Session 7.1 Optimizing national strategies and policy frameworks towards effective business models...

Optimizing National Strategies and Policies

• Dr Eric A Kueneman

Main Points

• Strategic Planning vs Policy Decisions• The Development Engine Needs All Its Parts• The Right Stakeholders at the Right Time• Building in Risk Management• The Way Forward and the Need for

Investment to Match the Strategy and Policy

Strategic Planning vs PolicyStrategic Planning is about:

• what?• where ?• how? and How Much? Economics?• who?• when?• What is the needed enabling environment?• what other options

Strategic Planning vs PolicyPolicy is about:

• Rules and,• Setting the enabling environment to match

the strategic plan– Might provide incentives for diverse stakeholders– Might set prices and or modify

importation/exportation laws– Might be Regulatory

Strategic Planning vs PolicyThe Brazil example: Bio-energy Crops and Family

Farmers

• Strategy: Encourage family farms to grow bioenegy crops such as Castor bean and Sunflower

• Policy: Reduce drastically the taxes for processors on energy products derived from raw product coming from family farms.

Holistic Business Plans

• Most development opportunities will require strategies that include a full appraisal of needed infrastructure and inputs along the entire value chain.

• Significant investment is nearly always required for scaling up.

• Risk sharing is often necessary (policy considerations)

PartnershipsAlliance for Development

• Governments need to harness the knowledge, skills and “development energy” of the Private Sector and Civil Society partners.

• Institution-building including fora for dialog among stakeholdrs is important.

• Chambers of Commerce or similar can be good for a

• Regulation Policy must stay with Government

PartnershipsAlliance for Development

• A Brazilian Example:– Government created a shared vision with private

sector on bioenegry feed stocks from family farms.

– Local development institutions (including NGOs)– Petrobras, Banco do Brasil– Embrapa– etc.

PartnershipsAlliance for Development

• Sometimes the Private Sector is a main initiator of development innovations

Yara in Beira Corridor Initiative

Risk Managment

• Risk sharing must be part of the strategic plan and the policy framework, but best when specific to the situation.

• Will high sugar cassava’s add to risk?

Some thoughts on

The Way Forward• Cassava bioenergy system appraisals should

look at the entire production system• Decentralized chipping and drying will be

necessary; can this be done economically year round? Raw product transport –a challenge.

• Research is a must, but must be followed with strategic plans and investment

• Partnerships ...empowering the private sector

Thank You

•

for your kind attention