Fias 2017 ANNUAL REVIEW THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES With support from: FIAS 2017 Annual Review iii ©2018 The World Bank Group 1818 H Street NW contents Washington, DC 20433 Telephone: 202-473-1000 Message from the Senior Directors 5 Internet: www.worldbank.org All rights reserved. 01 Main Achievements and Milestones 6 02 Special Topic: T&C Initiatives in Gender and Inclusion 16 This volume is a product of the staff of the World Bank Group. The World Bank Group refers to the member institutions of the World Bank Group: The World Bank (International Bank for Reconstruction and Development); International Finance Corporation (IFC); and 03 Operational Highlights 22 Multilateral Investment Guarantee Agency (MIGA), which are separate and distinct legal entities each organized under its respective Articles of Agreement. We encourage use for educational and non-commercial purposes. Pillar 1: Improve the Business Environment 28 Pillar 2: Expand Market Opportunities 36 The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Directors or Executive Directors of the respective institutions of the World Bank Group or the governments they represent. The World Bank Group Pillar 3: Increase Firm-Level Competitiveness 54 does not guarantee the accuracy of the data included in this work. 04 FIAS-Supported Work in Programmatic Themes 58 Rights and Permissions 05 Financial Results and Resource Use 70 The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce 06 Annexes 76 portions of the work promptly. Annex 1: FIAS Reform Totals and Descriptions 76 For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Annex 2: Portfolio of FIAS-Funded Projects in FY17 82 Internet: www.copyright.com. Annex 3: Key FY17 Publications, Events 85 All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, Annex 4: Abbreviations 94 The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. About the Facility for Investment Climate Advisory Services (FIAS) Through the FIAS program, the World Bank Group and donor partners facilitate investment climate reforms in developing countries to foster open, productive, and competitive markets and to unlock sustainable private investments in sectors that contribute to growth and poverty reduction. The FIAS program is managed by the Equitable Growth, Finance & Institutions Practice Group of the World Bank Group. For more information, visit www.worldbank.org/fias. Acknowledgments This report was written by the staff of the World Bank Group and edited by John Diamond, with editing and technical support provided by Lorenzo Nelli-Feroci. Design Partner: Corporate Visions, Inc. District Creative Printing, Inc. Cover photo: female electrician, Addis Ababa, Ethiopia (World Bank Group photo). FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 4 FIAS 2017 Annual Review 5 With the FY17–21 Message from Fiscal year 2017 marked the beginning of a new chapter in the FIAS partnership with the World Bank Group with the launch of the new FY17– the Senior 21 strategy cycle developed in consultation with our FIAS Development strategy cycle well Partners. Our work is organized under three strategic pillars: improving Directors the business environment, expanding market opportunities, and increasing firm-level competitiveness. under way, we are The FIAS-supported program is marked by both continuity and innovation. The core mission of FIAS remains unchanged: to help client countries institute and implement reforms that foster open, productive, proud to present and competitive markets and to unlock sustainable private investments in sectors that contribute to growth and poverty reduction. So too are the FIAS 2017 the priority countries of FIAS: borrowing countries of the International Development Association, countries in Sub-Saharan Africa, and states in fragile and conflict-affected situations. Annual Review, Within this well-established framework, FIAS and the joint Global Practices are helping the World Bank Group carry forward approaches to development and advisory work aligned with IFC’s Creating Markets outlining our initiative. This work leverages advisory services in investment climate, competition policy, and competitive sectors to develop markets in poor and fragile areas that are competitive, sustainable, inclusive, and resilient. achievements in a With the FY17–21 strategy cycle well under way, we are proud to present the FIAS 2017 Annual Review, outlining our achievements in a growing growing roster of roster of client countries. The Review provides data on reforms and expenditures, a special topic chapter on gender initiatives, as well as narratives of the client-facing work being done by our country and global client countries. teams. Going forward FIAS will continue to be critical in helping achieve development impact in a way that better aligns with the Bank Group’s approach to development finance, creating markets, and maximizing finance for development. We would like to convey our heartfelt thanks to our FIAS donors and partners for continuing their strong support for the FY17–21 work program. C. Felipe Jaramillo Ceyla Pazarbasioglu Senior Director Senior Director Macroeconomics, Trade and Finance, Competitiveness Investment and Innovation FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 6 FIAS 2017 Annual Review 7 01 FIAS is supporting implementation of reforms in more fragile states than ever. Main Achievements 62 reforms achieved in 32 client countries and one territory in the first year of the FY17–21 strategy cycle (76 reforms in 42 countries in FY16). FIAS-supported projects generated $153.2 million and Milestones in new investments in four client countries—Bosnia and Herzegovina, Haiti, Mali, and Nepal; all are FCS states; all but Bosnia are IDA. FIAS-supported projects generated $8.7 million in direct compliance cost savings (CCS) in FY17, reflecting lower business costs due to streamlined regulations and permitting processes. Substantial additional CCS is anticipated following validation. Construction workers building reinforcement wall. Photo: Bigstock FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 8 FIAS 2017 Annual Review 9 01 Target Exceeded Total Reforms Favorable Comparisons 87 percent 62 51% 32 reforms countries A World Bank Group Flagship Report Doing Business 2018 Doing Business 2018 reports that 54 of the 62 FY17 of FY17 FIAS-Supported Operations FIAS reforms, or 87 percent, were relevant to DB topics Reforming to Create Jobs (in FY16: 87 percent). 20 percent { first year of the FY12–16 strategy cycle. 46 reforms in 30 countries in FY12, the FY17 results compare favorably to the { of the 264 DB reforms recorded in FY17 were achieved with FY17 FIAS-supported reforms exceeded the yearly target of 55 reforms in the strategy cycle. percent of the 119 reforms achieved in the help of FIAS-funded advisory services. FIAS-supported projects delivered 51 FY17 by the Trade & Competitiveness Comparing Business Regulation 10 countries for Domestic Firms in 190 Economies Global Practice (T&C). { most improved Doing Business 2018 Doing Business 2018 lists 10 countries as most improved in { terms of reforms undertaken; 6 of these—El Salvador, India, Kosovo, Malawi, Uzbekistan, and Zambia—recorded reforms in FY17 from FIAS-supported projects. India and Malawi made the top-improvers list for the first time. Reforms in FIAS-supported projects Highlights The New Strategy Cycle FY12–16 direct compliance FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 10 FIAS 2017 Annual Review 11 01 Reforms Achieved FIAS-supported projects 23 countries 32% 21% 58% 56% FIAS Program Continues Under Restructured Global Practices The Equitable Growth, Finance and FIAS supported projects in 23 of the world’s 40 FCS states or territories in FY17, or 58 percent (23 of 35 Institutions (EFI) vice presidency manages countries, or 66 percent, in FY16).1 a cluster of related Global Practices (GPs) that work to promote stable, equitable, efficient, and dynamic markets, institutions 99 projects and economies. This practice group has consisted of five Global Practices: Finance and Markets (F&M), Macroeconomics and Fiscal Management (MFM), Trade and FIAS portfolio consisted of 99 projects in FY17 Competitiveness (T&C), Governance, and (112 in FY16), with 79 client-facing (87 in FY16) Poverty. As of January 1, 2018, T&C, F&M, and { and 20 non-client-facing in product development (25 in FY16). MFM are reorganized into two GPs: Finance, projects, and FIAS Core funding has diminished. Competitiveness and Innovation (FCI) and overall T&C reform work showed strong results reforms for FY17 out of 119 total, or 56 percent. in the region, with 67 national and subnational funded increasingly through country-specific Macroeconomics, Trade and Investment Reform work in Sub-Saharan Africa is being Although the proportion of FIAS reforms in Sub-Saharan Africa was lower than usual, (MTI). Both are joint organizations made up on Priority Client Groups of World Bank and IFC teams. The global 32 percent of reforms were achieved in Sub-Saharan Africa (66 percent in FY16). and regional teams that have implemented Total FIAS direct project expenditures FIAS-supported projects—Investment Climate, Competitive Sectors, and Competition 58 percent of reforms were achieved in IDA countries (78 percent in FY16). Policy—remain intact and continue with their $26.1 project portfolios, with EFI providing unified management. The new structure better 21 percent of reforms were achieved in FCS (29 percent in FY16). aligns EFI with the World Bank Group’s evolving approach to development finance million and supports the IFC 3.0 objectives of maximizing finance for development and creating markets. EFI will continue to support { foundational reforms that help to “de-risk” Total FIAS direct project expenditures in FY17 countries along the macro, business climate, were $26.1 million ($35.6 million in FY16), with and financing dimensions. $18.7 million, or 72 percent, client-facing (59 percent in FY16) and 28 percent non-client T&C reform work showed strong results facing (41 percent in FY16). FY17 Portfolio Information Focus 1 For FY17, the Annual Review is using the World Bank Group’s combined FCS list, which includes the Harmonized List of Fragile Situations (35 countries) plus five additional countries considered FCS by IFC. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 12 FIAS 2017 Annual Review 13 01 The charts below show FIAS results in priority areas. Since FY17 is the first year of the five- year strategy cycle, the charts compare FY17 results to FY12, the first year of the FY12–16 cycle, along with FY16 and FY12–16 cumulative results. TRADE & COMPETITIVENESS GLOBAL PRACTICE, TOTAL FIAS-SUPPORTED REFORMS SHARE OF REFORMS RECORDED IN DOING BUSINESS (FY17–21 yearly reform target = 55) RESULTS BY PRIORITY CLIENT GROUP, FY17 CLIENT SATISFACTION, FY12–FY17 100 (Share of clients satisfied) 100 n Reforms 100 100 % 87% 87% 80 91% 94% 91% 92% 70% 70% 89% 88% n Countries 80 76 80 74% 54% 80% 70% 60 58% 68 50% 62 60 60 60% 40 32% 46 27% 42 25% 40 40 21% 33 33 20 40% 30 20 20 20% 0 IDA-eligible Sub-Saharan Fragile and 0 0 countries Africa conflict-affected 0% FY12 FY16 FY12-16 FY17 FY12 FY16 FY12-16 FY17 situations FY12 FY13 FY14 FY15 FY16 FY17 average Cycle n % client-facing project expenditures: target * Client satisfaction ratings for Investment Climate n % client-facing project expenditures: actual Business Line prior to FY15. n % total reforms SHARE OF REFORMS IN IDA COUNTRIES SHARE OF REFORMS IN SUB-SAHARAN AFRICA Strategy Cycle Metrics (FY17–21 cycle target = 70%) (FY17–21 cycle target = 50%) FIAS DEVELOPMENT EFFECTIVENESS RATINGS, FY12–FY17 CLIENT FACING EXPENDITURES BY PRODUCT, FY17 (Share of completed projects with positive ratings) 100% = $18,625,102 100 100 100% 100% n Investment Policy and Promotion (24%) 80 100 % 80 78% 88% n Business Environment (22%) 73% 66% 66% 86% 83% 75% 61% 58% 60 80% n Agribusiness (14%) 60 n Indicator Based Reform (14%) 41% 40 60% n Trade Facilitation and Logistics (7%) 40 32% n Discounted-Business Taxation (6%) 20 40% 20 n Competition Policy (4%) 0 20% n Services (3%) 0 FY12 FY16 FY12-16 FY17 n T&C: Other (2%) FY12 FY16 FY12-16 FY17 Cycle Cycle 0% n Manufacturing (1%) FY12 FY13 FY14 FY15 FY16 FY17 FY17 based on 2 projects rated FY17 Portfolio Information SHARE OF REFORMS IN FRAGILE AND FIAS-SUPPORTED PROJECTS, REFORMS IN FCS CONFLICT-AFFECTED SITUATIONS FIAS CLIENT SATISFACTION, FY12–FY17 CLIENT-FACING EXPENDITURES BY REGION, FY17 (FY17–21 cycle target = 25%) 100% = $18,660,597 100 (Share of positive client responses from FIAS supported projects) 40 40 35 95% 95% 80 33 34 100% 92% 89% 90% 90% 85% n Sub-Saharan Africa (54%) 30 60 21 23 n Middle East and North Africa (11%) 23 22 20 80% 18 n Europe and Central Asia (11%) 20 70% 40 13 n Latin America and Caribbean (8%) 29% 30% 11 60% 24% 10 n East Asia and Pacific (7%) FIAS 21% 50% 20 0 40% n World (6%) 0 FY12 FY16 FY12-16 FY17 30% n South Asia (3%) Cycle FY12 FY16 FY12-16 FY17 Average 20% Cycle n Total FCS Countries 10% n FCS Countries with Active FIAS Projects 0% n Number of Reforms FY12 FY13 FY14 FY15 FY16 FY17 FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 14 FIAS 2017 Annual Review 15 01  FIAS-Supported Reforms by Region and Country, FY17 Investment Policy - Entry Compliance Management Licenses and Permits Resolving Insolvency Construction Permits Tax Simplification and Protecting Investors Enforcing Contracts Starting a Business Investment Policy - Property Transfers Investment Policy - Trade Logistics FIAS Funding and Expenditures FY12–16 and FY17  Getting Credit Inspections Grand Total Incentives Promotion 2012-16 2017 Contributions (Sources of Funds) a In US$, Thousands Share of Total In US$, Thousands Share of Total Region Country WORLD BANK GROUP CONTRIBUTIONS 51,336,475  28% 9,599,341 26% AFRICA Cabo Verde 1* 1* 2 Core Contributions 37,788,000 20% 7,000,000 19% Cameroona 1* 1 IFCa 23,388,000 13% 5,000,000 13% Gabon 1* 1 MIGA 5,600,000 3% - 0% Ghanaa 1* 1 World Bank 8,800,000 5% 2,000,000 5% Guineaa 1 1 Project Specific/Other Contributions (IFC) 13,548,475 7% 2,599,341 7% Madagascara, b 1* 1* 2 Donor Contributions 134,480,300 72% 27,950,198 74% Malawia 1* 1** 1* 3 Core 47,516,000 25% 4,601,820 12% Malia, b 1 1 Mauritius 1* 1* 1* 3 Programmatic 55,913,000 30% 16,009,590 43% Seychelles 1* 1* 2 Project-Specific 31,051,300 17% 7,338,788 20% Zambiaa 1* 1* 2 Client Contributions 699,000 0.4% - 0.0% Zimbabwea, b 1* 1 Total Contributions 186,515,775 100% 37,549,539 100% AFRICA TOTAL 6 3 1 1 2 1 3 1 2 20 Less Trust Fund Administration Fees 7,151,000 1,099,899 EAST ASIA AND PACIFIC Mongoliaa 1 1 Total Net Contributions 179,364,775 36,449,640 Myanmara, b 1 1 Expenditures (Uses of Funds)b EAST ASIA AND PACIFIC TOTAL 2 2 Staff Costs 80,745,922 50% 15,724,142 48% EUROPE AND CENTRAL ASIA Albania 1** 1 Consultants and Temporaries 41,145,014 26% 10,503,071 32% Armenia 1 1 2 Operational Travel Costs 26,315,588 16% 5,053,184 15% Azerbaijana 1* 1* 2 Indirect Costs (including office and operating costs) 11,886,379 7% 1,604,318 5% Bosnia and Herzegovinab 1 1 2 Total Expenditures 160,092,902 100% 32,884,715 100% Croatiaa 1* 1 Kazakhstana 1* 1* 1* 3 Includes contributions from all sources of funds that support the FIAS FY17–21 strategic agenda. FIAS FY12–16 funding cycle contributions (previously reported) a Kosovoa, b 1* 1* 1* 3 have been adjusted for comparative purposes. Kyrgyz Republica 1* 2** 3 Includes expenditures from all sources of funds that support the FIAS FY17–21 strategic agenda. FIAS FY12–16 funding cycle expenditures (previously reported) b Serbiaa 1** 1* 1* 3 have been adjusted for comparative purposes. Tajikistana 1* 1* 2 Uzbekistana 1* 1* 1* 1* 4 EUROPE AND CENTRAL ASIA TOTAL 2 3 1 1 2 1 2 3 1 4 5 26 LATIN AMERICA AND El Salvador 1* 1 CARIBBEAN Guyanaa 1* 1 Panama 1* 1 St. Kitts and Nevis 1* 1 LATIN AMERICA AND CARIBBEAN 1 1 1 1 4 MIDDLE EAST AND NORTH Egypt, Arab Rep. 1* 1 AFRICA Iraqb 1* 1* 2 West Bank and Gazab 1* 1 MIDDLE EAST AND NORTH AFRICA TOTAL 2 1 1 4 SOUTH ASIA India 1* 1* 1* 1* 1* 1* 6 SOUTH ASIA TOTAL 1 1 1 1 1 1 6 GRAND TOTAL 10 4 8 1 3 2 1 1 5 5 4 9 6 3 62 Reforms captured by Doing Business 54 87% FIAS Total of which in IDA 36 58% FIAS Total of which in FCS 13 21% FIAS Total of which in Africa 20 32% International Development Association (IDA) a b Fragile or conflict-affected situation (FCS) * Of the 54 reforms under Doing Business topics, 49 were validated by Doing Business 18 ** 5 reforms were reported retroactivley and were validated by DB17. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 16 FIAS 2017 Annual Review 17 02 10 pilots Gender equality is central to T&C Initiatives in Gender and The gender team logged several key the World Bank Group Twin strategic achievements in FY17: Goals of ending extreme > Dissemination of T&C’s Gender Practice Note under way contributed significant substantive support to the poverty and boosting shared World Bank Group Gender Strategy. The Note prosperity. There is much outlines an ambitious program of gender-focused and gender-informed projects and initiatives. A Testing new approaches to gender-informed policy and sectoral reform work to do. detailed business plan will guide implementation through the end of FY18. Complementing the Note, the team issued a Gender Brochure to Female labor force participation lags globally. Women support outreach to both donors and internal are half as likely to have a full-time wage job and are audiences and to increase awareness of the often paid less than their male counterparts for the same design and implementation of gender-related work. Female-owned businesses face greater obstacles programs and projects. to growth due to limitations in sector choice and scarcity of critical inputs such as networks, training, markets, > Establishment of a Gender Community of and financial services. In most economies, legal and Practice (CoP) and set-up of a dedicated online Online membership has risen steadily and currently encompasses Gender portal have helped spread the message regulatory barriers further limit women’s full economic of the team’s approach to gender, increased staff 85 active engagement. awareness, and enabled project teams to embed gender elements meaningfully into the portfolio. Special Topic: The World Bank Group has an important role to play in Online membership has risen steadily, and the supporting women’s economic participation and gender CoP currently encompasses 85 active members. equality to foster inclusive, productivity-led growth. FIAS- Four CoP sessions were convened featuring members supported programs can enhance women’s capacities as external speakers from Oxford’s Said Business entrepreneurs and employees through skills, networks, School, the Center for Global Development, asset control, and production inputs, among other things. World Bank management, and front-line staff. The results are an improved business environment Discussions brought out insights and experiences through reform of discriminatory laws and regulations on such topics as female entrepreneurship, in T&C-founded Gender Community of Practice Group and removal of implementation gaps. All of this translates cross-border trade, and gender-based violence, and presented findings and learnings from into longer term benefits of increased income and knowledge pieces and impact evaluations. productivity. > To further develop the capacity and knowledge The programs supported by FIAS incorporate gender of project leads, the gender team worked dimensions in their operations. To do this work effectively, with the Africa Gender Innovation Lab of the a new gender team was established at headquarters Gender Cross-Cutting Solutions Area (CCSA) in FY17 to improve gender programming and project- to conceptualize and convene a workshop on FIAS-supported projects generated related activities. The program seeks to raise awareness best practices for incorporating evidence-based of gender issues among staff and incentivize gender- gender design into projects. The goal of the 27 gender Inclusion sensitive project design and encourage embedding and workshop was to foster women's economic piloting gender-related elements into the project portfolio. empowerment. Participants used case studies to identify gender gaps, discussed where to look for Activities during FY17 entailed implementation of gender evidence to address constraints, brainstormed activities within FIAS-financed projects, with a range of solutions, and identified the best way to measure results already emerging at the country-level. The gender indicators results of specific solutions. Research teams team includes a dedicated senior-level gender specialist. from the Innovation Lab and T&C also offered Overarching initiatives were undertaken in areas such lightning talks on gender elements of core as strategy, knowledge management, outreach, results themes—investment climate, entrepreneurship, measurement and data sharing. These will underpin competitive sectors, and trade. in some 200 countries tracked by TCdata360 data portal and solidify ongoing gender activities, lay a foundation for interventions, and position the joint IBRD-IFC global practices as key delivery units for gender within the Bank Group. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 18 FIAS 2017 Annual Review 19 02 The gender team logged several key strategic achievements in FY17: (continued) > The development of a Gender Results Framework in FY17 provides a set of indicators to track gender activities that WORLD BANK TRADE AND COMPETITIVENESS GENDER STRATEGY is in line with both the wider monitoring GROUP GENDER STRATEGY Theory of Change: Promoting country growth and competitiveness and evaluation (M&E) framework necessitates gender equality. and the Practice Note’s strategic objectives. The indicator set provides 1 IMPROVE THE BUSINESS the basis for staff to operationalize Removing constraints ENVIRONMENT gender priorities as articulated in the to more and better jobs Practice Note and tracks progress toward meeting corporate targets and 2 Through gender- EXPAND TRADE AND donor partner objectives by providing informed and MARKET OPPORTUNITIES Women work in, Removing barriers to start, lead and project teams with measures to track women's ownership gender-targeted grow firms policies, T&C the effectiveness of gender-related and control of assets intervenes to effectively 3 project components, designed to close STRENGTHEN identified gaps. The Gender Results PRODUCTIVITY AND Framework applies to both advisory COMPETITIVENESS OF FEMALE WORKERS, FEMALE and lending projects and captures Increasing voice and MANAGERS, AND WOMEN- both economy-wide and firm- and agency LED BUSINESSES individual-level results. Gender- related indicators derived from the 4 underlying root causes and resulting Improving human INCREASE VOICE AND endowments constraints that are addressed by T&C AGENCY OF WOMEN projects were identified through broad consultation within the Global Practice and are grouped within the four ”solution areas” set out in the Practice Note to guide gender interventions. A key result of this work is a wider Conceptually, the Framework was and deeper incorporation of gender developed via the following steps: considerations in FIAS-supported projects and activities. Operational • The most prevalent underlying teams can reposition themselves root causes of major constraints as needed to meet the needs and faced by women were identified demands of our clients. The set of for each of the four thematic results indicators and accompanying solution areas. guidance for project teams set forth in this document will serve as an adaptable • Typical project activities designed tool to track the effectiveness, relevance to address the constraints were and ultimate impact of gender-related compiled. interventions. Indicators are being • Indicators capturing and tracking piloted in several operations already, these activities were identified and complete roll-out of the results and mapped to the thematic framework will commence shortly, solution areas which relate to following outreach and dissemination the full spectrum of work that events as well as direct support and addresses gaps in access to more assistance for project teams. and better jobs, ownership and control of assets, and voice and agency. Professor (on the left) teaching cell biology and biochemistry to students at the University of Lomé, Togo. Photo: Stephan Gladieu/World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 20 FIAS 2017 Annual Review 21 02 In FY17, the gender team partnered with the data team to develop a gender data tool to provide staff with easy-to-access, comprehensive overviews of country data tracking women’s participation in economic activity. Project-Level Initiatives in Gender The gender team logged several key strategic achievements in FY17: During FY17, implementation activities continued (continued) in 10 FIAS-supported advisory projects that were launched in FY16 and demonstrated tangible > Launch of Gender360 Data has added progress in measurable areas. These areas include: a new gender dimension to T&C’s open improving implementation gaps; enhancing voice trade and competitiveness data portal, and agency; collecting, tracking, and reporting TCdata360, which compiles open data gender-disaggregated data; and improving cross- on trade and competitiveness in an sector participation of women and their working easily accessible online platform. The environment. site aggregates and visualizes data from multiple sources and presents it in tandem A project in Mexico is measuring the performance with other knowledge and resources. In of female employees and women-owned firms FY17 , the gender team partnered with in terms of productivity, sales, job creation, and the data team to develop a gender data tool to provide staff with easy-to-access, innovation within a government program that targets comprehensive overviews of country high-growth entrepreneurs with the potential to data tracking women’s participation compete globally and generate economic, social, in economic activity. Gender360 Data and environmental impact. The project evaluation went live in October 2017 and contains demonstrates how gender-focused data collection gender-related information on some 200 can transform an otherwise gender-neutral program. countries, combining and visualizing data along some 27 indicators in a range of A project in the Punjab province of Pakistan includes categories. a range of gender-informed lending operations, analytics, and advisory services designed to support > The T&C gender team provided women’s participation in the region’s growth, significant support and guidance toward the establishment of The Women development, and competitiveness. For example, a Entrepreneurs Finance Initiative (We- business facilitation hub for female entrepreneurs Fi), a global initiative to address financial will provide gender-informed services for business and non-financial constraints faced by registration, skills development, and linkages to women-owned and led small and medium financing. Building hospital gurneys at the Tautmann factory in Turkey. firms in IDA- and IBRD-eligible countries. Photo: Simone D. McCourti/World Bank drew from the range of interventions solicit and assist in the design of We-Fi aims to mobilize more than $1 which close critical gaps for women project ideas. Significant funding billion in commercial and international entrepreneurs and have been tested will greatly enhance the team's financial institution finance. Funding will at the project level. The team is now capacity to deliver on women's support entities that provide women working across regions with the World economic empowerment at the entrepreneurs with access to debt, equity, Bank, IFC and partner organizations to country, regional, and global level. The Mainstreaming Gender-Focused Legal Reform in Togo venture capital, insurance products, capacity building, networks and mentors, Following significant amendments to its Family Code in 2012 and 2014, Togo’s laws now grant substantially-enhanced rights We-Fi and opportunities to link with domestic to women in the areas of tax and property, as well as protection against gender-based discrimination in employment and and global markets. We-Fi will also help education. These legal reforms have wide-ranging impact on women’s decision-making capacity, ownership and control of governments to improve the business assets, and improved employment prospects. This project aims to raise awareness, among female citizens but also among environment for women-owned and led small and medium firms. The gender team government officials, non-governmental organizations (NGOs), and Togolese men, of the new rights granted to women, has played an instrumental role, working to ensure implementation and enforcement. This fiscal year, a national awareness campaign was launched, including the with the Bank Group’s Gender CCSA to creation and dissemination of 3,500 promotional materials, 2,000 posters, 400 legal guides, as well as skits and radio/ A global initiative to address financial and non-financial constraints faced by TV advertisements that reached an estimated 200,000 people. High-level information round-tables and training modules develop the scope of eligible activities women-owned and led small and medium firms in IDA- and IBRD-eligible under the We-Fi public-sector window. for officials were held, and the project reached out via Facebook and Twitter to some 600 people. The project expects to countries. As outlined in the Gender Practice Note, continue this intensive outreach and to have informed a target of 2 million Togolese next fiscal year. in conceptualizing the We-Fi, the team FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 22 FIAS 2017 Annual Review 23 03 FY17 marked the first year of the FIAS FY17– percent, were in IDA countries (59 reforms or 78 percent in FY16); 20 reforms, or 32 or 29 percent, in FY16). These results during the early stages of the strategy 21 strategy cycle. The strategy, produced in percent, were in Sub-Saharan Africa (50 reforms or 66 percent in FY16); and 13 cycle, when new reform projects are just getting under way, reflect both the high consultation with the development partners, sets reforms, or 21 percent, were in FCS (22 priority of FCS in the FIAS agenda and reforms or 29 percent in FY16). the results of concerted research into out a roadmap for projects and global programs the dynamics of reforming economies FIAS support for the advisory services closely aligned with IFC’s private sector-focused portfolio has continued to contribute saddled by conflict. Research by the FIAS-supported Investment Climate strategy and the World Bank Group themes of to the development impact of the IFC agenda as it has evolved. The traditional team is shedding light on promising new approaches to advisory work in FCS. crowding in private sector finance and maximizing approaches reflected in IFC 1.0 and IFC 2.0 involve working with companies seeking During FY17, the team worked on a the role of the private sector in achieving the to invest in developing countries and flagship report release in October 2017, Sustainable Development Goals. advising those countries on making their economies more conducive to investment. the Global Investment Competitiveness Report 2017–2018. It includes a chapter IFC 3.0 seeks to go beyond waiting to on issues relating to foreign direct support investment opportunities as they investment (FDI) in fragile states that Quick-win reforms in 58% come along and to proactively create outlines a market-creation approach to As described in this and the next chapter, the strategy rests on three strategic pillars markets by supporting the enactment investment climate reform in FCS. This Doing Business areas buttressed by four programmatic themes. and implementation of policy reforms that approach is grounded in an understanding are important first enhance market efficiency. The creating of the patterns of FDI in these sensitive The pillars are: markets strategy seeks to stimulate more environments and seeks to seize the most steps for building • Improve the business environment; investor confidence Operational investment activity, particularly in low- readily available investment opportunities of FIAS reforms in IDA countries • Expand market opportunities; income countries and FCS states. The IFC while reducing political risk through • Increase firm-level competitiveness. strategy allows for support to clients in targeted investment climate reforms. in an FCS country. Operations relating to the three pillars are riskier markets combined with proactive work in these countries to create, deepen, Quick-win reforms in Doing Business In FY17, for example, 32% described in this chapter. The four themes are: and expand the markets themselves. areas are important first steps for Iraq made starting building investor confidence in an FCS • Gender and inclusion; • Transparency, political economy, and As opportunities are unlocked, IFC will invest, bringing best practices to clients, country. In FY17, for example, Iraq made a business easier sustainability of reforms; demonstrating viability, and mobilizing starting a business easier by combining by combining private capital. Success in attracting new multiple registration procedures and • Green competitiveness; and • Targeting high-growth business. and greater numbers of private investors reducing the time to register. Access multiple registration reforms in Sub-Saharan Africa in these higher-risk countries will be to credit information improved with the procedures and FIAS-supported activities and client-facing essential to advancing the “Billions to launching of a new credit registry. But, Highlights projects relating to these themes are described Trillions” agenda. as the report notes, “It is now clear that reducing the time to in Chapter 4 (along with the Special Topic investment climate reforms must go well register. 21% Chapter 2 focused on gender). beyond simplifying procedures and must FIAS Focus on FCS respond more clearly to the challenges The core concepts underlying the FIAS The World Bank Group’s institutional and characteristics of FCS.” Reforms in program remain unchanged: to facilitate focus on countries in fragile and conflict- FCS must aim for long-term institution reforms in developing countries to foster open, affected situations (FCS) is strongly and capacity building, while also delivering productive, and competitive markets and to reflected in first-year results for the FIAS benefits such as job creation in the near unlock sustainable private investments in FY17–21 strategy cycle. Of the 40 states term. reforms in FCS sectors that contribute to growth and poverty and territories on the World Bank Group’s reduction. These priorities—along with the FIAS The FIAS-supported team’s approach FCS list for FY17, 23, or 58 percent, had focus on IDA countries, Sub-Saharan Africa, starts with investment retention FIAS-supported projects (23 countries in and fragile and conflict-affected situations—are strategies and investor aftercare systems FY16).2 In addition, FIAS support helped reflected in the FIAS portfolio of 99 projects to encourage existing investors, both bring about reforms in 8 FCS countries in FY17 (112 in FY16). Of these, 79 were client- domestic and foreign, to stay and expand. (11 countries in FY16). Of the 62 reforms facing (87 in FY16) and 20 were non-client The reform effort goes on to build an achieved with FIAS support in FY17, 13, or facing in product development (25 in FY16). investment promotion function tailored 21 percent, were in FCS (22 of 76 reforms, FIAS-supported work generated 62 reforms in FY17 (76 in FY16). Of those, 36 reforms, or 58 2 For FY17, the Annual Review is using the World Bank Group’s combined FCS list, which includes the Harmonized List of Fragile Situations (35 countries) plus five additional countries considered FCS by IFC. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 24 FIAS 2017 Annual Review 25 03 $100k to the country’s resources and institutional The project also provided funds to improve Group team recommended the campaign to capacity. Investment promotion efforts are processes to obtain clearances for starting fill an evident gap in public and stakeholder geared towards regional investors, diaspora businesses. These activities introduced key understanding of the reforms achieved and investors, and investors in FCS-friendly reforms including streamlining processes the reasons behind them. sectors such as extractives, construction, for registering companies and enhancing and services. protections for minority investors. They also The central Bank of Madagascar has In Sudan, $100,000 in FIAS funding supported a public- improved procedures for insolvency and merged its different credit databases so private dialogue scoping exercise relating to business Accurate data is critical to the kind of guaranteed protection for secured creditors that all commercial banks and the majority registration reform work, Doing Business reforms, and research reflected in the Global Investment during insolvency proceedings. of microfinance institutions are covered. As agricultural sector advisory services. Competitiveness Report. During FY17, of the end of FY17, the coverage rate had the Investment Climate team, working In Sudan, $100,000 in FIAS funding reached 5 percent of the adult population, with the Strategy and Operations team, supported a public-private dialogue scoping the threshold to receive points in the Doing $42m launched FCS Investment Climate 360 exercise relating to business registration Business getting credit indicator. In another Data. It compiles 50 indicators over 10 years reform work, Doing Business reforms, move designed to stimulate investment, clustered by key country characteristics to and agricultural sector advisory services. the website of the Economic Development help project teams analyze the economic, Sudan is seeking to diversify its economy Board of Madagascar has been recognized institutional and business environment in response to falling oil revenues. The to carry legal advertisements for business context of FCS countries. The dataset also lifting of economic sanctions has stimulated creation. This eliminates the need to allows project teams to identify comparators interest in the investment climate reform publish notice of company incorporation in In Kosovo, the streamlining of procedures for work and study countries affected by conflict and agenda, and FIAS support has enabled the newspapers. permits for foreign employees contributed to an estimated fragility as a group. The team also developed team to scale up its work. In FY17 the effort (but not yet confirmed) increase of $42 million in FDI. tools that allow teams to incorporate conflict included preparation of a reform roadmap The FIAS-supported investment climate and fragility considerations in their project for Sudan and a concept note for the Sudan project in the Democratic Republic of design. Considering the important role Investment Climate Reform program. The Congo seeks to sustain reform momentum of regional actors in recovery, the team team also supported training for Doing and foster enterprise creation and growth team helped deliver an investment also compiled a new dataset that allows Business reform champions to attend a through targeted investment climate reform map and inventoried investment project teams to assess the fragility of the peer-to-peer learning event in Dubai, and reform. With FIAS support, the government incentives in the region. The streamlining neighborhood in which the FCS is situated. an investment policy and promotion training made dealing with construction permits of procedures for work permits for foreign Such tools are now being deployed in the program in Singapore. The project shared easier by improving building quality control employees contributed to an estimated (but design of projects in Afghanistan, Somalia, the roadmap with donors, who have now and reducing the time it takes to obtain not yet confirmed) increase of $42 million in and Sudan. committed to provide about $350,000 for the permit. The advisory program thus FDI. implementation. achieved a key objective—to support three FY17 FIAS-Supported Project Work investment climate reforms in the Doing The second phase of the investment in FCS The investment climate reform project Business categories within the project cycle. climate initiative in Kosovo follows up on in Madagascar introduced substantive As part of the action plan prepared with the subnational component to ensure the During FY17, the Malawi investment climate knowledge base can be used in the long improvements in the local regulatory the project’s support, the government has IFC Advisory project, with FIAS funding, term. In FY17 the team held three meetings framework in FY17. The project supported enacted two regulations aimed at easing supported the government in implementing on better regulation with the Prime Minister the adoption of two reforms, relating to business startup and construction permit five Doing Business indicator reforms. The and Sida (the Swedish International starting a business and getting credit. The delivery. project helped operationalize the new Development Cooperation Agency), and team also assisted in the implementation insolvency and company laws and revise planned for activities to be supported at of two Doing Business recommendations. The first phase of the Kosovo investment the credit reference law. The team provided subnational levels. The project helped with One streamlined the process of obtaining climate project aims to improve the technical assistance to draft revised reform of inspections, collected data for construction permits. The other supported country’s climate for both domestic and regulations and laws, conducted stakeholder an FDI strategy, and made improvements Madagascar’s economic development board foreign investors, with reduced compliance validation meetings, supported public-private in a draft of a strategic investment law implement a proactive communications costs for businesses and increased FDI dialogue, and funded capacity building that better aligns it with international best campaign for both print and broadcast inflows. In FY17 the project mapped activities for lawyers, bankers, private practices. Also in FY17, Kosovo made starting media on reforms achieved. The Bank administrative procedures at central and sector players, and other stakeholders. a business easier by simplifying the process local levels, supported development and implementation of a new law on permits for registering employees. Based on the and licenses, assisted the government in initiative by the Ministry of Finance, as of the Considering the important role of regional actors in recovery, the preparing a strategy for better regulation, beginning of FY17, companies no longer had team compiled a new dataset that allows project teams to assess and helped the Kosovo Business Registration to separately register employees but could the fragility of the neighborhood in which the FCS is situated. Agency develop an online business do so through their regular monthly payroll registration system. The FIAS-supported and tax returns. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 26 FIAS 2017 Annual Review 27 03 In Myanmar, the Investment Policy modern, and notice-based. The new law and Promotion team worked with the gave priority to secured creditors outside government to enact a new investment insolvency procedures and allowed out-of- legal framework applicable to both domestic court enforcement. and foreign investors that opened a significant number of sectors to investment, The Afghanistan investment climate significantly streamlined investment entry program responds to the government’s procedures, and improved investment request for support in strengthening protection guarantees. The proposed of the business-enabling environment investment legal framework was subject to and addressing policy, institutional, and wide public consultation prior to passage. regulatory challenges faced by the private In its first year in effect, the new law sector. The program outlines several contributed to a doubling in the amount of engagements designed to address key FDI flowing into the country, from $4.1 billion impediments to economic growth. These in 2014 to $9.5 billion in 2016. are aimed at tackling key investment climate issues in Afghanistan; they build on The West Bank and Gaza strengthened the ongoing investment climate reforms access to credit by introducing a new achieved previously with the help of the secured transactions law and by setting FIAS-supported team in such areas as up a new collateral registry. The new business licensing reform and reform law implemented a functional secured measurement through Doing Business. The transactions system. It allowed for general program also aims to remove bottlenecks description of single categories of assets and obstacles to expansion and facilitation and of debts and obligations. The collateral of trade activities, particularly exports, of the registry is operational, unified geographically, private sector. searchable by a debtor’s unique identifier, Striving to Secure Hard-Won Gains in Burundi After 10 years of slow economic recovery, Burundi, still one of the world’s poorest countries, is at risk of losing hard-won economic gains due to political instability and the threat of renewed conflict. A long list of challenges includes friction among different societal groups (including the public and private sectors), low government capacity, deterioration in the business environment, high levels of corruption, and inadequate infrastructure. After 18 months of inactivity due to the unrest, the Bank Group’s Burundi investment climate team in FY17 restructured the investment climate program to adjust to new realities on the ground and better address the enormous challenges. The core focus of the project remains to move ahead with economy-wide business climate reforms and implement sector- level reforms that will unlock investment in coffee, agribusiness, and construction. These improvements will help bring about another of the project’s key goals: enhancing access to regional and international markets. In FY17 a study and workshop initiated by the FIAS-supported team found that a limited currency reserve made it difficult to export raw materials and that businesses—particularly small and medium enterprises—faced a liquidity problem as a result of the crisis. In August 2016 Burundi promulgated a new code on construction, urbanization, and a new law on the use of movable collateral. In early 2017 the team supported the Directorate-General for Urban Planning and Housing in drafting nine implementing regulations on construction permits. The regulations have been validated by stakeholders and transmitted to government for approval. The government also adopted a proposal developed by the team for improved building permit procedures. The team also conducted two training sessions for key stakeholders on the new construction code. Finally, the team supported the government in organizing 20 public-private dialogue meetings involving four private sector working groups representing the fruit, fish, building materials, and construction sectors. The exercise enabled each working group to come up with a list of 10 key constraints to the development of private firms in these sub-sectors. Nursing students in training, Yogyakarta, Indonesia. Photo: Nugroho Nurdikiawan Sunjoyo/World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 28 FIAS 2017 Annual Review 29 Pillar 1 Improve the Business Environment The FIAS support for projects under Pillar 1 in the FY17–21 strategy cycle seeks to improve the As of FY17, the regional IBR umbrella projects in Sub-Saharan Africa, Latin America, the Middle East Completed Kenya Project Delivers legal and regulatory environment, reduce the cost of doing business, signal to domestic and and North Africa, and Europe and Central Asia have Strongly Positive Impact foreign investors a welcoming attitude toward business growth, and ease business uncertainty as supported governments in 50 countries in making much as is possible in sometimes volatile political and economic environments. it easier to do business. Thanks to the regional engagement platform, the team responded swiftly to Kenya high-level client requests allowing governments to use Regulatory reform can produce quick wins in reducing The IBR team has developed a new approach to support narrow windows of opportunity for reform. In addition, The Kenya Regulatory Reform 2 project, supported by business costs and saving time spent on licensing and policymakers in improving predictability and promoting 32 country-specific programs supported IBR regulatory FIAS, closed successfully at the end of FY17 , reporting permitting. It can also protect society and stimulate equal treatment of entrepreneurs in business regulation. business reform programs. The FIAS-supported team significant economic benefit. The project developed in business activity, not only through simplification but The approach seeks to discover the causes of regulatory continues to emphasize supporting fragile and conflict- response to Kenya’s declining ranking in Doing Business, through increasing transparency, consistency, and uncertainty and to pinpoint whether the problem lies in affected states, including Afghanistan, Côte d’Ivoire, an overreliance on paper transactions in fulfilling effectiveness of business regulation. FIAS-supported the need for better enforcement or for revised laws and the Democratic Republic of Congo, Haiti, Myanmar, regulatory requirements, and limited competition in key work under Pillar 1 thus focuses both on the design of regulations. In some cases, this approach determines and Togo. sectors that constrained business entry and participation. regulatory reform and on effective implementation. that laws and regulations are irrelevant, given the wide Over four years of the project, Kenya has moved up implementation gaps between the laws on the books and The IBR project for Sub-Saharan Africa continued to 56 places in the Bank Group’s Doing Business ranking their application. The approach helps policymakers improve provide technical assistance to governments in the of countries, from 136th out of 190 countries in Doing Clearing Regulatory Obstacles region with an appetite for the business environment the predictability of public-private interactions and ensure Business 2015 to 80th place in the just-released Doing to Private Sector Growth reform agenda. The project reached 31 governments a level playing field on the books as well as on the ground. Business 2018 report. The project set a goal of $55 Well-designed business regulations can create a level The original methodology was developed in a pilot project by providing short-, medium-, and long-term reform million in compliance cost savings (CCS), reflecting playing field among firms to promote competition and as part of a capacity-building program for government recommendations. These were conveyed through lower business costs due to streamlined regulations and innovation, address market failures and information entities in Morocco. It has since been further developed to reform memoranda or action plans or in-country visits permitting processes. An IFC CCS review determined asymmetries, and mitigate any adverse effects of become a major component of programs in other countries to explain the Doing Business report methodology that cost savings of $81.4 million have been achieved two business activity on individuals, organizations, or the such as Belarus, Brazil, and Togo. and best practice in the reform process. In addition to years ahead of schedule due to automation of business environment. Yet reform efforts often founder due supporting country reform efforts, the team also helped services, property transfer reform, and streamlining to unclear objectives, poor accountability, and weak As part of the team’s response to client governments client governments submit their reform descriptions to of electricity connections. (These reported savings are coordination. Client governments and the private sector seeking to improve implementation of regulatory and the Doing Business team. This work entailed organizing undergoing validation review.) Some 230 government increasingly raise concerns that, particularly in developing institutional reform aimed at job creation, an operational in-country visits and video conferences to clarify reform services have been automated on Kenya’s E-Citizen portal, countries, such rules lack traction on the ground. From note on Institutional Mechanisms for Business Environment efforts and show evidence of reform implementation. including business registration, land information, and the entrepreneur’s perspective, predictability and Reforms was developed. The note reviewed the experience This effort had a concrete and positive impact on clients drivers’ licenses. consistency in government to business interactions, and of countries that introduced broad reform programs seeking to improve their Doing Business ratings and the way regulations are interpreted and applied, matter to improve their business environment with an eye to ensured official recognition of scores of reforms across In addition to the compliance cost savings, the work substantially. The FIAS-supported Business Environment identifying and illustrating common success factors. The the region. The project contributed to information done under the project by the Competition Policy (BE) and Indicator-Based Reform (IBR) teams help focus was on the “how” to reform rather than on the “what.” exchange among the region’s top reformers through team contributed to an estimated $37 million in annual client governments take on these challenges by The approach focuses on identifying reform priorities and technical events such as the Doing Business Technical consumer savings. A competition policy initiative that developing laws, policies, and strategies that encourage coordinating their implementation. Several project teams Deep Dive as well as the Ease of Doing Business created a new market for Kenyan purple tea yielded higher risk-taking, stimulate business activity, spark private are already applying these experiences, for example, in Initiative conference. crop prices for farmers, increased tea exports, and five sector growth, create jobs, and spread the benefits Nigeria and Sri Lanka, among other countries. Key findings new business entrants that created more than 2,000 jobs. 50 countries across societies. have also been shared with Brazil, India, and in Sub- The project produced unanticipated benefits. A social Saharan Africa. impact analysis of investment climate reforms was In broad terms, IBR work emphasizes improving the conducted for this project on a pilot basis. It found that functioning of governments. Specifically, the teams help reforms produced positive impacts for building safety clients improve inter-government coordination. Many IBR and security. A sample survey of 30 architects found that projects help clients launch or improve the provision of automation of construction permitting processes had cut online services useful to entrepreneurs, businesses and paper usage almost in half. A separate analysis found other stakeholders not only for greater ease of doing As of FY17 , the regional IBR umbrella projects in that automation of a single construction permit saved the business and improved transparency but also as a tool Sub-Saharan Africa, Latin America, the Middle East equivalent of 2,997 trees in reduced paper usage for reducing corruption. IBR work also involves targeted and North Africa, and Europe and Central Asia have regulatory consultation with the private sector to address supported governments in 50 countries in making it bottlenecks, regulatory redundancies and other issues easier to do business. that government may have overlooked. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 30 FIAS 2017 Annual Review 31 Pillar 1 In the Latin America and Caribbean region (LAC), FIAS support has helped deliver the Regional LAC Indicator-Based Reform Substantial Progress in India on Doing Business Reform project. In FY17, the project helped Brazil, Dominica, and Nicaragua on issues relating to Doing Business reforms. In In 2014 the government of India embarked on an ambitious > Increase in the mandatory minimum length of paid Brazil, the project team organized a high-level workshop in Ease of Doing Business program as part of its “Make in India” maternity leave. Morocco campaign, which seeks to significantly increase manufacturing November 2016 to launch the Doing Business 2017 report Many of India’s central business regulations are administered and build momentum for implementing reforms related to In Morocco, public contracts account for 17 percent of investments in the country. The investment climate team has at the state level, imposing a significant additional regulatory investment climate indicators. Following the event, authorities GDP . However, late payments can have a stifling effect been working closely with India to promote business reforms burden on business throughout the business lifecycle. Industries in Brazil announced plans for extensive business regulation on firms, particularly for small and medium enterprises in India through streamlining regulations, policies, procedures, may be required to register under as many as 44 labor laws reform and requested a $500 million development policy loan (SMEs). With FIAS support, the IBR team completed an and practices, with the objective of drastically reducing the and 6 environmental laws and rules, depending on the nature (DPL) for improving the business environment. In addition, innovative project to address implementation gaps and burden on business of complying with regulation. Because of and size of the business. Each require separate applications with support of the team, Brazil has drafted a new insolvency payment delays related to public procurement contracts. India’s federal make-up, business regulation is implemented and registrations; some may also require a separate annual bill that will go before the Brazilian Congress. As is often The team worked with public and private actors to assess at multiple levels of jurisdiction—federal, state, and municipal. compliance inspection. Businesses in India have long demanded the case with reform work, advances take time to move to the payment process in four pilot cities: Kenitra, Ksar el Therefore, the Ease of Doing Business program consists of two that this “inspector raj” be demolished, and that states should implementation phase. In Panama, work done by the IBR LAC Kebir, Marrakech, and Rabat. The project team developed pillars: promote single-window systems that let businesses register team came to fruition in January 2017 as a new law relating to an evidence base detailing what was happening at > Reforms to improve India’s performance in the World under various laws quickly and seamlessly. resolving insolvency came into effect. A reform note delivered the point of service delivery. This led to the design of Bank Group's annual Doing Business report at the level in FY16 to the government of Guyana provided diagnostic actionable performance indicators and tracking of real In designing the Ease of Doing Business program, the of the central government, the Government of the findings and recommendations across a variety of Doing cases, which revealed regulatory loopholes. The team Government realized that simply improving on the Doing National Capital Territory of Delhi, and the Government of Business indicators, including Registering Property. Follow- then supported the client in designing and implementing Business indicators would not suffice, but that reforms Maharashtra. up work on this initiative continued into FY17 on property an evidence-based solution. These reforms were passed needed to be implemented across the country by states and registration issues with the focus on increasing transparency in July 2016, allowing Moroccan SMEs to benefit from > A wider set of reforms covering 50 state-level licenses, municipalities as well. This led to an extensive Reform Action and efficiency at the property registry. High-level discussions more predictable and timely payments. permits, procedures, inspections and policies, across all Plan, implementation of which would be tracked on a state- are under way to allocate more resources to improving states of India. by-state basis, with states being ranked based on speed and operations, supported by expertise from the Bank Group team. effectiveness of implementation. This competitive approach to On October 31, 2017 , the World reform stimulated active participation by the state governments. Bank Group launched the Firms face a complex and uncertain business environment As shown in the graphic below, implementation of reform Doing Business 2018 report, in many countries in Europe and Central Asia (ECA). There is progressed markedly from 2015 to 2016, moving beyond major which takes stock of business wide variation among country business environments—from metropolitan areas to span the vast heartland of India. regulation in 190 countries Latvia and Georgia, which ranked 14th and 16th, respectively, and reforms implemented in globally in Doing Business 2017, to Kosovo (81st), Uzbekistan (87th), and Tajikistan (128th), where the business environment is Authorities in Brazil the period during the previous fiscal year. This year’s report lagging in multiple areas. The FIAS-supported IBR-ECA project achieved several successes in FY17. In Albania, the project announced plans for has been widely covered in Indian media, with a focus on India’s improved rank, from 142 in Doing Business 2015 to 100 supported creation of an inter-ministerial working group on Doing Business and shaped the business environment reform agenda. In Kazakhstan, the project assisted in simplifying the extensive business in Doing Business 2018. India was recognized as one of the top 10 reformers over the past year and was the only South Asian and BRICS country included in the list. These achievements process for enforcing commercial disputes, improved corporate governance regulations relating to minority shareholders, and regulation reform and are the result of a sustained reform effort by India, supported by the Investment Climate team, over the past three years. In upgraded land dispute resolution mechanisms. In Kosovo, the project helped streamline business registration by simplifying requested a FY17 , India’s notable reforms include: > Introduction of a simplified form for company the process to register employees. $500 incorporation. m The Indicator Based Reform project in the MENA region > Launch of online systems that have streamlined responds to client demand for assistance in addressing issues FIAS and the Government of Japan have been working with India construction and occupancy permitting in Delhi and encompassed in international investment climate indicators. throughout this endeavor. This support has included: training on Mumbai. In FY17, the project supported the governments of Djibouti, Doing Business methodology and on understanding the results the Arab Republic of Egypt, Iraq, and Jordan in the design and implementation of reforms in areas measured by Doing development policy loan > Introduction of a new insolvency and bankruptcy code with a new reorganization procedure for corporate in the context of India; development of reform recommendations and action plans for each of the 10 indicators; technical Business. The reforms improve and streamline the regulatory environment for starting a business, getting construction (DPL) for improving the debtors, enabling these businesses to continue operations during insolvency proceedings. assistance on inter-agency coordination of reform; production of feedback surveys and stakeholder interviews to determine the permits, getting credits, resolving insolvency, enforcing response to reforms on the ground; sharing of best regulatory contracts, registering property, protecting minority investors, paying taxes, and trading across borders. Additionally, the team business environment. > Launch of an online mandatory payment mechanism for employers to pay contributions for the Employee Social practices; and expanding the scope of the effort from Delhi and Mumbai across the entire country. Insurance Corporation and the Employee Pension Fund produced three reports, organized two workshops, and funded Organization. preparatory activities relating to the investment climate reform assessment for Egypt. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 32 FIAS 2017 Annual Review 33 Pillar 1 Technical Expertise Bolsters IBR Work Streamlining Toward a Better Business Environment Country-specific support provided by the IBR team was A fair, predictable and efficient business environment (BE) bolstered by learning and technical assistance events. helps governments reach key development objectives such In March 2017, the team organized a Doing Business as opening markets, strengthening the competitiveness Technical Deep Dive in Dubai attended by more than 100 of firms, and increasing investment. The FIAS-supported Bosnia and Herzegovina technical experts, representatives of 17 Sub-Saharan Africa reform work conducted with clients of the Business In Bosnia and Herzegovina, BE project work was countries, as well as observer delegations from Jordan and Environment team focuses on areas such as business instrumental in streamlining licenses and permits related Pakistan. This first-of-its-kind event responded to strong entry, regulatory compliance (licensing and inspections), to business operations. The improvements followed a and increasing client demand to better understand the quality infrastructure, and construction regulation. To enable systematic review that led to proposed simplification and latest research and good practice embedded in the Bank reforms in these areas, the team uses a variety of tools elimination of regulations in six subnational governments. Group’s revised Doing Business indicators. The discussions including integrated government services, consultation The task involved review of 594 business licenses and covered the practical tools necessary to design, implement, and feedback mechanisms, information communications permits in these localities. The reforms reduced processing and monitor reforms and allowed delegations to brainstorm technology (ICT) solutions, process reengineering, and time, lowered costs and fees, eliminated or reduced with peers on reform measures and incorporate new ideas risk-based approaches. The business environment reform documentation requirements, and improved online access into their country action plans. Client response to the event offering has been developed over several years and is to these licenses and permits. Over 85 percent of business was overwhelmingly positive; they expressed appreciation supported by experts and practitioners working with client procedures were improved or eliminated; the average for the opportunity to directly engage with peer experts governments worldwide. Below are summarized some of reduction of costs compared to the baseline in these six and Bank Group specialists. Interest in the sessions was the FY17 results of this work localities was 27 .7 percent; waiting time was reduced strong across all subject areas covered. The discussions by 22.43 percent; and average taxes and fees in these led to important commitments for many of the delegations. six localities were reduced by 10.57 percent. As a major Lesotho, for example, announced the establishment of institutional change, the project established six electronic a Doing Business unit anchored in the prime minister’s registries of licenses and permits that reduced the risks office; the representative from Pakistan debriefed created by unclear legal requirements for businesses. All cabinet secretaries following the deep dive to gain their relevant information related to each single administrative endorsement of the country’s action plan. Armenia procedure—including relevant department, documentation The government of Armenia committed to inspections and information needed, stamp duties, fees, deadlines, and In May 2017, the Ministry of Commerce, Trade and reform to achieve better inspections outcomes and contacts—can now be found on these e-registries. Other Industry of Zambia and the Bank Group’s Africa team reduced burdens for businesses. The legal, regulatory improvements include availability of electronic submission jointly organized the eighth edition of the Ease of Doing and institutional reforms helped reduce the number of forms and deadlines for government officials to act. Business Initiative annual conference. This peer-to- inspection organizations, eliminate potential overlaps These reforms provide transparency and predictability for peer learning event shares knowledge on Doing Business and duplicating roles of inspectorates and other state businesses in Bosnia and Herzegovina. reforms through a client-led platform. Reforming countries agencies, clarify their roles in dealing with specific types showcase and replicate best practices in implementing of risks, as well as introduce a proper notification and reforms that will encourage private sector expansion information system for business to be fully aware of and attract increased investment flows to Sub-Saharan requirements and expectations from inspectors. As a Africa. The 2017 conference focused on reforms for result, inspectorates shifted to a risk-based inspection industrialization, value addition, and job creation. Twenty system. Checklists for all inspections were adopted by the countries participated, including members of the East government; new inspectorates were created; and the African Community (EAC), the Economic Community of number of inspections bodies reduced. Kyrgyzstan West African States (ECOWAS), the Economic Community of Central African Countries (CEMAC), the Common Market In Kyrgyzstan, the Business Environment team made for Eastern and Southern Africa (COMESA), and the Indian significant progress supporting the government in Ocean Commission. This level of participation made a clear inspections reforms, including adoption of standard statement that the Ease of Doing Business Initiative is a fully checklists for inspectors to use on site, improved continental platform. risk-based inspections to effectively target regulatory compliance control, and introduction of feedback mechanisms to receive inputs from the private sector on Over 100 technical experts were brought together the effectiveness of reform implementation. in Dubai to implement the Doing Business reform agenda in 17 countries in Sub-Saharan Africa. With a loan from a local bank, this new biscuit company got off the ground in Bosnia and Herzegovina. Photo: Almin Zrno/World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 34 FIAS 2017 Annual Review 35 Pillar 1 Regional Approaches Leverage FIAS Support State Agency for Investment and Export Promotion (SAIEP) The FIAS-supported investment climate program for the was assigned to serve as lead agency. The project has Central African Economic and Monetary Community established important regulatory frameworks, and the (CEMAC) is a new initiative in pre-implementation that team advised on necessary processes and procedures. seeks to improve the business environment in a region Implementation of the mechanism quickly delivered encompassing six states: Cameroon, the Central African results in which businesses’ problems were resolved Republic, Chad, the Republic of Congo, Equatorial through effective dialogue with state agencies and local Guinea, and Gabon. All but Equatorial Guinea and Gabon communities. The project continues to work with SAIEP are IDA borrowing countries; the Central African Republic to improve its capacity to implement the mechanism, and Chad are also in fragile and conflict-affected situations. introduce further amendments to the country’s investment These countries are home to 37 million people covering an law, and to expand the agency’s authority in resolving area roughly the size of India. The project seeks to reform investor grievances. laws and regulations that hinder private sector growth and the development of small and medium enterprises. The project is leveraging existing country-specific IFC Advisory projects in the investment climate sphere as well as World Bank IDA lending operations to drive business reforms. In Gabon, the project is supporting implementation of RCCM (Registre du Commerce et du Crédit Mobilier), the commercial registry software system developed for the Georgia Organization for the Harmonization of Business Law in FIAS support for tax-related work in Georgia continued Africa (OHADA). The team also developed a Doing Business into FY17. The team helped the government adopt and action plan in preparation for the Bank Group’s 2018 report. implement new transfer pricing rules that resulted in the collection of $775,000 in new revenue and helped Trade, taxation, and insolvency projects have migrated out the government comply with principles concerning of FIAS over the past few years, but due the structure of the exchange of tax information maintained by the some projects, FIAS continued to support some work in Organisation for Economic Cooperation and Development these areas into FY17. The Central Asia Trade Logistics (OECD); Georgia has now been recognized as compliant Project (CATLP), supporting trade facilitation work in with these transparency standards. Also in FY17 , new the Kyrgyz Republic and Tajikistan, provided advisory results data has come in on work done in previous years services relating to World Trade Organization agreements. in Georgia. Based on project recommendations, a new Specifically, the project supported the establishment of customs risk management policy adopted by Georgia the National Trade Facilitation Committee (NTFC), a public- in December 2015 based on recommendations by the private organization mandated by member states under the FIAS-supported team has improved the process of World Trade Organization’s Trade Facilitation Agreement development, amendment, and application of risk profiles. (WTO TFA). The effort included implementation of a time During 2016, at least 6,162 companies that submitted release study in Tajikistan to help customs and other more than three customs import declarations benefited agencies inspect and clear goods more efficiently. Kyrgyz from improved risk management procedures. The new and Tajik customs received assistance in developing risk risk management policy also enabled Georgia to increase management practices. The project also contributed to customs revenues. This reform was also recognized by the 6th Central Asia Trade Forum, with presentations on Doing Business 2017 . the World Bank's Doing Business report and Logistics Performance Index. Transition of this trade-related work to other trust funds was completed during FY17. The FIAS-supported Kyrgyz investment climate project helped roll out a new systematic investors response mechanism. The mechanism promotes effective problem- solving for investors and helps prevent grievances from escalating into domestic and international disputes. The Customes controls on the border check point in Armenia. Photo: Vigen Sargsya/World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 36 FIAS 2017 Annual Review 37 Pillar 2 Expand Market Opportunities $1.22b Pillar 2 in the FIAS strategy encompasses advisory work focused on sectors, including manufacturing, Enterprise Launchpad team that undertook research on SME diagnostic tools. Findings resulting from the research are tourism, and agribusiness, as well as investment policy and promotion work, and advisory services in informing firm-level capacity building interventions in the areas relating to competition policy. manufacturing portfolio in FY18. The Bangladesh Investment Climate Fund supported the Pillar 2 engages FIAS-supported teams and their clients in In Kenya, the team supported the design and drafting of the legal and regulatory framework for economic The Bangladesh Investment Climate Fund supported projects aimed at reducing or removing barriers to creating implementation of new projects focused on local content zones and the establishment of the Bangladesh Hi-Tech Park Authority in 2010. This allowed the country to move from an the drafting of the legal and regulatory framework for or entering markets. The work of FIAS in this area spans a supplier development in manufacturing and service export processing zones model to special economic zones. economic zones—up to August 2017, $1.22 billion of broad range of economic activity and strategic approaches. delivery areas linked to Kenya’s newly developing oil and In some cases, FIAS-supported teams are helping clients gas sector. In collaboration with the Energy & Extractives Subsequently, the Bank Group’s Private Sector Development private investment has been committed in economic diversify their economies in response to declines in Global Practice, the project aims to deliver firm-level Support Program was extended to help the government zone development. commodity prices. As prices have improved more recently, capacity building to support product development, increase operationalize the new law. Up to August 2017 , $1.22 billion teams are helping clients identify the most promising areas productivity, and open new business opportunities. of private investment has been committed in economic $153.2m for growth in their economies and working with them to get zone development. The project has opened greenfield the most out of those sectors. The investment policy work The project in Southeastern Europe builds on a scoping opportunities for potential investment in special economic helps economies not only generate investment but retain exercise undertaken in FY16 in partnership with IFC Cross- zone (SEZ) development, operations, utilities and industrial it. Competition policy work can involve advisory services Cutting Advisory Services (CAS) focused on automotive units of various sectors. The IFC investment team is in focused on specific market sectors—such as the work done sector linkages. The project is currently soliciting further discussion with international and national SEZ developers in Kenya to create a new market for purple tea—or it can donor support, and has started analytics in Serbia. A such as Sumitomo, Itoucho and Sembcorp. involve economy-wide reforms that create level business reimbursable advisory services (RAS) project in Croatia is playing fields for a broad range of market participants. under way focused on the automotive and rail sectors. In knowledge management, a manufacturing toolkit was uploaded, building off a draft developed in FY16. The FIAS-supported teams help bring about specific In Bangladesh, the FIAS-supported team contributed textile and apparel community-of-practice Spark page was investments by firms in client countries. For FY17, Manufacturing Project Gains Momentum in FY17 to the design and implementation of a manufacturing maintained, with coverage expanded to include the IFC’s confirmed investment generated impact reached The Manufacturing Product Development Project (PDP) diversification IFC Advisory project, supporting the process Better Work projects and related resources. A case study $153.2 million. launched a new Bank Group approach to advisory and of sector prioritization through public-private dialogue. was published online on the rise of the Turkish appliance implementation services to help clients enhance their most Ongoing support will continue over the next four years of manufacturer Arcelik. promising manufacturing sectors. The approaches codified implementation. and tested over FY16 received high levels of buy-in with The Creative Industry Product Development Project (PDP) IPP Work Continues Momentum in Investment a wide range of Global Practice and IFC Manufacturing, In Egypt, the project supported the Energy & Extractives aims to boost the competitiveness of client country creative Generation Agribusiness, & Services (MAS) staff through several Global Practice in guiding the government on options industries in the fashion and home accessories market, regional events. FY17 focused on deploying the approach for supporting the growth of a local solar photovoltaic media and entertainment, and the fashion industry. During FIAS-supported work in Investment Policy and Promotion through country engagements, as well as further refining the manufacturing sector. FY17 , the team has worked on knowledge pieces and (IPP) is recording gains using a new, more conservative thinking behind the initiative. This included: activities as well as on operational pilots. methodology for measuring investment generated through The Manufacturing PDP team worked with the Investment the direct liaison work of FIAS-supported teams linking client > Supporting the design and launch of advisory projects Climate team on scoping and design of a project to assist On the knowledge front, the team drafted a best practice governments with private firms. The methodology employs in Bangladesh, Côte d’Ivoire, and Vietnam, and one the government of Vietnam in addressing the challenge report on fashion and home accessory exporters. The a conservative contribution rule that varies based on an regional project in Southeastern Europe. of low levels of manufacturing linkages. The IFC Advisory team is preparing a report on the competitiveness of assessment of the level of contribution the project made to project was successfully funded and implementation the music industry in Senegal, and intellectual property generating the resulting investment. The formula is designed > Peer review of lending operations in Bangladesh and rights in the creative industries. On the operational front, to more accurately capture the results of the FIAS-supported launched in FY17 . The team also worked with local India, both of which received Board approval. creative industry pilots are under way in the Middle East team in helping to bring about specific investments by counterparts on writing linkage case studies. These are being > Providing additional support in Kenya on special finalized and published in FY18. North Africa region and in Sub-Saharan Africa. The team firms in client countries. For FY17, confirmed investment economic zones linkages, oil and gas supply is leading an artisan component in a competitiveness and generated impact reached $153.2 million: development, and textile-apparel investment A new sector prioritization and manufacturing strategy economic diversification project in Lesotho. In Mali, the promotion; in Croatia on an automotive and project was launched in Côte d'Ivoire, led by the team has worked on an assessment of the artisan sector > Haiti investment policy project, $137.6 million and rail sector strategy; and in Egypt on local solar Manufacturing PDP team, with implementation slated to run in the Timbuktu Integrated Territorial Development Technical 10,790 additional jobs (70 percent contribution rate). photovoltaic manufacturing. over four years. Input for a similar project was provided to Assistance. In Latin America, the team is discussing > Mali investment climate project, $3.9 million (40 the team in Tanzania, with implementation launch in FY18. initiatives on creative cities with the government of percent contribution rate). > Undertaking research in Vietnam on firm-level Argentina. A multilateral development bank working group linkages and globally on SME diagnostic tools. Also in FY17, the Manufacturing PDP’s task-team leader > Bosnia and Herzegovina, Local Investment Friendly on creative industry has been organized in cooperation peer reviewed two concept notes for new manufacturing- with the Inter-American Development Bank, the Asian Environment (LIFE) project, $2.2 million. related lending projects in Bangladesh and India. The team Development Bank, the African Development Bank, and the > Nepal, post-earthquake advisory in the tourism leader was a member of a winning Small and Medium Caribbean Development Bank. sector, $9.5 million. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 38 FIAS 2017 Annual Review 39 Pillar 2 Haiti The now-closed Haiti Investment Generation program, supported by FIAS, reported in FY17 an additional $137 .6 million in investment generated and 10,790 jobs created. This investment total was calculated under the new formula developed by Nepal the IPP team for reporting investment generated. The Haiti project, which ran from 2009 to 2013, implemented an innovative The Competitive Sectors global team and the Nepal country team coordinated for post-crisis advisory work following the approach that focused on special economic zones (SEZs) and investment promotion. The team engaged with government, the country’s devastating earthquake in 2015. The natural disaster compelled a restructuring of a tourism advisory project to private sector, and international investors to attract and consolidate new investment in the garment sector. The program also meet the post-quake demands. Based on project support to the government of Nepal to improve tourism planning, support provided technical assistance for the development of a national SEZ strategy, leading to the creation of Haiti’s first SEZ—the critical reforms, and facilitate new investments the project generated 225 investment leads that have already contributed Lafito Integrated Economic Zone. As a result of Haiti’s regulatory reform work brought about with the help of the project, a new to generating three investments totaling $81 million. The largest, a $70 million investment in the Kathmandu Sheraton, was regulatory framework for SEZs was adopted in 2012, increasing the number of approved free zones from one in 2012 to 10 in reported previously. For FY17 , $9.5 million in additional investments have resulted from support to a regional investor in 2017 . Over the course of the project, the Haiti initiative contributed to creating more than 15,800 jobs, some 70 percent of which Western Nepal at the Manosarovar Resort, with an investment of $8 million, and an IFC investment in Everest Lodges of went to women, and generated $202.8 million in investments through 17 different projects. $1.5 million. $137.6 m 10,790 jobs Mali Bosnia and Herzegovina In Mali, the IPP team collaborated with the African In Bosnia and Herzegovina, the FIAS-supported LIFE The Haiti Investment Generation program ...leading to 10,790 jobs created in FY17 and... Development Bank on the third phase of an ongoing project involved working with cities, municipalities, reported in FY17 an additional $137.6 million investment climate project to carry through initiatives and other local authorities to help develop and in investment generated... to strengthen the Mali Investment Promotion Agency. improve investor servicing, aftercare, and outreach. In FY17 these included establishment of a one-stop The project also assisted in investment generation, shop, completing a formal assessment of the agency helping to attract new investment and reinvestment 15,800 jobs 70% jobs and developing a business plan, conducting training and in the localities. For FY17, investment generated as capacity building in investment promotion skills, support a result of the project reached $2.2 million. As with for an investor forum, and coaching and support for much of the Bank Group’s advisory work, the project investor facilitation. A consultant engaged through the in Bosnia and Herzegovina revolves around regulatory project reports that the investment promotion agency has streamlining and simplification to ease the process been instrumental in realizing 14 investment projects in of forming and licensing businesses and business ...15,800 total new jobs over the course of the ...70 percent went to women, and... the agribusiness sector. The value of these investments, expansion. Improving the transparency of regulatory as calculated under the Bank Group’s monitoring and service delivery is a second key component. Both project, of which... evaluation method, comes to $3.9 million for FY17 . These of these steps then serve as prerequisites for the have created 223 jobs, half of which went to women. effort to attract and retain investment. The FIAS- Investors report that the agency, known as API Mali supported IPP team engages with clients to better (for Agence pour la Promotion des Investissements au engage with investors, facilitate new investment, and Mali) provided guidance on business plan development, resolve investor grievances. The team works with $202.8 m registration, investment licensing, and obtaining necessary localities to prepare investor briefs and profiles that exceptions. The quality of the agency’s assistance was highlight the business-friendly environment. And the rated at an average of 4.2 out of 5 by the investors project employs before and after analysis to establish surveyed; 13 out of the 14 companies said that API Mali an investment baseline and track how much new provided valuable assistance during their establishment investment has been generated and retained, and how process; 5 companies said that API Mali was the most many jobs created as a result of this work. helpful agency they dealt with during the business ...a total of $202.8 million in new investments establishment process. were generated through 17 different projects in 10 SEZs. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 40 FIAS 2017 Annual Review 41 Pillar 2 The World Bank Group has been working closely with the Group of 20 of the world’s leading economies, or G20, New Textile Industrial Park Draws PVH, Other Major Investors, to Ethiopia on a range of development priorities. Germany held the presidency of the G20 in 2017 and directed much energy On July 13, 2016, Ethiopian Prime Minister Hailemariam initiative seeks to “usher in a New Frontier—an experimental toward supporting developing countries, particularly in Desalegn officially inaugurated the Hawassa Industrial Park program that will ensure a shift to a productive manufacturing Africa. This led to the Partnership with Africa initiative, Ethiopia (HIP), Africa’s largest specialized textile and apparel park sector through similar initiatives, while protecting the which included as one its key elements the Compact with in Africa. Among the attending dignitaries, investors, and environment. ” In recognition of the IFC-World Bank effort in Africa (CwA) focused on promoting private investment In Ethiopia the Bank Group is providing technical assistance citizens were executives of PVH, one of the world’s largest Ethiopia, Prime Minister Desalegn awarded a certificate of on the continent. The FIAS-supported Investment Climate, on Doing Business reforms, including trade logistics, apparel companies—and the anchor investor in HIP . The Prime appreciation to the project team. A working paper, meanwhile, Investment Policy and Promotion, Competitive Sectors, and implementation of an electronic single window, automation Minister highlighted the historic significance of the project in provided a case study of PVH’s commitment to the industrial Competition Policy teams have been engaged in supporting of business registration and licensing, and extensive work opening a new chapter in Ethiopia’s industrialization efforts. park. this initiative. Most of the countries in the first wave of in investment policy and promotion. The IPP team worked Compact countries— Benin, Côte d’Ivoire, Egypt, Ethiopia, closely with Ethiopia in developing, passing, and implementing “The Hawassa Industrial Park, ” the Prime Minister said, “is The IPP project in Ethiopia is helping the government pursue Ghana, Guinea, Morocco, Rwanda, Senegal, and Tunisia— significant reforms relating to investment entry and promotion. significant both because of the promise it holds in and of its strategic objective of transforming to a manufacture-based have, or have had, FIAS-supported projects. While not a FIAS project, the effort benefits from the work of itself and the precedent it sets—as a pilot eco-friendly, green economy by 2025. The effort involves reducing or removing FIAS-supported teams. industrial park—for a series of planned future industrial parks barriers to foreign investment in various sectors and to The Bank Group, International Monetary Fund, and the across the country.” bolstering the ability of the country’s investment promotion African Development Bank jointly produced the Compact Ethiopia seeks to transition from a subsistence-level agriculture- agency to help attract, retain and expand investment. Until recently, FDI had largely avoided Ethiopia. Per capita with Africa Report submitted to the G20 Finance Ministers based economy to a manufacturing-led economy to achieve Ethiopia’s legal and regulatory frameworks for investment FDI for Ethiopia stood at $4.2 on average from 2000 through and Central Bank Governors in March 2017 . The report middle-income status by 2025. A key component of the initiative were among the most restrictive in the region. Investment- 2010. This as compared with $66 per capita for developing provided a set of principles and tools to inform policy entails attracting FDI to certain targeted business sectors related procedures lacked predictability, transparency, and countries and $40 for Africa. Over the past 30 years, Ethiopia’s assessments to be conducted by African governments and supporting the development of industrial parks (see box efficiency. Lead public agencies operated with little inter- manufacturing sector has generated only 250,000 jobs, a supported by partner countries and international below). The Bank Group’s IPP project is working in tandem with agency coordination or strategic vision. Investment promotion disappointing result in a country of 103 million people. organizations. FIAS-supported teams with expertise in a Bank Group competitiveness and job-creation initiative. The initiatives to attract new FDI were largely lacking, as was analysis of investment policy, generation of FDI, business Ethiopian Investment Commission has restructured in pursuit of By comparison, HIP alone is expected to generate close post-investment support to retain investment. environment policies, and access to finance contributed to its mandate to encourage and expand investment and become to 60,000 jobs and $1 billion in export revenue once park Over the last five years, this has begun to change. FDI has the report. “a world-class one-stop investment gateway. ” The project operations reach full potential. PVH is bringing in 15 of its begun to flow into the country in response to the investment has provided capacity building and developed a draft investor suppliers, part of a strategy focused on apparel, agribusiness, policy reform effort and moves to strengthen the investment A tool developed by the Bank Group team and described in aftercare and retention strategy. The approach recognizes the and engineering among several sectors targeted for institutional structure. the report is making an important contribution to attraction importance of reinvestment by existing investors and investment investment growth. As Prime Minister Desalegn said, the HIP and retention of FDI. The Systematic Investor Response expansion involving new players. Ethiopia’s sector strategy Mechanism (SIRM) is a business-to-government feedback focuses on textile and garments, leather, agriculture and channel that helps governments identify and address critical agribusiness, chemicals and pharmaceuticals, and engineering. FDI inflows per capita, average FDI inflows to Ethiopia 2000–2016 (in billions) constraints on investors. Increasingly common investor-state The regional team estimates that this approach has generated 3.5 disputes drag on for years, often ending in costly damage $20 million in new investment. awards. These disputes have the potential to seriously Developing countries 65.8 3 damage a country’s long-term relations with investors. 2.5 SIRM was designed to address this problem. SIRM enables Sub Saharan Africa 40.5 2 governments to identify, track, and manage grievances between investors and public agencies before they escalate East Africa 11.9 1.5 into legal battles. SIRM helps countries collect data and 1 identify patterns in government-generated grievances Ethiopia 4.2 0.5 affecting investments. It also quantifies investment retained or increased because grievances were addressed, as well as 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 investment lost because grievances escalated. SIRM enables Source: UNCTAD a lead government agency to alert high-level government officials to emerging problems affecting investments so the issues can be addressed before they escalate further. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 42 FIAS 2017 Annual Review 43 Pillar 2 Egypt Georgia Armenia Egypt approved an investment policy reform initiative The IPP team is anticipating continued robust results as The Armenia investment climate reform project provides in FY17. The IPP team worked with the Ministry of its investment generation efforts go forward. In Georgia, advice to the government on improving the country’s Investment and International Cooperation under the Bank for example, the IPP project team worked closely with investment climate through investment policy changes Group’s Egypt Competitiveness Program to improve the Georgian National Investment Agency on a targeted and improving business inspections. In FY17 the project the draft version of the investment law, particularly in investor aftercare program to increase retention and helped finalize a new law on FDI designed to provide areas concerning investor rights, incentives, protection, expansion of existing investors. The team met with about investor protection guarantees in line with international guarantees, and transparent land allocation. The work was 10 investors to discuss their problems. These interactions best practice. The draft law has been approved by the completed on a tight time frame and was well received are expected to generate about $18 million in investments government and is ready to be sent to parliament for by the client. The investment law was ratified in May 2017 and reinvestments in addition to the $7 million in adoption. The project also helped develop an inventory of and included most of the recommendations put forward investment generated claimed in the previous reporting incentives for foreign investors which was posted on the by the team. The IFC–T&C team also worked with Egypt’s period. website of Armenia’s Ministry of Economic Development Doing Business Committee, housed within the ministry, to and Investments, providing concise information on the support a reform program designed to improve Egypt’s DB types of incentives available, the awarding process, and ranking for FY19. IFC’s Middle East North Africa (MENA) the terms. The team also carried out two reviews focused region recognized the T&C team for its work. on the agriculture sector. $18million Guinea Albania Guinea is seeking to develop and expand local supply In Albania, a FIAS-supported investment climate chains, increase the competitiveness of domestic and agribusiness competitiveness intervention aims firms, and adapt educational and vocational training to to support government reform priorities by reducing current market demands. In April 2017 , the Ministry of regulatory bottlenecks, facilitating investments, and Mines adopted a local content policy in support of these increasing market access. A $70 million development aims. The first step involved setting up a Department In Georgia, the project and investor teams generated policy lending (DPL) intervention is supporting Albania’s of Community Relations and Development of Local about $18 million in investments and reinvestments. efforts to enhance competitiveness by improving the Content within the ministry. The department focuses on investment regime. During FY17 the team assisted the agreements and conventions relating to local content and government in adopting an investment policy statement promoting local employment and the hiring of domestic and reviewed the country’s strategic investment law, $70million companies. Data collected on existing levels of local providing recommendations for improvement. This led content among mining operators and subcontractors to a government initiative to develop a new investment in Guinea led to a report providing survey results and law and harmonize all investment related regulation. interviews with officials of 12 mining operators and 138 The team also supported the Albanian Investment local subcontractors. The ministry is using the report Development Agency in taking steps designed to in support of developing effective implementation encourage investment and bring new investors to regulations. Another step involves creation of a National Albania. The Agency established links with municipalities Suppliers Database, with a first pilot in the mining sector In Albania, a $70 million development policy lending and involved them in investor servicing and aftercare. benefiting from Bank Group support. A call for proposals (DPL) intervention is supporting efforts to enhance The effort has already generated several investments as has been published and the team is reviewing submitted competitiveness by improving the investment regime. a direct result of Bank Group intervention. proposals. Construction of a new drinking water pipeline in the gorge over Hrazdan River in Yerevan, Armenia. Photo: Armine Grigoryan/World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 44 FIAS 2017 Annual Review 45 Pillar 2 Expanding Competition Policy Portfolio Delivers Impact Applied as a pilot project in Mexico, MCPAT has helped identify Report and Investor Survey Delves into Factors in Attracting FDI more than 50 priority reforms. In Tabasco, the team has agreed The Markets and Competition Policy Assessment Tool with the governor and sector-specific authorities to a roadmap to The Global Investment Competitiveness Report 2017/2018, locations as a new base for their exports. When investment is (MCPAT), developed by the Competition Policy team with open the road freight sector by eliminating restrictions on private launched in October 2017 in Vienna, stemmed from extensive motivated by a desire to access a domestic market or extract FIAS funds, was applied to assess competition in Haiti, the transport permits. Part of the initiative involves sensitizing work done by the Investment Policy and Promotion (IPP) natural resources, incentives are generally ineffective. Philippines, Mauritania, Senegal, and Ukraine. MCPAT market players to antitrust rules and cartel offenses. In 2016 the team during FY17 . The report and investor survey published builds on lessons learned from pilot reforms and knowledge Of far greater importance, the report found, is the level of State of Mexico replaced an administrative procedure seen by by the Bank Group concluded that, on balance, foreign direct projects supported by FIAS. It provides a framework to identify legal protections against political and regulatory risks, such as the private sector as particularly discretionary and burdensome, investment (FDI) benefits developing countries, bringing in obstacles to competition and market performance, considering expropriation of property, currency transfer and convertibility with a simplified procedure that limits officials’ discretion and technical know-how, enhancing work force skills, increasing market dynamics, and to design and prioritize actionable policy restrictions, and lack of transparency in dealing with public eases a binding constraint on the retail and housing sectors. productivity, generating business for local firms, and creating recommendations. In Africa, the FIAS-supported team followed agencies. Reducing these risks at the country level is a The FIAS-supported team is assisting in the design of bylaws better-paying jobs. The report examined when and under what up on a comprehensive report on competition policy reform foundation without which reducing project-level risks will that ensure transparent, consistent, and non-discretionary circumstances these benefits of FDI are most likely to occur. and remaining challenges across the continent with a series of not lead to increased investment and growth in developing implementation of the new procedure. The implementation capacity-building workshops to advise public officials and other Co-authored by the IFC and T&C, the report examined countries. of the MCPAT at the subnational level and follow-on technical stakeholders on how to break down barriers to competition. developing countries as both sources and recipients of advisory to the municipality of Oaxaca de Juarez on pro- Both the report and survey found that while investors in The team has further standardized and replicated sector- FDI. Results of the investor survey showed that political competition regulation in retail has resulted in tangible effects. developing countries weigh similar factors in their decision- specific MCPAT applications in agribusiness, transport, and stability and security along with a stable legal and regulatory Firms can now expand operations and compete by offering new making, investors from developing countries are more willing telecommunications in Mauritania and Senegal, in Sub-Saharan environment are the leading country characteristics considered services. to target smaller and often higher-risk regional economies as Africa, Haiti, and Peru, in Latin America and Caribbean, Pakistan by executives in multinational corporations before they commit in South Asia, and the Philippines and Vietnam in East Asia and part of a stepping-stone strategy. This is a key consideration, In an example of the impact of this work on the ground, a capital to a new venture. These considerations far outweigh the Pacific. This work has involved the development of tools to particularly for countries coping with conflict and fragility convenience store chain with nationwide presence announced such issues as low tax rates and labor costs. identify pro-competition reforms at the subnational level. These looking to attract more and more diversified investment. its plans to open 24 new outlets in Oaxaca. The innovative Investment incentives may help attract FDI but are generally assessments inform Bank Group dialogue with client countries business model of this chain—the ”super pharmacies” that effective only when investors are wavering between similar and have enhanced the direct advice provided to government combine services of a regular pharmacy with a convenience- authorities, including competition authorities and better store—depends on the ability to stay open 24 hours a day and regulation bodies. was only viable after the reform in late 2015. In 2016, between 50 37 9 2 40 46 12 2 42 38 14 4 34 44 16 5 28 45 22 5 25 46 24 5 19 39 31 9 18 35 35 11 14 31 32 22 16 28 31 24 Unloading at the docks in Mexico. Photo: Guiseppe Franchini/World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 46 FIAS 2017 Annual Review 47 Pillar 2 January and August, 26 companies extended their shop MCPAT marks the first application of a methodology that opening hours in comparison with only one case in 2015. The combines competition and regulatory reform tools to identify Creating New Markets in Kenya: The Purple Tea Story national government fully embraced the initiative to reform reforms based on their impact on markets. This methodology regulations that restrict competition and is now applying also helps address anticompetitive behavior such as cartels The rich soils in the Great Rift Valley region of Kenya producers a few years ago, the industry now boasts five MCPAT nationally in all 32 states. that increase the prices for consumers. The project team won have nourished thousands of acres of traditional black tea producers that directly employ over 2,000 workers. These an EFI VPU Award for the initiative. plantations for over 100 years. These plantations sustain producers include small and medium sized enterprises (SMEs). At Mexico’s Better Regulation Authority, the competition millions of Kenyan farmers and their families, and generate Purple tea now appears on supermarket shelves and café policy team has concluded training of some 40 additional In Kenya, the competition authority (CAK) has launched Kenya’s second highest foreign income earnings. The FIAS- tables from Kenya to China, Japan, the United States, and staffers in the application of the subnational MCPAT as the a framework, developed with FIAS support, to evaluate supported Competition Policy team has been working to help Europe. government brings a sector-oriented competition policy the impact of government laws and regulations on Kenya create a market for a new product: purple tea. In Kenya and in client countries throughout the developing reform agenda nationwide. These trained officials have competition that has triggered requests for CAK’s advisory This new specialty variety is thought to have even greater world, the Competition Policy team is helping governments already applied the tool to four priority states with minimal opinions. CAK approved an outreach strategy to prevent health benefits than green tea. But initial resistance among understand the economic benefits that can flow from Bank Group supervision, demonstrating the high degree of anticompetitive practices and government interventions that producers prevented purple tea production factories from expanding markets, fair competition, and level playing fields for sustainability achieved. Moreover, the subnational application restrict competition. The strategy is based on an innovative opening. The Bank Group helped the Competition Authority of businesses. of the MCPAT is now being adapted and applied to the stakeholder survey of perceptions and knowledge about Kenya make the case that purple tea could boost income for Colombian and Peruvian context under a country-specific competition policy designed by the competition policy team. “We appreciate the support we have received from the World farmers by fetching higher prices than other tea varietals. project funded under the Multi-Country Investment Climate Similarly, in Zambia, a competition survey was designed and Bank,” said Francis Kariuki, Director General of the Competition Program (MCICP) funded by the Swiss State Secretariat for conducted to support the Competition Authority in developing “We have benefitted from purple tea a lot, because we sell Authority of Kenya (CAK), “and we expect that this support will Economic Affairs (SECO). Officials in Kenya, the Russian a communication strategy, an anti-cartel strategy, and purple tea at $1 per kilogram, compared to $0.14 for regular continue as we endeavor to dismantle regulatory obstacles Federation, and Ukraine have also benefited from learning structuring feedback loops for competition. The team is also ” said tea farmer Anthony Mwangi. From no purple tea tea, which are hindering economic growth. ” about the Mexican experience to promote competition at the supporting the Common Market for Eastern and Southern subnational level. Africa (COMESA) in designing an anti-cartel strategy to prevent cross-border cartels in the region. Only the best tea leaves are harvested for the export market. The Kitabi Tea Processing Facility in Kitabi, Rwanda, has a capacity of 48,000 tons of green leaf per day. The facility employs 200 people during its peak season. Photo: A'Melody Lee/World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 48 FIAS 2017 Annual Review 49 Pillar 2 The Competitive Neutrality Framework, developed and With FIAS support, the team published a high-level joint report As part of a T&C wide Learning Event with more than 500 farmers in developing countries, and supporting country piloted by the Competition Policy team, was first applied to with the OECD on Competition Policy, Shared Prosperity Bank Group staff, the team trained colleagues—especially efforts to maximize economic gain from what their farmers the State-Owned Enterprise (SOE) Reforms and Competitive and Inclusive Growth in June 2017 . The document has in the regions—on competition policy tools developed with produce. In Senegal and Ghana, a warehouse receipts Neutrality project in China. It has supported similar already been downloaded more than 2,600 times on the Bank FIAS support, especially the MCPAT, in deep-dive sessions, program has enabled smallholder farmers and traders to engagements in the Philippines and Ukraine throughout Group website and was mentioned in more than 20 tweets master classes, and several lightning talks. collateralize agricultural product to access finance where FY17 . In practice, this line of work involves ensuring all (without retweets), including by the Ministry of Finance in none was available before. Advisory services in Ukraine enterprises, public or private, domestic or foreign, face the Ukraine. The agriculture sector in Ukraine has been hampered by have enabled that country to access markets in the European same set of rules. When competitive neutrality principles cumbersome regulations that raise costs and slow down Union; a similar project is under development in Georgia. hold, government’s contact with ownership or involvement in The FIAS-supported Competition Policy team continues productivity growth, leading to inefficient over-regulation In Tajikistan, the team supported the regional team in its the marketplace—in fact or in law—does not confer an undue refining its assessment framework and systematizing and high logistics costs and port tariffs. The FIAS-supported assessment of the agribusiness sector and helped identify competitive advantage on any actual or potential market information on government constraints to competition, market advisory project in Ukraine helped enact legislation that opportunities to raise the productivity and returns of participant. Typically, competitive neutrality interventions dynamics, and anticompetitive practices. Data collection in simplifies the conditions for agribusinesses to develop and traditional agribusiness activities, as well as new segments tackle distortive measures in the markets through rules line with the anti-cartel enforcement assessment framework increase exports and unleash investments. Abrogation of with good market potential and strong employment- and tools restoring competitive neutrality. Alternatively, the has been completed in 10 countries in the Latin America and compulsory registration of all export contracts for agriculture generation linkages. interventions can address anti-competitive distortions by Caribbean region, an initiative which was officially endorsed commodities saved agribusiness $11 million in compliance enforcement of competition law. Competitive neutrality by the Regional Center for Competition Authorities of Latin costs. State regulated port tariffs were set to decrease In Odisha State in India, more than 83 percent of the solutions complement not only competition law enforcement America at its General Assembly in Nicaragua in April 2017 . The by 20 percent beginning in January 2018, increasing the population resides in rural areas and 62 percent of the but also investment, trade and innovation policies that provide team finalized the data collection on market and competition competitiveness of ports. In June 2017 , IFC provided $100 working population is engaged in agricultural activities. a level playing field for SOE and private sector entities. issues in transport and logistics in three selected Asia-Pacific million to Nibulon, Ukraine’s largest grain trader, to help However, most farmers derive minimal gains due to the many Economic Cooperation (APEC) economies. This sector-specific strengthen agri-related infrastructure, reduce crop losses, and actors along the supply chain and limited market access. IFC investment strategies and new IFC engagements in MCPAT application is already being used in Jordan and will boost global food security. Through the Odisha Inclusive Growth Partnership project, the SOE space are benefiting from inputs provided by inform a study in Kenya. The team has amplified the set the FIAS-supported team has played a critical role in helping the Competition Policy team on the detrimental impact of countries (in the Europe and Central Asia, East Asia and small and marginal farmers gain greater access to markets, by Agribusiness Initiatives Combine Global Expertise SOEs have on competition and competitive neutrality. IFC Pacific, and South Asia regions) covered in the database facilitating private investments and streamlining regulations. with Hands-On Interventions incorporated the Competitive Neutrality framework into its with information based on the Bank Group Competition The close link between farmers and final buyers facilitates approach to engaging with SOEs operating outside of their Policy Checklist to identify gaps in the competition policy FIAS-supported work in the agribusiness sector has made information flow on buyers' needs and quality standards. This home markets. Market and competition diagnostics are frameworks. The team has systematized methodologies to significant contributions to the IFC’s Creating Markets encourages farmers to improve quality control to realize better informing IFC investments in Latin America and have yielded assess the effects of weak competition and the impact of strategy. The work of the global team, in concert with prices. The expanded high quality production is expected to initial success in Argentina. Initiation of the diagnostics competition reforms. These techniques have been applied to country teams, helps producers and traders access financing boost national and international exports while attracting more followed several presentations to colleagues from IFC’s assess the effect of a FIAS-supported reform in Honduras on to expand operations, opening new export markets to investments. Latin America and Caribbean (LAC) team on competition opening markets for fertilizers: Prices for different agribusiness policy work program results relevant to IFC investments. As inputs dropped by between 4 and 8 percent on average, and a result, competition policy has been added as a new topic by up to 23 percent in some of the most commonly used in the IFC-IBRD memorandum of understanding in LAC. The inputs. These quantitative methodologies have also been used team has expanded the partnership with the Organisation in Bank Group flagship reports for Argentina and China and for Economic Cooperation and Development (OECD) to inform systematic country diagnostics. to produce a work agenda for updating the product market regulation (PMR) indicators to account for the particular needs > Overall, the FIAS-supported Competition Policy team and concerns of Bank Group client countries identified while held 10 workshops for external client governments producing and using the OECD-Bank Group PMR database. and other relevant stakeholders in the competition Specifically, it has delivered inputs for the 2018 update of the eco-system in Kenya, Mexico, the Philippines, OECD PMR questionnaire to capture additional critical issues Senegal, Ukraine, and Zambia, with a total of 400 identified by the Bank Group in collecting PMR in more than participants and highly satisfactory feedback. 20 developing economies related, for example, to competitive neutrality, subnational restrictions, and competition advocacy. > The team developed an analytical framework and gathered cross-country data on the interplay The 2016 edition of the Advocacy Contest, held in between antitrust merger review and foreign collaboration with the International Competition Network investment review, and presented first results at the (ICN), was launched and awarded in FY17 . The team co-hosted International Bar Association Annual Conference the Pre-ICN conference and held an awards ceremony in May 2016, held in Washington, D.C., September 18–23, 2017 at the conference in Porto, Portugal. The team produced 2016, sparking substantial interest in the competition a video on a winning story to communicate the success in community with specific interest from developing an effective way: eliminating rules that protected incumbents countries. allowed the purple tea market to develop in Kenya. Wheat harvest in central India—part of the Development 360 project. Photo: Scott Wallace/World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 50 FIAS 2017 Annual Review 51 Pillar 2 Country-level projects are enhanced by the expertise and A FIAS-supported project in Indonesia helped design tools developed by the global agribusiness team. Knowledge support for tourism-related SMEs to increase their online A Challenging Agribusiness Project in Guinea-Bissau products developed by the team include a diagnostic toolkit presence by leveraging World Bank global-level partnerships In July 2017, IFC announced a $3.5 million investment in stakeholders and improve the business environment. The focus on promoting the growth of small and medium enterprises with online platforms such as TripAdvisor.com and Booking. Guinea-Bissau, one of Africa’s poorest and most politically is on commercial, property and collateral registration. Overall, in agribusiness; a policy guidance note on linking large firms com. In Peru, FIAS support help broaden the Cusco unstable countries. The investment supports the expansion the work in Guinea-Bissau aims to enable greater value addition with agriculture-processing SMEs; and a guide to warehouse tourism project to four other regions while at the same of Frutas e Legumes, a local producer of organic fruits and and increase access to higher-value markets in the cashew receipt financing reform, now available in English and French. time designing support on investment facilitation, wider vegetables seeking to expand its exports. In addition to sector. Work in the agribusiness sector is a key part of World Bank regulatory reform, and sector-level public-private dialogue creating jobs, the investment will help the company provide Group efforts to help developing countries diversify their programs. The Global Team assisted regional teams in The T&C team worked with IFC’s Manufacturing, Agribusiness economies. Since the sustained decline in global crude developing project-level theories of change that produce smallholders with credit, training, and market access, leading & Services (MAS) team early on to share market knowledge oil prices starting in 2014, Azerbaijan has faced serious an attributable link between project interventions and to increased productivity, resilience, and incomes. The initiative and experience in Guinea-Bissau. This collaboration has economic challenges, including negative GDP growth, a outcomes and impacts. In FY17 these efforts focused came about with the help of the FIAS-supported agribusiness continued throughout the project cycle, helping to frame the significant decrease in exports and foreign trade, and currency particularly on outcomes beneficial to women and youth. team’s work in FY17 . potential IFC investment in the context of a solid World Bank devaluation. Its position in the Doing Business reports T&C’s program in Guinea-Bissau focuses on supporting the Group engagement to support agribusiness—especially in the declined from 33rd in 2009 to 65th in 2017 . An investment During FY17 , the global team, with FIAS support, produced development of agribusiness and improving the business cashew sector—and regulatory improvements. Collaboration of climate and agribusiness competitiveness project getting a paper, Tourism for Development: 20 Reasons Sustainable environment, with emphasis on enhancing the cashew value this kind helps leverage the beneficial impacts of Bank Group under way in Azerbaijan seeks to assist the government Tourism Counts for Development, examining the benefits chain. Guinea-Bissau’s cashew sector is central to achieving programs and mitigate the risks associated with the fragile in carrying out its economic diversification strategy by of tourism that “takes full account of its current and future the country’s poverty reduction goals; it provides the main institutions in Guinea-Bissau. improving the overall investment climate and increasing the economic, social, and environmental impacts, addressing source of income to two-thirds of households. Since 2014, the competitiveness of the agribusiness sector. the needs of visitors, the industry, the environment and Ongoing work on environmental, social, and trade standards Private Sector Rehabilitation and Agribusiness Development host communities. ” These benefits include stimulating will provide more ground for replicating and leveraging project (PRSPDA), a joint project of the Trade & Competitiveness Tourism Sector Important to Shared Prosperity GDP growth, increasing international trade and investment, the example of Frutas e Legumes, the first bio-certified Global Practice (T&C) and Agriculture IDA, has provided infrastructure development, efficient job-creation, inclusive cashew and fruit producer in the country. IFC Advisory FIAS support for projects and global knowledge initiatives investments and technical assistance to the cashew sector. growth, strengthening of rural communities, benefits for Services, in collaboration with PRSPDA, is helping to develop in the tourism sector touch upon several World Bank Group Project impacts include increasing the productivity and women, protection of cultural sites, and aiding in post- produce traceability systems and an origin label signaling global priorities. The high proportion of women in tourism- bargaining power of cashew producers, generating investments conflict recovery. A preparatory World Bank Group paper on good environmental and social practices. This will enhance related jobs ties in with Bank Group goals in bridging gender- in cashew processing, and developing entrepreneurship women and tourism explains the rationale for integrating opportunities for Frutas e Legumes and future investors to based economic gaps. Projects that encourage greater across the economy. Advisory services provided under IFC’s a gender lens into tourism projects. It also includes a source sustainably from local producers. For producers, it can formalization in the tourist trade have the effect of creating Cashew Sector Development project, approved in 2016, are set of resources designed to help project managers get promote more stable relationships with off-takers that opens markets, as has happened in Cusco, Peru, in line with IFC’s delivered in coordination with the IDA operation to improve started and find necessary data. This paper paves the way access to more demanding markets, helping them obtain a Creating Markets strategy. The highly labor intensive nature social, environmental, and trade standards among cashew for more in-depth operational research on what works for better price for their product. of the tourism industry feeds into the Bank Group’s ambitious goals for job creation over the next two decades. empowering women in the tourism sector. Food products for sale in Central Market, Maputo, Mozambique. Photo: Bigstock Plaza Mayor in Historic Center, Lima, Peru. Photo: Bigstock FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 52 FIAS 2017 Annual Review 53 Pillar 2 $140m investment The Smugglers Cove project in St. Lucia, with a total investment of $140 million has generated 1,300 direct jobs during construction, and the property currently employs 900 people, of which about 50 percent are female. Ground-Level Work in St. Lucia’s Tourism Industry Paying Off FIAS-supported work in St. Lucia is poised to report aligned with the recommended strategic direction for significant investment generated following the scale-up of tourism. The properties selected were judged to have the tourism-focused projects. Following the global financial crisis, best chance of attracting investment. This led to development St. Lucia was losing market share and not attracting the level of an investor outreach strategy. and type of new investment needed to remain competitive. The Smugglers Cove project was identified as a high-priority In 2012, visitor numbers were still 8 percent below the investment opportunity. Having ceased operations in 2013, 2005 level. In a tourist-dependent economy, this declining it was sold a year later, demolished, rebuilt, and is now a competitiveness had a direct effect on the overall economy, candidate for IFC financing that is up for approval during threatening incomes and jobs. Several tourism assets were FY18. The total investment of $140 million has generated languishing in receivership or not adequately prepared to 1,300 direct jobs during construction, and the property attract investor interest. currently employs 900 people for its operations, of which The tourism team was asked to support the government about 50 percent are female. At the same time, Bank Group by examining the key causes of St. Lucia’s declining support to the government of St. Lucia continues through the competitiveness among both tourists and investors. It Organization of Eastern Caribbean States (OECS) Regional followed this by recommending a program of regulatory Tourism Competitiveness loan. It provides $26 million to reforms and policy changes to diversify product development Grenada, St. Lucia, and St. Vincent and the Grenadines. and developed a strategy to generate investment in a series The Bank Group is also encouraging inter-island tourism of specific projects designed to revitalize the destination. through new transport links, improvements to attractions and The investment strategy was developed in partnership with sites within the countries, and—in a recommendation that Invest St. Lucia and involved building a systematic approach was highlighted in the IFC Advisory project—strengthened to investment generation across several key government implementation capacity for regional tourism market agencies. The team assessed investment opportunities development. and developed a short list of target properties most closely Tourist enjoying the beach in Saint Lucia. Photo: Bigstock Beautiful white sand beach in Saint Lucia, Caribbean Islands. Photo: Bigstock FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 54 FIAS 2017 Annual Review 55 Pillar 3 Increasing Firm-Level Competitiveness Through the Climate Competitive Industries Product South-South knowledge exchange, the PDP has worked Development Program, a new flagship publication on closely with KEA to provide advanced technical assistance a “Greener Path to Competitiveness” was released and practical knowledge to its projects in Egypt, Pakistan, highlighting the link between manufacturing productivity and Turkey. This has helped countries learn first-hand how to Under Pillar 3, FIAS supports projects aimed at helping client countries improve manufacturing improvements and competitiveness. The project has helped combine industrial competitiveness with sustainability and competitiveness through design and implementation of private sector-oriented resource efficiency generate new and innovative projects in Kazakhstan on provided a proven case of success for clients. improving resource efficiency in industries. To support laws, regulations, standards, and financing to promote green and low-carbon growth. Work in developing quality infrastructure (QI) helps define QI Initiative Leverages The Quality Infrastructure (QI) initiative is not about infrastructure in the traditional and implement quality standards required for internal and Global Knowledge on sense—roads, bridges, dams, etc.—but about the technical and administrative external market growth. Hardware, systems, laboratories, Infrastructure, Trade, GVC infrastructure countries and business sectors need to assure the quality of their products and technical standards are among the elements required Reforms and services. QI enables producers and providers to offer proof that products and services to strengthen sector standards in developing countries, Bangladesh adhere to requirements of governments, major trading regions, and companies. QI is thus enabling leading firms to compete in international markets. a critical element of the effective functioning of global value chains (GVCs). World Bank As noted earlier in Chapter 3, a joint T&C-IFC project Group research has shown that 44 percent of firms were conducting significant duplication Skills development, and improvements by firms in resource in Bangladesh has helped promote cleaner textile of testing to meet foreign requirements after domestic requirements had been met; that efficiency are also encompassed in Pillar 3. Projects in production, lowered the cost of sustainable technologies, climate competitive industries (CCI) focus on improving competitiveness and sustainability in industries, a priority and made it less likely that harmful chemicals would be The Competitive nearly one-third of firms had to conduct complete duplication of testing; and that two- thirds cited testing and certification costs as an important reason for not exporting. used in manufacturing. The advisory work was combined that stems from the urgency of climate action and demand with a government lending offering for sustainable textiles. Sectors team is FIAS-supported work in QI helps clients ensure that products and services in their from clients. Project work in this area combines industry reforms with sustainability and climate action. These and other efforts have saved an estimated 6.2 million cubic meters of water so far. overseeing a business sectors meet international standards for measurement, that formally accredited testing labs and inspection facilities are available to certify relevant products and services, FIAS funding is not necessarily used directly in all projects portfolio of and that published standards exist for products and services. The Competitive Sectors team is overseeing a portfolio of 42 projects in 33 countries, with an average completion that relate to these areas, yet it allows the World Bank timeline of 5.5 years. The work involves analyzing and consolidating the existing 42 Group to develop a center of excellence to ensure the knowledge and expertise on QI reforms and developing a coherent offering to clients to technical soundness of the design and implementation support their reforms. of related reforms through quality control and knowledge management. This global expertise can be shared in a variety Core elements of QI work are: of ways, from client-facing projects to toolkits to knowledge • Metrology: Ensuring that any measurement made in a country can be traced to publications and learning events. Mauritania In Mauritania, the CCI project helped develop reforms QI projects in the International System of Units via international standards, thus helping facilitate acceptance of products, processes, measurements, and testing in local and foreign In Egypt, the Smart Technology & Energy Efficient that promote sustainability in the country’s fishing markets. 33 Production (STEP) project helps promote cleaner industry. With the help of the Bank Group’s intervention, technology manufacturing and energy efficiency standards nine companies shifted away from harmful practices, • Accreditation: Giving formal recognition that laboratories of various specialties on electric motors. The FIAS-supported project launched ensuring that the available fish stock is used more (testing calibration, pathology, etc.) as well as certification and inspection bodies, findings from its market analysis in an event with the Korea responsibly and sustainably. The project also helped proficiency scheme providers, and good laboratory practice test facilities are Energy Agency (KEA), which has provided support to the generate interest in a common wastewater treatment competent to carry out specific tasks. program and will guide the government in the development of standards. Establishing energy efficiency standards on plant which will improve water quality and living conditions in the Nouadhibou Free Zone. countries, • Standardization: Developing and publishing a formal document by a recognized body, generally by consensus, containing the requirements that a product, process, electric motors benefits Egyptian manufacturers while easing demand on the power grid. The team delivered a with an average or service needs to include in order to comply. • Conformity assessment: Offering assurance that a product, process, or service techno-economic analysis and national impact analysis model to the Ministry of Trade & Industry. The model is being completion fulfills the requirements specified in standards or technical regulations. Conformity used to help monitor the progress and effectiveness of the timeline of assessment service providers verify that a product, process, or service meets stated requirements through testing, inspection, and certification. country’s standards program. In May 2017 , the Egyptian Organization for Standardization and Quality completed the 5.5 years. process of defining efficiency classes for motors. Technical Among other activities, the program has established a QI Community of Practice to share standards for motors in Egypt now align with those used knowledge and foster collaboration on QI-related topics; prepared and published a QI in all major economies, notably the European Union. This factsheet defining the team’s value proposition; and established partnerships with UNIDO, opens the door to establishing transparency of performance the National Metrology Institute of Germany (Physikalisch-Technische Bundesanstalt, information labels for motors in Egypt and makes it possible or PTB), and the UK Regulatory Delivery directorate with the goal of cooperating on for the government to refer to efficiency levels to set knowledge sharing, organizing events, and providing operational support to clients. PTB mandatory performance standards. assigned a technical adviser to work full time at Bank Group headquarters for 18 months to produce a joint QI toolkit. Case studies have been drafted describing successful implementation of QI reforms in Ethiopia, Germany, the Kyrgyz Republic, Pakistan, South Africa, Turkey, and the East African Community. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 56 FIAS 2017 Annual Review 57 Pillar 3 200m Worldwide more than 200 million people of working age remain unemployed. In Kosovo and Ethiopia, T&C is helping implement QI Recent examples of client-facing engagements in skills taking reforms through projects aimed at easing access for domestic place in Cambodia and Moldova highlight the collaborative producers to external markets. This is accomplished by nature of the work across the Bank Group and the importance enabling the needed supply of quality services as well as of sector-level solutions that engage the private sector as by building institutional capacity and introducing modern a beneficiary but also an important agent of change. In regulations. The team leveraged its expertise with external Cambodia, T&C contributes to the skills analysis for Bank organizations such as ISO, PTB, and UNIDO to offer more Group country diagnostic elements—the systematic country comprehensive reform solutions to clients. In Ethiopia the diagnostic and programmatic advisory services and analytics QI project identified three priority sectors for the export on future jobs. The analysis and policy recommendations growth, i.e., (i) leather and leather products; (ii) textile and will be crucial to helping Cambodia develop options to grow garments; and (iii) agro processed products, particularly fruits and diversify its industrial base. T&C is also delivering skills and vegetables. The team is assisting the country to meet solutions through IFC’s advisory services to support FDI and developed markets requirements through strengthening investment linkages. These skills interventions target strategic the QI institutions’ capacity to deliver effective and efficient sectors and work to strengthen ties between industries and quality assurance services to enterprises in the targeted training institutes to identify and develop relevant skills for sectors, and enhance the private sector demand for QI growth and diversification. services. In Moldova, where skills development has been identified Ramping Up Product Development as a priority, the skills initiative supports the Bank Group’s and Client-Facing Work on Skills development of the systematic country diagnostic and the country partnership framework. The team undertook This work is crucial. Worldwide more than 200 million people a rapid private sector skills diagnostic involving mapping of working age remain unemployed. By 2030, 600 million of stakeholders, assessing skills demand, and evaluating additional jobs are needed to maintain current employment prevailing human resource practices. The private sector rates. Addressing ‘upskilling’ will also be important to support skills assessment will inform the Skills for Jobs lending economic and sectoral transformation given that the shortage project, led by the Education Global Practice, and create the of high- and middle-skilled workers is expected to reach 85 reform and technical assistance activities for a parallel IFC million workers by 2020. Advisory Services project on skills for competitiveness for three priority sectors. The goal of the advisory project is to This work complements efforts in other areas of the World expand reach by targeting and strengthening the capacity of Bank Group by focusing on private sector engagement on the skills intermediaries (public and private) to deliver skills skills with a heavy emphasis on sector level solutions for development programs to SMEs. growth and job creation. It helps clients strengthen firm productivity and boost employment by improving public- Finally, skills are likely to figure heavily in the solution design private coordination to better identify the sector skills needed that follows the country private sector diagnostic (CPSD) Consultant for an export promotion agency at Maison d'Exportateur in Tunis, Tunisia. Photo: Arne Hoel/World Bank for current and future needs. These needs can be addressed process being rolled out in selected countries across all through appropriate policy and sector-level development Bank Group regions. It has already factored heavily in the programs. Change is sustained by institutionalizing public- first CPSD that took place in Ghana this year. The objective private coordination and increasing the private sector’s role. was to identify the main opportunities for the private sector that will have a strong development impact in Ghana and to Skills Initiative in Tunisia Uses Online Platforms to Link Candidates with Jobs FIAS support for skills takes place at the global level through highlight the key constraints—both cross-cutting and sector- In the information and communications technology space, The Qualifications Framework was adopted jointly by 11 product development, thought leadership, and project piloting specific—hampering private sector growth. Three sectors a FIAS-supported project in Tunisia has helped consolidate educational institutions and eight companies. Thirty human support where innovative approaches are applied country- were identified for deep-dives research: agriculture, ICT, and data on job qualifications, employment match-making, and resources managers were trained to use the Framework, specific scenarios. This has included preliminary work to education and skills. With funding support from the global labor market information into a single national portal called and the job descriptions of 264 employees were updated develop a skills-for-doing-business indicator program that is product development project, the skills team is now working Digital Talent. The initiative was driven by the private sector, to better align with the Framework. The Labor Market undergoing initial concept review in FY18 and then to pilot to identify ways to ramp up private sector-informed and with just over half of the representation of the initiative Information Portal was validated by Tunisia’s ICT Federation— execution in 10 to 15 countries later in the year. The program private sector-delivered solutions for skills in Ghana. composed of private sector officials and the rest from the the Bank Group client for this project. Content for the will seek to present comparable indicators measuring policy and regulatory factors that affect private sector engagement public sector. This consolidation, accomplished in FY17 , brings platform went live in the first quarter of FY18. The match- in skills development. together in a single platform all three project components making platform was launched in October 2017 . (qualifications, match-making, and labor market). FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 58 FIAS 2017 Annual Review 59 04 FIAS-funded work under the three strategic In Bosnia and Herzegovina, the FIAS-supported pillars supported global, regional, and country- team is working to increase the awareness of Gender Bias, Stereotyping Limit Access to Finance for Work in Programmatic Themes female-owned businesses of legal frameworks, Women Entrepreneurs specific initiatives under programmatic themes. proceedings, and opportunities. The initiative seeks to address the gender angle embedded A FIAS-funded pilot study on gender and entrepreneurship focused within business environment issues, focusing on Dominica and St. Lucia in the Latin America and Caribbean (LAC) particularly on the regulatory implementation gap region aimed to identify gender-specific barriers to business entry The FIAS FY17–21 strategy identifies these as Gender and Inclusion; Transparency, as a critical obstacle for private sector growth. and financing and propose responsive investment climate reform. The Political Economy, and Sustainability of Reforms; Green Competitiveness; and The project seeks to ensure the input of women study also addressed the relative lack of gender-disaggregated data in Organization of Eastern Caribbean States (OECS) member countries, Targeting High-Growth Business. Along with the special topic on gender in Chapter 2, business owners is considered in the drafting and combining quantitative surveys of female and male business owners this chapter outlines FY17 efforts under these themes, along with a summary of work in implementation of business regulations. In addition in Dominica and St Lucia with qualitative interviews of government monitoring and evaluation (M&E), knowledge management (KM), and communications to increasing awareness of new and improved officials, policymakers, successful female business owners, and other and a partial listing of team awards. administrative procedures, the project seeks to key stakeholders. Study results revealed no significant institutional enhance the capacity of female entrepreneurs’ barriers discriminating against female entrepreneurs in either country FIAS-supported associations and women’s groups through that would inhibit women from registering or accessing finance for Gender and Inclusion operational business feedback mechanisms business start-up. Rather, what emerged is that laws and policies established at project localities. In May 2017, the are gender neutral and as such they do not consider the different Women participate as owners or co-owners in circumstances or challenges that women face. This speaks to 27 percent of companies and firms, according to team shared global knowledge of the relevant issues at a meeting of women entrepreneurs. gender operating at a subjective level and the fact that gender roles, various studies conducted by the European Bank responsibilities and status have positioned women differently from for Reconstruction and Development, the United men. The large and highly diverse artisan sector is Gender & Inclusion Nations, and the World Bank Group. Nevertheless, unusual among business sectors in that it has The survey and interviews brought to light an overwhelming the same analyses show that women-owned at least as many female entrepreneurs as male. view that stereotyping, implicit bias, and constrained networks companies are less competitive and less likely to The Bank Group’s Creative Industry team’s continue to operate against women seeking financing and credit grow even though they are operating under the best-practice report on artisan-based fashion for business startup. The prevalence of this view strongly suggests same regulatory framework. The problem is not and home accessories exporters showed that that implementation and enforcement of new legislation remains the regulations themselves but a gap in how they the female-to-male ratio in these firms, which inconsistent. The findings also indicate that key challenges operate at are implemented, depending on who owns the ideological and cultural levels; gender issues such as power dynamics, employ some 4,800, is about four to one. The company. Stereotypes, biases, and entrenched gender roles, and status, often operate at a subjective level. These study covered aggregator firms on four continents Transparency, Political views contribute directly to women-led businesses challenges require interventions geared toward behavioral change in and showed how they are successfully managing Economy, Sustainability being more vulnerable to regulatory unfairness, the medium to long term. value chain and management functions using of Reforms exposing them to inconsistent implementation modern information technology to create high Recommendations, therefore, focus on interventions at the and regulatory unpredictability in permitting growth. In cooperation with IFC, other Bank individual, institutional, and macro levels to change gender norms and processes. Additionally, limited knowledge of Group Global Practices, the United Nations High perceptions that affect business practice. The aim is to create a model different public policies, legal frameworks, and Commission on Refugees (UNHCR), and outside for gender analysis and mainstreaming of processes and policies compliance prerequisites discourage initiatives for expert organizations, the team is also working within related organizations. Specifically, at the business-owner level, more active participation of women-led businesses the study recommended regular training workshops, rebranding, and on a supplier development program for a large in regulatory making processes. This impacts niche marketing, best practice sharing, and increased participation global retailer which will bring artisanal products the overall representation as well as the growth in business-related networks. At the institutional level, the study into global value chains. Some of the pre-selected Green Competitiveness prospects for women-led businesses. Therefore, recommended improving the quality of data collection and analysis artisans have refugee and internally displaced integrating gender-related activities into the overall at financial institutions, increasing data sharing among agencies and people status in countries in fragile and conflict- organizations, avoiding duplication of activities among agencies, and project approach could immediately contribute to affected situations. In terms of global industry mainstreaming of gender policies. deepening knowledge and achieving the project’s size, the United Nations Conference on Trade and objectives. Development (UNCTAD) estimated that global In the medium-to-long term, the study recommended that the As detailed in Chapter 2, the gender team, in close sales of artisan products were $34 billion in 2011. government support female students early in fields such as Country-specific data provides an idea of the agriculture and sciences, host trade shows or business start-up collaboration with the M&E team, identified a set competitions, develop cultural interventions to encourage gender- of indicators that provides the basis for staff to importance of the artisan sector in developing countries. In 2015, handicraft exports from India neutrality in business operations. The study also recommends that Targeting High-Growth operationalize gender priorities and track progress government actively promote a culture of savings at credit unions and Business toward meeting corporate targets and donor partner were an estimated $4.5 billion, up 15.4 percent cooperatives, as well as an equal representation of gender in financial objectives. The team is also working with operational from the previous year. In Vietnam, handicrafts institutions. and regional units on ways to incorporate gender generated an export revenue of $2.8 billion in 2011 components into advisory projects. and were exported to more than 100 countries. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 60 FIAS 2017 Annual Review 61 04 Transparency, Political Economy, Ghana is one of the most open economies On the knowledge front, the Competitive and Sustainability of Reforms to investment on the African continent. Sectors team published a Public-Private Almost all business sectors are open to Dialogue Stakeholder Mapping Toolkit (see The FIAS FY17–21 strategy pulls together FDI, a posture that has produced domestic publications listings) that provides a hands-on three programmatic themes that are economic benefits. Nevertheless, the resource for World Bank Group teams and PPD integrally related: transparency realized economy is underperforming due to a practitioners. It enables them to design dialogue through simplified regulations and higher number of factors, including weak trade platforms and determine participants at degrees of public disclosure relate directly logistics, non-tariff trade barriers, perceptions concept stage, insert a dialogue element into an to the importance of recognizing the that red tape is slowing commerce, and a ongoing project, ensure the right participants political economies of client countries when less-than-optimal investment climate. The are participating, and deepen understanding undertaking reform programs. Due attention FIAS-supported team is working with Ghana of political economy obstacles to reform to these concepts, in turn, contributes to boost sustainable economic growth processes. It also shows how PPD can be used significantly to whether reforms undertaken and attract private sector investment by to bridge the divide between different partners will be thoroughly implemented and improving the transparency, accessibility, of the dialogue. The toolkit provides a guide for sustained over time. and quality of business regulation as well designing a strategic reform communications as strengthening the investment policy plan and for catalyzing reforms by building Myanmar's new The investment law reform work undertaken and promotion framework. It also aims to knowledge and capacity of the right people. A curbside seamstress in Chin State, Myanmar. Photo: Tom Cheatham/World Bank in Myanmar was an example of the increase Ghana’s competitiveness in specific legal framework has importance of these three themes working Bhutan is part of the global Good Regulatory sectors. already contributed together in support of a reform that has Practices program where it is one of seven to more than double taken hold after initial resistance from a During FY17, Ghana made information on countries implementing business feedback the amount of FDI variety of stakeholders. Amid concern that the process to obtain a construction permit on a reform under a FIAS-supported pilot flowing into the increased FDI would weaken domestic more accessible. The Department of Town program. A citizen portal and upgraded online businesses, the Bank Group team worked and Country Planning uploaded relevant laws land registration system were soft launched country, from closely with government officials, private and information on procedures to obtain a in November 2016 on a pilot basis in Thimphu $4.1b sector stakeholders, and civil society in a construction permit in Ghana on its website, municipality. During a mission in April 2017, process that emphasized transparency, increasing accessibility and transparency the project team organized a focus group consultation, and public engagement. of procedures, fees, and laws related to discussion with users of the automated land Extensive consultations were held with civil the construction permitting process. Going registration system, which helped identify the in 2014 to society and non-governmental organizations forward, the Bank Group effort in Ghana main reasons for the under-utilization of the before, during, and after a national election focuses on two key components: citizen portal and the online registration system. $9.5b in 2016. campaign. The draft investment law was posted on the government website and interested parties encouraged to submit > In investment climate, help the government regain business reform momentum; improve and integrate A technology-based feedback mechanism is now being designed and will be grafted to the online land registration system. Interactive Voice comments. Non-governmental organizations, Response (IVR) is being used as an innovative government-to-business (G2B) Construction site. Photo: Bigstock civil society, private law fIrms, and other medium for business feedback. interested parties contributed more than online service delivery to increase 200 pages of written comments on the transparency and accountability and In Bosnia and Herzegovina, FIAS support During FY17, Ghana made information on the process to obtain draft law. The result was a new investment reduce the compliance burden on helped increase information sharing on a construction permit more accessible. The Department of Town legal framework applicable to both domestic businesses; upgrade the legal and incentives with the public, in the form of an and Country Planning uploaded relevant laws and information on and foreign investors alike that opened a regulatory framework; and strengthen openly accessible online inventory. Accordingly, procedures to obtain a construction permit in Ghana on its website, significant number of sectors to investment, the country’s investment policy and the project has made an online inventory of increasing accessibility and transparency of procedures, fees, and significantly streamlined investment entry promotion strategy. incentives for 10 municipalities. The incentives laws related to the construction permitting process. procedures, and improved investment are further accessible in English in addition to > In agribusiness competitiveness, the local language. This new online access to protection guarantees. The new legal improve regulations that will generate the inventory of incentives available to investors framework has already contributed to more incentives for firms to grow and is improving the transparency and governance than double the amount of FDI flowing into compete, especially across the cashew of incentives for foreign and domestic investors, the country, from $4.1 billion in 2014 to $9.5 and palm oil value chains to strengthen and changes legislating governing incentives, billion in 2016. compliance with international trade thereby improving the overall system of standards and facilitate market access. governance for investment incentives. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 62 FIAS 2017 Annual Review 63 04 Green Competitiveness opportunities for cleaner production “We are pleased to be the first IFC partner to growth and foreign direct investment (FDI), techniques to target green apparel market pilot its PaCT program in additional countries,” including issues relating to compliance, In Punjab, Pakistan, FIAS has helped develop opportunities. The FIAS-supported team Levi’s vice president of sustainability Michael quality, reliability, and worker safety. The a new domestic market for energy efficient completed a report on green apparel market Kobori said in the announcement. “Our goal role of textile production in polluting water is fans by working with local authorities, opportunities for the Kenyan sector. The is to scale the practices globally to achieve among these problems. Industrial pollution national regulators, and large, medium and team also supported the special economic greater reductions in water, energy and accounts for 60 percent of pollution in small manufacturers on the initiative. Fans zones (SEZ) team in discussing SEZ linkages chemical use across our supply chain.” the Dhaka watershed area, and the textile are how Pakistanis keep cool, whether at a government retreat for a flagship textile industry is the second largest contributor ceiling fans, window fans, area fans, or more There is no doubt that the apparel industry zone. (See also Chapter 3.) after tanneries. sophisticated ventilation systems. The use is critical to Bangladesh. In 2012 when PaCT of energy efficiency labels, and a public In Bangladesh, an IFC Advisory Services began, the apparel industry accounted for 83 “It really is in the interest of textile producers awareness campaign on the ability of new project supported by FIAS has helped the percent of the country’s exports and is poised to contribute to water sustainability,” notes fans to deliver high quality while also saving crucial textile industry to adopt stronger to be a key creator of jobs in the years ahead. Alexios Pantelias, Green Competitiveness energy, is creating a new market for one water conservation and pollution control Today the ready-made garment industry Global Solutions Lead for T&C. “Gradually of Pakistan’s most widely used appliances. measures. In partnership with the Embassy accounts for 45 percent of all industrial reducing factories’ water consumption In the early stages alone, wide use of fans of the Kingdom of the Netherlands and employment in the country and contributes and reducing the levels of pollution not that meet the energy efficiency standard other international partners, the project 5 percent of total national income. In almost only benefit the environmental outlook for will save the country an estimated 800,000 introduced an initiative called the Water every category in the textile industry, prices Bangladesh, but would also contribute to the kilowatt hours—the equivalent of the PaCT (Partnership for Cleaner Textiles). of Bangladesh-made goods are the lowest competitiveness and economic health of the annual energy use of about 600 domestic PaCT engages with textile buyers, factories, on global markets. Success has brought with entire textile sector.” refrigerators—and reduce greenhouse gas communities, government, and civil society it a variety of problems that threaten to limit emissions by about 400 tons per year. to leverage dialogue as a key ingredient to With the success of this pilot program, the more eco-friendly textile production. From project is now working with the regional 2013 to September 2016, PaCT has catalyzed government to put an additional one million several actionable solutions related to water fans into service. Creating Markets in Energy Efficiency in Punjab sustainability: Although Pakistan has a large electric fan market, it Turkey’s industrial park framework > Saved 18.4 billion liters (4.9 billion has been largely inefficient and uncompetitive. Not is regularly viewed as a success due gallons) of fresh water per year. coincidentally, the fans themselves are inefficient in to its contribution to job creation and terms of energy usage. The FIAS-supported team has manufacturing led growth. The government > Developed environmentally safe been supporting the government of Punjab—Pakistan’s has engaged with the World Bank Group sourcing guidelines for global brands. most populous state—promoting a more efficient to develop a national framework for green market and more efficient products through an industrial zones. The project has attracted > Provided guidance to 215 textile energy-efficiency labeling program. The government the initial interest of six top-performing factories on how to implement cleaner has committed to procuring 20,000 energy-efficient industrial zones in Turkey which see the production. fans for public buildings, all produced in Pakistan and framework as a potential to differentiate all marked with the Pakistan Energy Label (PEL). This themselves from other zones and offer > Conducted a first ever feasibility study initiative is expected to jump start a new market for investors an added service. This will promote for a central effluent treatment plant in energy efficient fans. On its own, the installation of the the development of industrial symbioses, the Konabari cluster. new fans will save the country’s over-stretched power improved waste water management and grid 800,000-kilowatt hours per year. The project has > Generated investments of $31 million. uptake of renewable energy. The project created a new market segment for manufacturers is part of a global Climate Competitive > Generated $12.4 million per year in of more efficient fans, nine of whom have received Industries initiative to develop an factory savings resulting from resource certification for the PEL from the National Energy international framework for eco-industrial efficiency. Efficiency and Conservation Authority. Four of these parks. are small and micro-sized enterprises. This is a positive In September 2016, Levi Strauss & indication of wider acceptance of this standards and In Kenya, as part of the Manufacturing Co. announced the rollout of PaCT’s labeling initiative. The government of Punjab has PDP, the team supported an IFC Advisory environmental guidance at six facilities launched a comprehensive marketing campaign to investment policy and promotion (IPP) across Bangladesh, India, Sri Lanka, and promote PEL fans. Manufacturing energy efficient fans, Punjab, Pakistan. Photo: World Bank project with a focus on the textile-apparel Vietnam, with plans to expand the program. sector. One goal of the effort was to explore FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 64 FIAS 2017 Annual Review 65 04 Targeting High-Growth Business The impact evaluations focused on targeting Monitoring & Evaluation, Impact The M&E team is leading an effort firms with high-growth potential aimed at to comprehensively strengthen the The FIAS FY17–21 strategy seeks to support Results and impact from FIAS-supported understanding how to identify these firms measurement apparatus around jobs projects aimed at identifying sectors and projects are measured and assessed and what kind of policies would better assist impact. The effort includes development firms that have exceptional growth potential. by the Monitoring & Evaluation (M&E) them in achieving growth. Two impact of a collaborative tool to assess whether Unfortunately, start-up firms do not wear team. This is, however, more than a evaluations, in Georgia and Mexico, were interventions generate empirical evidence signs saying, “future high-growth firm,” so the scorekeeping operation. The M&E team endorsed by ComPEL to assess the value that can be evaluated, and of an integrated challenge is to find ways to pick future job- interacts throughout the fiscal year with of government and private sector scoring framework within the project life-cycle to creators out of the start-up crowd. This work the investment climate, competitive schemes for allocating innovation grants to measure the impact on jobs. Together these unfolds on several levels, from individual sectors, and competition policy teams small and medium enterprises and of SME resources and methodological approaches firms to sectors with high-growth potential that implement FIAS programs. The support based on performance benchmarks. enhance accountability to project goals, in particular developing countries, to regions interaction ensures program leaders are Forthcoming studies are being assessed improve intervention effectiveness, and that have the conditions in place to support aware of the FIAS strategic priorities, the in Argentina, Brazil, Colombia, Kenya, serve as policy-evidence guideposts. These robust growth. protocols for validating results, and the Nigeria, and Senegal to measure the value and other innovations are included in draft progress being made by the teams toward The FIAS-supported Competitiveness Policy of business competitions and managerial guidance for a Design and Measurement achieving year-by-year benchmarks for Evaluation Lab (ComPEL), successor of the scores to signal firm performance. for Impact on Jobs on how advisory work reforms, compliance cost savings and other Impact Program, focuses on defining three contributes to the jobs agenda and on The impact evaluations on connecting measures of positive impact. The team programmatic clusters of impact evaluations which interventions target jobs impact. This businesses to improve market access aimed applies a comprehensive results chain strategically aligned to FIAS, and supporting guidance will be a living document that is at exploring the role of interventions that based on a theory of change. Customized related impact evaluations through advice, revised as projects venture into designing connect business to the demand side and and sequenced efforts to enhance the academic reviews, workshops, and other and measuring the impact of job-related those that reduce search and enforcement investment climate, improve sector events. The clusters are: (1) targeting firms interventions. frictions. Forthcoming studies are being competitiveness, and foster innovation with high-growth potential; (2) connecting and entrepreneurship provide incentives businesses to improve market access assessed in Ethiopia, Kosovo, Mexico, Knowledge Management, Tunisia, Vietnam, and Zambia to measure for expanding market opportunities and and promote spillovers; and (3) improving enabling private initiative. Resulting benefits Publications and Learning the value added of creating productive regulatory efficiency to benefit firms. The alliances and supplier development programs include lower costs of doing business, and Highlights selection of the programmatic clusters was new investment generated, and reduction Strengthening the foundation: In that connect firms to their demand. based on an extensive consultation with T&C of barriers to competition. Ultimately, these FY17, T&C continued to expand the management and staff, researchers from The ComPEL impact evaluations on reforms contribute to productivity gains, base of knowledge that supports its the World Bank and academia, and donor improving regulatory efficiency to benefit growth, job creation, and rising incomes, all teams in their work, addressing topics partners. firms focused on understanding what of which contribute to the Bank Group’s Twin important to FIAS-funded projects such specific types of regulatory intervention Goals of eliminating extreme poverty and as investment competitiveness, sector This preparatory work was followed by a boosting shared prosperity. benefit firm outcomes and what type diversification, productivity, manufacturing- flagship workshop held in Mexico City in alleviate firm burdens. A paper published led development, job creation, and February 2017. Initially 46 teams expressed This results chain is supported by an under the Western Balkans Trade Logistics entrepreneurship. Publishing activities in interest, showing an increasing interest in integrated results management system Impact Evaluation supported by ComPEL FY17 reflected T&C’s focus on analytics and impact evaluation compared to previous that builds on the best of World Bank found limited evidence of the impact of a applied research—supported by links with years. Of these, 19 were selected to attend and IFC approaches. At the project level, trade facilitation reform on trade outcomes academia, development partners, and the based on technical feasibility, intervention standardized indicators derived from the or improvements in targeting risky shipments private sector—to develop and deliver client timeline, and client engagement. The results chain are used to measure and verify in Macedonia. An impact evaluation in Peru solutions and extend the empirical basis objectives were to assist teams in designing data on inputs, outputs, and outcomes. was endorsed by ComPEL to assess how to for reform advocacy. T&C released two their impact evaluations, disseminate findings M&E support is provided to project teams implement business inspections to improve comprehensive regional reports, the Africa of the latest research, enhance technical during the design and implementation of compliance and safety and reduce firm Competitiveness Report 2017: Addressing capacity of policymakers, and strengthen their operations. At completion, project burden by comparing different frequencies Africa’s Demographic Dividend and South networks within the stakeholders. In total, 100 performance evaluations are conducted in of inspector visits and assessing the value Asia’s Turn: Policies to Boost Competitiveness participants attended, including 17 external a large sampling of projects, while impact added of compensating inspectors based and Create the Next Export Powerhouse, 20 researchers from academia and 36 country evaluations are conducted in a subset of on their performance. A forthcoming study World Bank Policy Research Working Papers, clients. Three out of four attending client projects. These are periodically aggregated is being assessed for support by ComPEL in and numerous country-specific reports policymakers indicated that the workshop into program evaluations and systematic Bangladesh to measure the value added of and policy notes. Several FY17 publications influenced how they will measure program reviews to test causal links, assess the the use of information and communication add to the body of literature on policies success. relevance of program objectives and design, technology and improved monitoring in a and models for “green” industry, including single-window process for firm registration. and review the achievement of discrete the policy guidance note, A Greener Path objectives. to Competitiveness, the practitioner’s FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 66 FIAS 2017 Annual Review 67 04 handbook, Climate Competitive Industries, and teams. T&C plans to organize a Learning Since its launch, TCdata360 has and six notes in the new Climate Technology Week every other year to strengthen the attracted more than 44,000 unique Program in Brief series. (See Annex 3: Key capacity of its staff in meeting client demand visitors. Recent updates include new FY17 Publications and Events.) and delivering high-quality projects. data stories and curated country reports on entrepreneurship and tourism. The Leveraging knowledge and expertise: FIAS Channeling big data: In January 2017, T&C platform was also used to develop a new support contributed to an expanded roster launched TCdata360, a new open-data GovData360 website, which features more of events to encourage knowledge sharing, platform that features more than 2,000 than 3,000 indicators of governance at the peer-to-peer learning, and the exchange of trade and competitiveness indicators from country level—in areas such as public sector best practices and lessons learned. More 30+ data sources inside and outside the management, citizen engagement, private than 87 events took place and attracted World Bank Group. Users of the website sector interface, political accountability— more than 3,000 participants (in-person and can compare countries, download raw data, from 20+ data sources. online)—including government officials and create data visualizations, display data on practitioners, private sector representatives, maps, share charts on social media, print Communications development partners, researchers and reports, copy charts, connect through an technical experts, Bank Group staff, and application programming interface, and World Bank Group communications other stakeholders. more. The site’s launch drew the attention support for FIAS programs in FY17 of users around the world and very positive ranged from major report launches to In February, T&C held the Knowledge feedback. In June, TCdata360 received project-related videos to results stories Management team’s inaugural Learning a Vice Presidential Unit Team Award documenting the economic impact of Week. The event, though not funded by from the Equitable Growth, Finance and the FIAS program. On the operations FIAS, brought together more than 500 Institutions (EFI) Global Practice Group. side, the communications team worked staffers from the more than 80 T&C offices A complementary report, Harnessing with the T&C gender team on production worldwide to headquarters for a series of the Power of Big Data for Trade and of the T&C Gender Practice Note and seminars, discussion groups, deep-dives, Competitiveness Policy, highlights T&C data- an accompanying brochure for use and other learning events. Much of the driven projects and applications for big data by operational teams, clients, donor discussion involved FIAS-supported work in development. representatives, and key stakeholders. On the donor relations side, communications support included production of the FIAS 2016 Annual Review, which provided data not only on project accomplishments during FY16 but also summed up FIAS- supported activity for the FY11–16 strategy cycle. Work under the new strategy cycle went forward in FY17 with the help of a strategy document and summary brochure At the beginning of 2017, the communications team designed to ensure T&C’s World Bank and IFC teams worldwide understood the goals promoted the launch of the TCdata360 open-source and approach of the new FIAS strategy, the data portal. Through the end of FY17, TCdata360 had strategic pillars, and thematic priorities. attracted At the beginning of calendar year 2017, the communications team coordinated a major outreach effort in support of the TCdata360 open-source data portal. The site’s launch 123,609 page views and 46,834 unique visitors, drew the attention of users around the world and strongly positive feedback. Through the end of FY17, TCdata360 had attracted 123,609 page views and 46,834 unique visitors, making it one of T&C’s most making it one of T&C’s most visited information portals. visited information portals. World Bank Group communications rely T&C held the Knowledge Management team’s inaugural Learning Week seminar. increasingly on social media channels to FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 68 FIAS 2017 Annual Review 69 04 reach beyond long-established audiences. Team Awards engagement paved the way for a World During FY17, the T&C Newsletter had 18,500 Bank loan of $100 million in FY16–17. The P4R Work by T&C teams won recognition in online subscribers and 26,300 Twitter aims to improve the investment climate and several areas in FY17. Some of these are followers, a 17 percent increase from FY16. promote private investments, job creation, mentioned in context throughout the Annual Those followers generated 3.2 million and sustainable industry. Review. Other significant awards and impressions and 143,000 engagements along recognition are described below. The South Asia Competitiveness Flagship with 3,620 retweets. The Competitiveness topic page, which encompasses FIAS Report, South Asia's Turn: Policies to Boost The collaborative Program for Results for and related programs, drew 45,114 page Competitiveness and Create the Next Export Jordanian and Syrian Refugees (Jordan views and 25,330 unique visitors in FY17; Powerhouse, won an EFI VPU award for P4R) won a President’s Award for Excellence Investment Climate drew 22,090 page leadership and innovation in analytical and an EFI Vice Presidential Unit Award for views and 14,315 unique visitors (low totals work in the region. The report combines work in FY17. This complex project involved due to the mid-year relocation of that site); quantitative and qualitative methods to collaboration across the Bank Group. The Competitive Sectors drew 857 page views identify new, underappreciated drivers of effort is employing technical and financial and 717 unique visitors; Competition Policy competitiveness and productivity in the tools in new and innovative ways to address drew 1,263 page views and 732 unique region: urbanization, global value chains, and an extremely challenging political economy visitors. innovation. The report develops an evidence- stemming from the conflict in Syria. The based case for the urgency of boosting program has provided important lessons Other significant communications productivity if the region is to create the learned for a second generation of projects milestones during FY17 included a major more than one million quality jobs per month addressing refugee challenges. The project effort in support of the launch of the Africa it requires to eliminate extreme poverty and was completed quickly, overcoming several Competitiveness Report, a joint publication boost shared prosperity. The report and its obstacles, including new financing issues. and launch event co-sponsored by the accompanying industry case studies have Collaboration was extensive—with some six Bank Group, the World Economic Forum, been downloaded more than 100,000 times Global Practices involved, as well as IFC. and the African Development Bank. The since the launch in October 2016, placing the Bank Group leadership and the international The South Asia Competitiveness Flagship Report, communications team similarly worked flagship among the top 15 most downloaded community have been following the P4R’s South Asia's Turn: Policies to Boost Competitiveness during FY17 on the launch (in October 2017) reports ever by the World Bank. progress closely. and Create the Next Export Powerhouse of the Global Investment Competitiveness Report 2017–2018, a new flagship publication The government of Zambia awarded a TCdata360 was a finalist and, ultimately, examining policy issues related to foreign Certificate of Reform Champion to the runner up in the Bank Group’s 2017 direct investment (FDI) in developing Zambia Investment Climate Program II for its KNOWbel awards contest, in the Increasing countries. success in supporting private sector reforms. Efficiency category. In all, five T&C projects The government expressed appreciation were recognized out of 73 nominations Support for investment climate, competitive to the team for work in promoting market in the 2017 Vice Presidential Unit Awards; sectors, and competition policy projects— competition and trade facilitation. Zambia three of these were from FIAS-funded at the donor, client, partner, and team recorded two FIAS reforms in FY17, in tax projects: Economic Opportunities for levels depends upon solid data combined simplification and compliance and trade Jordanians and Syrian Refugees; TCdata360; with storytelling that gets to the human logistics. and Competition & Market Regulation in level of project activity and impact. The Mexico—From Analytics to Action. The other The Morocco Power of Information in communications team supported this effort two were the South Asia Competitiveness Improving Unequal Public Service Delivery with results stories and feature stories on Flagship Report and the Morocco Power project was led by T&C in close cooperation a broad range of topics, many in countries of Information in Improving Unequal Public with the Governance Global Practice. It that have benefited from FIAS-supported Service Delivery. developed a methodology to increase projects. These included reporting on business regulation improvements to transparency and predictability in public Investment climate work in Punjab, Pakistan, help the tourism industries in Peru and service provision. In a country where public won MENA Region recognition. The Mozambique, investment climate reform in contracts account for 17 percent of GDP, late investment climate advisory team engaged Nepal, creation of a new market for purple payments can have a stifling effect on firms, at the highest levels in the government tea in Kenya, agribusiness reforms in Mali particularly small and medium enterprises. of Punjab, including the Chief Minister, and Côte d’Ivoire, and initiatives toward The team identified uneven regulatory and identified key investment climate cleaner textile industries in Bangladesh. implementation and wide variations in how reforms needed for fostering growth. The firms were treated, then helped government design and implement solutions. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 70 FIAS 2017 Annual Review 71 05 FIAS-supported activities covered in the FIAS noted, IFC’s total contribution ($5.0 million) was in the form of a direct contribution of The ability to generate client contributions is constrained due to the high concentration of 2017 Annual Review were co-financed via a set $2.0 million to a FIAS trust fund account and $3.0 million as administrative budget FIAS activities in International Development Association (IDA) countries as well as of trust funds managed by a joint World Bank- to cover sustaining costs associated with countries in fragile and conflict-affected the management of FIAS and IFC’s advisory situations (FCS). In the case of FIAS co- IFC global practice under the Equitable Growth, services global business. In addition, IFC financed projects managed by IFC regional Finance & Institutions Practice Group (EFI). contributed $2.6 million from FMTAAS to support a range of global knowledge units, client contributions typically are accounted for under the regional programs management and product design and and are therefore not included as part of the development projects implemented under financial results reported in the FIAS Annual Financial results reported in this section cover the FIAS umbrella. T&C uses FIAS core Review. FInancial Results the funds managed by T&C under the FIAS funds to supplement these global product trust fund structure as well as supplemental activities. The total FY17 World Bank Group In-Kind Support Via Staff Exchanges and funds earmarked for the implementation contribution to FIAS is $9.6 million, or 25.6 Secondments of the FIAS strategy. In administering the percent of all FY17 FIAS contributions.4 $37.5m Throughout the previous strategy cycles FIAS program, T&C followed IFC’s standard Core contributions received from donors the FIAS program has benefited from in- accounting policies and procedures as noted amounted to $4.6 million in FY17. While kind resources that several donors have below.3 FIAS financial reports use cash-based most donors who supported FIAS during made available in the form of secondments reporting in alignment with the quarterly the FY12–16 strategy cycle provided consent and staff exchanges. In FY17, a senior staff financial reports on IFC’s donor-funded to roll over the unused portions (i.e. fund member from the Korean Ministry of Trade, operations. total contributions for FY17 from all balances) of their FY12–16 contributions to Investment, and Energy was seconded to sources the new FY17–21 funding cycle, core donor work on FIAS-funded activities. Such staff Funding contributions are well below expected exchanges and secondments offer a way for and Resource Use Core, Programmatic and Project-Specific fundraising targets. The total amount of FIAS partners to be directly involved in the $32.9m Contributions core funding received in FY17 from the program and establish direct connections World Bank Group and donors amounted to between their respective private sector In FY17 FIAS donors, clients, and the World approximately $11.6 million, consisting of $4.6 development programs and FIAS. Bank Group contributed a total of $37.5 million million in contributions from donors and $7.0 (including trust fund administration fees of million from the World Bank Group. $1.1 million) to the various FIAS trust funds, supporting the implementation of a broad- $9.6m Programmatic contributions from in FY17 project expenditures based investment climate reform program donors made available through thematic under the FIAS umbrella. Contributions from and regional FIAS Trust Funds totaled IFC in the form of allocations from the Funding approximately $16.0 million in FY17. Mechanism for Technical Assistance and Lower-than-expected programmatic $18.7m Advisory Services (FMTAAS) are treated as contributions from donors in the first year an additional source of funding for FIAS-related of a strategy cycle are not unprecedented, activities and are included in total FY17 FIAS particularly in FY17 as large programs such the total FY17 World Bank Group contributions of $37.5 million. In FY17 IFC’s as tax and trade were transferred to other contribution to FIAS is $9.6 million FMTAAS allocation totaled $2.6 million (see implementing Global Practices. details in Table 1: Sources and Uses of Funds). Overall, FY17 contributions were slightly below In FY17, project-specific contributions from total for client-facing project the annualized fundraising target of $40.0 donor partners amounted to $7.3 million, expenditures in FY17 million based on the five-year funding goal of compared to $6.0 million in FY16, reflecting $200 million as set out in the FIAS FY17–21 strong donor interest in client-facing strategy document. investment climate reform interventions and the trend among some donors to World Bank Group core contributions totaled decentralize aid budgets to their local $7.0 million in FY17, including $5.0 million from delegations or embassies. IFC and $2.0 million from the World Bank. As 4 3 Annual contributions from the World Bank are treated in the same manner as core donor funds and are co-mingled with other donor funds in the FIAS Parent Trust Fund account, as terms The FIAS Annual Review is prepared as a reporting tool for FIAS and conditions allow. Annual contributions from IFC are received as a direct contribution to a FIAS-dedicated trust fund and in the form of regular administrative budget for certain Advisory donors and management, utilizing management account principles. Services mainstreamed positions. Together they comprise IFC’s annual contribution to the FIAS FY17–21 strategy cycle. Contributions received from IFC in the form of allocations from the Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS) are treated as an additional source of funding for FIAS-related activities. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 72 FIAS 2017 Annual Review 73 05 Financial Results 2017 Use of Funds and Fund Balance In FY17, FIAS expenditures for investment climate reform activities reached $32.9 million, a 92 managed to avoid liquidity and cash-flow issues. The transition into the new FIAS FY17–21 percent rate of spend against a strategic spending target of $35.7 million in the first year of strategy cycle presented specific challenges given the ambitious agenda undertaken in the the FY17–21 funding cycle. While staff and consultant costs represent the largest share of total first year. FY17 FIAS expenditures (48 and 32 percent, respectively), indirect costs (infrastructure, office FY17–21 Cycle: Fundraising Challenges occupancy, and other miscellaneous costs) remain relatively low at 5 percent (see Table 1, Sources and Uses of Funds). Between spring and summer 2016, all development partners supporting the FIAS Core FY12–16 trust fund provided consent to rollover their pro-rata share of the unused balance as In FY17, direct and indirect project-related expenditures accounted for 99 percent of total FIAS of June 30, 2016. IFC and IBRD, which contributed to the trust fund, also provided consent. expenditures. The remaining 1 percent covered general and administration costs. To capture The total rollover amounted to $10.6 million and facilitated a smooth transition between cycles. total project cost, general and administration costs such as office occupancy, communications Indeed, thanks to this funding, FIAS commenced its operations as of the very beginning of the and IT, equipment, etc. are accounted for as direct costs to the project. Administration fees new cycle. are collected by IFC to cover trust fund administration costs and are deducted from donor contributions at the time of receipt. In FY17, IFC collected trust fund administration fees of $1.1 The FIAS-supported team is in the process of consolidating trust funds and once again million from FIAS donor contributions.5 encourages donors to make a portion of their contribution to FIAS available as core funding in support of the overall strategy. While overall fundraising results for the strategy cycle are At the end of FY17 fund balances in the various FIAS trust funds totaled $23.5 million,6 strong, development partners are increasingly pledging resources toward a specific set including $9.5 million of core funds and about $14.0 million of program- and project-specific of activities covered in the FIAS agenda. As of June 30, 2017, donor contributions to FIAS funds received under multi-year donor agreements. This amount is significantly lower than the FY17–21 Core equal a yearly average of $4.8 million, against the yearly average of $9.5 million fund balances in the various FIAS trust funds ($37.2 million) reported at the end of FY16 due in in the FY12–16 cycle. FIAS core donor support provides the needed flexibility to allocate FIAS large part to a shift in strategic focus and the exit of two product lines (Tax Transparency and funds to support the implementation of FIAS strategic priorities in the regions, including the Trade Facilitation). As noted above, the TFSP trust fund now stands on its own, independent ability to provide rapid response to emerging challenges faced by clients. In addition, core of FIAS. funding supports the design and development of global knowledge products which inform and facilitate the development of innovative client-facing solutions. The management team In line with prudent financial management principles, FIAS resources are strategically welcomes a continued engagement with development partners on this matter. FY17 FIAS EXPENDITURES FY17 DONOR CONTRIBUTIONS (Gross Receipts) 100% = $32,884,715 100% = $37,549,639 n Client Facing (57%) n Programmatic (42.6%) n Non-Client Facing (22%) n World Bank Group (25.6%) n Program Management & Support (19%) n Project Specific (19.5%) n General & Administrative (1%) n Core (12.3%) PERCENT OF FY17 FIAS DIRECT PROJECT EXPENDITURES 100% = $26,055,015 n Client Facing (72%) n Non-Client Facing (28%) 5 FIAS trust funds are subject to the standard IFC trust fund administration fee of 5 percent. Trust fund administration fees collected by IFC are included in Table 1, Sources of Funds. 6 FIAS trust fund cash balances less outstanding consultant commitments and balances refunded to donors.. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 74 FIAS 2017 Annual Review 75 05 Financial Results 2017 Table 1: Sources and Uses of Fundsa – In US$ Thousands Table 1: Sources and Uses of Fundsa – In US$ Thousands (continued) FY12–16 CYCLE FY17–21 CYCLE FY12–16 CYCLE FY17–21 CYCLE FY12–16 FY17 FY12–16 FY17 SOURCES OF FUNDS FUND BALANCE RECEIPTS SOURCES OF FUNDS FUND BALANCE RECEIPTS WORLD BANK GROUP CONTRIBUTIONS PROJECT SPECIFIC DONOR CONTRIBUTIONS Core Contributions European Commission 2,318,000 - - IFC 1 23,388,000 2,003,875 5,000,000 France 4,960,000 1,246,430 1,044,950 IBRD 8,000,000 1,221,162 2,000,000 Gates Foundation 2,742,000 2,069,253 - MIGA 6,400,000 Kauffman Foundation 211,000 - Subtotal Core Contributions 37,788,000 3,225,037 7,000,000 Korea 200,000 - Project-Specific and Other Contributions 2 Trade MDTF 225,000 - IFC AS - Other Contributions - Project-Specific 9,939,000 1,882,864 Trademark East Africa 10,665,000 673,943 IFC AS - Other Contributions - Business Development 478,000 USAID Legacy 10,205,000 1,334,850 1,424,353 IFC AS - Other Contributions - Administration 3,132,000 716,477 USAID New 2,505,804 4,869,485 Subtotal Project Specific and Other Contributions 13,549,000 - 2,599,341 Subtotal Project Specific Donor Contributions 31,526,000 7,830,280 7,338,788 Subtotal World Bank Group Contributions 51,337,000 3,225,037 9,599,341 TOTAL WBG AND DONOR CONTRIBUTIONS 185,816,835 23,554,449 37,549,539 CORE DONOR CONTRIBUTIONS CLIENT CONTRIBUTIONS 699,000 Austria 3,205,000 463,349 1,045,800 TOTAL RECEIPTS 186,515,835 23,554,449 37,549,539 Canada 17,377,000 2,354,970 Trust Fund Administrative Fees 3 7,151,000 1,099,899 Ireland 1,186,000 224,319 632,130 TOTAL (NET) RECEIPTS 179,364,835 23,554,449 36,449,640 Luxembourg 2,250,000 355,090 673,890 Netherlands 2,620,000 - 1,000,000 Norway 3,843,000 576,550 FY12–16 $ FY12–16 % FY17 $ FY17 % Sweden 7,063,000 988,405 USES OF FUNDS4 Switzerland 1,500,000 1,316,406 1,250,000 Staff 80,745,922 50% 15,724,142 48% United Kingdom 8,472,000 - Consultants and Temporaries 41,145,014 26% 10,503,071 32% Subtotal Core Donor Contributions 47,516,000 6,279,089 4,601,820 Travel 26,315,588 16% 5,053,184 15% PROGRAMMATIC DONOR CONTRIBUTIONS Indirect Costs 11,886,379 7% 1,604,318 5% Austria (IC Cooperation Program) 11,368,000 2,783,512 3,137,400 TOTAL USES OF FUNDS 160,092,902 100% 32,884,715 100% Australia (Investment Policy and Promotion) 1,449,000 681,147 712,073 1 Annual contributions from IFC are received as a direct contribution to a FIAS-dedicated trust fund account and in the form of Advisory Services (AS) EU (ECOWAS Investment Policy) 5,330,000 1,543,029 3,457,608 administrative budget to cover staff costs of a number of mainstreamed positions related to FIAS. IFC’s FY17 annual contribution to the FIAS FY17–21 EU (Investment Policy and Promotion) 209,080 funding cycle is $5.0 million, $2.0 million as a direct trust fund contribution and $3.0 million as AS administrative budget. 2 Contributions received from IFC in the form of allocations from the Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS) are Ireland (Africa) 2,876,835 - treated as an additional source of funding for FIAS-related activities. Korea (Industry) 125,000 - 3 Administration fees collected by IFC to cover the cost of trust fund administration. Switzerland (Industry) 2,000,000 - - 4 Uses of Funds table includes expenditures from all sources of funds that support the FIAS FY17-21 strategic agenda. FIAS FY12-16 funding cycle expenditures (previously reported) have been adjusted for comparative purposes. Switzerland (MCICP) - 6,000,000 United Kingdom (BEED) 1,212,355 2,493,429 United States (Doing Business) 2,160,000 - - Subtotal Programmatic Donor Contributions 25,308,835 6,220,043 16,009,590 EXITED/EXITING PRODUCT LINES Table 2: Expenditures by Advisory Services (AS) Activity Australia (Trade Facilitation) 3,217,000 Canada (Trade Facilitation) 1,821,000 FY12–16 % FY12–16 FY17 % FY17 EU (ECOWAS Trade Logistics) 2,423,000 STANDARD AS ACTIVITY EXPENDITURES ACTUAL ACTUAL ACTUAL ACTUAL EU (Trade Facilitation) 4,338,000 PROJECT RELATED EXPENDITURES Korea (Trade Logistics) 550,000 of which: Direct Project Expenditures 1 113,898,894 71% 26,055,015 79% Luxembourg (Tax Transparency) 989,000 of which: Indirect Project Expenditures 2 38,121,978 24% 6,398,555 19% Netherlands (Investing Across Borders) 200,000 TOTAL PROJECT RELATED EXPENDITURES 152,020,872 95% 32,453,570 99% Netherlands (Tax Transparency) 300,000 GENERAL & ADMINISTRATION COSTS 3 8,072,031 5% 431,145 1% Norway (Trade Facilitation) 5,504,000 TOTAL STANDARD AS ACTIVITY EXPENDITURES 160,092,902 100% 32,884,715 100% Norway (Trade Logistics) 1,000,000 Switzerland (Tax Transparency) 3,100,000 1 Direct Project Expenditures include project preparation, implementation and supervision costs. Switzerland (Tax) 2,500,000 2 Indirect Project Expenditures include program management and operational support costs i.e. product development, M&E, knowledge sharing & staff development, donor relations, public relations and other non-overhead costs such as administrative and back-office support staff. Switzerland (Trade Facilitation) 1,300,000 3 General & Administration includes overheads such as rent, communications, equipment, etc. United Kingdom (Tax Transparency) 2,133,000 United Kingdom (Trade Facilitation) 754,000 Subtotal Exiting Product Lines 30,129,000 - - FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 76 FIAS 2017 Annual Review 77 06 Annex 1 : FIAS REFORM TOTALS AND DESCRIPTIONS Annex 1 : FIAS REFORM TOTALS AND DESCRIPTIONS 1.1 FIAS / T&C GP Scorecard - Summary 1.2 Reforms and Results from FIAS-Funded Projects FY17–21 NUMBER OF DB STRATEGIC Cumulative CUMULATIVE STRATEGY COUNTRY REFORM TOPIC REFORM DESCRIPTION REFORMS VALIDATED THEME INDICATOR FY12–16 FY17 FY18 FY19 FY20 FY21 FY17–21 TARGET AFRICA 20 Reform Totals 1. % of FIAS client-facing project Cabo Verde Construction Cabo Verde made dealing with construction permits easier by publishing all regulations related to 1 DB18 FY17 Focus on Priority implementation spend in IDA 75% 70% 70% 70% permits construction online free of charge. Clients countries Cabo Verde Trade logistics Cabo Verde made exporting and importing easier by implementing an automated customs data 1 DB18 % of FIAS client-facing project management system, ASYCUDA World. implementation spend in Sub- 55% 54% 54% 50% Cameroon Getting credit The Central Bank of Cameroon created a database with information on financial transactions through banks 1 DB18 Saharan Africa and other financial institutions, streamlining the process of accessing credit by making it easier to check % of FIAS client-facing project information on the creditworthiness of borrowers. 29% 28% 28% 25% Reforms By implementation spend in FCS Gabon Construction Gabon made dealing with construction permits easier by publishing all the procedures, costs, laws, and 1 DB18 Region 2. Number of IC Reforms supported permits regulations pertaining to getting a construction permit on a government website. 341 62 62 275 Delivering by FIAS Ghana Construction Ghana made information on obtaining construction permits more accessible by uploading relevant laws and 1 DB18 Significant % of IC reforms supported by FIAS permits information on procedures and fees to a government website. Business Results in IDA countries 73% 58% 58% 70% Guinea Investment In April 2017 the Ministry of Mines adopted a policy on local content development focused on developing 1 DB18 % of IC reforms supported by FIAS policy - Entry and expanding local supply chains, increasing the competitiveness of domestic firms, and adapting 30% 21% 21% 25% in FCS countries educational and vocational training to current market demands. The first step involved setting up a % of IC reforms supported by FIAS Department of Community Relations and Development of Local Content within the ministry. The work of Publications, 66% 32% 32% 50% Events in Africa the department focuses on agreements and conventions relating to local content and on promoting local 3. Client satisfaction: FIAS supported employment and the hiring of domestic companies and non-governmental organizations. An external Client Satisfaction projects (results from IFC Client 92% 90% 90% 90% consulting firm was hired to collect data on existing levels of local content among mining operators and and Development survey) subcontractors in Guinea. A resulting report produced data from surveys and interviews with 12 mining Effectiveness Development Effectiveness: FIAS operators and 138 local subcontractors. This data is being analyzed by the ministry to adopt appropriate supported projects (% of projects implementation regulations. Another step towards the implementation involves creation of a National 88% 100% 100% 80% Suppliers Database, with a first pilot in the mining sector benefiting from Bank Group support. A call for rated satisfactory in terms of development effectiveness) proposals has been published and the team is reviewing submitted proposals. Funding Received Per Projects 4. Direct Compliance Cost Savings $208M $8.7M $8.7M $250M Madagascar Getting credit The central bank has merged different credit databases covering all commercial banks and the majority of 1 DB18 Measuring Impact Investment Generated via microfinance. Coverage has reached 5 percent of the adult population, the threshold to receive points in the $1.59B $153.2M $153.2M $1B Doing Business Getting Credit Indicator. facilitation of FDI in priority sectors* Madagascar Starting a The government’s economic development website now carries legal advertisements for business creation, 1 DB18 Productivity** TBD business eliminating the need to go to a local newspaper agency for publishing. Jobs** TBD Malawi Construction The project supported the formation of Sector Working Groups and provided technical assistance in support 1 DB18 Spending 5. IBRD and IFC investment operations permits of reforms. Among other steps, the Blantyre City Assembly published updated fees for services provided TBD Per Project Leverage informed and enabled by FIAS** by the city council. Fees to obtain a building permit were halved from 0.8 per cent to 0.4 per cent of development costs. 10/25/17 * The $1 billion target for investment generated is derived using an improved methodology. Using the previous methodology, the comparable investment generated target would be $2 billion for Malawi Getting credit Secured creditors receive an automatic stay on enforcement when data is entered into a court-supervised 1 DB17 FY17–21, or double the target of the previous cycle. reorganization procedure. Secured creditors may continue to enforce security with permision of the court ** Methodology for setting targets for these indicators to be developed during FY17–21 cycle. before tax claims and employee claims. This provides the secured creditors with highest possible priority Annexes in insolvency proceedings. The implementation effort involved engagement with banks to follow up on submission of data to credit bureaus, and training of insolvency practitioners and registrar general staff. Malawi Resolving In insolvency proceedings, new regulation of insolvency practitioners protects creditor rights. The reform 1 DB18 insolvency streamlined the insolvency process by introducing a reorganized procedure and enabling debtors to remain in business during insolvency proceedings. Mali Investment API Mali, the country’s investment promotion agency, has played an important role in the launch of 1 policy - 14 agribusiness investments with a total estimated value of $9.7 million. Using the team’s 40 percent Promotion attribution rate, this works out to $3.9 million in investment generated that can be claimed by the project. These investments have also already created 223 jobs, with more than half going to women. Investors credit API with guiding business plan development, registration, licensing, and issuing exemptions. In a survey of investors, 13 of 14 companies said that API provided valuable assistance during their establishment process; 5 said that API was the most helpful agency they dealt with during their establishment process. Mauritius Construction Mauritius made dealing with construction permits easier by reducing the number of days to obtain a 1 DB18 permits sewage connection through an online application, reducing the number of days to obtain a building and land use permit from 21 to 18 days, streamlining process to obtain building and land use permits Mauritius Property Mauritius made registering property easier by publishing service standards on its website, improving on 1 DB18 transfers transparency of the information index, and increasing the reliability of the infrustructure and land dispute resolution index. The reform reduced the number of days to register property from 2 to 0.5. Mauritius Starting a Mauritius made starting a business easier by updating its online business registration platform, reducing 1 DB18 business the time needed to incorporate a company after payment to two hours, eliminating the procedure to re-register with the social security office for starting a business, reducing the number of procedures for women to register a business by reducing the need to provide an identity card, and reducing the cost of starting a business by eliminating trade fees. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 78 FIAS 2017 Annual Review 79 Annex 1 : FIAS REFORM TOTALS AND DESCRIPTIONS Annex 1 : FIAS REFORM TOTALS AND DESCRIPTIONS 1.2 Reforms and Results from FIAS-Funded Projects (continued) 1.2 Reforms and Results from FIAS-Funded Projects (continued) NUMBER OF DB NUMBER OF DB COUNTRY REFORM TOPIC REFORM DESCRIPTION REFORMS VALIDATED COUNTRY REFORM TOPIC REFORM DESCRIPTION REFORMS VALIDATED Seychelles Construction The Seychelles Planning Authority made building regulations availbale online, updating the website 1 DB18 Azerbaijan Protecting Azerbaijan strengthened minority investor protections by increasing shareholder rights and roles 1 DB18 permits to include this information in May 2017. The reform has improved transparency by making legislation investors in majority corporate decisions, clarifying ownership and control structures, and requiring greater related to the construction industry easily available to the public. corporate transparency. Seychelles Property transfers In February 2017, the Seychelles launched a complaint mechanism for dealing with problems at the 1 DB18 Bosnia and Investment policy The reform increased information sharing on incentives via an open online inventory. An inventory of 1 land and property registry. Complaints may now be filed online via a dedicated webpage. Herzegovina - Incentives incentives has been made available for 10 municipalities, with incentives accessible in English and the Zambia Tax simplification Zambia made paying taxes easier by introducing an online platform for filing and making payments. The 1 DB18 local language. This new online access is improving the transparency and governance of incentives for and compliance government also reduced the property transfer tax rate. foreign and domestic investors. management Bosnia and Licenses and The team’s intervention combined work in several subnational localities (municipalities and cantons) 1 Zambia Trade logistics Zambia made exporting and importing easier by implementing a web-based customs data management 1 DB18 Herzegovina permits into one reform. Project work was instrumental in streamlining licenses and permits related to platform, ASYCUDA World. business operations through a system review that proposed ways to simplify and eliminate regulation Zimbabwe Zimbabwe made business start-up more efficient by decreasing the time needed to register with 1 DB18 at the municipal level. Five municipalities and the Sarajevo canton were involved in an effort that the National Social Security Authority (NSSA) and by removing a requirement to publish the license began in the fall of 2015 and finished in December 2016. Results have been verified on the ground application in a local newspaper. The Ministry of Local Government waived the need to advertise for independently since then, enabling the team to report as of the end of FY17. The effort involved review businesses operating in designated areas. The Bank Group team provided technical support in business of 594 business licenses and permits in these localities. The review led to streamlining of licenses regulation reform. As part of the technical support provided to a number of government agencies, and permits, reducing processing time, costs and fees, and documentation. It also led to improved the Harare City Council, and a technical working group on starting a business. the team provided a online access to these licenses and permits. Over 85 percent of business procedures were improved granular reform action plan that identified issues hindering business start-up in Harare and making or eliminated; related costs declined by 28 percent from the pre-reform baseline in these six localities. recommendations to streamline and eliminate a number of procedures. Specific focus was given to Waiting time was reduced by approximately 22 percent, and average taxes and fees were reduced by automation and reduction of time and cost to launch. The team facilitated a study visit to New Zealand 11 percent. Each locality had a minimum of three business-related regulations that were significantly (ranked No 1 in this Doing Business Indicator) for the working group on starting a business. Bank Group changed, for example, local administrative stamp duties and local fees for businesses, local permits automation experts visited Harare to review ongoing efforts and advise on the best practices. The team and licenses and administrative deadlines for processing requests. The improvements were verified by prepared a number of technical notes addressing various components of the reform, including licensing the Europe and Central Asia monitoring and evaluation team. In addition, the project helped establish simplification and one-stop-shop models. Zimbabwe has used the granular action plans and technical six electronic registries of licenses and permits that reduced the risk of unclear legal requirements for advice to design and prioritize reforms. businesses. All relevant information related to each single administrative procedure can be found on EAST ASIA AND THE PACIFIC 2 these e-registries along with submission forms. The online system provides transparency and clearly Mongolia Investment policy The project provided technical assistance to the government and private sector resulting in abrogation 1 sets out the required steps. Officials must meet specific deadlines for processing submissions; the - Entry of the Strategic Entities Foreign Investment Law and adoption of a new investment law. Under the old deadlines are publicly available and included on all submission forms. law, government had power of discretionary approval and takeover of any existing foreign investment Croatia Property transfers Croatia made it easier to transfer property by decreasing the real estate transfer tax from 5 percent to 1 DB18 in mining, the financial sector, and media. The new Investment Law eliminated arbitrary screening of 4 percent. FDI by private intities in these three sectors and other business sectors as well. Kazakhstan Enforcing Kazakhstan made enforcing contracts easier by introducing additional time standards for key 1 DB18 Myanmar Investment policy The Bank Group worked with government to enact a new investment legal framework applicable to 1 DB18 contracts court events that are respected in the majority of cases. A law passed in February 2017 included - Entry both domestic and foreign investors. The landmark reform opened a significant number of sectors amendments relating to banking and improving conditions for entrepreneurial activity. Among the to investment, significantly streamlining investment entry procedures and strengthening investment changes in the civil procedure code, the law sets additional time standards for key court events in civil protection guarantees. The proposed legal framework was subject to the widest public consultation cases. in the country over the last decade. The new law has already contributed to more than doubling the Kazakhstan Kazakhstan made it easier to transfer a property by improving transparency and land dispute Property transfers 1.  1 DB18 amount of FDI flowing into the country, from $4.1 billion in 2014 to $9.5 billion in 2016. resolution mechanisms of the land administration system. Under the reform, land registration plans EUROPE AND CENTRAL ASIA 26 were made available in Almaty on a government website. Citizens can access the information by Albania Tax simplification Albania introduced an online system for filling taxes and making payments. Since 2007, Albania 1 DB17 creating an account on the website using their identification number. and compliance has been working on an online system for filing corporate income and value-added taxes, labor In February 2017, the government of Kazakhstan started publishing statistics on the number of land 2.  management contributions, and payroll taxes. The platform first started for VAT declarations and for large taxpayers. disputes in the first instance. In 2012 it was expanded to other types of taxes and taxpayers. However, the online system was not Kazakhstan Protecting Kazakhstan strengthened minority investor protections by increasing shareholder rights and roles in 1 DB18 user-friendly. Under the upgraded system, business are required to file online. investors major corporate decisions, clarifying ownership and control structures, requiring greater corporate Armenia Inspections Beginning in 2015, Armenia committed to inspection reform improve inspection outcomes and reduce 1 transparency, and allowing greater access to corporate information during trials. The new law, which burden for businesses. Resulting reform helps reduce the number of inspection bodies, eliminates took effect in March 2017, directly addresses shareholders rights, ownership and control structure, potential overlaps and duplicating roles of inspectorates and other state agencies, clarifies their roles corporate transparency, and the ease of shareholders suits. In relation to limited liability companies, in dealing with specific types of risks, and focuses on risks in planning inspections. The new inspection the amendments introduced an optional external audit for medium-sized LLCs and mandatory external regime also introduces a notification and information system to alert businesses of requirements audits for large LLCs when certain thresholds are satisfied. Regarding joint stock companies, the law and expectations from inspectors. Inspectorates have shifted to a risk-based inspection system; the clarified the procedure and set time limits for payment of dividends and introduced a requirement that government adopted checklists and created new inspectorates while reducing the overall number of shareholder approve issuance of new shares. The reform also clarified the right of parties in corporate inspections bodies. disputes to request documents relevant to a case without identifying each specific document. Armenia Investment policy To increase the transparency and create a comprehensive incentives inventory, the government 1 - Incentives published a comprehensive mapping of all incentives provided to investors across the different Kosovo Getting Getting credit Kosovo strengthened access to credit by adopting a new law that establishes clear 1 DB18 legislations and levels of government. The inventory is available in English and Armenian, with credit priority rules inside bankruptcy for secured creditors and clear grounds for relief from a stay for secured each incentive linked to additional information on relevant legal frameworks, eligibility criteria, creditors in reorganization procedures. administrative and monitoring bodies, and policy objectives. All agencies offering incentives to foreign Kosovo Starting a Kosovo made starting a business easier by simplifying the process to register employees. The reform 1 DB18 and domestic investors are instructed to participate in this process. The inventory, with supporting business changed the process to register employees so that separate registration of employees is no longer documents, is published at the Ministry of Economic Development and Investments website. required, and companies register new employees through their regular monthly payroll tax return. Azerbaijan Enforcing Azerbaijan made enforcing contracts easier by introducing a system that allows users to pay court 1 DB18 contracts fees electronically. Court fees are regulated by the Law On Stamp duties, which contains a series of Kosovo Resolving Kosovo made resolving insolvency easier by introducing a legal framework for corporate insolvency, 1 provisions on the electronic payment of fees. The law has been under implementation since November insolvency making liquidation and reorganization procedures available to debtors and creditors. 2016. Court fees can now be paid electronically for the Baku Administrative Commercial Court through a government payment portal. Continued on next page Continued on next page FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 80 FIAS 2017 Annual Review 81 Annex 1 : FIAS REFORM TOTALS AND DESCRIPTIONS Annex 1 : FIAS REFORM TOTALS AND DESCRIPTIONS 1.2 Reforms and Results from FIAS-Funded Projects (continued) 1.2 Reforms and Results from FIAS-Funded Projects (continued) NUMBER OF DB NUMBER OF DB COUNTRY REFORM TOPIC REFORM DESCRIPTION REFORMS VALIDATED COUNTRY REFORM TOPIC REFORM DESCRIPTION REFORMS VALIDATED Kyrgyz Getting credit The Kyrgyz Republic improved its credit information system by adopting a new law on exchanging credit 1 DB18 Guyana Property transfers The team provided the government with diagnostic findings and recommendations across a variety of Doing 1 DB18 Republic information. The law, which entered into force on July 16, 2016, fully regulates the activities of credit Business indicators, including Registering property. A followup mission in 2017 engaged key stakeholders bureaus, establishing a procedure for sharing information between data users, data providers, credit bureaus, related to property registration and the Ministers of Business and Finance to discuss reform in this area. The and public authorities. Businesses and individuals have the right to receive a credit report from a licensed efforts to increase transparency and efficiency at the property registry are ongoing under this engagement. credit bureau free of charge once a year. Additionally, the law guarantees borrower rights to inspect their The effort began with high-level decisions to allocate more resources to improve operations. This reform own credit data. A related bylaw outlines which documents the prospective credit bureaus need to submit to decreased the time needed for registering property from 75 to 45 days. the National Bank of the Kyrgyz Republic in order to be licensed. A further provision which went into force in Panama Resolving The team delivered a Doing Business Memorandum to Panama, which updated the previous memo from 1 DB18 October 2016 sets out specific requirements for activities of a credit bureau such as ensuring reliability and insolvency 2014. Both included reform recommendations in the area of resolving insolvency, including comments to the safety of data, providing credit reports, managing changes in credit history, organizing internal audit of the draft insolvency law which was passed in March 2016 and became effective in January 2017. As recorded by activities of the credit bureau, and supervising the activities of the credit bureau. Doing Business, the new legislation has increased the strength of the insolvency framework index by 2 points. Kyrgyz Tax simplification The government introduced innovative methods of making tax payments for small and medium businesses. 1 St. Kitts Trade logistics St. Kitts and Nevis made trading across borders easier by updating its website and implementing ASYCUDA, 1 DB18 Republic and compliance Electronic tax payment options through point-of-service terminals, ATM machines, Internet banking, and and Nevis the automated customs data management system, reducing documentary compliance time for exports management mobile banking and electronic purse are available in eight banks, enabling taxpayers to save money and and imports. The project supported the customs department in developing a guide for import and export time, eliminate direct contact between an entrepreneur and tax inspector, and enhance the tax transparency. procedures now available on its website. To increase the awareness among stakeholders, informative materials were developed and made available MENA 4 online. The State Tax Service reports that the amount of non-cash payments has significanly increased from Egypt, Arab Protecting Egypt strengthened minority investor protections by increasing shareholder rights and roles in major corporate 1 DB18 2013 to 2016. Rep. investors decisions. In 2016, the team prepared a reform recommendations matrix that included short-, medium-, Kyrgyz Tax simplification A revision to the tax code reduces tax filing frequency for small and medium enterprises from monthly 1 and long-term recommendations on how Egypt can improve the regulatory environment for businesses in Republic and compliance to quarterly. The project provided assistance in drafting and promoting amendments. It will reduce tax line with global good practices. The matrix included recommendations on protecting minority investors. All management compliance costs of a majority of businesses. As of the end of 2016, nearly 33,000 taxpayers had benefited recommendations for this indicator were implemented over the last Doing Business reporting cycle. from the improved tax administration. Iraq Starting a The team supported Iraq’s business environment reform effort beginning in March 2017. Tax identification 1 DB18 Serbia Construction Serbia made dealing with construction permits faster by implementing an online system and streamlining 1 DB17 business numbers are now issued with the certificate of incorporation. Entrepreneurs are no longer required to register permits the process of obtaining technical conditions for building permits. The reform was made possible due to separately with the tax authority. In addition, since January 2017, the time to register a company has declined the implementation of a new Law on construction permitting which significantly simplified permitting and due to an increase in resources at the registry and improvement of the online registration system. Iraq made introduced electronic permits. The project provided training for local governments to assure successful starting a business easier by combining multiple registration procedures and reducing the time to register a implementation. The newly developed e-permitting software received and processed 35,000 applications in company. the first eight months of 2016, of which 90 percent were resolved. Serbia was able to reduce the time for Iraq Getting credit The project team helped Iraq establish a new credit registry, managed by the Central Bank of Iraq. First legally 1 DB18 construction permitting from 272 days and 18 procedures to 150 days and 12 procedures. established in October 2014, the registry listed 234,967 consumers and 4,877 commercial borrowers as of Serbia Enforcing Serbia adopted a law to broaden and clarify the competence of enforcement agents and the powers of the 1 DB18 January 2017, with information on their borrowing history over the past five years. contracts courts in enforcement proceedings. The law entered into force in July 2016. Its main purpose is to eliminate West Bank Getting credit The Bank Group team traveled to Ramallah in December 2015 to meet with relevant public and private 1 DB18 deficiencies of the previous enforcement regime by broadening enforcement officer powers, increase and Gaza stakeholders in response to a request from the Ministry of National Economy for assistance in improving judicial oversight of the work of enforcement officers, improve the appeals mechanism against enforcement the investment climate in 8 of the 10 areas covered by the Doing Business report, including the Getting decisions, provide clearer definitions of legal solutions in order to avoid ambiguities in their application, and credit indicator. A reform recommendations matrix was prepared with short-, medium-, and long-term include a clearer definition of the status and role of enforcement officers. recommendations on how the Palestinian Authority can improve the regulatory environment for businesses in Serbia Starting a Serbia made starting a business easier by reducing the signature certification fee and increasing the 1 DB18 line with global good practices, including recommendations in the area of Getting credit. The West Bank and business efficiency of the registry, reducing the time for business registration. Gaza strengthened access to credit by introducing a new secured transactions law and by setting up a new Tajikistan Starting a Tajikistan made starting a business easier by doubling the revenue threshold for mandatory VAT registration 1 DB18 collateral registry. The new law implemented a functional secured transactions system. business under a new law adopted in November 2016. SOUTH ASIA 6 Tajikistan Tax simplification The tax authority approved a new risk-based audit system throughout the country. The measure ensures that 1 India Starting a India made starting a business faster by merging the applications for permanent account number and the 1 DB18 and compliance data is shared between the regions and the center in electronic form, thus enabling risk-based auditing and business tax account number, and by improving the online application system. This reform applies to both Delhi and management also clearing the way for subsequent reforms such as VAT and e-filing. A single risk-based audit system is Mumbai. Mumbai also made starting a business faster by merging the applications for the value-added tax used nationwide, ensuring consistency and quality in audit selection and allowing government to adjust the and the profession tax. model if needed. Under the measure, local tax offices effectively lose their discretion in selecting audits, removing a source of potential corruption and abuse. The number of tax audits has decreased from 2,026 in India Protecting India strengthened minority investor protections by increasing the remedies available in cases of prejudicial 1 DB18 2015 to 1,883 in 2016, while tax revenues increased by 34 percent from 2015 to 2016. minority investors transactions between interested parties. This reform applies to both Delhi and Mumbai. Uzbekistan Protecting Uzbekistan strengthened minority investor protections by increasing corporate transparency requirements. 1 DB18 India Enforcing India made enforcing contracts easier by introducing the National Judicial Data Grid, which makes it possible 1 DB18 investors In December 2016, the Ministry of Justice of Uzbekistan amended rules relevant to the Doing Business Contracts to generate case measurement reports on local counts. This reform applies to both Delhi and Mumbai. Protecting Minority Investors indicator. The reform affects disclosure requirements for listed companies India Getting credit India strengthened access to credit by amending the rules of priority of secured creditors outside 1 DB18 and now includes information regarding executive and supervisory board member remuneration and organizations proceedings and by adopting a new law on insolvency that provides a time limit and clear compensation. grounds for relief to the automatic stay for secured creditors during reorganization proceedings. This reform Uzbekistan Starting a Uzbekistan made starting a business easier by rolling out a new platform for business registration, starting 1 DB18 applies to both Delhi and Mumbai. business with name verification as the first step. India Construction India made dealing with construction permits less cumbersome by implementing an online system that 1 DB18 Uzbekistan Tax simplification Uzbekistan made paying taxes easier and less costly by introducing an electronic system for filing and paying 1 DB18 permits has streamlined the process in New Delhi and Mumbai. The online system has streamlined the process of and compliance VAT, land tax, unified social payment, CIT, infrastructure development tax, environmental tax, personal pension obtaining a building permit, thereby reducing the number of procedures and the time required to obtain a management fund contributions, and cumulative pension contributions. building permit in India. Uzbekistan Construction Uzbekistan made dealing with construction permits easier by streamlining the process of obtaining approvals 1 DB18 India Resolving India made resolving insolvency easier by adopting a new insolvency and bankrupcy code that introduced 1 DB18 permits of land plot allocations from various agencies. Insolvency a reorganization procedure for corporate debtors and facilitated continuation of a debtor’s business during insolvency proceedings. This reform applies to both Delhi and Mumbai. LATIN AMERICA AND THE CARIBBEAN 4 Grand Total 62 El Salvador Construction El Salvador initiated reforms in construction permitting and implemented an automated system that has 1 DB18 permits decreased the number of procedures needed to obtain a construction permit from 24 to 23 and gained three points in the Building Quality Index. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES Continued on next page 82 FIAS 2017 Annual Review 83 Annex 2 : PORTFOLIO OF FIAS-FUNDED PROJECTS IN FY17 Annex 2 : PORTFOLIO OF FIAS-SUPPORTED PROJECTS IN FY17 2.1 FIAS-Funded Client-Facing Projects Mapped to the World Bank Group Trade and Competitiveness Global Practice 2.1 FIAS-Funded Client-Facing Projects Mapped to the World Bank Group Trade and Competitiveness Global Practice TOTAL TOTAL FYTD FIAS PROJECT TOTAL TOTAL FYTD FIAS PROJECT REGION CODE COUNTRY PROJECT NAME FUNDING EXPENDITURES EXPENDITURES STATUS REGION CODE COUNTRY PROJECT NAME FUNDING EXPENDITURES EXPENDITURES STATUS EAST ASIA AND THE PACIFIC SOUTH ASIA EAP Timor-Leste Timor-Leste Investment Policy and Promotion 182,450 87,143 82,663 ACTIVE SA Nepal Nepal Investment Climate for Industry 2,784,213 372,596 123,656 ACTIVE EAP Cambodia Cambodia investment diversification 2,016,229 371,691 177,061 ACTIVE SA India Buddhist Circuit Tourism: Facilitating Growth Corridors in 2,377,748 29,018 21,722 ACTIVE EAP Solomon Islands Pacific Investment Climate Rapid Response 2,088,528 551,178 192,234 ACTIVE UP and Bihar EAP Lao People's Lao PDR Investment Climate Reform 2,068,694 203,446 203,446 ACTIVE SA Southern Asia Region Rapid Response IC for Investments 140,563 58,569 58,569 ACTIVE Democratic Republic SA Southern Asia Region SARTI Investment Policy 3,002,000 542,849 337,314 ACTIVE EAP Myanmar Myanmar Investment Policy 2,162,133 586,730 40,983 ACTIVE SA Bhutan Financial Infrastructure Project Bhutan 1,322,686 374,825 26,493 ACTIVE EAP Mongolia Mongolia Investment Policy and Agribusiness Investment 2,050,467 483,525 287,718 ACTIVE SA India India Ease of Doing Business 2,742,638 574,198 56,694 ACTIVE Promotion Project SA Afghanistan Afghanistan Investment Climate Program 289,756 101,539 101,539 ACTIVE EAP Vietnam Vietnam Private Sector Competitiveness 4,638,081 373,513 373,513 ACTIVE SA Afghanistan Afghanistan Business Registration and Licensing Reform 2,000,000 328,678 328,678 ACTIVE EUROPE AND CENTRAL ASIA Phase II Project SA Afghanistan Afghanistan Construction Permits Reform Project 1,012,000 144,630 144,630 ACTIVE ECA Albania Albania Investment climate and agribusiness 2,485,640 505,430 501,843 ACTIVE competitiveness SUB-SAHARAN AFRICA ECA Eastern Europe Region Indicator Based Reform Advisory in ECA 1,344,523 208,059 208,059 ACTIVE SSA Somalia Somalia Investment Climate Reform Program 2,515,873 1,224,874 800,642 ACTIVE ECA Kosovo Kosovo Investment Climate II 2,564,045 69,660 69,660 ACTIVE SSA Madagascar Madagascar Investment Climate Reform Program 2,650,000 714,707 107,592 ACTIVE ECA Kyrgyz Republic Central Asia Tax Project 5,083,691 719,986 79,119 ACTIVE SSA Africa Region SSA IBRA 3 2,000,000 12,597 12,597 ACTIVE ECA Georgia Georgia IC Project 1,834,000 372,372 105,193 ACTIVE SSA Guinea Guinea Investment Climate Phase 2 Mining Linkages 2,173,001 342,570 27,810 ACTIVE ECA Kyrgyz Republic Central Asia Trade Logistics Project 4,604,448 504,582 162,740 ACTIVE SSA Swaziland Swaziland Investment Climate Program 2,290,000 157,565 29,714 ACTIVE ECA Azerbaijan Azerbaijan Agribusiness Competitiveness 3,350,000 248,217 248,217 HOLD SSA Angola Angola Investment Climate Reform 650,000 45,698 45,698 ACTIVE ECA Georgia Georgia Trade and Investment Project 2,020,000 55,669 55,669 ACTIVE SSA Africa Region IC Rapid Response III 2,628,598 693,100 385,771 ACTIVE ECA Armenia Armenia Investment Climate II 1,508,451 632,152 178,838 ACTIVE SSA Lesotho Lesotho Investment Climate Program 1,395,864 253,767 54,740 ACTIVE ECA Bosnia and Bosnia and Herzegovina Local Investment-Friendly 8,226,202 635,346 18,103 ACTIVE SSA Guinea-Bissau Guinea-Bissau Cashew Sector Development Project 1,195,000 451,423 58,214 ACTIVE Herzegovina Environment (LIFE) SSA Senegal Warehouse Receipts System Development in Senegal 1,234,588 379,958 60,030 ACTIVE ECA Kyrgyz Republic Kyrgyz Republic Investment Climate 2,826,762 706,614 42,219 ACTIVE SSA Mozambique Mozambique Investment Climate Program 2 4,500,000 73,645 73,645 ACTIVE ECA Belarus Belarus: National Quality Infrastructure and Business 3,431,041 836,672 391,303 ACTIVE SSA South Sudan South Sudan Phase 3 (Client Engagement) 890,123 115,872 80,549 HOLD Regulatory Reform Program 2014 - 2016 SSA Cote D'Ivoire Cote d'Ivoire Investment Climate Program - Phase 2 1,790,000 84,535 84,535 ACTIVE LATIN AMERICA AND THE CARIBBEAN SSA Central Africa Region Improved Investment climate in the CEMAC 600,000 88,499 88,499 ACTIVE SSA Africa Region IC Gender program in SSA 1,700,000 97,274 97,279 ACTIVE LAC Latin America Region Pacific Alliance Intra-regional investment facilitation 29,143 29,385 29,385 ACTIVE initiative SSA Sudan Sudan Investment Climate Progam 2,550,000 100,470 100,470 ACTIVE LAC Latin America Region Investment Promotion in Pacific Alliance 382,872 43,350 43,350 ACTIVE SSA Western Africa Region Invest West Africa - regional 2,310,000 608,515 543,441 ACTIVE LAC Latin America Region Services Trade in the Pacific Alliance 337,985 57,131 57,131 ACTIVE SSA Malawi Promoting competition in SSA 1,309,251 210,534 154,477 ACTIVE LAC Peru Supporting Peru Raise to OECD Standards 935,367 97,957 97,957 ACTIVE SSA Malawi Malawi IC - PSD 400,000 193,992 193,992 ACTIVE LAC Latin America Region Promoting Competition in Latin America and the 250,000 140,021 140,021 ACTIVE SSA Burundi Burundi Industry Competitiveness Support Program 1,191,226 379,214 209,564 ACTIVE Caribbean SSA Congo, Democratic Improving DRC's Investment Climate at National and 1,600,000 568,576 305,924 ACTIVE LAC Latin America Region Indicator Based Reform Advisory in LAC 3,168,899 738,994 436,138 ACTIVE Republic of Provincial Levels LAC Colombia Investment Policy Colombia 775,163 37,353 32,393 ACTIVE SSA Africa Region Indicator-Based Reform in Sub-Saharan Africa 2,067,938 436,105 350,715 ACTIVE LAC Latin America Region Central America Regional Agribusiness Trade Logistics 2,959,029 656,960 603,057 ACTIVE SSA Zambia Zambia Investment Climate Program III 3,273,926 516,350 403,856 ACTIVE Project SSA Cameroon CAMEROON COLLATERAL REGISTRY PROJECT 160,000 113,723 113,723 ACTIVE LAC Latin America Region Taxation Knowledge Management in LAC 943,661 156,872 56,261 ACTIVE SSA Western Africa Region OHADA Uniform Acts Reform Phase 2 4,709,027 1,306,620 1,306,620 ACTIVE SSA Western Africa Region Investment Policy Reform for West Africa Regional 10,350,000 2,294,550 2,294,550 ACTIVE MIDDLE EAST AND NORTH AFRICA Organizations MENA Egypt, Arab Rep. ICT Investment Policy in Egypt 1,820,298 42,350 42,350 HOLD SSA Eastern Africa Region East African Community IC Phase 2 6,527,056 764,148 667,276 ACTIVE MENA Tunisia Tunisia E4E ICT 1,116,969 330,635 55,878 ACTIVE SSA Ethiopia Livestock Micro Reforms for African Agribusiness 619,636 156,969 158,173 ACTIVE MENA Egypt, Arab Rep. E4E ICT Sector Egypt 1,548,118 567,675 96,489 ACTIVE SSA Tanzania Tanzania Livestock MIRA 2,100,000 337,255 337,255 ACTIVE MENA Egypt, Arab Rep. Egypt Competitivness Program 1,870,701 431,858 431,858 ACTIVE SSA Ethiopia Ethiopia - Livestock - MIRA 2,100,890 531,353 531,353 ACTIVE MENA Jordan Jordan Investment Reform Project 732,094 565,041 565,041 ACTIVE SSA Zambia Zambia Investment Climate Program II 2,847,380 449,934 55,458 ACTIVE MENA Tunisia Value Chains for Growth Jobs and Economic Inclusion 2,000,000 78,705 78,705 ACTIVE SSA Mali Mali Investment Climate Program Economy Wide 2,187,590 338,170 328,059 ACTIVE MENA MENA Region IBRA Project in the MENA Region 1,384,205 164,308 164,308 ACTIVE WORLD MENA Morocco Morocco Quality of Public Service Delivery and 517,601 67,628 49,995 CLOSED WLD World Region Competition Policy for Investment Climate 2,439,946 465,642 463,645 ACTIVE Transparency to Improve the Investment Climate WLD World Region Good Regulatory Practices Pilots in T&C and GGP 2,535,830 577,740 501,044 ACTIVE Continued on next page FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 84 FIAS 2017 Annual Review 85 Annex 2 : PORTFOLIO OF FIAS-SUPPORTED PROJECTS IN FY17 Annex 3 : KEY FY17 PUBLICATIONS, EVENTS 2.2 FIAS-Funded Knowledge Management and Product Development Projects Mapped to the World Bank Group 3.1 Publication Highlights Trade and Competitiveness Global Practice In FY17, FIAS funding supported T&C’s development A Guide to Warehouse Receipt Financing Reform: TOTAL FYTD FIAS of a wide range of publications to help guide Legislative Reform provides technical advice and REGION PROJECT NAME TOTAL FUNDING EXPENDITURES EXPENDITURE PROJECT STAGE government policymakers and practitioners (within guidance on aspects related to the implementation World Investment Climate Applied Research PDP $2,216,744 753,599 731,362 PORTFOLIO client governments and inside the World Bank of the law and regulations governing the operation of World Investment Policy and Promotion Product Development $755,335 489,320 489,320 PORTFOLIO Group), present new research findings and their warehouses, warehouse licensing and supervision, World Improving MNE-domestic firm linkages for DVA $300,000 287,483 287,483 PORTFOLIO policy applications, and provide diagnostic tools and and the issuance and role of documents of title in World Investment Climate Indicator Based Reform $360,000 316,362 316,362 PORTFOLIO hands-on resources for implementing reforms. All emerging market countries. (October 2016) World Business Environment Reforms $500,000 457,165 457,165 PORTFOLIO publications are available at www.worldbank.org World T&C Skills for Competitiveness PDP $590,000 228,371 228,371 PORTFOLIO unless otherwise indicated. Harnessing the Power of Big Data for Trade and World Creative Industries PDP $236,368 118,294 118,294 PORTFOLIO Competitiveness Policy, prepared in collaboration World Gender in Trade and Competitiveness $805,982 558,096 640,558 PORTFOLIO Global and Regional Reports, Toolkits, and Guidance with Deloitte Consulting LLP, highlights T&C data- World Spatial Solutions PDP $350,000 337,925 337,925 PORTFOLIO driven pilot projects under way and shares compelling The Africa Competitiveness Report 2017: World Good Regulatory Practice Program — Governance GP components $535,000 224,328 98,548 PORTFOLIO cases of how big data is changing the way the Addressing Africa’s Demographic Dividend, a World Agribusiness PDP $2,925,000 946,479 946,479 PORTFOLIO development community looks at the challenges World Competitiveness Policy Evaluation Lab 1 $1,139,329 797,689 797,689 PORTFOLIO biennial publication jointly produced by the World Economic Forum, the African Development Bank, countries are facing and how they can best be World Supporting High-Growth Businesses $273,295 189,289 189,289 PORTFOLIO supported. (March 2017) World Good Regulatory Practices Program in T&C GP $776,047 341,957 341,957 PORTFOLIO and the World Bank Group, finds that the ability of Africa’s economies to generate enough jobs for its World Tourism PDP T&C $410,000 379,608 379,608 PORTFOLIO How to Make Grants a Better Match for Private young and growing population rests on the successful World Global Competition Policy PDP II $418,750 287,965 287,965 PORTFOLIO Sector Development reviews 106 matching grant World National Quality Infrastructure $450,000 255,543 255,543 PORTFOLIO implementation of urgent structural reforms to boost projects implemented by the World Bank since the World IT Enabled Services PDP $128,254 60,702 60,702 PORTFOLIO productivity. (May 2017) 1990s and assesses nine design and implementation World T&C Manufacturing Product Development Project $820,148 133,341 133,341 PORTFOLIO features and their links with project outcomes. (2016) Automotive in South Asia: From Fringe to Global, a World Climate Competitive Industries 2 $309,850 307,007 291,682 PORTFOLIO case study about one of the most important industries Mainstreaming Eco-Industrial Parks, based primarily globally and in South Asia, identifies both reasons for on a global conference, provides recent thinking on success and limits on the growth of automotive in eco-industrial parks, compiling experiences from South Asia and recommends policies to enhance the different countries and providing a vision on how these sector’s growth. (2016) initiatives can be scaled up or mainstreamed. (July Climate Competitive Industries: A Practitioner’s 2016) Handbook provides step-by-step guidance on how to Making Trade an Engine of Growth for All: The design, develop, and implement reform programs that Case for Trade and for Policies to Facilitate can help governments improve the competitiveness Adjustment stresses the role of supporting domestic of their manufacturing industries by adopting cleaner policies and prompt attention to individuals and technologies and more efficient practices. (January communities at risk of being left behind from the 2017) past several decades of global economic growth that Global Trade Watch – Trade Developments in has lifted incomes across advanced, emerging, and 2016: Policy Uncertainty Weighs on World Trade developing countries. Together with domestic policies, addresses three questions concerning recent trade further trade integration and strengthening of the developments—What is happening? Why? Does it rules-based trading system will be essential to achieve matter?—and reviews 2016, the fifth consecutive inclusive global growth. (March 2017) year of sluggish trade growth and the year with the Maximizing Potential Benefits of FDI for weakest trade performance since the aftermath of the Competitiveness and Sustainable Development: 2008 global financial crisis. (February 2017) World Bank Group report on investment policy A Greener Path to Competitiveness: Policies for and promotion diagnostics and tools aims to serve Climate Action in Industries and Products helps as a guide for governments in setting priorities and chart a path to industrial competitiveness through policies that lead to concrete and measurable results policy and technology interventions that improve in FDI attraction, retention, and benefits to the local industrial operations. It explores how industrial economy. (May 2017) products can become greener through public standards, while companies and countries maintain, and even increase, competitiveness. (July 2016) FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 86 FIAS 2017 Annual Review 87 Annex 3 : KEY FY17 PUBLICATIONS, EVENTS 3.1 Publication Highlights (continued) The Effect of Local Governance on Firm ICT Use, Innovation, and Productivity: Mobilizing the Middle East and North Africa exports, it has achieved a positive impact on export Productivity and Resource Allocation: Evidence Evidence from Sub-Saharan Africa examines Diaspora for Economic Integration and diversification for firms that were already satisfying from Vietnam examines how changes in the the links between firm usage of information and Entrepreneurship advocates for the need to rally the the scheme’s eligibility criteria. (Policy Research provincial administration of national business communications technology, innovation, and Middle East and North Africa professional and skilled Working Paper no. 8009, March 2017) regulations affect firms through two channels productivity, for the Democratic Republic of Congo, diaspora, discusses the findings of a unique outreach (within-firm productivity levels and resource Ghana, Kenya, Tanzania, Uganda, and Zambia. The exercise to the MENA diaspora, and provides policy Can Enhancing the Benefits of Formalization allocation across firms), showing that a better overall results suggest ICT use is an important and robust recommendations. ( Foreign Trade, FDI, and Capital Induce Informal Firms to Become Formal? business environment has a positive impact on firm enabler of product, process, and organizational Flows Study, December 2016) Experimental Evidence from Benin discusses a productivity, and this effect is driven by a reduction in innovation across all six countries. (Policy Research randomized experiment based around the introduction corruption levels, the risks of land expropriation, and Working Paper, no. 7868, October 2016) Public-Private Dialogue Stakeholder Mapping of the entreprenant legal status in Benin, which is entry regulations. (Policy Research Working Paper no. Toolkit: A Practical Guide for Stakeholder Analysis used to provide evidence from an African context 8118, June 2017) On-the-Job Training: Returns, Barriers to Provision, in PPD Using the Net-Map Method provides an on the willingness of informal firms to register after and Policy Implications, a background paper for option for stakeholder mapping that helps practitioners introducing a simple, free registration process. (Policy The Effects of Innovation on Employment in the World Development Report 2018, confirms a design and implement dialogue platforms as part Research Working Paper, no. 7900, November 2016) Developing Countries: Evidence from Enterprise significant and positive return from on-the-job training of their reform projects, including a step-by-step Surveys sheds light on the direct impact of on wages and productivity, as well as the presence approach to anticipate and address issues that may “Create” or “Buy”: Internal vs. External Sources technological as well as organizational innovation of positive externalities from on-the-job training. It arise at various project stages. (July 2016) of Innovation and Firm Productivity considers the on firm-level employment growth. The results reviews and validates the presence of market failures possibility that “creating” and “buying” substitute for highlight innovation’s positive direct role on the such as information asymmetries within the firm as Reaping Digital Dividends: Leveraging the Internet each other in Tunisia, where resources are limited, quantity of employment but at a decreasing rate as a result of low-quality management practices that for Development in Europe and Central Asia assuming the effect of innovation is not linear or firms transition to the technological frontier. (Policy dampen firm demand for on-the-job training. (Policy investigates the barriers that are holding back the requires a certain amount of investment (threshold) Research Working Paper, no. 7775, August, 2016) Research Working Paper, no. 8090, June 2016) broader adoption of the internet in Europe and Central to positively affect productivity. The findings suggest Asia. It identifies the main bottlenecks and provides that innovation policy in Tunisia should emphasize Export Competitiveness and FDI Performance Opportunity versus Necessity: Understanding the policy recommendations tailored to economies at adoption and adaptation, rather than creation and across the Regions of the Russian Federation Heterogeneity of Female Micro-Entrepreneurs varying levels of digital development. ( Europe and innovation. (Policy Research Working Paper no. 8121, suggests that foreign orientation is an important provides evidence on the differences between Central Asia Studies, March 2017) June 2017) determinant of socioeconomic development and entrepreneurs that voluntarily choose to start a could be an important item on Russia’s regional policy business because they can identify a good business South Asia’s Turn: Policies to Boost Disaggregating the Impact of the Internet on agenda. (Policy Research Working Paper no. 7821, opportunity and act on it (opportunity entrepreneurs) Competitiveness and Create the Next Export International Trade shows the Internet has a September 2016) and those forced to become entrepreneurs because Powerhouse examines three critical and relatively positive, nuanced impact on international trade: of lack of other alternatives (necessity entrepreneurs). understudied drivers of competitiveness: economies bilateral exports are more affected by increases in Firms’ Export Decisions: Demand Trumps It exploits a unique data set covering a wide array of of agglomeration; participation in global value the exporter’s Internet adoption than by that of the Financial Shocks studies the relationship between characteristics, including cognitive skills, non-cognitive chains; and firm capabilities. It focuses on four importer. (Policy Research Working Paper no. 7785, access to credit, demand shocks, and export market skills, and managerial practices, for a large sample case studies in the critical industries of apparel, August 2016) adjustments using firm-level panel survey data for 24 of female entrepreneurs in Mexico. (Policy Research automotive, electronics, and agribusiness. ( South Asia economies in the Eastern Europe and Central Asian Working Paper, no. 7636, 2016) Development Matters, October 2016) Does the Elimination of Export Requirements region. (Policy Research Working Paper no. 7953, in Special Economic Zones Affect Export January 2017) The Role of Exchange Rate and Non-Exchange Towards a G20 Strategy for Promoting Inclusive Performance? Evidence from the Dominican Republic Rate Related Factors in Polish Firms’ Export Global Value Chains analyzes the focus of the G20 exploits the staggered removal of export requirements The Heterogenous Growth Effects of the Business Performance analyzes the export performance Trade and Investment Working Group and elaborates across products and over time in the special economic Environment: Firm-Level Evidence for a Global of Polish manufacturing firms. It focuses on the priority actions in the areas of priority policies for zones of the Dominican Republic to evaluate whether Sample of Cities, which uses firm-level data covering extensive and intensive margins of exports, on the improving SME and developing country participation the importance of exports originating from the 709 cities in 128 countries, examines the role of a decision to enter export markets and the intensity in GVCs, primarily in the key areas of trade and zones was affected by the elimination of export comprehensive list of business environment variables of exports, given participation, examining price and investment; targeted capacity building initiatives for requirements. (Policy Research Working Paper no. at the subnational level in explaining firm employment non-price determinants of export performance. (Policy better GVC integration in developing countries; and 7824, October 2016) and productivity growth. The analysis finds basic Research Working Paper, no. 7899, November 2016) priority actions to expand data and analytical capacity. protection, access to finance and infrastructure, and (July 2016) Economic Upgrading through Global Value the existence of a strong agglomeration environment Russian Federation, the World Trade Organization, Chain Participation: Which Policies Increase the to be critically important. (Policy Research Working and the Eurasian Customs Union: Tariff and Non- Research Studies (published as World Bank Policy Value Added Gains? uses two panel data sets of Paper, no. 8114, June 2017) Tariff Policy Challenges assesses issues relating Research Working Papers) developing and industrialized countries at the sectoral to tariffs and nontariff measures related to Russia’s level to relate global value chain participation as a How Do Cities in Ethiopia Create Jobs? reviews World Trade Organization and Eurasian Customs All These Worlds Are Yours Except India: The buyer and seller to domestic value added. The study city-based industrialization across Ethiopia to Union commitments. The analysis finds that full Effectiveness of Export Subsidies in Nepal finds that global value chain integration increases understand its importance in driving net job creation, implementation of Russia’s WTO tariff schedule evaluates the effect on firm-level export outcomes domestic value added, especially on the selling side, and the factors that determine the success of high- through 2020 would raise goods imports by about of Nepal’s Cash Incentive Scheme for Exports which holds across all income levels. (Policy Research growth industries and cities. (Policy Research Working $3.5 billion (1.1 percent) compared to 2012, with program. The findings suggest that although the cash Working Paper, no. 8007, March 2017) Paper, no. 7866, October 2016) estimates of welfare gains to Russian consumers subsidy has not produced a significant increase in FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 88 FIAS 2017 Annual Review 89 Annex 3 : KEY FY17 PUBLICATIONS, EVENTS 3.1 Publication Highlights (continued) equal to approximately $370 million. (Policy Research imperfections and legal and regulatory obstacles; strategic GVC policy tools that can help developing Expediting Trade: Impact Evaluation of Serbia’s Working Paper, no. 7748, July 2016) develop recommendations to resolve challenges countries achieve economic prosperity in the In-House Clearance Program summarizes research to improving the business and investment context of compressed development. ( Directions in about the impact of the program, which allows Services and Innovation for the Competitiveness environment and increasing productivity and product Development, March 2017) qualifying firms to clear customs from within their of the Ecuadorian Economy examines how services competitiveness; and contribute to enhancing the own warehouses rather than at the customs offices. and innovation can play a role in transforming the investment attractiveness of the sector. (May 2017) Brief Notes and Journal Articles ( Viewpoint, June 2017) Ecuadorian economy from one based on natural Adapting Global Entrepreneurship Acceleration resources to one based on knowledge and services. A Firm-Level Productivity Diagnostic for Kenya’s Innovation by Design: Conducting a Border- Models to Clean Tech in Developing Countries: (Policy Research Working Paper, no. 7767, July 2016) Manufacturing and Services Sector implements a Crossing Time-Release Study in Belarus describes The Ghana Climate Innovation Center highlights firm-level productivity diagnostic using the census of how the project team customized a standard survey lessons from the experience of the Ghana Climate Services in the European Union: What Kind of manufacturing firms and a large services survey in methodology to gather a wider range of data as well Innovation Center, which adapted the developed- Regulatory Policies Enhance Productivity? is the Kenya. The information presented in this diagnostic as to overcome time and other resource constraints. country model of a business accelerator with a focus first paper to show the effects of services regulations supports evidence-based policy-making. (July 2016) ( SmartLessons, May 2017) on IT and applied it to clean tech. (Climate Technology on downstream firms in the goods and services Program In Brief, no. 4, May 2017) The Kenya Climate Innovation Center: How It sectors in a multiple-country setting using firm-level Special Economic Zones in the Dominican data. (Policy Research Working Paper no. 7919, Republic: Policy Considerations for a More Operates and Lessons from Clean Technology Bringing Climate Opportunities to Entrepreneurs: December 2016) Competitive and Inclusive Sector empirically Innovation provides an overview of how the Kenya Lessons Learned from the Caribbean Climate assesses the implications of regulatory reforms aimed Climate Innovation Center (KCIC) operates and Innovation Center draws lessons from the center’s Taxing the Good? Distortions, Misallocation, at complying with WTO disciplines on the elimination extracts lessons from the KCIC model that could operation, focusing on how its “idea generation” and Productivity in Sub-Saharan Africa uses of incentives conditioned on export performance for guide the development of similar clean technology sessions were essential in seeding local companies comprehensive and comparable firm-level SEZ firms; the extent to which SEZs participate in incubation centers in developing countries. (Climate with climate-related business opportunities and manufacturing census data from four Sub-Saharan global value chains; and their linkages with domestic Technology Program In Brief, no. 2, August 2016) introducing new ideas to local markets. (Climate African countries to examine the extent, costs, and suppliers. (November 2016) Technology Program In Brief, no. 5, May 2017) Learning from the Journey to New Markets: One nature of within-industry resource misallocation across heterogeneous firms. Policy Research Working Paper Strengthening Competitiveness In Bangladesh— Product at a Time outlines key approaches and Connecting Green Technology Entrepreneurs: no. 7949, January 2017) Thematic Assessment: A Diagnostic Trade lessons from a Bank Group project in Ukraine that is Implications for Public Program Design, based on Integration Study, the second of a three-volume helping poultry and dairy sector companies diversify a literature review and an analysis of 14 case studies Country-Specific Reports and Policy Notes publication on Bangladesh’s trade prospects, identifies of different programs in more than 80 countries, their markets and start selling and exporting to the An Assessment of the Short-Term Impact of the actions centered around four pillars to sustain and European Union, China, and the Middle East, thus discusses a strategy giving prominence to technology ECOWAS-CET and EU-EPA in Senegal presents an accelerate export growth: breaking into new markets; boosting exports to those markets. ( SmartLessons, absorption and adaptation of existing business models analysis of the impact of the Common External Tariff breaking into new products; improving worker June 2017) as a path to help green firms grow in developing for ECOWAS and the European Union-Economic and consumer welfare; and building a supportive countries. (Climate Technology Program In Brief, no. 3, environment. (July 2016) Trade Investment Links Get Increasingly Intricate Partnership Agreement on protection levels, trade August 2016) presents a new multinational enterprise decision- flows and state revenues, changes in the price of the Suriname Sector Competitiveness Analysis: making framework within GVCs to help policymakers consumption bundles for households, and impact Creating a Hub, Creating a Buzz: How to Attract Identifying Opportunities and Constraints to understand the changing linkages between trade and on firm profits. It underlines key elements of an the Best and Brightest for Climate Innovation in Investment and Diversification in the Agribusiness foreign investment (a journal article in Trade Insight, accompanying policy agenda. (October 2016) Developing Countries examines lessons from the and Extractives Sectors seeks to inform the Volume 12, No. 2, 2016) Bank’s seven Climate Innovation Centers in building Belarus: Enhancing Border-Crossing Time government of Suriname about strategies to and creating their brand and developing a thriving diversify the economy, with a focus on increasing Walking the Last Mile: Operationalization of Release Studies to Support Trade Facilitation innovation hub. (Climate Technology Program In Brief, private investment and removing constraints to Albania’s Authorized Economic Operators Program Reforms details the design and implementation of a no. 6, May 2017) competitiveness in agriculture and extractives. (2017) outlines shortcomings in the adoption of AEO Bank Group border-crossing time release study for provisions under the European Community Customs commercial cargo that applied a customized, hybrid Crowdfunding for Green Business: Lessons from Upgrade Uganda: Insights from the Private Sector Code as well as obstacles the government faced methodology, combining elements from the Time East African Startups suggests crowdfunding offers analyzes and identifies the obstacles to private in establishing complementary reform measures Release Study of the World Customs Organization a new alternative to address the financing needs of sector development in Uganda and provides policy to ensure practical effectiveness. ( SmartLessons, and driver-based surveys, with modifications and capital-intensive, clean technology businesses in recommendations to aid the government in its reform February 2017) additional elements. (June 2017) developing countries. (Climate Technology Program In agenda. (July 2016) Brief, no. 1, August 2016) Working with Tajikistan to Develop Its First Contemporary Aquaculture Technologies, Fish Vietnam at a Crossroads: Engaging in the Next National Commodity Nomenclature of Foreign Markets and Export – Armenia highlights new Establishing a National Trade Facilitation Generation of Global Value Chains, based on a Economic Activities discusses how the Central Asia technologies, access to markets, and the major Committee: Lessons Learned from Montenegro compilation of studies, supports Vietnam’s path Trade Logistics Project helped Tajikistan’s Customs complications associated with intensive and cost- describes how Montenegro has been moving to to economic prosperity by identifying policies and Administration Republic develop its first national efficient fish farming in Armenia. (May 2017) establish, with donor support, an effective National targeted interventions that will drive development commodity nomenclature, which provides a definition Trade Facilitation Committee and provides an example Export supply chain of greenhouse crops – through leveraged global value chain participation of all goods subject to foreign trade. ( SmartLessons, for its neighbors in the region. ( SmartLessons, January Armenia aims to identify issues in the greenhouse and that take major shifts in trade policy and rapid February 2017) 2017) crop export supply chain, including market advances in ICT into account. Readers will learn about FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 90 FIAS 2017 Annual Review 91 Annex 3 : KEY FY17 PUBLICATIONS, EVENTS 3.2 T&C FY17 Event Highlights In FY17, T&C teams organized or were involved in a University, the government of Jamaica, Harvard organized by the Regulatory Delivery Unit under the between trade and investment; how to translate number of conferences, seminars, and knowledge- University, the World Economic Forum, and the World United Kingdom’s Department for Business, Energy investment policy and promotion strategies into sharing events, including the following highlighted Trade Organization. and Industrial Strategy in collaboration with the Foreign concrete reform agendas; and specific cases in Indo- events (organized by general topic): and Commonwealth Office, the Investment Facility Pacific countries. Promoting Market Competition for Utilizing UK Specialist Expertise (IFUSE), T&C, and Women-led Businesses The FIAS-supported Competition Policy team held 13 OECD. Building Competitive Sectors and Cities Three seminars in the Gender and Development workshops for external client governments and A peer-to-peer learning event, “Wanted: Access to Series for Bank Group staff presented findings and other relevant stakeholders in the competition eco- Attracting and Retaining Investment Agricultural Credit and Storage in Sub-Saharan baseline evidence from case studies exploring the system in Kenya, Kuwait, Mexico, the Philippines, The first annual Investment Policy and Promotion Africa! The Tale of Warehouse Receipt Financing questions: What works in promoting women-led Ukraine, and Zambia, with a total of more than 400 Forum (November 1, Washington, D.C.) brought Reform Initiatives in Côte d’Ivoire, Kenya, Malawi, SMEs? ( Sierra Leone, Pakistan ); How can training be participants and highly satisfactory feedback. together more than 100 representatives from the and Senegal” (October 5, Washington, D.C.) brought made more effective for women-led SMEs? ( Mexico, private sector, government (the European Union, together government reformers and Bank Group staff Peru ); Can building non-cognitive skills and providing The team developed an analytical framework and the United States, Mexico, and Australia, and client to share their experiences and offer concrete examples childcare services empower women farmers? gathered cross-country data on the interplay between countries), and the development and diplomatic of how a warehouse receipt system can impact the ( Mozambique, the Democratic Republic of Congo ). antitrust merger review and foreign investment review, communities to discuss the political economy of lives of thousands and increase agricultural sector The events were presented by T&C and the Bank’s and presented first results at the International Bar regulatory conduct affecting the retention and competitiveness. Gender practices and supported by the Women’s Association Annual Conference 2016, sparking expansion of FDI. Leadership in Small and Medium Enterprises, a trust substantial interest in the competition community with The Competitive Sectors team organized a study fund partnership with USAID (September 7, September specific interest from developing countries (September A training event, “Positioning Punjab for Growth tour of the warehouse receipt system (WRS) in the 27, December 14; Washington, D.C.). 18–23, Washington, D.C.). and Competitiveness: Executive Training on United States, October 3–4, 2016, for public and Investment Climate Fundamentals” (November private sector counterparts from four Sub-Saharan At the D.C. premiere of the documentary film, “She Business Environment Reform 19, Lahore), was facilitated by T&C to help build African countries ( Côte d’Ivoire, Kenya, Malawi, Started It” (November 15, Washington, D.C.), a panel the government’s capacity to implement reforms in and Senegal ). Participants had the chance to meet The five-day, peer-to-peer learning event, “Reforming discussed opportunities and constraints for women Pakistan’s largest province, for more than 40 senior with representatives from the U.S. Department of Business Regulation in India: 2016 Reform entrepreneurs. The film portrays the story of Thuy GoPunjab officials. Agriculture, the National Grain and Feed Association, Champions Workshop” (September 22–23, Truong and four other women entrepreneurs as they CME Group, and AgriBank. The study tour was New Delhi), brought together Central and State More than 100 private sector leaders gathered at build their companies in a startup world that usually combined with a workshop (October 5, Washington, representatives involved in the India Ease of Doing an event, “Transforming Investment Risk,” co- lacks female role models. D.C.) focusing on the ways in which warehouse receipt Business Reform program and reform champions hosted by Bank Group President Jim Yong Kim and financing reform Initiatives can help improve access to from Australia, Canada, Mexico, Saudi Arabia, and U.K. Secretary of State of International Development During the III Euro-American Conference of Women agricultural credit and to professional storage in Sub- the United Kingdom. In-depth technical sessions Priti Patel, to focus on what it will take for the private Leaders: Women Entrepreneurs as Development Saharan Africa. focused on topics as varied as effective property sector to invest in infrastructure and manufacturing and Wealth Generators (February 2, San Jose), management and land registry reform to introducing a T&C Senior Director Anabel González addressed projects in difficult markets, particularly in Africa A one-day regional dissemination workshop was unique company identifier and implementing effective (March 16, London). Representing T&C, Anabel held by the “Seeds for All” Community of Practice questions on women’s economic empowerment and construction regulations across states. key policies to promote it, the importance of improving González participated in a plenary panel discussion on (June 27, Hanoi, Vietnam). It brought together about the business environment and expanding trade and impediments and potential approaches to facilitating 100 participants from the Vietnam Ministry of Two events featured moderated discussions on market opportunities for women entrepreneurs. She investment into manufacturing in East Africa. Agriculture and Rural Development, the private business environment reform in Africa: “Supporting also described illustrative interventions and projects. sector, and agricultural policymakers from Cambodia, the Resurgence of Africa’s Elephant: How the The Bank Group hosted the Pacific Alliance Working The conference, jointly organized by INCAE Business the Lao People’s Democratic Republic, and World Bank Group Is Helping Improve the Group on Services and Capital (May 16–18, School and Vital Voices, is a platform for dialogue that Myanmar. Business Environment in Côte d’Ivoire” (October Washington, D.C.). As part of the regional integration brings together some 400 public and private sector 6, Washington, D.C.), with guest of honor, H.E. Daniel leaders from Europe and the Americas. initiative for Chile, Colombia, Mexico, and Peru, the T&C conducted an Executive Development Program Kablan Duncan, Prime Minister of Côte d’Ivoire; and Working Group discussed findings from investor for 30 participants from government, academia, “The Faster Lions: How African Countries Are consultations in each country, conducted by the Bank and the private sector in support of city planning in At the “Tourism Knowledge Exchange 2017 – Using Doing Business Reforms to Spur Their Delivering on Inclusion through Tourism,” a dynamic, Group, and agreed on next steps to implement a Ecuador (December 1–2, Guayaquil). The training Growth” (October 7, Washington, D.C.). At the regional investment facilitation mechanism. event, which followed a successful event in Quito peer-to-peer conference highlighting the latest latter, a panel of ministers and other key officials innovations in sustainable tourism development, in June, was designed to help Guayaquil develop a from Cameroon, Kenya, Mauritania, Nigeria, and At the peer-to-peer, interactive event, “Promoting growth plan (including unique positioning in the region, key industry players joined Bank Group specialists Rwanda discussed the impact of reforms on attracting to discuss the integration of women in tourism, Investment Policy & Promotion Reform in Times of diversity, and innovation) despite limited nationwide investment and encouraging growth. Uncertainty,” government representatives shared tools, such as monetary policy. After the training, the models of tourism value chain linkages, how data informs tourism decisions, and other enablers of stories of recently implemented investment policy city organized itself and appointed a leader to act on The international conference, “Shaping Business and promotion reforms and learned about trends sustainable tourism destination development and proposals provided in the training. Environments for Global Growth and Prosperity,” in diagnostics and tools, good practices, and investor competitiveness (June 21, Washington, D.C.). was attended by a delegation of T&C staff and Participants included representatives from Airbnb, perspectives (June 1–2, Singapore). Discussion topics T&C held the second in a series of seminars on client governments among 250 participants from 60 included: the role of FDI in economic and export challenges and lessons in designing supplier Chemonics International, George Washington countries (October 11–13, London). The event was diversification and development; the relationship development programs (June 12, Washington, D.C.). FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 92 FIAS 2017 Annual Review 93 Annex 3 : KEY FY17 PUBLICATIONS, EVENTS 3.2 T&C FY17 Event Highlights (continued) The panel, including Procurement Director Juan Carlos of young scholars from Bangladesh, India, and Miralles of Mars Latin America and T&C staff experts, Pakistan, who were awardees in a Bank Group discussed the implementation of a program in a less program designed to increase the availability of developed region of Mexico, where large investors are nationally produced high-quality evidence to inform being attracted to special economic zones through a policy making and public debate. The scholars were mix of fiscal and non-fiscal incentives. mentored by Bank Group specialists in conducting research on regional value chains, production sharing, Global and Regional Trade and the impact of alternative preferential trade The second and third Conferences on Global Value agreements in the region. (June 28, Washington, D.C.) Chains, Trade, and Development were organized by the Centre for Economic Policy Research and the Innovation World Bank Group (September 22–23, Geneva; May A panel discussion, “Israel Innovates in Response 19–20, Singapore). The second conference focused to the 4th Industrial Revolution,” introduced by on improving tools and approaches to tackle key Bank Group President Jim Yong Kim and chaired challenges GVCs pose for firms and identifying ways by T&C Senior Director Anabel González, featured to empower governments in setting policies that help a presentation on how Israeli policy is responding firms access GVC opportunities. The third explored to global technology evolution by Avi Hasson, Chief global value chains analysis and mapping. Scientist of Israel’s Ministry of Economy and head of the new Israel Innovation Authority (February 27, During the World Bank Group Annual Meetings, T&C Washington, D.C.). hosted a high-level event, “Making Trade an Engine of Growth for All,” with Bank Group President New Tools and Resources Jim Yong Kim, IMF Managing Director Christine At the World Bank and IMF 2017 Spring Meetings, Lagarde, and WTO Director-General Roberto Azevedo, T&C and the World Economic Forum hosted a which helped solidify the three organizations’ joint joint workshop on the new World Economic commitment to promoting an open and fair global Forum Global Competitiveness Index (April trading system (October 7, Washington, D.C.). 20, Washington, D.C.) The authors of the Global Competitiveness Report and leading experts T&C represented the Bank Group at the G20 Trade discussed the methodology, framework, and and Investment Working Group meeting (February indicators of the 2017 report, which can be leveraged 6–7, Berlin). Senior Director Anabel González delivered as a tool to monitor progress on competitiveness, the opening presentation highlighting work under way identify policy priorities, facilitate structured public- at the Bank Group, IMF, and WTO on the benefits of private dialogue and policy coordination, and track trade and the costs of adjustment. policy progress. The South Asia Regional Trade and Integration Conference showcased recent research findings Worker making industrial valves in Tekirdag, Turkey. Photo: Simone D. McCourtie/ World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 94 FIAS 2017 Annual Review 95 Annex 4 : ABBREVIATIONS Annex 4 : ABBREVIATIONS (continued) AEO authorized economic operator LLC limited liability corporation APEC Asia-Pacific Economic Cooperation M&E monitoring and evaluation API Mali Agence pour la Promotion des Investissements au Mali (Mali Investment Promotion) MAS Manufacturing, Agribusiness and Services, IFC AS advisory services MCICP Multi-Country Investment Climate Program B2G business to government MCPAT Markets and Competition Policy Assessment Tool CAK Competition Authority of Kenya MFM Macroeconomics and Fiscal Management Global Practice, World Bank Group CAS cross-cutting advisory services MIGA Multilateral Investment Guarantee Agency CATLP Central Asia Trade Logistics Project MSE; MSME micro and small enterprises; micro, small, and medium enterprises CCI Climate Competitive Industries MTI Macroeconomics, Trade and Investment Global Practice, World Bank Group CCS compliance cost savings NGO non-governmental organization CCSA Cross-Cutting Solutions Area NTFC National Trade Facilitation Committee CEMAC Economic Community of Central African Countries OECD Organisation for Economic Cooperation and Development CIIP Competitive Industries and Innovation Program OECS Organization of Eastern Caribbean States COMESA Common Market for Eastern and Southern Africa OHADA Organization for the Harmonization of Business Law in Africa ComPEL Competitiveness Policy Evaluation Lab P4R Program for Results CoP Community of Practice PaCT Partnership for Cleaner Textiles CwA Compact with Africa PDP product development project DB Doing Business, World Bank Group PMR product market regulation DPL development policy loan PPD public-private dialogue EAC East African Community PEL Pakistan Energy Label ECA Europe and Central Asia Region, World Bank Group PRSPDA Private Sector Rehabilitation and Agribusiness Development project ECOWAS Economic Community of West African States PTB National Metrology Institute of Germany EFI Equitable Growth, Finance and Institutions Global Practice, World Bank Group QI quality infrastructure FCI Finance, Competitiveness and Innovation Global Practice, World Bank Group RAS Reimbursable Advisory Services FCS states in fragile and conflict-affected situations RCCM Registre du Commerce et du Credit Mobilier, online commercial registry FDI foreign direct investment SAIEP State Agency for Investment and Export Promotion FIAS Facility for Investment Climate Advisory Services SEZ special economic zone F&M Finance & Markets Global Practice SECO Swiss State Secretariat for Economic Affairs FMTAAS Funding Mechanism for Technical Assistance and Advisory Services, IFC SIDA Swedish International Development Cooperation Agency FY fiscal year SIRM systemic investor response mechanism G20 Group of 20 leading economies SME small and medium enterprises G2B government to business SOE state-owned enterprise GDP gross domestic product STEP Smart Technology & Energy Efficient Production GP Global Practice T&C Trade & Competitiveness Global Practice GVC global value chain TFA Trade Facilitation Agreement HIP Hawassa Industrial Park TFSP Trade Facilitation Support Program IBR Indicator-Based Reform UNCTAD United Nations Conference on Trade and Development IBRD International Bank for Reconstruction and Development UNDP United Nations Development Programme IC3 Mali Investment Climate 3 project UNHCR United Nations High Commissioner for Refugees ICN International Competition Network USAID United States Agency for International Development ICT information and communication technologies VAT value-added tax IDA International Development Association VPU vice presidential unit (World Bank Group IFC International Finance Corporation We-Fi Women Entrepreneurs Finance Initiative IPP Investment Policy and Promotion WEF World Economic Forum IRM investment reform map; investment reform memo WRS warehouse receipt system ISO International Organization for Standardization WTO World Trade Organization KEA Korea Energy Agency LAC Latin America and Caribbean Region, World Bank Group FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES Through the FIAS program, the World Bank Group and donor partners facilitate investment climate reforms in developing countries to foster open, productive, and competitive markets and to unlock sustainable private investments in sectors that contribute to growth and poverty reduction. The FIAS program is managed by the Equitable Growth, Finance & Institutions Practice Group of the World Bank Group. For more information, visit www.worldbank.org/fias