Slide 1© 2003 By Default! Knowledge-Based Economic Development: World Bank Strategy for Achieving Global Competitiveness Khaled F. Sherif, Sector Manager Private and Finance Development Sector Unit Eastern Europe & Central Asia Region The World Bank

Slide 2© 2003 By Default! World Bank Strategy for Achieving Global Competitiveness  The World Bank strategy supports a number of project interventions that are designed to improve a country's ability to:  Bank projects also support Governments in key areas of policy reform and infrastructure development along with support for the private sector in multiple areas including investment and training Establish short- and medium-term programs which produce immediate results in key sectors Achieve a long-term program which embeds knowledge and ICT-based growth as the primary driver for economic and social development

Slide 3© 2003 By Default! World Bank Strategy for Achieving Global Competitiveness  The strategy comprises a four-pronged approach, which interfaces across key sectors to wholly assist in the process of transitioning towards a knowledge-based economy: Improvement of ICT Platform Promotion and Support of Innovation Systems Development of Human Capital Modernization and Liberalization of the Economy – The World Bank approach is in line with e-Europe+ objectives and addresses all proposed areas for development

Slide 4© 2003 By Default!  The World Bank can assist in:  Investment in ICT infrastructure is key to providing the local populace and businesses with the technology tools required to enhancing overall competitiveness, promoting the use of knowledge for development, and enabling the dissemination of knowledge across all sectors of the economy Improvement of ICT Platform – Related e-Europe+ Objective: A cheaper, faster, secure Internet The identification and prioritization of what elements of the ICT platform are underdeveloped and require investment To determine how these needs could be best addressed, in terms of hardware, software and infrastructure Establish short- and medium-term programs which produce immediate results in key sectors

Slide 5© 2003 By Default! Improvement of ICT Platform NetworksAccess Launch Pad Mobile Telephony MediaRadio/TVInternet

Slide 6© 2003 By Default! Promote and Develop ICT Applications  Enhanced ICT infrastructure can be used to develop applications like the following: –e-based Government procurement –e-based investment promotion –e-based licensing and registration –e-based pledge registry for secured transactions –e-based credit information system –e-based tax information and payment system –Facilitating the use of digital signatures –Increasing linkages of domestic institutions of higher learning and research with those abroad –Evaluating the potential for clusters to assist with links between research and production

Slide 7© 2003 By Default! Modernization and Liberalization of the Economy  Bank assistance can help provide economic (and other) mechanisms to encourage the competitive, and cooperative, use of information throughout all sectors of the economy  The strategy is designed to support: - Related e-Europe+ Objective: Accelerate the putting in place of the basic building blocks for the Information Society Policy reform Establishing institutions to support the reform process Achieving macroeconomic stability

Slide 8© 2003 By Default! Modernization and Liberalization of the Economy Competition Policy Tax Policy Regulatory Environment Support to SMEsPromotion of FDI Credit/ Financial Sector Development Governance Standards Trade/Investm ent Facilitation

Slide 9© 2003 By Default! Promote and Support Innovation Systems - Related e-Europe+ Objective: Stimulate the Use of the Internet Promoting and supporting innovation systems is key to developing a long-term KE framework, and is the underlying means by which to move towards a self- sustaining information society Promoting and supporting innovation systems is key to developing a long-term KE framework, and is the underlying means by which to move towards a self- sustaining information society This involves enhancing the coordination between government, the private sector and research institutions, and the establishment of an environment which promotes growth through innovation This involves enhancing the coordination between government, the private sector and research institutions, and the establishment of an environment which promotes growth through innovation

Slide 10© 2003 By Default! Promote and Support Innovation Systems More efficient and effective R&D Issuance of new patents Intellectual property development  Innovation systems are key to enhancing productivity and efficiency within the economy, and include:

Slide 11© 2003 By Default! Development of Human Capital  The development of human capital is essential in establishing a skilled and knowledgeable workforce which can continuously participate in the process of effectively using and generating knowledge  The strategy focuses on: -Related e-Europe+ Objective: Investing in People and Skills Basic literacy and enrollment in primary and secondary education Tertiary education Global distance learning Life long learning

Slide 12© 2003 By Default! Development of human capital emphasizes two primary areas: Development of Human Capital Extending the reach of computers and ICT-equipment to basic education schools Assisting in curricula development and providing access to learning materials Providing support for research within higher institutions Developing centers with the capacity for providing distance learning courses Education Training staff within academic institutions for the use of technological devices Establishing a program for the training of current managers and professionals in career and industry-specific contexts Providing investments to support the establishment of tailored training programs Training

Slide 13© 2003 By Default! World Bank Strategy: Project Interventions

Slide 14© 2003 By Default! Key Elements  The Bank emphasizes working with the client to:  Depending on client needs, Bank intervention can come in the form of… Develop a vision for the country’s progression towards a knowledge-based economy Develop a prioritized strategy which identifies key areas of reform and progress Build short- and medium-term immediate wins in support of the long-term strategy A KE LIL of approximately $5 million A series of two-to-three investment loans (approximately $ million each) …or anywhere in between

Slide 15© 2003 By Default! Stakeholders Targeted Businesses Community Educational Institutions Government G2G G2C G2B E2B B2B G2E

Slide 16© 2003 By Default! Project Components: Improving Access to ICT  Improving access to ICT would target enhancing and improving connectivity in both urban and rural areas Current Network Improved Network

Slide 17© 2003 By Default! Project Components: Improving Access to ICT  The Bank would assist the client in: The identification of key areas for connectivity The development of a comprehensive country-wide network that leverages resources from each of the network nodes The development of telecenters, advisory centers, etc. which would be needed Hardware Solutions Software Solutions

Slide 18© 2003 By Default! Project Components: Development and Promotion of Government Services  Development of government services can involve assisting the government in building e-services from scratch, or assisting in the further development of activities which are still in preliminary stages.  This includes a wide range of services, such as e-procurement, e-registration, e-services within minorities, the use of digital signatures, etc.  The focus of these activities would be on a G2G, G2B, G2C and G2E level  Promotion of these activities is also a key priority, and supported by other initiatives on the “improving access to ICT” front

Slide 19© 2003 By Default! Project Components: e-commerce and Innovation Support  This component places the enterprise sector, in particular SMEs, at the center of innovation efforts  Activities would focus on building a number of innovation support programs for enterprises, with the objective of: Stimulating the demand from enterprises for technology support Helping to build the capacity of local ministries and partner organizations to provide effective support and advice to SMEs Building stronger relationships between enterprises and universities Curriculum revision Provision of learning materials

Slide 20© 2003 By Default! Project Components: e-commerce and Innovation Support  The component would provide project funding for new technology support mechanisms such as: Technology Development Programs which would provide funding mechanisms for technology projects proposed by enterprises A Technical Support Services Program which would provide technological and business advice and guidance to enterprises embarking on technology projects. An Intellectual Property (IP) Advisory Program which would be targeted specifically at enterprises to raise awareness of issues related to intellectual property rights. A higher level program to increase the participation of enterprises in local and international R&D programs such as the EU 6th Framework Program

Slide 21© 2003 By Default! Project Components: Developing Skills for the Knowledge Economy  This activity would focus on assisting members of the local population (including pupils, teachers, owners of SMEs) to develop and use digital literacy skills to enhance their daily lives  It can include a wide range of activities, such as: Training for students and educators Training for technology support staff Training for SME owners/business professionals Curriculum revision Provision of learning materials

Slide 22© 2003 By Default! Strategic Summary  The Bank’s support strategy emphasizes addressing client goals and objectives to enable them to become more globally competitive and develop a sustainable strategy for long-term growth  The key lies in tackling specific client needs, and developing local competitive advantages  The emphasis is on developing a generational shift, which enables emerging countries to achieve the same success that has been enjoyed by current leaders in the sphere of knowledge economy