CIIP Delivers Second Annual Report

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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.
 
"The recent global economic trends and resulting reduction in commodity prices upon which most of our client countries rely, have increased the demand and interest in the Competitiveness Industries and Innovation Program. Our client countries, are keen to identify policy initiatives that will enhance their economic capabilities to ensure sustainable jobs and stable public revenues," Anabel Gonzalez, Senior Director, Trade and Competitiveness Global Practice, World Bank Group (foreword to the report).
 
Year 2015 has also had its challenges particularly in West Africa with the outbreak of the Ebola disease. The uncertainty created around this disaster has had its impact, for CIIP on Sierra Leone but also Cote D’Ivoire resulting in the need to re-align and re-adjust programs. The global economic down turn, the reduction in commodity prices has also had mixed impact. Although it has increased interest in CIIP, it has also damped foreign direct investment in developing countries, increasing the risk for growth poles and economic zones initiatives.
 

The main challenge CIIP team faces at this stage, is its ability to report quantitative results 2 years into operations, when its resources are to leverage longer term projects over 4-6 years. At this stage, results of country operations are mostly focused on inputs and outputs, with the exception of two operations in Georgia and Macedonia. This situation will rapidly evolve as CIIP projects mature. 

 
CIIP team has also launched last year the 2nd call for proposals which yielded 27 applications from across the globe. After an extensive and in-depth review process, 7 promising country operations and 4 ambitious global knowledge initiatives were selected for funding.