REGIONAL INTEGRATION

REGIONAL INTEGRATION

Presentation by Mark D. Tomlinson

REGIONAL INTEGRATION

Context:

• 47 countries with average GDP $4bn

• Combined GDP = Belgium, 50% of Spain

• Small domestic markets + generally high production costs + challenging investment climates = limited investment (Africa < 2% global FDI)

REGIONAL INTEGRATION• Growth (2003, all NEPAD):

– 16 countries ~ 3% pa

– 16 countries 3%-5% pa

– 18 countries > 5% pa

• Implies

– Per capita growth mostly 0%-2%

– Limited progress on poverty reduction

– Many MDGs look elusive

– Continuing vulnerability to shocks, conflict

REGIONAL INTEGRATION

“The regional agenda is key

to accelerate development in West Africa; national

strategies have proved insufficient.”

Dr. Mohammed Ibn

Chambas, Executive Secretary,

ECOWAS

October 2004

REGIONAL INTEGRATION

“If only West Africa was a single country. Then, perhaps, we would stand a chance.”

Bode Agusto

Director, Budget

Federal Ministry of Finance

Nigeria, May 2004

REGIONAL INTEGRATIONDevelopment objective:• Assist national clients and regional organizations

to develop larger, more competitive and more successful economic spaces.

Program objective:• Deliver additional development

impact at the country level through regional solutions to development challenges and regional complements

to national programs.

REGIONAL INTEGRATIONThree dimensions to competitiveness holding opportunities for additional impact through regional approaches:

• Markets: Trade policyFinancial sector developmentInvestment Climate

• Productivity: InfrastructureKnowledge developmentTechnologyICT

• People: Basic needsSkills developmentVulnerability

REGIONAL INTEGRATION

So what’s new?

• Enhance alignment of regional work, strategically among sectors + with country programs

• Broad ownership of regional programs: ‘integrate’ regional integration

• Develop more multi-country programs and projects

• Go faster

Use – and build upon – regional knowledge base to do this.

REGIONAL INTEGRATIONSteps forward:• Draw upon sectors to

propose knowledge-based strategic framework for integration in each sub-region.

• Regional teams discuss/agree priorities in joined-up programs with clear interfaces: trade, infrastructure, investment climate, knowledge, human development.

REGIONAL INTEGRATION• Discuss /agree priorities with

countries concerned, with CMUs.

• Less emphasis on ‘formal’ regional PRSPs;more on practical opportunities for integration. Focus on areas where there is professional agreement on priority and political traction.

REGIONAL INTEGRATIONStrategy:

Dev.Impact.

PRSP1 PRSP2 PRSP3 PRSP4 RIAS

More Dev.

Impact

Agreed strategic framework

CA

S 1

CA

S 2

CA

S 3

CA

S 4

Re

gio

nal

CA

S 2

CA

S 1

CA

S 3

CA

S 4

Markets

Productivity

People

REGIONAL INTEGRATION

H.E. President Wade of SenegalNEPAD Stakeholders ForumOctober 2004

“When I look at PRSPs, where do I find regional integration? It’s not there”

REGIONAL INTEGRATION

Program at a glance:

• Total $3.9m (approx. 3.2% of CMUs)

• 50% West, 20% East, 15% Central,

15% Southern

• Policy, ESW, TA: West 50%, East 10%,

Central 10%, Southern 30%.

(FY05, 14 IDFs)

• Lending: West 47%, East 18%, Central 23%,

Southern 12%. (FY05 $ 250-300m)

• Lending pipeline, planned ESW not yet

strongly developed. Additional BB request FY05.

REGIONAL INTEGRATION

Operational issues:

• Strategic engagement: sub-regional frameworks drawing upon sector knowledge by CMUs.

• Application of resources in line

with these frameworks

• Re-balance relationships with RECs.

• Build policy engagements through strengthened knowledge base.

• Support priority NEPAD investments. Scale-up, innovate.

REGIONAL INTEGRATION

Where we would like to be in 12 months:

• Regional teams operate as CTs, around agreed strategic agenda.

• More extensive, policy and knowledge engagement, backed by solid ESW.

• Significant investment support (build up to ~10% AFR) for priority regional projects, innovations.

• Decentralization of responsibility. Fully staffed, additional field presence.

Thank you!

Look forward to working (regionally) together