clusters to grow; enhanced collaboration between firms within the clusters, and strengthened linkages between Russian clusters and global value chains.  All these efforts were supported by structured dialogue between local firms, R&D organizations and the government. The project closed in fiscal year 2014. Read more about the project ...

 In Sierra Leone, a CIIP-supported project aims to investigate the potential for setting up private sector growth poles that would leverage private investment in infrastructure and commercial operations to drive local economic development and diversification beyond the existing extractives industries.  The growth poles would focus on agri-business sub-sectors, fisheries, manufacturing and tourism. Read more about the project ...

 In Tanzania, based on strong public-private dialogue, CIIP helped exploit local economic and enterprise development opportunities based on natural gas discoveries.  It supported the creation of upstream and downstream value chain opportunities, as well as the development of the Mtwara corridor. The project has already closed.  Read more about the project ...

 In Tunisia, CIIP is supporting identification and strengthening of promising clusters based on cross-sectoral diagnostics and extensive public-private dialogue (PPD).  The team will work jointly with a number of ministries, and supported through a strong PPD mechanism, to increase the impact of ongoing and planned World Bank operations.  The output of this project will serve as an integral analytical component for the World Bank Competitiveness and Export Development project. Read more about the project ...

  In Vietnam, the Program supports the efforts by the government to attract institutional and infrastructure investments in the Nghi Son Special Economic Zone (NSSEZ).  It will include an $11bn petrochemical refinery in one of the poorest regions of the country. CIIP will help build upstream and downstream investment and private business opportunities in the zone. Read more about the project ...


SEVEN NEW CIIP-FUNDED COUNTRY OPERATIONS

 In Burundi it is expected that the CIIP intervention will help improve competitiveness of the coffee production sector and farmer incomes.  CIIP projects will focus on promotion of quality and productivity-enhancing private investments, as well as addressing some structural and regulatory issues constrainig sustainable growth of the sector post-privatization. Read more about the project ...

 In Jamaica the CIIP funding supports the government's strategy of Jamaica's Vision 2030 by accelerating the implementation of the ongoing IBRD's Foundation for Competitiveness and Growth Project, while leveraging complementary policy support and industry investments under the World Bank's Development Policy Loans (DPLs) and International Fiance Corporation's Small and Medium Enterprises (SME) Project. Read more about the project ...

 In Mauritania the CIIP operation aims at leveraging co-financing and project funds to sustain industries specific public-private dialogue (PPD) and bottom up competitiveness initiatives to trigger public-private partnership (PPP) projects. The project's objective is to attract private investments and to create jobs through the establishment of an Eco-Seafood Competitive Cluster and support of small and medium enterprises (SMEs) servicing it. Read more about the project ...

 The main objective of the project in the Organization of the Eastern Caribbean States (OECS) is to help strengthening of the tourism sector in the region, so that the region could receive a higher tourism spending and room nights sold, and to facilitate tourism to have a multiplier effect on the region's growth and job creation through stronger linkages with the rest of the economy, in particular, agribusiness. Read more about the project ...

 In Serbia, the CIIP grant complements a World Bank lending operation focused on competitiveness and jobs creation. The CIIP operation aims to increase the effectiveness of government spending targeting competitiveness and jobs, and support institutional strengthening around investment and export promotion by helping reform the Ministry of Economy's development agencies. Read more about the project ...

 The CIIP project in Timor Leste will help the government to identify investment opportunities in specific global value chains, enabling public and private sector investments and recommended policies to facilitate jobs, skills up-gradation, spatial development, and small and medium enterprise growth in the area around the upcoming Tibar Bay port. Read more about the project ...

 In Tonga, the CIIP grant will assist the government to increase economic impact of tourism arrivals by developing and building up capacity to develop a core tourism dataset.  The project will provide technical assistance to the Ministry of Commerce,  Tourism and Labor to collect, store, analyze and disseminate key data on the country's tourism sector. Read more about the project ...

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