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Spatial Growth Solutions, Multi-Stakeholder Engagement, and Fish: Innovative Public-Private Dialogue in Mauritania’s Nouadhibou Free Zone

Steve Utterwulghe's picture

Nouadhibou’s artisanal fishing port (Photo by Steve Utterwulghe)


In the Northern tip of Mauritania lies the Nouadhibou Free Zone. Created in 2013 with financial and technical support from the World Bank, the first international partner to do so, it benefits from a 110-kilometer coastline on the Atlantic Ocean and an exclusive economic zone of 230,000 square kilometers. Its waters are among the most seafood-rich in the world, with a capacity of 1,500,000 tons per year.

The free zone offers investment opportunities in industries, logistics, tourism, retail business and tertiary sectors. However, creating a competitiveness hub in the fishing sector is one of the paramount objectives of the zone, given the importance of the sector for the Mauritanian economy. It represents 5.8 percent of the GNP, accounts for 18 percent of the total exports, and contributes to an estimated 40,000 jobs.

In March 2016, the World Bank approved the Nouadhibou Eco-Seafood Cluster Project (Projet Eco-Pôle Halieutique) with an International Development Association (IDA) grant of $7.75 million out of a total project amount of $9.25 million.

The objective of the project is to support the development of a fishing-sector hub in the Nouadhibou Free Zone aimed at promoting the sustainable management of fisheries and creating prosperity for the local communities.
 

A worker at the Free Zone certified Star Fish factory (Photo by Steve Utterwulghe)
 



While the Free Zone has already achieved critical results — such as the attraction of a few international investors in food processing and fish exports, the completion of commercial viability studies of the deep-seawater port and the airport, and the elaboration of a draft law on public-private partnerships (PPPs) — some constraints affecting more specifically the fishing sector remain. They include, among other things, the lack of productive diversification, an integrated value-chain, know-how about certification and international standards, and the octopus fishing quota system.

In addition, the lack of structured dialogue among the various public and private stakeholders in the fishing sector had been identified as a fundamental impediment to the development of the hub’s competitiveness.

Louise Cord, the World Bank Country Director, who recently visited Nouadhibou to officially launch the project with the President of the Free Zone, commended the Free Zone Authority for creating a Public-Private Dialogue (PPD) Task Force in 2015.

Understand the differences, act on the commonalities in a globalized economy: How can Public-Private Dialogue be of help?

Steve Utterwulghe's picture



The Mongolian government’s economic advisors. Photo by Steve Utterwulghe


Misunderstanding, distrust, lack of genuine consultation. These are some of the words that I hear the most from various public and private stakeholders during my regular missions to developing countries.

From Bamako to Ulan Bator, where I am writing this post, the relentless echo of grievances points to the fact that the government doesn’t understand – or want to listen to – the private sector, and therefore doesn’t trust it. And likewise, the private sector sees public authorities as often incompetent, corrupt and an impediment to competitiveness and wealth creation.

While generalizing is a dubious exercise, the similarity and recurrence of complaints across the globe warrants deeper digging.

The issue of trust in policymaking is a complex field of study. The origin of mistrust of the private sector by the government in many developing countries is embedded in the socio-political culture and economic history of the state.
That being said, it is now rare to find a government that categorically denies the contribution of the private sector to the economic development of a nation. About 90 percent of the jobs are created by the private sector in the developing world, and about 50 percent of those are created by small and medium-sized enterprises (SMEs). Furthermore, as José Juan Ruiz from the Inter-American Development Bank (IDB) has written, “Policymakers realize that they need to access the deep knowledge held by the private sector in order to learn about market failure and formulate the right policies to address them.”

On the other hand, the private sector wants a stable and transparent regulatory environment in which to operate. It doesn’t want more regulations, but better regulations that will protect its investments. For that, it needs the government to listen and act in a way that will create an enabling business environment. Building trust is hard work.

Differences between public and private stakeholders certainly exist, but so do commonalities. It never takes long for parties to acknowledge that there is a clear common ground to strive for: sustainable economic development that should lead to inclusive growth. That, in turn, will spur job creation and revenue collection for the state. That’s an irrefutable win-win scenario.

Start talking, and let’s get to work: Dialogue and climate action in industries

Anja Robakowski's picture



Bangkok, Thailand — November 25, 2011: A flooded factory in the Nava Nakorn Industrial Estate at Pathumthani.
Photo @ photonewman



“No one can tackle climate change alone.” Those words, by Abdelouahed Fikrat, General Secretary of the Moroccan Ministry of Environment, aptly summarized the challenge that we face today in dealing with climate change. He made that declaration at the recent Dialogue for Climate Action event in Vienna, organized by The World Bank Group and the Government of Austria on May 24 and 25.

The Vienna event marked the launch of six Principles on Dialogue for Climate Action — a set of tenets aimed at guiding businesses and governments as they embark on productive conversations on how to cooperate effectively to fight climate change.
 
The World Bank Group and 12 international partners got together to collaboratively formulate the six principles: Inclusion, Urgency, Awareness, Efficiency, Transparency and Accountability.

In endorsing the principles and signing on to the Community of Practice (CoP) for Dialogue for Climate Action, Fikrat said, “The principles of dialogue launched at this event hold potential to contribute significantly to the COP 22 agenda and offer a tool to policymakers for engaging the private sector. We need to build on the current momentum to speed up the implementation of concrete actions.”
 
The tone for the event was set by Dimitris Tsitsiragos, Vice President of the International Finance Corporation (IFC), who stressed in his keynote address that “stopping the catastrophic impact of climate change requires urgent, comprehensive and ongoing public-private dialogue”.
 
Dialogue for Climate Action in Practice

So what does this mean in practice? How do we avoid pursuing a dialogue that is devoid of action? There is significant pressure on all actors to avoid “post-Paris blues” and stagnation. There is also a need to avoid actions in a vacuum, where everyone is doing something but without cohesion and coordination.

The six principles for climate action are based on the premise that all actors, working together, will create greater results. Bangladesh PaCT (Partnership for Cleaner Textiles), a project managed by the World Bank Group, makes a strong case for that approach. The project, which was launched in 2013, aims to introduce cleaner, more environment-friendly production methods in the textile sector, and dialogue is a key pillar of its project design. 

Small states in search of big solutions: How the Caribbean Growth Forum is accelerating pro-growth reforms

Steve Utterwulghe's picture



Grenada – Photo by Steve Utterwulghe

Many Caribbean States have long been trapped in a vicious cycle of low growth, high debt and limited fiscal space. The impact of the 2008 financial crisis, as well as recurrent natural disasters, has made the situation even more acute in the region.

To address the structural and policy obstacles to development and growth, a multi-stakeholder dialogue platform on growth in the Caribbean was launched in 2012 by policymakers, the private sector and civil society from 12 states in the region. The Caribbean Growth Forum (CGF) was championed by the states’ prime ministers, and focal points were appointed in the respective Ministries of Finance. The World Bank, acting as the CGF Secretariat, has been behind this initiative from the onset, in collaboration with other regional development banks and various development partners active in the region.
 
Using a conceptual framework of reform identification, tracking and reporting, CFG’s stakeholders have made 495 reform recommendations so far – 40 percent of them actionable in the three pre-identified thematic areas: investment climate, connectivity and logistics, and productivity and skills. The World Bank in 2015 undertook a stocktaking exercise, which identified the CGF’s positive impacts and the areas of improvement.

The benefits of the CGF are unanimously recognized: the generation and dissemination of knowledge to support the reform implementation in the three thematic areas; support for the prioritization of government reforms; the strengthening of stakeholders’ accountability; the creation of social capital by giving a voice to a range of stakeholders; peer-to-peer exchanges and pressure; and the fostering of a culture of dialogue in the policy reform agenda.

Along with Cecile Fruman, Director of the Trade and Competitiveness Global Practice of the World Bank Group, I was honored to participate and speak at the launch of the Second Phase of the CGF in Belize on March 1 and 2. The objective of the event was twofold: to share and discuss the lessons learned so far, and to have the finance ministers of 12 Caribbean countries endorse a Joint Communiqué.

That communiqué, according to Sophie Sirtaine, the World Bank’s Country Director for the Caribbean, “signals the renewed commitments of these Caribbean nations to accelerate growth enhancing reform implementation, while strengthening public accountability through strengthened public-private dialogue (PPD) mechanisms.”

The War is Over. What Do We Do Now? Post-Conflict Recovery of the Private Sector in South Sudan

Steve Utterwulghe's picture


The White Nile in South Sudan. Photo by Steve Utterwulghe.

As I was landing in Juba, the bustling capital of South Sudan, I couldn’t help but reminisce about my days working in Khartoum for the UN Deputy Special Representative of the Secretary General. The war between the North and the South, of what was then, in 2004, still the Sudan, was raging as the peace negotiations were taking place in a plush resort on the shores of Lake Naivasha in Kenya. I was mainly focusing on guaranteeing access to the people of the Nuba Mountains, one of the three fiercely contested areas between Khartoum and the Sudan People’s Liberation Movement/Army (SPLM/SPLA). I was doing my fair share of shuttle diplomacy, going back and forth between the SPLM/SPLA leadership based in Nairobi and the Government of Sudan in Khartoum. At that time, hopes were high that one would soon see the end of decades of a bloody war in Africa’s largest country. The Comprehensive Peace Agreement was finally signed in 2005. In 2011, South Sudanese participated in a referendum and 99 percent voted for independence. South Sudan became the newest country in the world.
 
But what should have been a new era of peace and prosperity quickly turned into a feeling of dejà vu. Dreams were shattered as a new internal violent conflict broke out in December 2013, putting the progress achieved at significant risk and disrupting economic activities and livelihoods.
 
The country is very rich in natural resources, including oil, minerals and fertile arable land. However, with 90 percent of its population earning less than US$1 per day, South Sudan is ranked as one of the poorest countries on the planet. South Sudan remains an undeveloped economy facing important challenges, including high unemployment, weak institutions, illiteracy and political instability. The economic overview of the country by the World Bank suggests that “South Sudan is the most oil-dependent country in the world, with oil accounting for almost the totality of exports, and around 60 percent of its gross domestic product.” The conflict has dramatically affected the production of oil, which has fallen by about 20 percent and is now at about 165,000 barrels per day. This, combined with the sharp global drop in oil prices, has greatly affected the fiscal position of the government.

In such an environment, private sector development is a must, since it has the potential to create market-led jobs and growth. However, private sector growth requires a conducive investment climate and an enabling business environment.
 
South Sudan has made progress in this area, thanks in part to support from the international community, including the World Bank Group. Yet more needs to be done. South Sudan ranks 187th out of the 189 economies in the Doing Business ranking, just ahead of Libya and Eritrea. In addition, among the top constraints reported by firms in the World Bank Group's Enterprise Survey, 68 percent mention political instability and 58 percent cite access to electricity, followed closely by access to land and finance. 

Is Somaliland truly “Open for Business”? Moving past the conventional narrative of a fragile state

Steve Utterwulghe's picture

Somalia has the reputation of being a mysterious and conflict-ridden land. Who hasn’t heard of the infamous “Black Hawk down” episode, the militant group al-Shabaab or the pirates off the Somali coast?
 
But in the northwest corridor of war-ravaged Somalia lies Somaliland, a self-declared independent state that claims to be open for business. Really?
 
It’s easy to dismiss the “open for business” claim by Somaliland’s Ministry of Planning as mere fantasy or wishful thinking. Flying from Nairobi on a painfully slow UN-chartered plane, being greeted at the hotel by Kalashnikov-armed guards, or traveling to your meeting in an armored car is enough to discourage even the most adventurous entrepreneur.
 
At first sight, Somaliland has all the characteristics of a fragile and conflict-affected situation (FCS). However, you never want to judge a book by its cover. In Somaliland, I’d argue that the conventional narrative of fragility needs to be revisited.