UNDAF PWG.2- Inclusive Economic Growth

1. UNDAF PWG.2- Inclusive Economic Growth Baghdad 4 Dec. 2011

2. Inclusive, more equitable and sustainable economic growth • Related to MDG • MDG 1: Eradicate extreme poverty • MDG 8: Develop a global partnership for development • National Vision: • Increase annual GDP by 9.38% • Economic diversification and increased productivity in all economic sector • Sustainable jobs and income generation especially among youth and women • Reduce level of poverty by 30% • Enhance role of Private sector in national development process • Increase contribution of agriculture in GDP

3. PWG2 -Development Outcomes Outcome 2.1 : People in Iraq have improved access to job and income opportunities in a diversified and competitive market economy. Outcome 2.2 : Vulnerable Iraqis are benefiting from means-tested social transfers which stimulate economic growth and reduce dependency (Sub-PWG Social Transfer) Outcome 2.3 : Government of Iraq has institutionalized a universal social security system covering unemployment, health, old age, disability and other social risks

4. PWG 2 Partnership & Coordination Co-Chaired by: • Government:Ministry of Industry and Minerals , Ministry of Planning (MoP) • UN:UNIDO, ILO Membership: • Government:Ministry of Industry and Minerals , Ministry of Planning, Ministry of Agriculture, National Investment Commission, Ministry of Trade , Ministry of Finance, Ministry of Labor and Social Affairs, Iraqi Federation of Chamber and Commerce, Iraqi Federation of Industries, KRG Ministry of Planning, KRG Ministry of Labor and Social Affairs. • UN:UNIDO, ILO, UNDP, UNESCO, UNICEF, FAO, IOM, WHO, UNHABITAT, IAU,WFP, UN-Women, UNCTAD. • NGOs:Iraqi Dar Al-Salam Center, Women for Peace Meetings:Monthly Co-Chaired by: • Government:Ministry of Finance (MoF), Ministry of Trade. • UN :WFP Membership: • Government: Ministry of Finance, Ministry of Trade, Prime Minster Advisory Commission, Ministry of Labor & Social Affairs, Ministry of Planning, Central Bureau of Statistics, KRG Board of Investment, KRG Ministry of Trade and Industry. • UN: WFP, UNDP,UNICEF, IAU Meetings:Every 2 months PWG Inclusive Economic Growth Sub-PWG Social Transfer

5. Outcome 2.1 : People in Iraq have improved access to job and income opportunities in a diversified and competitive market economy. Capacity Development GoI Institutions

6. Inclusive Economic Growth Priority Area Funding Status Inclusive Economic Growth Priority Area is 27.82% funded • Funds Requested: $416.57 million • Funds Available as of 30 September 2011:$115.90 million • Remaining Balance to be mobilized:$300.67 million

7. Inclusive Economic Growth Priority Area Funding Status

8. Inclusive Economic Growth Funding Status

9. Key AchievementsPolicy, legal and governance • Development and approval of SOE restructuring Road Map • Investment mapping • SME policy and institutional framework • Preparation of draft laws including economic reform law, PPP general framework law, land management reform • Two economic development strategies and plans completed in the first stage • Produced analytical briefs in Budget analysis, Oil and gas sector, Electricity sector and economic analysis • The first draft of the NHA report has been prepared

10. Key AchievementsDevelop economic support institutions • Business development Centers were established and functional in 6 governorates to provide SME services • Capacity development to INIC and MoAto enhance their capacities to support investment promotion • Economic Development Units established in three Iraqi governorates • Specialized Institute for Engineering Industries (SIEI) laboratories rehabilitated and managerial and technical staff trained

11. PWG2 – key on going activities • Private Sector development, Investment and Industrial Strategy for Iraq (PSDPI) • National SME support institution • Religious and eco-tourism strategy for Iraq • Land policy Road Map • Establish or rehabilitate Vocational training centers in Iraq and design training schemes/packages based on sectorial needs • Launch e-learning small and medium enterprise development services

12. Programmatic & Operating Challenges UN • Security situation hindering staff mobility and engagement with partner institutions • On-going security challenges limit access to counterparts and information, and increase cost of programme delivery • Coordination between PWG and WB and USAID initiatives. GoI • Necessity of closer government engagement in work of PWG • Better communication between different Governmental institutions. Donor • Fund mobilization for PWG activities

13. PWG 2 Programming Priorities and approach Approach Major programming priorities • Support the GoI Institutions in the implementation of PSDPI defined policy framework to ensure sustainability and further economic diversification in Iraq: • Implementation of SOEs Road-Map • Pilot SOEs social mitigation programme • Implementation of PSD Strategy • Stimulating job-rich growth and higher productivity of SMEs in strategic industries in Iraq • Integrated action of multiple agencies, each focusing on its own comparative advantage and core area of expertise • Application of a sector-targeted approach (through the income and employment multiplier) for balanced income and employment generation within local economies