ECA Knowledge Fair Knowledge Services: Lessons from MENA

1. ECA Knowledge FairKnowledge Services: Lessons from MENA Mustapha K. Nabli Chief Economist & PREM Director, MENA The World Bank Washington, DC 29 January 2004

2. Key Topics • Knowledge Services (KS) vs. lending • KS and large scale change-regional ESW • Improving Effectiveness of KS • Use of reimbursable technical assistance

3. Knowledge services vs. lending • Knowledge services should not be seen as opposing Lending • AAA: precursor to lending at country level: • Morocco PER/Admin Reform  GoM comfortable/committed; now to engage in lending and serious reform • Morocco Higher Education prospect of lending/TA failed to bring about resolve for reform; ESW likely to lead to lending

4. Knowledge services vs. lending (cont’d) • Policy-based lending and MICs task force report with KS as cornerstone of the dialogue

5. Knowledge services to support large scale change • Results-oriented approach  development effectiveness depends on big paradigm shift, not possible by tinkering on the margins and scattered lending or traditional ESW • Regional approach tackling linked thorny problems (e.g. trade, governance, gender, employment) • Regional approach to ESW  major change of development paradigm in multiple countries, learning from each other (regional sector strategies: water, knowledge economy, private sector, education)

6. Effectiveness of Knowledge Services (1) Vertical Programmatic ESW • Systematic long-term engagement required: • When reforms take years & circumstances change • When sequencing depends on lessons learnt from previous steps (Morocco Agriculture) • When sustained engagement, joint problem solving is critical, without lending (Tunisia Employment) • When one product does not address client needs  tailor-make package (report, conferences, study tours, TA) to build momentum for reforms cum capacity for implementation (Iran PER) • When building bridges/linkages between sectors/ ministries to increase support for reform agenda

7. Effectiveness of Knowledge Services(2) Horizontal Programmatic ESW • One theme across countries (similar to horizontal APLs) • Address common problems across the region through concurrent PESWs (e.g. pension reform in Iran, Lebanon, Jordan) • lower transaction cost for the Bank • ability to build up critical mass of capacity  better knowledge exchange among countries

8. Reimbursable Technical Assistance • Large program in MENA for a set of non-borrowing countries who still need knowledge services • Clients look for: • Honest broker of advice • Analytical rigor • Access to global knowledge • Credibility of advice based on experience

9. 5 Point Plan for a Knowledge-Based Business Model • Strengthen our own capacity to deliver the best and most relevant knowledge • Use talent across the Bank group (WBI, DEC, Networks, IFC, MIGA) • Adapt the skills mix (cutting edge, integrators, learning plan, etc.) • Leverage with information technology (Gateway, GDLN, etc.)

10. 5 Point Plan for a Knowledge-Based Business Model (cont’d) 2. Strengthen collaboration with local, regional and international partners (outreach and partnerships) in a CDF context – tap into local learning and knowledge institutions 3. Adopt a new country business model, including new instruments to achieve CAS objectives 4. Help design and Implement systems for better measurement and management of knowledge services 5. Sharpen our focus on outcomes driven strategies Each is necessary but not sufficient