Support by ADB to Accelerate Graduation Kenichi Yokoyama Country - - PowerPoint PPT Presentation

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Support by ADB to Accelerate Graduation Kenichi Yokoyama Country - - PowerPoint PPT Presentation

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Support by ADB to Accelerate Graduation Kenichi Yokoyama Country Director ADB Nepal Presented at Kathmandu Ministerial Meeting of Asia-Pacific LDCs on Graduation and the Post-2015 Development Agenda, 18 December 2014 1 Presentation Outline

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Support by ADB to Accelerate Graduation

Kenichi Yokoyama

Country Director ADB Nepal

Presented at Kathmandu Ministerial Meeting of Asia-Pacific LDCs on Graduation and the Post-2015 Development Agenda, 18 December 2014

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Presentation Outline

  • 1. ADB Strategy 2020 and Mid-Term Review

Actions

  • 2. LDCs in South Asia and Support Strategies
  • 3. Graduation Support for Nepal
  • Country Partnership Strategy, 2013-2017
  • 4. Conclusion
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  • 1. ADB Strategy 2020 & Mid-Term Review

Actions

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ADB’s Strategy 2020

Approved in 2008 Strategic Agendas: Inclusive economic growth, Environmentally sustainable growth, Regional integration 5 Core Operational Areas: Infrastructure, Environment, Regional Cooperation and Integration, Finance Sector Development, Education 3 Other Operational Areas: Health, Agriculture, Disaster and Emergency Assistance Cross-cutting Drivers of Change: Private Sector Development, Good Governance, Gender Equity, Knowledge Solutions, Partnerships

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  • Undertaken to meet the challenges of transforming Asia & Pacific
  • 14 LDCs in Asia Pacific Region
  • Includes a 10-point program on future directions – Relevant

Actions for LDCs:

  • Sharpening ADB’s Operational Focus
  • Maintain focus on infrastructure (higher leverage & impacts)
  • Deepen inclusiveness to reduce poverty
  • Catalyze greater RCI
  • Support climate change & environment
  • Responding to the New Business Environment
  • Expand private sector development and operations
  • Mainstream knowledge solutions
  • Strengthening ADB’s Capacity and Partnership

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Mid-term Review of Strategy 2020

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  • 1. Security and political stability
  • 2. Macroeconomic stability
  • 3. Infrastructure investment
  • 4. Human capital
  • 5. Open trade and investment regimes
  • 6. Good governance
  • 7. Inclusiveness in the society
  • 8. A clear and shared vision for development

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“Back to Basics” Elements

ADB will focus on effectively implementing most of these “basics” so that LDCs (and other LICs and lower MICs) graduate to higher income levels.

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  • 2. LDCs in South Asia and Support Strategy
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  • 4 LDCs in South Asia: Bangladesh, Bhutan, Nepal, Afghanistan
  • Country-specific binding constraints → Vision & Strategy
  • ADB support is guided by Country Partnership Strategy
  • lignment to national strategy, harmonization, MFDR, capacity

development

  • Addresses LDC graduation criteria
  • Addresses the core issues and support sought in Istanbul

Programme of Action 2011-2020 8

Present Status and Approach

500 1000 1500 2000 2500 Bangladesh Bhutan Nepal

Per capita GNI (Atlas method) and graduation thresholds

GNI per capita GNI threshold 1 GNI threshold 2 10 20 30 40 50 60 70 Bangladesh Bhutan Nepal

HAI score and graduation threshold

HAI score HAI threshold 10 20 30 40 50 Bangladesh Bhutan Nepal

EVI score and graduation threshold

EVI score EVI threshold

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Country-specific Support Strategy

Bangladesh Bhutan Nepal Sustainable IEG & RCI

Sectoral focus: Energy, transport, urban infra & water supply, education, finance, ANR Thematic priorities: Governance, capacity development, CC, RCI, PSD, gender, knowledge solution

Equitable, job-creating IEG

Sectoral focus: Energy, transport, urban infra & water supply, finance, education, ANR Thematic priorities: Governance, capacity development, RCI, PSD, gender, knowledge solution

Employment-centric, sustainable IEG & institutional capacities

Sectoral focus: Energy, transport, urban infra & water supply, education, ANR Thematic priorities: Governance, capacity development, RCI, PSD, gender, knowledge solution

Common Features

  • Alignment with national priorities/medium-term plans
  • Structural transformation to build productive capacities,

and create a diversified and resilient economy

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Infrastructure as Strategic Core

  • Transport: In-country and regional connectivity
  • Energy: Security at home, clean energy, efficiency, RCI
  • Urban services: Quality of life, productivity

Human Capital

  • Skills to raise productivity & employability

Other/ Cross-cutting key drivers/ enablers

  • Agriculture, water management, climate change
  • Finance
  • Governance, Capacity building
  • RCI: SASEC as the RCI platform – flagship program
  • Private investments in infrastructure and industries
  • Gender and social inclusion (GESI)

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Strategic Directions to Support Graduation

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Infrastructure Investment

Large infrastructure financing gap in LDCs

  • Public investment: Quantum and quality have to be

increased (Nepal’s capital spending is just 3.3% of GDP)

  • Private investment:
  • Enabling environment
  • Robust legal, regulatory and institutional frameworks

→ Directly contribute to criterion 1 and 3 for graduation

7 10

2 4 6 8 10 12

BANGLADESH: Required investment to close infrastructure gap

(% of GDP per year, 2011-2020)

Low High

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2 4 6 8 10 12 14 NEPAL: Required investment to close infrastructure gap

(% of GDP per year, 2011-2020)

Low High

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Enhancing Human Capital

  • Critical to supply competent and able human capital
  • Support for vocational training, technical education and skills

development to boost jobs, productivity and income

  • Ultimately helps to attract FDI & sustain high growth rate
  • Addresses skills gap in the market
  • Quality, management capacity and geographical balance

are at the heart of such development assistance

  • TAs for sector reforms, capacity building, and social

protection

  • Innovative interventions such as cash transfers
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Regional Cooperation and Integration

  • Members: Bangladesh, Bhutan, India,

the Maldives, Nepal and Sri Lanka

  • Project-based initiative
  • Investment:
  • Over $6.3 billion since 2001 (33

projects, majority in transport sector)

  • $60 million TA (capacity development

and knowledge initiatives)

  • 2014-2016: $3.34 billion planned

Trade facilitation

  • Customs modernization
  • Harmonization of

standards

  • Improvement of cross-

border infrastructure

  • Transport facilitation

Energy

  • Cross-border

transmission

  • Export-oriented

power generation Transport

  • Roads
  • Railways
  • Ports
  • Airports
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Disaster Risk Reduction

Strategy

  • Disaster and emergency

assistance is featured in Strategy 2020

  • Close integration of DRR into

development projects to boost resilience

  • Climate change and DRR

intersection is addressed

  • Investment in disaster

resilience

  • Capacity development and

knowledge solutions Support initiatives

  • Emergency flood damage and

rehabilitation

  • Water resources project

preparatory facility

  • Capacity development for

school sector reform

  • Mainstreaming climate change

risk management in development

  • Building climate resilience of

watersheds in mountain eco- systems

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  • 3. Graduation Support for Nepal
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Status & Strategy

  • EVI criterion already met
  • For graduation, either

increase its per capita GNI by US$770 or HAI score by 6.17

  • Nepal needs to:
  • Tackle supply-side

constraints

  • Reorient structural

transformation

  • Promote value chains &

high value exports 16

Nepal’s Graduation Strategy & ADB Support

ADB Support

  • Investment to tackle binding

constraints and boost productive capacities

  • Infrastructure
  • Human capital
  • Institutional basis
  • Development vision
  • Public investment capacity
  • PPP framework
  • Thematic priorities
  • RCI
  • GESI, etc.
  • Partnerships/ leveraging
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Accelerated Economic Growth & Poverty Reduction

High & Sustainable Growth

Transport Urban Infra. & Services Human Capital

Risk Management Tools

  • Post-Conflict

Sensitive Approach.

  • Disaster & Climate

Change Risks Screening.

  • Governance Risk

Assessment Tool Thematic Priorities

  • GESI
  • Good Governance
  • Environment & CC
  • Regional

Cooperation & Integration

  • Private sector

development

Energy

Social Inclusion & Employment Generation

Agriculture Transformation 17

CPS (2013-2017) Structure

Enhanced Institutional Capacities

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Vision 2030 for rapid and sustainable growth & job creation

  • LDC graduation to be a medium-term vision/strategy
  • Meaningful structural transformation: Robust industrial

sector and higher value added in key industries → Collective DP support, South-south cooperation/ twinning Enhancing investment planning & implementation capacity

  • Improved budgetary and monitoring process
  • Sector investment strategies, plans & project pipelines
  • Implementing agencies capacity

PPP framework

  • PPP Policy and PPP Act drafted
  • PPP Center within NPC → Sector PPP strategy
  • PPP concession documents

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Capacity Enhancement for Graduation

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  • Expansion of generation

& transmission infrastructure

  • Policy, regulatory and

institutional reforms (including PPPs)

  • Catalyze private sector

investment and promote RCI to facilitate power trade

  • Domestic consumption

+ export

Support for Infrastructure Development for Graduation

19 Energy

  • Strategic Road Network,

trans-boundary connectivity, customs modernization

  • Urban transport planning

and management

  • Further upgrade TIA

capacity and domestic airports

  • Institutional

strengthening, PPP

Transport

  • Enhance access to and

service level of WSS for all

  • Improve urban

environment— wastewater treatment and efficient urban transport

  • Enhance governance

and institutional capacity for sustainability of assets

Urban

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  • School sector reform

focusing on access, quality & sector capacity

  • TEVT to expand

demand-driven skills training

  • Higher education in

science and technology, to build synergy with investments in infrastructure

Support for Education and Agriculture for Graduation

20 Education

  • Implementing Agriculture

Development Strategy with policy and institutional reforms

  • Irrigation infrastructure

and institutions

  • Value chains with private

sector & cooperatives

  • IWRM, CC adaptation, &

disaster risk management

Agriculture

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ADB MTR supports the key priorities and thrusts outlined in IPoA 2011-2020 and the proposed SDGs

  • Long-term development vision and strategy, backed by

dynamic national leadership

  • Addressing critical gaps in infrastructure (requisite & actual

investments); human capital (outcomes to attract investors)

  • Institutional bases: Enhancing infrastructure investments

(planning, implementation, asset management); Attracting PPPs; Governance (including PFM), Anti-corruption

  • Productive capacity development: Proactive facilitation for

value chains, entrepreneurship development, etc.

  • Tapping RCI opportunities: combining investment & TA

support to incentivize integration

Conclusion

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THANK YOU!