session 4 - world bank

8/4/2019 Session 4 - World Bank

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SUPPORTING FISHERY-INDUCED

INCLUSIVE GROWTH IN ACPCOUNTRIESFirst Meeting Of ACP Fishery MinistersBrussels, June 3, 2009

A Presentation of WBG ProactiveInvestment and Trade Development

Instruments For Cluster Development

By Dr. Papa Demba THIAM, WBG



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Objective and Structure of the

PresentationObjective of the presentation is to introduce a discussion onregional public goods that will help ACP develop robust fishery-based economies

Will not address governance and combating illegal fishing - But these are essential conditions for sustainable growthWill focus on how to trigger fishery-induced growth through:

Infrastructure to support products & markets developmentsDevelopment Of Integrated Landing Site ClustersEnterprise development

Entrepreneurship promotion Adjustment of the business development infrastructure for fisheryinduced growthDevelopment Of Fishery-Driven Clusters For Sustainable InclusiveGrowth

A Dedicated ACP Initiative With Integrated Donor Support



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ISSUES FACING FISHERY-

INDUCED GROWTH IN ACPOverexploitation of fishery resourcesWeak governance of the sector

Limited industrial transformation of resourcesLimited access to global marketsWeak infrastructure for products & marketsdevelopment

Limited involvement of private sectorWeak public-private-partnership in the sectorWeak fishery-based economyLimited fishery induced inclusive growth



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Why Is The Sector Not Attractive For

private investment in industry?The following makes the sector perceived as risky for investment in industry:

Unreliable & uncompetitive supply of quality raw material for industryWeak services of quality and standards while burden of compliance on thelaps of ACP exporting countriesHuge information asymmetry and limited knowledge of marketsLimited knowledge of value addition potentialsLimited education on products adaptation & development Limited access to specialized product & market development services byMSMEs in the sectorHigh cost for accessing critical functions for production and trade

Limited technology transferLimited skills to support processing for high value added productsLimited access to finance

Need to close these gaps through pro-activist policies blending public andprivate interventions



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Needed: Broad Based Sustainable

Entrepreneurship In FisheryThe Bottom Line is the development of an environment that createsand spreads private investment opportunities in the fishery sector andin a sustainable manner over time.

One common approach focuses on passive types of interventions withprospective trickle down effects in terms of perception of investment opportunities - Policy & No Action.

Another approach is based on proactive type of interventions, that better suit socio-economic environments that are characterized with

disruptions of structures in potentially viable clusters , missing links inseveral supply/value chains and Information Asymmetry .This presentation will focus on this second category of Ecosystems towhich most ACP countries belong.



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DEMOCRATIZING ACCESS TOENTREPRENEURSHIP IN FISHERIESPublic Goods to Support Products & Markets Developments

A Minimum Integrated Trade Expansion Platform (MITEP) is apermanent infrastructure to proactively and directly support thecreation of new products and help penetrate and develop solvent andhigh quality markets.

A Project Development Fund/Facility (PDF)-Proactive instrument that seizes risk, manages it and sells it to the market through:Result-oriented analysis and targeted interventions to transformconstraints into investment opportunities,Project preparation by increased legibility of constraints and risks;Design of risks mitigation measures for results oriented investment promotion strategies and programs;

Development of bankable business plans and syndication of finance; A revolving fund to support its interventions.Help Build Integrated Landing Site Clusters in ACP ShoresRetrofit the Business Development Infrastructure (BDI)Build Fishery Driven Clusters Growth Centers In Select Areas



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Minimum Integrated TradeExpansion Platform (MITEP)

Uses ITC Where Appropriate and is Based on Five Pillars

Enhanced Quality, Standards, Metrology and Testing (QSMT)Infrastructure To Help Overcome Technical Barriers To Trade(TBT) And Create New High Value Added Products

A Proactive Trade Information System (PTIS) Interactive Audio-Visual Virtual Library With Products ID Cards FeaturingDetailed Market Information, Recipes For Product Development,Protocols For Compliance With Standards, Relevant Equipment,Technical Information For Industrial Process Plant Development and Layout, Skills Profiles, Etc.

A Platform to Support Skills Development for Specific Products

and Markets Development and Provision of Specialized BusinessDevelopment Services To MSMES- Help access and Use PTISCommon Services Centers (CSC)- To Deliver Critical Functions

Adaptive Financial Intermediation Infrastructure and ProductsBased on Cash-Flow Based Lending, Including Trade Finance



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PROJECT DEVELOPMENTFUND/FACILITY

Seizes Risk Abnormally Perceived High, Manages it and Sells it toMarket With Risk Mitigation Package and Help Realize Investment

Helps Highlight Constraints and Improve Risks IdentificationHighlights and Helps Spread New Investment Opportunities (PositiveExternalities) Based On The Transformation of Fishery ResourcesHelps Transform Binding Constraints In Fishery Supply & Value ChainsInto Investment Opportunities For Public -Private PartnershipsTargets Investment in Common Services So As to Provide Relevant Infrastructure Base For The Development Of Higher Value Added FisheryProducts By MSMEs In Fishery-Driven ClustersCreates Investment Opportunities For Private Sector - WBG IFC Can BeInvolved in Co-Investment Consortia Up To 5 0% Of Total Investment Designs Risk Mitigation Measures To Trigger Appetite For Private SectorHelps Mainstream Risk Mitigation In The Investment PromotionFramework and Structure Public-Private DealsSupports Projects Development Up To A Level Private Sector FeelsComfortable With Management Of Risk Related To EntrepreneurshipIntegrates Interventions With MITEP Activities To Further Support TheOperations of Fishery Based Enterprises Created With PDF



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Building Integrated Landing

Sites Clusters On ACP ShoresProvide On site Infrastructure For Fisheries

Minimum Infrastructure- Water, Electricity, Other City ServicesStorage FacilitiesFish StoresEtc

Provide On Site Services For Fishery Related Activities Such As:

Dry DockingRepairsTraining For Sustainable Fishery, Resource Preservation, Post Catch LossReductionProvision of Gas, Crates, Ice, Etc.

On Site Testing & Training Facilities



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Dedicated Business Development Infrastructure(BDI) For Fishery-Induced Growth

Investment Promotion Needs To Be Customized To MakePublic/Private Deals.Investment Promotion Needs To Be Driven By Products &Markets Developments That Underlie Entrepreneurship MakingDecisions.Investment And Trade Promotion Needs To Be Integrated ToServe Sustainable Entrepreneurship Through Products &Markets Developments.BDI Needs To Be Capacitated To Design, Implement, Manage,Monitor and Evaluate MITEP and PDF As Well As To CoordinateOverall Delivery System.The Overall Investment Promotion & Trade Development Infrastructure Needs To Be Strengthened and Integrated ToBecome A Relevant BDI.



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Building Fishery Driven Clusters In ACP

Countries With Interface StrategiesDifferentiating Economic Clusters with Industrial Clusters That

Are Linked To Global Supply Chains With Vertical Vulnerabilities.Programmatic Approach To Knitting Dense And IntegratedFishery Driven Activities In A Given Economic Sub-Space.Basic Paradigm Is About Spreading Complementary Investment Opportunities To Support Self-Centered Fishery DrivenEconomic Flows Within The Targeted Economic Space.This Infers Integrated Approach To Planning, Decentralization,Infrastructure Development And Layout, Local InstitutionalDevelopment, Etc.

All This To Be Driven By Products And Markets DevelopmentsThat Are At The Basis Of Entrepreneurship.

Interface Strategies For The Development Of Market-LedOpportunities Can Help Build Broad Based Fishery DrivenEconomic Clusters.



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INTERFACE STRATEGIES FOR CLUSTERDEVELOPMENT-(P.D. Thiam, 1991,Peter Land Ed.,Bern )

GAPS IDENTIFICATION SEQUENCES

Identification Of Technical Possibilities Of EconomicTransformation Of Resources Around Select Poles (Triggers)Identification Of By-Economic Activities Adjacent,Complementary (Horizontal And Vertical Integrative Factors)Categorization Of All Economic Activities In Terms Of CashCows , Stars , Dilemmas and Burdens ( Critical Mass )Identification Of Potential Pole Areas To Drive Growth CentersInitial Assessment And Identification Of Short, Medium & LongTerm Prospects In Terms Of Enabling Environment

Selection Of Poles, Cluster Drivers (Localization Parameters)Determination Of Geographical Area To Become Growth CentersMarket Validation Of Potential Value Added Products FromResource TransformationDesign & Development Of Comprehensive Product ID Cards



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INTERFACE STRATEGIES FOR CLUSTERDEVELOPMENT *-GAP CLOSING SEQUENCES

*(P.D. Thiam, 1991, Peter Land Editions., Bern, Switzerland )

Use Product ID Cards To Assess Missing Links Along Supply & ValueChains- Micro, Mezzo, Macro & Spatial LevelsDesign Integrated Interventions - Micro, Mezzo, Marco & Spatial LevelsTo Structure/Consolidate Supply & Value ChainsDesign A Comprehensive Package Of Interventions To Support TheDevelopment Of Growth CentersMainstream Identified Interventions In The Design & Delivery Of MITEP, PDF & BDIHighlight & Define Other Interventions That Support MITEP, BDI &PDF- Infrastructure, Decentralization, Other Capacity Development Partnership Arrangements - Harmonization & Integration Of InterventionsDesign Implementation Strategy With Government & Private Sector &Partners Around The Transformation Of Dilemma Into Stars And

Stars Into Cash Cows With Regulated CyclesDesign Integrated & Time-Phased Delivery Program/Projects WithDivision of Roles, Real Time Monitoring & Evaluation



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One Example: WB-Funded West Africa

Regional Fisheries Program- WARFPProgram aims to sustainably increase the wealth generated by West

Africa s fisheries, by investing in:Strengthened governance of the fisheriesReduced illegal fishingIncreased local value added to fish products

Program includes 9 coastal countries from Mauritania to Ghana

Total likely WB and GEF investment over 5 years of US$90 M

Program will start in October in first 4 countries of Cape Verde, Liberia,Senegal and Sierra Leone

Program to work in complement with donors; opportunities forpartnerships and collaboration



One Example: WB-Funded West Africa

Regional Fisheries Program- WARFPInvestments in increased local value added will include:

Regional MITEP

With Emphasis On Common PTIS & National Programs OnQSMT- To Be Further Integrated At Regional LevelCould Be Completed With Regional Platform For SkillsDevelopment & Specialized Business Development ServicesCould Be Completed With Regional/National Common

Service CentersCould Be Completed With Regional Financial IntermediationInfrastructure & Products

Pilot Integrated Landing Site Clusters In Each Countries



Recommendations: Supporting Regional EPA InFisheries - ACP-EU-WBG Framework To Support

EPA Through Fishery-Induced Growth In ACP ?

Explore Potential Partnerships With Development Partners On An ACP Initiative Based On:

Development Of Regional Products & Markets Development Infrastructures

(MITEP) In All ACP Regions- Common Pillars/ Backbone & NationalDimensionsDevelopment Of Regional Project Development Funds (PDF) In Each ACPRegions To Boost Private Sector Led Industrial Transformation

Aggressive Capacity Development To Complete National BusinessDevelopment Infrastructures (BDI) In Fishery Sector

Design A Fishery Driven Cluster Development Program In ACP CountriesDesign An Overall ACP Program Centered On The Delivery Of The AboveInstruments/Programs With Relevant FrameworkSet-Up Of A Regional Trust Funds To Support The InitiativeSet-up Of A Joint Secretariat (Center Of Excellence) For Implementation

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THANK YOU!

session 4 - world bank

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