Transcript Portfolio Performance and Operational Quality in ECSPF

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Knowledge-Based Economic Development:
World Bank Strategy for Achieving
Global Competitiveness
Khaled F. Sherif, Sector Manager
Private and Finance Development Sector Unit
Eastern Europe & Central Asia Region
The World Bank
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World Bank Strategy for Achieving
Global Competitiveness
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The World Bank strategy supports a number of
project interventions that are designed to improve
a country's ability to:
Establish short- and medium-term programs which
produce immediate results in key sectors
Achieve a long-term program which embeds knowledge
and ICT-based growth as the primary driver for economic
and social development
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Bank projects also support Governments in key
areas of policy reform and infrastructure
development along with support for the private
sector in multiple areas including investment and
training
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World Bank Strategy for Achieving
Global Competitiveness
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The strategy comprises a four-pronged approach,
which interfaces across key sectors to wholly assist
in the process of transitioning towards a
knowledge-based economy:
Development of
Human Capital
Modernization and
Liberalization of the
Economy
Improvement of
ICT Platform
Promotion and
Support of
Innovation Systems
The World Bank approach is in line with e-Europe+ objectives and addresses all proposed
areas for development
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Improvement of ICT Platform
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The World Bank can assist in:
The identification and prioritization of what elements of the
ICT platform are underdeveloped and require investment
To determine how these needs could be best addressed, in
terms of hardware, software and infrastructure
Establish short- and medium-term programs which
produce immediate results in key sectors

Investment in ICT infrastructure is key to providing the
local populace and businesses with the technology
tools required to enhancing overall competitiveness,
promoting the use of knowledge for development, and
enabling the dissemination of knowledge across all
sectors of the economy
–
Related e-Europe+ Objective: A cheaper, faster, secure Internet
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Improvement of ICT Platform
Networks
Mobile
Telephony
Launch Pad
Access
Media
Radio/TV
Internet
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Promote and Develop ICT
Applications
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Enhanced ICT infrastructure can be used to develop applications
like the following:
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e-based Government procurement
e-based investment promotion
e-based licensing and registration
e-based pledge registry for secured transactions
e-based credit information system
e-based tax information and payment system
Facilitating the use of digital signatures
Increasing linkages of domestic institutions of higher learning and
research with those abroad
– Evaluating the potential for clusters to assist with links between
research and production
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Modernization and Liberalization
of the Economy

Bank assistance can help provide economic (and other)
mechanisms to encourage the competitive, and
cooperative, use of information throughout all sectors of
the economy

The strategy is designed to support:
Policy reform
Establishing institutions to support the reform process
Achieving macroeconomic stability
- Related e-Europe+ Objective: Accelerate the putting in place of the basic building blocks for the
Information Society
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Modernization and Liberalization
of the Economy
Competition
Policy
Governance
Standards
Support to SMEs
Tax Policy
Promotion of FDI
Trade/Investm
ent Facilitation
Regulatory
Environment
Credit/ Financial
Sector
Development
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Promote and Support
Innovation Systems

Promoting and supporting innovation systems is key
to developing a long-term KE framework, and is the
underlying means by which to move towards a selfsustaining information society
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This involves enhancing the coordination between
government, the private sector and research
institutions, and the establishment of an environment
which promotes growth through innovation
- Related e-Europe+ Objective: Stimulate the Use of the Internet
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Promote and Support Innovation
Systems
Innovation
systems are key to enhancing productivity
and efficiency within the economy, and include:
More efficient and effective R&D
Issuance of new patents
Intellectual property development
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Development of Human Capital
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The development of human capital is essential in
establishing a skilled and knowledgeable workforce
which can continuously participate in the process of
effectively using and generating knowledge
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The strategy focuses on:
Basic literacy and enrollment in primary and secondary
education
Tertiary education
Global distance learning
Life long learning
-Related e-Europe+ Objective: Investing in People and Skills
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Development of Human Capital
Development of human capital emphasizes two primary areas:
Education
• Extending the reach of computers and ICT-equipment to basic education
schools
• Assisting in curricula development and providing access to learning
materials
• Providing support for research within higher institutions
• Developing centers with the capacity for providing distance learning
courses
Training
• Training staff within academic institutions for the use of technological
devices
• Establishing a program for the training of current managers and
professionals in career and industry-specific contexts
• Providing investments to support the establishment of tailored training
programs
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World Bank Strategy:
Project Interventions
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Key Elements

The Bank emphasizes working with the client to:
Develop a vision for the country’s progression towards a
knowledge-based economy
Develop a prioritized strategy which identifies key areas of
reform and progress
Build short- and medium-term immediate wins in support of
the long-term strategy

Depending on client needs, Bank intervention can come in
the form of…
A KE LIL of approximately $5 million
A series of two-to-three investment loans (approximately
$50-100 million each)
…or anywhere in between
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Stakeholders Targeted
Government
G2B
Businesses
G2G
B2B
G2C
Community
G2E
E2B
Educational
Institutions
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Project Components:
Improving Access to ICT
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Improving access to ICT would target enhancing
and improving connectivity in both urban and
rural areas
Improved
Network
Current Network
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Project Components:
Improving Access to ICT
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The Bank would assist the client in:
The identification of key areas for connectivity
The development of a comprehensive country-wide network
that leverages resources from each of the network nodes
The development of telecenters, advisory centers, etc. which
would be needed
Hardware Solutions
Software Solutions
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Project Components:
Development and Promotion of Government Services
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Development of government services can involve
assisting the government in building e-services
from scratch, or assisting in the further
development of activities which are still in
preliminary stages.
This includes a wide range of services, such as
e-procurement, e-registration, e-services within
minorities, the use of digital signatures, etc.
The focus of these activities would be on a G2G,
G2B, G2C and G2E level
Promotion of these activities is also a key priority,
and supported by other initiatives on the
“improving access to ICT” front
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Project Components:
e-commerce and Innovation Support
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This component places the enterprise sector, in
particular SMEs, at the center of innovation
efforts
Activities would focus on building a number of
innovation support programs for enterprises, with
the objective of:
Stimulating the demand from enterprises for technology
support
Helping to build the capacity of local ministries and partner
organizations to provide effective support and advice to SMEs
Building stronger relationships between enterprises and
universities
Curriculum revision
Provision of learning materials
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Project Components:
e-commerce and Innovation Support
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The component would provide project funding for
new technology support mechanisms such as:
Technology Development Programs which would provide
funding mechanisms for technology projects proposed by
enterprises
A Technical Support Services Program which would provide
technological and business advice and guidance to enterprises
embarking on technology projects.
An Intellectual Property (IP) Advisory Program which would
be targeted specifically at enterprises to raise awareness of
issues related to intellectual property rights.
A higher level program to increase the participation of
enterprises in local and international R&D programs such as
the EU 6th Framework Program
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Project Components:
Developing Skills for the Knowledge Economy
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This activity would focus on assisting members of
the local population (including pupils, teachers,
owners of SMEs) to develop and use digital
literacy skills to enhance their daily lives
It can include a wide range of activities, such as:
Training for students and educators
Training for technology support staff
Training for SME owners/business professionals
Curriculum revision
Provision of learning materials
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Strategic Summary
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The Bank’s support strategy emphasizes
addressing client goals and objectives to enable
them to become more globally competitive and
develop a sustainable strategy for long-term
growth
The key lies in tackling specific client needs, and
developing local competitive advantages
The emphasis is on developing a generational
shift, which enables emerging countries to achieve
the same success that has been enjoyed by
current leaders in the sphere of knowledge
economy