Transcript regional integration

REGIONAL INTEGRATION
Presentation by Mark D. Tomlinson
REGIONAL INTEGRATION
Context:
• 47 countries with average GDP $4bn
• Combined GDP = Belgium, 50% of Spain
• Small domestic markets + generally high
production costs + challenging investment
climates = limited investment (Africa < 2% global
FDI)
REGIONAL INTEGRATION
• Growth (2003, all NEPAD):
– 16 countries ~ 3% pa
– 16 countries 3%-5% pa
– 18 countries > 5% pa
• Implies
– Per capita growth mostly 0%-2%
– Limited progress on poverty reduction
– Many MDGs look elusive
– Continuing vulnerability to shocks, conflict
REGIONAL INTEGRATION
“The regional agenda is key
to accelerate development in
West Africa; national strategies
have proved insufficient.”
Dr. Mohammed Ibn
Chambas,
Executive Secretary,
ECOWAS
October 2004
REGIONAL INTEGRATION
“If only West Africa was a single country. Then,
perhaps, we would stand a chance.”
Bode Agusto
Director, Budget
Federal Ministry of Finance
Nigeria, May 2004
REGIONAL INTEGRATION
Development objective:
• Assist national clients and regional organizations
to develop larger, more competitive and more
successful economic spaces.
Program objective:
• Deliver additional development
impact at the country level
through regional solutions
to development challenges
and regional complements
to national programs.
REGIONAL INTEGRATION
Three dimensions to competitiveness holding opportunities for
additional impact through regional approaches:
• Markets:
Trade policy
Financial sector development
Investment Climate
• Productivity:
Infrastructure
Knowledge development
Technology
ICT
• People:
Basic needs
Skills development
Vulnerability
REGIONAL INTEGRATION
So what’s new?
• Enhance alignment of regional work, strategically
among sectors + with country programs
• Broad ownership of regional programs: ‘integrate’
regional integration
• Develop more multi-country programs and projects
• Go faster
Use – and build upon – regional knowledge base to
do this.
REGIONAL INTEGRATION
Steps forward:
• Draw upon sectors to
propose knowledgebased strategic
framework for integration
in each sub-region.
• Regional teams
discuss/agree priorities in
joined-up programs with
clear interfaces: trade,
infrastructure, investment
climate, knowledge,
human development.
REGIONAL INTEGRATION
• Discuss /agree priorities with
countries concerned, with
CMUs.
• Less emphasis on ‘formal’
regional PRSPs;more on
practical opportunities for
integration. Focus on areas
where there is professional
agreement on priority and
political traction.
REGIONAL INTEGRATION
Strategy:
Dev.
Impact.
PRSP1
PRSP2
PRSP3
PRSP4
Markets
Productivity
More
Dev.
Impact
People
Agreed strategic framework
RIAS
REGIONAL INTEGRATION
“When I look at PRSPs, where do I find regional
integration? It’s not there”
H.E. President Wade of Senegal
NEPAD Stakeholders Forum
October 2004
REGIONAL INTEGRATION
Program at a glance:
• Total $3.9m (approx. 3.2% of CMUs)
• 50% West, 20% East, 15% Central,
15% Southern
• Policy, ESW, TA: West 50%, East 10%,
Central 10%, Southern 30%.
(FY05, 14 IDFs)
• Lending: West 47%, East 18%, Central 23%,
Southern 12%. (FY05 $ 250-300m)
• Lending pipeline, planned ESW not yet
strongly developed. Additional BB request FY05.
REGIONAL INTEGRATION
Operational issues:
• Strategic engagement: sub-regional
frameworks drawing upon sector
knowledge by CMUs.
• Application of resources in line
with these frameworks
• Re-balance relationships with
RECs.
• Build policy engagements through
strengthened knowledge base.
• Support priority NEPAD
investments. Scale-up, innovate.
REGIONAL INTEGRATION
•
•
•
•
Where we would like to be in 12 months:
Regional teams operate as CTs, around agreed
strategic agenda.
More extensive, policy and knowledge
engagement, backed by solid ESW.
Significant investment support (build up to ~10%
AFR) for priority regional projects, innovations.
Decentralization of responsibility. Fully staffed,
additional field presence.
Thank you!
Look forward to working (regionally) together