Trade and Investment Example Projects

 

 

Pakistan Economic Reform Unit (ERU)

 

The International Finance Corporation (IFC) hired JAA to set up an Economic Reform Unit (ERU) in the Government of Pakistan’s Ministry of Finance.  JAA was responsible for identifying the most important analytic studies on Pakistan’s investment climate and analyzing the recommendations from each of these studies.  Using the recommendations, JAA developed an action plan for establishing the ERU and coordinating the implementation of reforms amongst various government agencies.  The process of investing in Pakistan was documented, including details on the different regulations currently in place.  Recommendations on organizational and regulatory changes were also developed, along with a strategy document detailing a timeline for activities to be undertaken by the ERU.

 

Study on Non-Fiscal Incentives to Investment within the East Africa Community

 

The EAC had, as part of its 5-year work program, three programs for "harmonizing" trade, tax and investment.  FIAS/WB worked with the IMF on the investment "harmonization" issues and fiscal incentives (chiefly corporate tax breaks and holidays, and tax/customs administration systems) while FIAS/WB looked at non-fiscal incentives to capital and labor.

 

JAA supported this initiative by providing the services of a specialist in workforce and labor issues. JAA looked at the incentives (and disincentives) given by Kenya, Uganda and Tanzania to labor.  JAA provided a comparative analysis of the incentives and disincentives available to investors, including a comparison with international best practices, identification of areas where "harmonization" is necessary or desirable between the three countries, and recommendations for a “harmonization” program with a roadmap for converting specific recommendations into practical steps that can be pursued at a regional and/or national level.

 

Uganda Investment Authority

 

JAA assisted the Government of Uganda (GoU) to plan the merger of the Uganda Export Promotion Board, the Uganda Investment Authority and the Uganda Tourist Board.  The work was carried out under the Medium Term Competitiveness Strategy (MTCS), and is intended to create a new organization focused on providing priority, effective services to business.  JAA also worked extensively with the Private Sector Foundation-Uganda (PSFU), an apex business association entirely in the private domain.  JAA assisted PSFU to develop and begin to implement its strategic plan, and to offer effective services to its membership.  JAA also assisted the PSFU to jump-start a process leading to the creation of a national competitiveness council (or similar organization).

 

Uganda ‘Support Private Enterprise Expansion and Development’ (SPEED) Project

 

Under the Uganda SPEED Project, JAA assisted the Government of Uganda (GoU) to plan the merger of the Uganda Export Promotion Board, Uganda Investment Authority and Uganda Tourist Board. The work was carried out as part of the Medium Term Competitiveness Strategy (MTCS). A merger of the UIA, UEPB and UTB had long been discussed. President Museveni, in September 2001, mandated the merger, conceived to improve results and achieve operating efficiencies related to the promotion of investment, exports and tourism. The Ministry of Finance and Economic Planning (MoFPED) requested JAA to provide assistance to design the organization and work plan for the new entity, and the steps to be taken to implement the change. A team of three consultants undertook this challenging assignment.

 

Because of the sensitivity of the merger, the need to minimize disruptions and uncertainties, and the need to effectuate a smooth transition, a very transparent and step-wise process was conceived and implemented. SPEED was not asked to comment on or reconsider the President’s decision, but only to provide the optimum blueprint for implementation.  The process was a valuable and innovative one, which has informed subsequent sectoral, investment and competitiveness thinking and implementation and subsequent government budget allocations. In the course of the assignment, the team prepared several technical notes, which continue to provide national guidance on matters concerning business-led economic growth.

 

Zambia Trade and Investment Enhancement Activities (ZAMTIE)

 

JAA, as a subcontractor to Nathan Associates for the USAID ZAMTIE Project, assisted the Government of Zambia (GoZ) and local businesses bring about an improved trade and investment environment. The project had three main components: (1) reducing barriers to trade and investment; (2) capacity building in the public and private sectors to facilitate economic growth and reduce poverty; and (3) fostering linkages to optimize rural income-generating investment and trade opportunities between and among producers, suppliers, processors, traders, service providers, and consumers within and outside of Zambia. 

 

As part of this project JAA helped the Tourism Council of Zambia (a private-sector organization), and its membership, develop an organizational and service delivery strategy, followed by an implementation plan. 

 

JAA carried out strategic/management audits of four regional business service organizations:  Eastern Province Chamber of Commerce, Kabwe Chamber of Commerce (Central Province), Kabwe District Business Association and Livingstone Tourism Association.  Using a highly participative process that emphasized economic growth opportunities and service provision, JAA helped these four associations identify their strategic and management priorities, and develop initial action plans for implementation and project assistance.

 

For Eastern Province, JAA assisted the regional business stakeholders develop a regional business and investment growth plan, with particular focus on sectoral opportunities, export promotion and improvements in the business environment.

 

Nicaragua Development Strategy for Light Manufacturing and Textiles/Apparel

Unidad de Coordinación del Programa de Reforma y Modernización del Sector Público (UCRESEP), Edificio de la Vice-Presidencia de la República

 

JAA carried out an analysis of the light-manufacturing sector in Nicaragua as input to their development strategy for attracting Foreign Direct Investment (FDI) in conjunction with the country’s investment promotion agency, Pro-Nicaragua. JAA’s activities on the project were structured into three phases:

 

Phase I: Sector Analysis—JAA compiled detailed descriptions of the medical supply, leather-footwear, electronic component, and wood furniture industries. These analyses included a description of the general factors that influence general and sector–specific investment flows and the principal factors that businesses, in each sector, use in determining where to make foreign investments.

 

Phase II: Competitive Sector Analysis—JAA provided a study of Nicaragua’s competitiveness in relation to other countries that have attracted FDI for similar sectors to those selected in Phase I.  This analysis included information on positive and negative tendencies affecting business behavior as well as FDI flows that affect Nicaragua’s competitiveness.  The study also included information on the ability of medium-sized local enterprise in Nicaragua to integrate into the value-added chain.

 

Phase III: Sector-Specific Strategies—Based on the previous analysis in Phase I and II, those sub-sectors with the highest potential for sustainable growth were chosen for further study.  A report was drafted that includes specific policy recommendations to improve the business climate, and outlines prohibitive factors to production/distribution in the short- and long-terms. 

 

Additionally, JAA provided Pro-Nicaragua a list of at least one hundred potential investors in each sub-sector, as well as brief narratives of successful investments in Nicaragua to help in their promotion efforts.

 

Rwanda Export Promotion Strategy (EPAP)

 

The World Bank’s Rwanda Country Team is conducting assessments and supporting a discussion and decision-making process to identify priorities to encourage sustainable, significant economic growth in Rwanda, linked strongly, but not exclusively, to exports.  These actions will facilitate the finalization of a National Export Promotion Strategy and preparation of an Export Promotion Action Plan.  The ultimate focus of the Team and of these inputs is the preparation of the Poverty Reduction Strategy Credit (PRSC) policy matrix and Country Economic Memorandum (CEM).

 

JAA is providing analytic and process inputs to the preparation for the PRSC policy matrix and the CEM.  These inputs, and the tasks and deliverables involved, will be developed in close interaction amongst the Client, JAA and Rwandan stakeholders.

 

The currently authorized work is a Desk Study to provide a baseline of information about priority actions needed to encourage economic growth in Rwanda, and to define and provide guidance to follow-on phases of the work.  Specifically, JAA will:

 

§          Review documents provided by the World Bank and other sources to identify constraints and opportunities related to economic growth.  These will be listed with brief descriptions of the importance and impact of these themes.

§          Recommend a framework for prioritizing economic growth issues

§          Begin to identify missing information and key areas for dialogue, analysis and decision-making.

§          Recommend a methodology and next steps for further investigating and establishing these economic growth priorities.  The immediate next step should be carried out in the context of a mission to Rwanda.

 

The deliverable includes a report detailing the findings and recommendations of the consultants.  Specifically, the report provides: (i) an overview of key actions and strategies that have so far been elaborated on Rwanda’s exports and growth potential, in the key export sectors; (ii) an outline of the framework to be used in prioritizing these actions to achieve Government targets for export as well as overall economic growth; (iii) an assessment of the realism of achieving Government targets, based on existing assessments of identified actions, along with a prioritization of actions.   

 

Indonesia Trade and Industry Competitiveness

 

As part of the Diagnostics for Trade and Integration Study (DTIS), JAA conducted an in-depth trade and industry competitiveness analysis on Indonesia’s top thirty exports and the causes underlying the trends affecting these exports.  For five of the selected industries, JAA analyzed the international markets, competitors and the global value chain.  JAA then made recommendations on how Indonesia can improve on export performance in key sectors, which included potential initiatives.

 

Laos: Jump-Starting Exports and Building Trade Competitiveness

 

The objective of this effort was the rapid but sustainable growth of the Laotian export market, and foreign exchange generation.  The key to reaching the objective was engaging the local and regional industries, governmental leadership, and supporting academic institutions in ways that help jump-start initiatives in order to boost foreign exchange revenues from tourism, agriculture and light manufacturing in the short to medium term while improving the business environment for achieving these results. The project was implemented in three stages:

 

Stage 1: Benchmarking Laotian Competitiveness.  JAA reviewed global and regional industry trends relevant to Laotian exports such as coffee, apparel, tourism, wood products, and livestock products.  The subsequent analysis of this information provided a national competitiveness benchmark against which JAA could rank the current state of Laotian competitiveness in respect to exports, investment, human resources, science and technology, infrastructure, business environment and overall economic performance.

 

Stage 2: Strategy Development Workshops with Private and Public Sector Leaders.  JAA developed a presentation on the current competitiveness of Laos that clearly indicates current Laotian export competitiveness, highlights opportunities currently available to boost such exports, provides relevant examples from other countries in industries relevant to Laos, and provides some initial indications of ways to boost exports. JAA then developed industry cluster leadership maps, convened leadership groups, and worked with Laotian counterparts suggested by the World Bank. 

 

Stage 3: Design of Industry Cluster Export Strategies and Action Plans.  Of the four to six original industries engaged in Stages 1 and 2, JAA will proceed to map out a practical strategy for at least three of the industries. The team will use a highly interactive and participative methodology for engaging Laotian leadership groups so that the strategies identified are both understood and supported by local leaders.  This strategy will focus on the leading potential export growth sectors for Laos, specific strategic initiatives industry by industry, and government initiatives related to attracting foreign investment in export industries. 

 

JAA was uniquely qualified for this assignment due to significant experience in conducting export competitiveness initiatives in the region.  The project was able to investigate the demand-side issues for each of the clusters within the region. Through connections into industries in the neighbor countries, the project was able to collect information on the market opportunities for Lao companies to supply downstream products for regional exports.

 

Uganda: World Bank First and Second Private Sector Competitiveness Project

 

Under the First and Second Private Sector Competitiveness Projects which included several contracts, the World Bank contracted JAA to study the constraints and necessary improvements in the service and infrastructure platform for business investment; the analysis emphasized the quality and competitiveness of the infrastructure-based services and the related regulations and legislation, with a particular focus on sectoral impact.

 

JAA drafted a Presidential Statement on investment policy and also provided the sector-specific expertise to update the 1997 Administrative Barriers Study to demonstrate the impact of administrative barriers on business’ ability to implement competitive strategies. The JAA team also prepared a technical note on AGOA-related procedures.  Using the Coffee, Fish Processing, and AGOA-related Apparel industries as examples, JAA worked with the Foreign Investment Advisory Service (FIAS) to consider and test new analytical approaches that link administrative barriers to competitiveness priorities.

 

Turkey: Administrative Barriers to Investment

 

The Administrative Barriers to Investment Study provided the Foreign Investment Advisory Service (FIAS) with analytical assessments and recommendations regarding taxation, site development, business approval procedures, and comparisons between local Turkish practices and international best practices. 

 

Preliminary findings were delivered in a brief presentation to the staff of the Turkish Treasury; final, more detailed reports were compiled, and published by FIAS.

 

Investment Promotion Agency Case Studies Tunisia, El Salvador, Uganda, Czech Republic
World Bank—Foreign Investment Advisory Service (FIAS)/Multilateral Investment Guarantee Agency (MIGA)

 

FIAS and MIGA contracted JAA to carry out a study of investment promotion agencies (IPAs) in Tunisia, Uganda, El Salvador and the Czech Republic. These studies were a follow-up to a survey completed by FIAS and MIGA of IPAs worldwide. The purpose of these case studies was to contribute to the general stock of knowledge on IPAs; to help enrich and support existing and planned programs for investment promotion; and to serve as a guide for designing effective IPA training programs.  The studies included information on the context in which each IPA is operating, on their organizational structure, on lessons learned through the promotion strategies implemented by each, and a summary of obstacles, and successes. Overall, the studies assisted the World Bank Group test the robustness of the previous survey’s key findings; provided a deeper understanding of the elements of effective IPAs; and identified lessons learned by IPAs in the countries identified.

 

Albania Multilateral Investment Guarantee Agency (MIGA) Benchmark Study

 

JAA, through a MIGA contract with partner Nathan Associates, designed and delivered benchmarking strategies to build the capacity of local investment promotion intermediaries to market and realize sustainable investment opportunities in Albania.  The aim of the project was to generate sectoral competitiveness information and to benchmark Albania against competitors, ultimately to market the country to Europe-based investors.  JAA focused on the Auto Components and Food & Beverage sectors, as well as the identification of potential new niche sectors that provided promise for short to medium term investment.

 

ROZ Work in Pakistan

 

JAA, as a subcontractor to BearingPoint, participated in the feasibility study of Reconstruction Opportunity Zones in the Pakistan border regions and in Afghanistan.  Fielding a trade expert for nearly two months to the region, JAA helped prepare the briefing to an inter-agency committee including NSC, State, USAID, USTR, and Treasury regarding the potential impact of allowing duty-free imports from qualified industrial zones in Afghanistan and selected areas of Pakistan.  The team identified likely regions, potential products, industries and stakeholders and evaluated the potential impacts in terms of displacing U.S. jobs and in stimulating investment, jobs and economic cooperation in this sensitive region.

 

Nigeria AGOA Agricultural Sector

 

WorkJAA worked in conjunction with Chemonics International to identify Nigerian agricultural products with significant potential for increased national sales in the export and regional markets.  JAA performed a cluster analysis on the identified products.  The end goal of the project was to see a quantifiable increase  in the future value of Nigerian agricultural products being sold as measured through increases in profit and return on investment to investors as well as corresponding increases in employment and income occurring in the agricultural sector.

 

For information on more projects related to Trade and Investment, please view our JAA Corporate Capabilities and Qualifications Document