Private Sector Development

Armenian Competitiveness Assessment

Through a contract with USAID/Armenia, JAA led a national competitiveness assessment (under the Nathan-MSI GBTI IQC). The overall objective is to establish a process and structure for productive change by assessing the competitive environment of Armenia with particular focus on the growth of small and medium sized enterprise. The results of the assessment coupled with JAA’s expert recommendations will be providing guidance to USAID/Armenia’s strategy for supporting economic growth through 2009.

By applying several tools and methodologies appropriate to early competitiveness assessments—and to encourage initial involvement of industry groups—JAA carried out a countrywide competitiveness benchmarking exercise to collect sound comparative data for decision-makers and investors as input to public-private dialogue. Having assessed the strategies and performance of nine Armenian industries (precision engineering, IT, food processing, brandy, wine, apparel, gems & jewelry and tourism) JAA was able to provide the stakeholders with a clear understanding of the current and potential competitiveness of Armenia’s economy.

JAA also suggested new policies developed for export development, investment promotion, infrastructure, and human resource development to improve the quality of the enabling environment based on cross-cutting priorities and the priorities of competitive industries.

JBIC Private Sector Development Best Practices Guidebook

The Japanese Bank of International Cooperation contracted JAA to prepare a guidebook on Private Sector Development Best Practices as they relate to African small- and-medium enterprises (SMEs). The guidebook was designed for JBIC loan officers and meant to provide examples and criteria for appropriate PSD programming and initiatives, as well as appropriate intermediaries to work with for those initiatives. Keeping in mind the specific needs and interests of JBIC, the following were the core PSD program areas being considered for JBIC implementation: improving access to finance; removing regulatory bottlenecks (improving the enabling environment for business); improving access to good business support services; and supporting linkage-based initiatives (e.g. sectoral, value chain, cluster, locational, corridor, and similar initiatives).

Armenia CAPS Project

The Competitive Armenian Private Sector Project (CAPS) is the follow-on project to the Armenian Competitiveness Assessment. The objective of this assignment is to assist private sector operations and strategies, while improving the quality of the microeconomic business environment in sectors that have the most impact on the economy in terms of income generation and employment.

CAPS is based on a cluster approach which focuses on improving the business environment and fostering cooperation among enterprises in a particular industry sector. The project currently has two industry clusters: Tourism and ICT—a third industry will be chosen a later time. JAA is also assisting the production of an Armenian Competitiveness Report as well as providing training on competitiveness councils and best practices to provide more extensive briefings, and skills-development in competitiveness approaches through a series of workshops, roundtables and seminars. JAA has examined industry performance, and intimately involves industry leaders in planning the implementation of a competitiveness initiative for Armenia.

Bosnia Cluster Competitiveness Project

To improve Bosnian competitiveness and jumpstart economic growth, JAA is designing mechanisms for public-private dialogue; introducing competitiveness concepts in the dialogue between clusters and government; educating the public sector on competitiveness and the need to engage the private sector; and assisting development of a national competitiveness council.

JAA is providing technical expertise by way of a labor association development specialist and short-term technical assistance in the area of public-private dialogue. By working directly with trade associations, industry committees, and Regional Development Agencies (RDAs) JAA is introducing competitiveness concepts to guide the dialogue between business and government. These partnerships are designed to develop strategies that advocate a pro-business investment climate by reforming business regulations and removing trade barriers that inhibit market linkages. The formation of a Trade and Investment group will facilitate transactions into the wood and tourism sectors and will help each industry pinpoint target markets based on Bosnian assets.

Business Growth Initiative (BGI) Project

JAA, as part of a team led by Weidemann Associates, has been contracted by USAID to conduct a multi-year research and evaluation project focused on increasing growth through enterprise development. The purpose of the BGI Project is to support USAID Missions in promoting best practices in enterprise development and to build a community of best practices for enterprise development within the broader development world among practitioners. The demonstration of best practices learned from this project by other parties in the enterprise development community of practice could have substantial impact on better project design and implementation. The objectives of the project as a whole are as follows: to improve enterprise development project designs; to conduct research projects; to develop and disseminate technical briefs; to convene seminars/workshops on best practices; and to implement pilot demonstration projects (PDPs) for Missions.

Currently, JAA is focusing on a research portion of the BGI Project called the “Comparison of Supply Responses of Businesses in Developing Countries to Expansion Opportunities in International Markets”. The objective of this case study is to compare supply responses by businesses in developing countries to a market expansion opportunity in regional and international markets. The purpose will be to understand in more depth the factors of success and failure in delivering on export opportunities. This research will explore the experience of various international buyers as well as suppliers developing markets. This study will be conducted through interviews with international buyers, as well as case study examples of successes and failures. The goal of the research is to determine the following: the most binding constraints for business in fulfilling international opportunities; similarities and differences in the challenges across sectors and countries; and innovative strategies for overcoming market expansion challenges and mitigating risk of both the supplier and the buyer.

Economic Recovery, Reform and Sustained Growth in Iraq

The JAA “MAPS” methodology was adopted by USAID as the methodology for conducting the private sector assessment in its original plan for Iraq. JAA was given the role of managing the “competitiveness” component of the USAID Iraq project. However, the project was not implemented as planned and the U.S. presence led at the time by Paul Bremer focused on other priorities. As a result, the role of JAA was focused instead on training individual entrepreneurs so that they could qualify for grants or loans to establish or grow enterprises that could contribute to Iraq’s recovery. JAA provided consultants for this purpose that worked directly with Iraqi counterparts and helped them prepare their business plans.

Namibia: Review of the Small and Medium Enterprise Competitiveness Enhancement Project (SMECEP)

The purpose of this assignment was to provide a comprehensive review of the USAID-funded Small and Medium Enterprise Competitiveness Enhancement Program (SMECEP) in Namibia in order to assess the performance of the contractor against the Statement of Work to date. JAA compiled a report on progress made with accomplishment of results specified in the contract, and highlighted the impact of the SMECEP program on beneficiary Small and Medium Enterprises (SMEs) and Business Service Organizations (BSOs). JAA identified best practices and lessons learned from the implementation of the project; developed materials for reporting purposes; conducted a review of the changes in SMEs BSOs since receiving assistance; and made recommendations to USAID and the Ministry of Trade and Investment (MTI) regarding Phase II of the project.

The JAA team evaluated critical questions on the outputs and results achieved; the impact of SMECEP programs on assisted SMEs; the level of organizational change in assisted BSOs; the impact of the grants program; the level of client satisfaction with SMECEP programs; the effectiveness of SMECEP coordination with other Strategic Objective implementing partners; and the impact of external factors such as USAID management and oversight and the roles of MTI and the Ministry of Higher Education, Training and Employment Creation (MHETEC) in the performance of the project.

Uganda, Togo, South Africa, Ghana, Southern Africa Regional, Rwanda, Zimbabwe, Lesotho, Senegal, Ivory Coast, Tanzania, Niger, Swaziland, Kenya, Guinea, Sri Lanka, Dominican Republic, and Costa Rica: Manual for Action in the Private Sector (MAPS).

Under the Private Enterprise Development Support (PEDS) project, JAA created the Manual for Action in the Private Sector (MAPS) methodology, since then MAPS exercises have been carried out in over fifteen countries. A full MAPS exercise involves the collection of data utilizing surveys of firms, government and non-governmental organizations. The Surveys typically involve sampling and extensive interviewing, data processing and interpretation of the results. MAPS exercises result in a comprehensive strategy for developing the USAID program in the private sector of the host country. The MAPS approach clearly exposes the major constraints to rapid, sustained and equitable economic growth while identifying the sectors with the greatest potential.

MAPS suggests policy, institutional, and technical areas for USAID intervention and provides benchmark development indicators that are then used to measure progress.

Through rigorous application of the MAPS methodology, JAA facilitated dialogue and consensus building regarding critical SME and other private sector bottlenecks. This, in turn, led to clearly elaborated strategic objectives, realistic interventions, and quantified targets and benchmark for improved private sector performance.

Guyana: Economic Growth Strategic Objective Planning and Design

JAA assisted USAID/Guyana to prepare its long-term Strategic Plan for Guyana’s Economic Growth Program (2004-2008). The Strategic Plan is focused on trade capacity building, with an emphasis on enabling Guyana business dramatically improve its ability to produce and export competitive products, with increased value added. This in turn requires improvements in Guyana’s ability to improve business’ skills, awareness of global market requirements and abilities to respond to the market’s needs; provide a sound service/enabling environment; attract productive investment; improve environmental stewardship; and benefit from regional and international trade agreements.

The design of the Strategic Plan was based on very extensive interviews and consultations with businesses, Government of Guyana (GoG) agencies, international development partners; experience of business-focused programs in Guyana in recent years; a recent review of the analytical update of the economic/trade situation and other inputs.

The project team provided a draft long-term Strategic Objective (SO) Plan that includes: (1) results to be achieved; (2) the logic of the causal relationships; (3) assumptions to be monitored; (4) illustrative approaches and activities; (5) potential program synergies; (6) performance management plan and, (7) two SO budgetary scenarios.

Africa Private Sector Support Project (PSSP)

As a subcontractor to Harvey and Company, JAA carried out more than twenty assignments under this multi-year task order contract. JAA provided leadership on issues related to private sector development, and tested new tools and approaches to support business-led economic growth.

JAA’s development and expansion of Africa’s private sector included assignments focused on policy, training, legal and regulatory reform, and institutional development. Amongst other assignments, JAA provided advisory services and technical assistance to: the Senegal National Assembly to strengthen the economic reform process and private sector development; the Uganda Capital Markets Authority for the creation of the Uganda Stock Exchange; and foreign investors in Cote d’Ivoire and Congo by preparing business guides.

Across Africa, JAA developed and tested analytical tools (Growth with Equity Matrix, Comparative Policy Analysis, Competitiveness Analysis) for private sector analysis and program development, and provided analytical and design support to venture capital programs. JAA also analyzed the constraints to private sector growth throughout sub-Saharan Africa by conducting feasibility studies to establish multi-branch community banks in selected countries.

Haiti FORUM 2000 Project

JAA provided support to Centre pour la Libre Entreprise et la Démocratie (CLED), an association of businesspeople focused on improving the economic environment by assisting Haitians address issues related to economic growth and developing a policy agenda to improve the investment climate. JAA assisted CLED organize and conduct six major economic conferences, prepare several position papers and related seminars on major economic and political issues, and organize and conduct two seminars for the Haitian media.

JAA also worked with CLED to organize and carry out a National Competitiveness Conference. The two-day conference covered issues related to competitiveness and included focus on two industry sectors (agribusiness and tourism). The keynote speakers included former Presidents Fernandez of the Dominican Republic and Figueres of Costa Rica (currently managing Director of the World Economic Forum).

This project brought issues of competitiveness to the forefront of economic development discussions relating to Haiti and led to a white paper coordinated by CLED on economic development issues in Haiti.

Assistance to Inversiones Consolidadas de Honduras, S.A. de C.V (The INCONHSA Group)

The Honduras-based INCONHSA Group is one of the largest Central American business groups. JAA initially carried out a series of assignments advising improvements to INCONHSA’s internal organizational and management structures; in order to improve the working efficacy of the INCONHSA Group and improve productivity, JAA advised the Group to delegate responsibility to highly motivated teams.

Later recommendations and technical assistance included developing a regional investment strategy with linkages to other regional investors; honing business plans; focusing on people and customers; evaluating business opportunities; and developing international marketing plans.

Senegal Support for Accelerated Growth and Increased Competitiveness (SAGIC)

J.E. Austin, as part of a team, is implementing the Support for Accelerated Growth and Increase Competitiveness (SAGIC). This project has three main components: Business Development Services (BDS), Public-Private Dialogue, and Policy Reforms. J.E. Austin is leading the BDS component of this project.

The Business Development Services (BDS) component is playing a catalytic role to involve private and public sector stakeholders in designing, implementing and managing business support programs to accelerate the growth of selected sub-sectors based on a market link value chain approach.

JAA has completed analyses of priority sub-sectors/value chains, identifying key actors, business growth opportunities, and key constraints. The sub-sectors focused on include cashew, mango, bissap, among others. Since the completion of the analyses, JAA has been providing technical expertise to address constraints and foster economic growth for exports of the targeted sectors using tools such as market studies, access to finance, business plans, value-added solutions, etc. For example, JAA brought a fruit fly expert in to the Senegalese mango sector to assess how producers can combat the current fruit fly infestation, and created a special working group on this issue. Pilot programs have also been initiated for the bissap sector, in the areas of seed production and agricultural practices.

Going forward, JAA will continue to bring together working groups in each of the sectors, and work with the stakeholders to develop actions plans based on the value chain analyses.

JAA is also responsible for the identification of BDS needs and local BDS providers able to provide business support services to sectors at the association, firm and sub-sector levels, and a BDS providers database is being set up. JAA is also building the capacity of local BDS providers to strengthen their ability to provide the appropriate BDS in a variety of areas.

JAA is currently working on the policy component as well, developing synergies and focusing efforts between private and public initiatives, having the common goal to increase exports and competitiveness. Specifically, JAA is working on investment climate reforms targeting improvement in Senegal’s ranking in the World Bank’s Doing Business Report using the Report of 2007 as a benchmark/indicator for Starting a Business (cost and time to start a business).

Burundi Private Sector Strategy Projects

JAA was engaged by UNIDO and the Burundi Ministry of Commerce Industry to define an approach and process to define a national Industrial Policy and implementing strategies. JAA led a UNIDO mission to Burundi in February 2005, to evaluate and discuss approaches to be used, set out key principles and components of a policy and implementing strategies, and facilitate the initiative of the Ministry of Commerce and Industry of Burundi to jumpstart the process of formulation of a new Industrial Development Policy for Burundi. The team worked very closely with the Ministry and held several meetings with representatives of the main development partners - ministries, private sector, banks, public enterprises, donors, etc. The main findings and recommendations were discussed with main partners at a well-attended workshop, and were incorporated in a Mission Report and Technical Note. The recommendations blend elements of value chain competitiveness and improvement of the enabling environment and platform for business and investment with targeted enterprise development, BDS, privatization and capacity building improvements.

In addition to the work done in 2005, JAA was contracted by USAID to write a paper entitled “Enabling an Inclusive Private Sector: Opportunities and Key Constraints.” This paper examined the status of the private sector in Burundi and the actions needed to encourage its productive growth.

Egypt TAPR II

The Technical Assistance for Policy Reform II (TAPR II) project was intended to support the overall USAID/Egypt goal of promoting a globally competitive Egyptian economy benefiting all Egyptians equitably. In partnership with BearingPoint, JAA provided senior competitiveness advisory expertise to the country team writing the Egypt Competitiveness Report, which was presented at the World Economic Forum regional conference in May 2006. The JAA team conducted an evaluation of the current Agricultural Export and Rural Incomes Project that addressed a wide range of components including trade association development, university capacity building and improvement of public-private sector communication, biotechnology research, smallholder horticulture and dairy/livestock development, and business development services. In addition, the JAA competitiveness expert conducted meetings with key private sector leaders and the National Competitiveness Council in an effort to support the council dialogue and activities.

Feasibility Study for a Center of Entrepreneurial Excellence at the Institute of Business Administration in Karachi, Pakistan

JAA, through USAID funding, carried out a feasibility study in Pakistan for a Center of Entrepreneurial Excellence (CEE) at the Institute of Business Administration in Karachi, Pakistan. The CEE project aimed to analyze the feasibility of creating a world-class institution for entrepreneurship and provide a plan to ensure the CEE’s financial sustainability. It focused on facilitating private sector linkages and ownership of the CEE thus contributing to a progressive entrepreneurship culture in Karachi. JAA organized a “Blue Ribbon Panel” to aid the study consisting of members from the MIT Entrepreneurship Center, Harvard Business School, the Stanford School of Business, and Babson College. It also devised a design for an institution which is conscious-of and driven-by the market and supported by a proven successful and innovative fundraising plan.

For information on more projects related to Private Sector Development, please view our JAA Corporate Capabilities and Qualifications Document