SUPPORTING FISHERY-INDUCED INCLUSIVE GROWTH IN ACP COUNTRIES

First Meeting Of ACP Fishery Ministers Brussels, June 3, 2009

A Presentation of WBG Proactive Investment and Trade Development Instruments For Cluster Development By Dr. Papa Demba THIAM, WBG

Objective and Structure of the Presentation



Objective of the presentation is to introduce a discussion on regional public goods that will help ACP develop robust fisherybased economies Will not address governance and combating illegal fishing - But these are essential conditions for sustainable growth Will focus on how to trigger fishery-induced growth through:
    

Infrastructure to support products & markets developments Development Of Integrated Landing Site Clusters Enterprise development Entrepreneurship promotion Adjustment of the business development infrastructure for fishery induced growth Development Of Fishery-Driven Clusters For Sustainable Inclusive Growth A Dedicated ACP Initiative With Integrated Donor Support
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ISSUES FACING FISHERYINDUCED GROWTH IN ACP

    

   

Overexploitation of fishery resources Weak governance of the sector Limited industrial transformation of resources Limited access to global markets Weak infrastructure for products & markets development Limited involvement of private sector Weak public-private-partnership in the sector Weak fishery-based economy Limited fishery induced inclusive growth
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Why Is The Sector Not Attractive For private investment in industry?



The following makes the sector perceived as risky for investment in industry:
 

   

   

Unreliable & uncompetitive supply of quality raw material for industry Weak services of quality and standards while burden of compliance on the laps of ACP exporting countries Huge information asymmetry and limited knowledge of markets Limited knowledge of value addition potentials Limited education on products adaptation & development Limited access to specialized product & market development services by MSMEs in the sector High cost for accessing critical functions for production and trade Limited technology transfer Limited skills to support processing for high value added products Limited access to finance

Need to close these gaps through pro-activist policies blending public and private interventions
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Needed: Broad Based Sustainable Entrepreneurship In Fishery



The Bottom Line is the development of an environment that creates and spreads private investment opportunities in the fishery sector and in a sustainable manner over time. One common approach focuses on passive types of interventions with prospective trickle down effects in terms of perception of investment opportunities - Policy & No Action. Another approach is based on proactive type of interventions, that better suit socio-economic environments that are characterized with disruptions of structures in potentially viable clusters , missing links in several supply/value chains and Information Asymmetry . This presentation will focus on this second category of Ecosystems to which most ACP countries belong.

DEMOCRATIZING ACCESS TO ENTREPRENEURSHIP IN FISHERIES

Public Goods to Support Products & Markets Developments


A Minimum Integrated Trade Expansion Platform (MITEP) is a permanent infrastructure to proactively and directly support the creation of new products and help penetrate and develop solvent and high quality markets. A Project Development Fund/Facility (PDF)-Proactive instrument that seizes risk, manages it and sells it to the market through:
  

 

Result-oriented analysis and targeted interventions to transform constraints into investment opportunities, Project preparation by increased legibility of constraints and risks; Design of risks mitigation measures for results oriented investment promotion strategies and programs; Development of bankable business plans and syndication of finance; A revolving fund to support its interventions.

  

Help Build Integrated Landing Site Clusters in ACP Shores Retrofit the Business Development Infrastructure (BDI) Build Fishery Driven Clusters Growth Centers In Select Areas
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Minimum Integrated Trade Expansion Platform (MITEP)

Uses ITC Where Appropriate and is Based on Five Pillars


 

Enhanced Quality, Standards, Metrology and Testing (QSMT) Infrastructure To Help Overcome Technical Barriers To Trade (TBT) And Create New High Value Added Products A Proactive Trade Information System (PTIS) Interactive Audio-Visual Virtual Library With Products ID Cards Featuring Detailed Market Information, Recipes For Product Development, Protocols For Compliance With Standards, Relevant Equipment, Technical Information For Industrial Process Plant Development and Layout, Skills Profiles, Etc. A Platform to Support Skills Development for Specific Products and Markets Development and Provision of Specialized Business Development Services To MSMES- Help access and Use PTIS Common Services Centers (CSC)- To Deliver Critical Functions Adaptive Financial Intermediation Infrastructure and Products Based on Cash-Flow Based Lending, Including Trade Finance
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PROJECT DEVELOPMENT FUND/FACILITY

Seizes Risk Abnormally Perceived High, Manages it and Sells it to Market With Risk Mitigation Package and Help Realize Investment
 

 

Helps Highlight Constraints and Improve Risks Identification Highlights and Helps Spread New Investment Opportunities (Positive Externalities) Based On The Transformation of Fishery Resources Helps Transform Binding Constraints In Fishery Supply & Value Chains Into Investment Opportunities For Public -Private Partnerships Targets Investment in Common Services So As to Provide Relevant Infrastructure Base For The Development Of Higher Value Added Fishery Products By MSMEs In Fishery-Driven Clusters Creates Investment Opportunities For Private Sector - WBG IFC Can Be Involved in Co-Investment Consortia Up To 50% Of Total Investment Designs Risk Mitigation Measures To Trigger Appetite For Private Sector Helps Mainstream Risk Mitigation In The Investment Promotion Framework and Structure Public-Private Deals Supports Projects Development Up To A Level Private Sector Feels Comfortable With Management Of Risk Related To Entrepreneurship Integrates Interventions With MITEP Activities To Further Support The Operations of Fishery Based Enterprises Created With PDF
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Building Integrated Landing Sites Clusters On ACP Shores



Provide On site Infrastructure For Fisheries

   

Minimum Infrastructure- Water, Electricity, Other City Services Storage Facilities Fish Stores Etc

Provide On Site Services For Fishery Related Activities Such As:

  

Dry Docking Repairs Training For Sustainable Fishery, Resource Preservation, Post Catch Loss Reduction Provision of Gas, Crates, Ice, Etc.

On Site Testing & Training Facilities

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Dedicated Business Development Infrastructure (BDI) For Fishery-Induced Growth

Investment Promotion Needs To Be Customized To Make Public/Private Deals. Investment Promotion Needs To Be Driven By Products & Markets Developments That Underlie Entrepreneurship Making Decisions. Investment And Trade Promotion Needs To Be Integrated To Serve Sustainable Entrepreneurship Through Products & Markets Developments. BDI Needs To Be Capacitated To Design, Implement, Manage, Monitor and Evaluate MITEP and PDF As Well As To Coordinate Overall Delivery System. The Overall Investment Promotion & Trade Development Infrastructure Needs To Be Strengthened and Integrated To Become A Relevant BDI.

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Building Fishery Driven Clusters In ACP Countries With Interface Strategies



Differentiating Economic Clusters with Industrial Clusters That Are Linked To Global Supply Chains With Vertical Vulnerabilities. Programmatic Approach To Knitting Dense And Integrated Fishery Driven Activities In A Given Economic Sub-Space. Basic Paradigm Is About Spreading Complementary Investment Opportunities To Support Self-Centered Fishery Driven Economic Flows Within The Targeted Economic Space. This Infers Integrated Approach To Planning, Decentralization, Infrastructure Development And Layout, Local Institutional Development, Etc. All This To Be Driven By Products And Markets Developments That Are At The Basis Of Entrepreneurship. Interface Strategies For The Development Of Market-Led Opportunities Can Help Build Broad Based Fishery Driven Economic Clusters.
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INTERFACE STRATEGIES FOR CLUSTER DEVELOPMENT-(P.D. Thiam, 1991,Peter Land Ed.,Bern )

GAPS IDENTIFICATION SEQUENCES


 

  

Identification Of Technical Possibilities Of Economic Transformation Of Resources Around Select Poles (Triggers) Identification Of By-Economic Activities Adjacent, Complementary (Horizontal And Vertical Integrative Factors) Categorization Of All Economic Activities In Terms Of Cash Cows , Stars , Dilemmas and Burdens ( Critical Mass ) Identification Of Potential Pole Areas To Drive Growth Centers Initial Assessment And Identification Of Short, Medium & Long Term Prospects In Terms Of Enabling Environment Selection Of Poles, Cluster Drivers (Localization Parameters) Determination Of Geographical Area To Become Growth Centers Market Validation Of Potential Value Added Products From Resource Transformation Design & Development Of Comprehensive Product ID Cards
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INTERFACE STRATEGIES FOR CLUSTER DEVELOPMENT *- GAP CLOSING SEQUENCES

*(P.D. Thiam, 1991, Peter Land Editions., Bern, Switzerland )

 

Use Product ID Cards To Assess Missing Links Along Supply & Value Chains- Micro, Mezzo, Macro & Spatial Levels Design Integrated Interventions - Micro, Mezzo, Marco & Spatial Levels To Structure/Consolidate Supply & Value Chains Design A Comprehensive Package Of Interventions To Support The Development Of Growth Centers Mainstream Identified Interventions In The Design & Delivery Of MITEP, PDF & BDI Highlight & Define Other Interventions That Support MITEP, BDI & PDF- Infrastructure, Decentralization, Other Capacity Development Partnership Arrangements - Harmonization & Integration Of Interventions Design Implementation Strategy With Government & Private Sector & Partners Around The Transformation Of Dilemma Into Stars And Stars Into Cash Cows With Regulated Cycles Design Integrated & Time-Phased Delivery Program/Projects With Division of Roles, Real Time Monitoring & Evaluation
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Regionalization Of Fishery Based Economic Cluster Development In ACP



Regional MITEP For Fisheries Could be Developed And Delivered As Regional Public Goods With National Interfaces/Applications Regional PDF Could Be Established To Help Create Investment Opportunities In Fisheries In ACP- Open To All Investors Regional BDI Programs Could Be Developed As Part Of Regional Capacity Development Interface Strategies Could Be Applied AT Regional Scale
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One Example: WB-Funded West Africa Regional Fisheries Program- WARFP



Program aims to sustainably increase the wealth generated by West Africa s fisheries, by investing in:  Strengthened governance of the fisheries  Reduced illegal fishing  Increased local value added to fish products Program includes 9 coastal countries from Mauritania to Ghana Total likely WB and GEF investment over 5 years of US$90 M Program will start in October in first 4 countries of Cape Verde, Liberia, Senegal and Sierra Leone Program to work in complement with donors; opportunities for partnerships and collaboration
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One Example: WB-Funded West Africa Regional Fisheries Program- WARFP

Investments in increased local value added will include:


Regional MITEP


With Emphasis On Common PTIS & National Programs On QSMT- To Be Further Integrated At Regional Level Could Be Completed With Regional Platform For Skills Development & Specialized Business Development Services Could Be Completed With Regional/National Common Service Centers Could Be Completed With Regional Financial Intermediation Infrastructure & Products

Pilot Integrated Landing Site Clusters In Each Countries

Recommendations: Supporting Regional EPA In Fisheries - ACP-EU-WBG Framework To Support EPA Through Fishery-Induced Growth In ACP ?


Explore Potential Partnerships With Development Partners On An ACP Initiative Based On:


 

 

Development Of Regional Products & Markets Development Infrastructures (MITEP) In All ACP Regions- Common Pillars/ Backbone & National Dimensions Development Of Regional Project Development Funds (PDF) In Each ACP Regions To Boost Private Sector Led Industrial Transformation Aggressive Capacity Development To Complete National Business Development Infrastructures (BDI) In Fishery Sector Design A Fishery Driven Cluster Development Program In ACP Countries Design An Overall ACP Program Centered On The Delivery Of The Above Instruments/Programs With Relevant Framework Set-Up Of A Regional Trust Funds To Support The Initiative Set-up Of A Joint Secretariat (Center Of Excellence) For Implementation

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THANK YOU!

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