The Islamic Development Bank Group “Together We Build a Better Future”

1. The Islamic Development Bank Group “Together We Build a Better Future” OIC Workshop on “Country Partnership Models with Central Asia”

2. TOTAL APPROVAL FOR IDB GROUP IN THE REGION (US$ MILLION) (Number) Number of projects *Since joining to the IDB (2003)

3. TOTAL APPROVAL BY ENTITIES (US$ MILLION)

4. APPROVAL OF THE IDB GROUP IN THE REGION BY COUNTRY (US$ MILLION) *financing under Operations Complex includes loans and ordinary operations

5. APPROVAL BY MODES OF FINANCING (US$ million) (Number) Number of Projects % - According to the amount of the Mode of Financing

6. IDB Group Technical Assistance Initiatives • ICD`s Special Economic Zones Trusty Fund & SME Development Fund • TA for Development of Islamic Finance in CIS • TA for Capacity Building Program for WTO related issues • STATCAP – Building Capacity of Statistical Agencies • Alliance of Avoidable blindness • VOLIP – Vocation Literacy Program • ITAP – Investment for Technical Assistance Program • TCPP – Technical Cooperation and Promotion Program • TACP – Technical Assistance Cooperation Program (New Vice Presidency complex with focusing on Cooperation & Capacity Development • IDB Scholarship Program & others

7. Key challenges in TA/Tech. Cooperation activities in the region • Issue: Less focused interventions by different providers (too many cooperation areas of TA), sometimes creating duplications/repetitions; • Solution: Closer partnership and harmonization among OIC sister institutions and other organizations • Issue:Donor –Recipient/North-South relationship, creating unbalanced distribution of benefits of TA activities at expenses of Member Countries. Central Asia – recipient region in terms of TA; • Solution: Promoting South-South Cooperation (Triangular relationship MC-Facilitator-MC). Central Asia – provider of TA

8. Key challenges in TA/Tech. Cooperation activities in the region • Issue: Process-oriented Technical Cooperation/TA activities, with minimal consideration of outcome/impact • Solution: Design Results-oriented activities based on comprehensive Results-Matrix (with measurable KPIs, detailed targets, outcome evaluation and impact assessment) • Issue:Lack of Ownership and Sustainability of targeted activity • Solution: MC should ensure proper medium to long term budget allocation for subject activity

9. Innovative Model of Partnership with MC • Member Country Partnership Strategy (MCPS) Introduced in 2010 (Turkey, Kazakhstan in the Region),before 3-Year Work Program Formulation Seeks Common Grounds Consultation Diagnosis Country National Development Strategy • Knowledge Repository inputs • Diagnostic and Analytical Papers • Sector and Thematic Assessments • Sector Road Maps • Self and Independent Assessments • Consultations • Government • Development Partners • Civil Society • Private Sector • Academia • Research Institute MCPS and Results Framework IDB Vision 1440H and Results Framework

10. How Do We Develop an MCPS? 1. “In House”

11. How Do We Develop an MCPS? – Consultation with Client/ Stakeholders 2. “In Country” Consultations • “Consensus” on areas of engagement Back to Office MCPS Field Mission With Government Finalization Approval of Management Active Players incl. OIC institutions, Co-ordination Group and other MDBs Board for Information

12. IDB Group’s Strategic Thrust (#8): “Facilitate integration of IDB Member Country economies among themselves and with the world” What is Unique about the MCPS? - Reverse Linkage Interventions to strengthen cooperation Strategic cooperation leading to Economic Integration Sharing Knowledge, Positive Experiences and Know-How Country Other - MCs IDB Group RLs are mechanisms where a MC, based on its competitive advantage, can offer its expertise, knowledge and know-how to another MC with the IDB Group serving as an “enabler” in a mutually beneficial (win-win) process facilitating strategic alignments between the IDB Group and the MCs

13. Progress on MCPS Initiative (End Year - 1432H) *An MCPS for Fragile/Post-Conflict LDMCs is also under planning

14. Pillars of the Kazakhstan MCPS • Pillar 1: Increasing Competitiveness (Transport and Energy Infrastructure) • Pillar 2: Economic Diversification (Non-extracting industry, agriculture and rural development) • Pillar 3: Financial sector deepening (Islamic Finance and Banking Advancement) • Pillar 4: Regional Integration (Cross – Border Cooperation &Trade) – OIC Food Security Fund, • IDBG Financing Envelope: USD 1.2 billion for 2012-2014 MCPS duration

15. Way Forward • Prospective areas of technical cooperation: Trade & Transport Facilitation, Renewable Energy, Community-Driven Development, Islamic Finance and Promotion of Employment Generation in the region • Regional Strategic Approach – Central Asia & Caucasus Development Program is being prepared (covering all Muslim CIS countries and Muslim Communities in non-member CIS countries) • Uzbekistan: 2nd MCPS in the Region and CEW by the end 2012 • To include (i) Azerbaijan, being OIC MC, in the Action Plan of OIC for Central Asia and (ii) Muslim communities in non MCs of the Region • Advancement of Triangular/South-South Cooperation through New IDBG Initiative “Reverse Linkage”

16. Thank You “Together We Build a Better Future”