The Program mobilizes global expertise, applies cutting-edge knowledge, and catalyzes investments in support of transformational projects and frontier knowledge initiatives. The instruments that facilitate country level engagements with governments, the private sector, and other stakeholders include:
technical, market-based analytics
deep, evidence-based public-private dialogue (PPD) in specific sectors
support for policy and regulations, access to finance, skills and technology, infrastructure, and capacity
multi-year project implementation support
monitoring and evaluation to assess impact
Strategic application of performance-based funding and rigorous monitoring and evaluation ensure that CIIP remains focused on results. Critical success factors driving CIIP, include: facilitated public and private investment; enhanced productivity; labor and transaction costs; growth of new and existing firms; linkages to the domestic economy; and job and income creation.
The CIIP has recently completed its independent Mid Term Review and findings suggest it as "Highly Satisfactory". In assessing the relevance, effectiveness, impact, sustainability and efficiency of CIIP’s project activities, the present MTR concludes that CIIP scores highly satisfactorily. A key finding is that CIIP has succeeded in effectively initiating and implementing interventions designed to increase competitiveness and innovation in the beneficiary countries. CIIP’s organizational agility and flexibility allow it to respond to countries’ needs and priorities in a timely manner. The projects are well aligned with CIIP objectives and are highly relevant for government teams that are implementing or preparing lending operations financed by the WBG.
CIIP’s theory of change holds that the bundling and delivery of support for basic elements of private sector development in an industry context can help accelerate impact. These basic elements or integrative solutions are: (a) regulatory and business environment reforms, (b) public investment in basic and industrial infrastructure as well as skills development, (c) institutional strengthening of public agencies and cluster institutions, and (d) catalytic mechanisms to enhance access to finance for private firms.
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. This results chain is supported by a more detailed results framework.
The CIIP results framework ensures that the program is achieving its overarching objectives by tracking four tiers of indicators.
- Tier 1 (or input indicators) tracks different types of integrative solutions across specific industries (for example, economic zones, growth poles, value chain development, and competitive cities), as well as the associated levels of financial and capacity building.
- Tier 2 (or output indicators) tracks policies, institutions, services, and financial and hard assets delivered through these implementation modalities.
- Tier 3 (or outcome indicators) assesses resulting improvements in the quality of policies, the performance of public and private institutions, and access to basic services and finance. These contribute to CIIP’s triple bottom-line: investment, jobs, and industry growth.
- Also included in Tier 4 (or impact indicators) are social spillovers.
The following impact indicators are used by the CIIP to assess progress towards the achievement of the program's high level objectives:
- Gross number of jobs (formal and informal, and gender disaggregated)
- US$ value of private investment leveraged (of which domestic)
- Number of new firms (of which headed by women)
- Number of people with access to improved services
Monitoring and Evaluation
CIIP's monitoring and evaluation objectives are to:
- foster results-orientation in both country operations and knowledge activities
- promote accountability to country stakeholders and development partners
- encourage learning in real-time
Project-level monitoring and evaluation for CIIP operations build on the mainstream of development practice as well as existing World Bank Group results measurement systems. 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, and instruments and resources needed to measure and verify them over the project life. CIIP project-level monitoring and evaluation operations rely on and strengthen the existing country systems.
CIIP Program-level monitoring and evaluation aims to assess the program's overall efficiency and effectiveness across country opearions and global knowledge operations. The CIIP secretariat regularly aggregates project-level data on inputs, outputs, and outcomes, and collects efficiency data on program-wide processes and portfolio quality.
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.
Project Selection Criteria
All CIIP country operations are organized into projects and selected on a rolling basis in accordance with project approval and coordination processes agreed by the partners. Selection criteria include among other things:
- alignment with CIIP objectives and industry level approaches
- consistency with standard fiduciary and operational requirements (including Paris Declaration Principles on Aid Effectiveness)
- institutional, social, and environmental sustainability
- potential for transformational impact (for instance, investment generation and job creation)
- coordination with donors
- consistency with World Bank operational policies and procedures
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.
CHARACTERISTICS OF CIIP INITIATIVES
Transformational Impact: CIIP-financed country operations are designed around industry and spatial entry points with high, transformational job growth potential based industry prioritization scenarios. To maximize impact, they integrate financial and capacity building support for targeted business environment reforms, soft and hard infrastructure investments, institution and skills building, access to finance, and investment generation. 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 –and their remedies—are inherently cross-sectoral. A cluster of firms may be more hampered by poor access to electricity and transport infrastructure relative to their access to finance and skilled personnel. CIIP country operations can 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 should improve 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 support industry level efforts must be seized. CIIP financing enhances the rapid response capability of the World Bank 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 efforts. In addition, there is tremendous scope for CIIP to capture, disseminate, and apply knowledge of what works across countries and industries in real-time.
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 in partnership 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 efforts are not only transformational but also sustainable: the stream of benefits should 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.