OECD Development Pathways Multi-dimensional Review of Cote d'Ivoire Volume 3. From Analysis to Action (eBook)

Oecd (Autor)

eBook Download: EPUB

2016 | 1. Auflage
140 Seiten
OECD Publishing (Verlag)
978-92-64-25913-3 (ISBN)

Infos

The Multi-dimensional Review of Côte d'Ivoire aims to support the crafting of a development strategy for Côte d'Ivoire to reach emergence, the status of emergent economy, in 2020. The report recommends that Ivorian authorities focus on diversifying Côte d'Ivoire’s economy towards a more industrialised and modern structure, while supporting the economy’s competitiveness. To achieve this goal, Côte d'Ivoire needs to improve and develop its infrastructure network in the entire territory, encourage private sector investment in particular in SMEs, and improve education levels. A tax system that generates less distortion and more revenue to finance the growing needs of the country will also be required. This report details recommendations for each thematic area aimed at removing obstacles to emergence.

The successful implementation of these reforms will require a more efficient public administration to promote the priority projects, stimulate more changes and ensure the operationalisation of actions. This report also provides a dashboard that tracks progress and provides the basis for the evaluation of changes leading to emergence in 2020.

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The Multi-dimensional Review of Cte d'Ivoire aims to support the crafting of a development strategy for Cte d'Ivoire to reach emergence, the status of emergent economy, in 2020. The report recommends that Ivorian authorities focus on diversifying Cte d'Ivoire's economy towards a more industrialised and modern structure, while supporting the economy's competitiveness. To achieve this goal, Cte d'Ivoire needs to improve and develop its infrastructure network in the entire territory, encourage private sector investment in particular in SMEs, and improve education levels. A tax system that generates less distortion and more revenue to finance the growing needs of the country will also be required. This report details recommendations for each thematic area aimed at removing obstacles to emergence. The successful implementation of these reforms will require a more efficient public administration to promote the priority projects, stimulate more changes and ensure the operationalisation of actions. This report also provides a dashboard that tracks progress and provides the basis for the evaluation of changes leading to emergence in 2020.

Inhalt

Foreword 5
Acknowledgements 6
Table of contents 9
Abbreviations and acronyms 13
Executive summary 15
Chapter 1 Opportunities and challenges for emergence 17
Figure 1.1. Multi-dimensional country review to help Côte d’Ivoire to achieve emergence by 2020 18
Côte d’Ivoire’s development goal is to achieve emergence by 2020 19
Figure 1.2. Côte d’Ivoire has performed only modestly in raising well-being 20
A vision which is shared by all, adapted to Ivorian conditions, and which draws together the authorities’ efforts will be vital if Côte d’Ivoire is to achieve emergence by 2020 20
Figure 1.3. Emergence means... 21
Structural transformation of the Ivorian economy, including new opportunities for diversification, will make it possible to change the economic model 22
The economic model is not balanced enough to produce lasting and inclusive growth 22
Structural transformation must be based on opportunities to diversify which create jobs and more added value 22
Figure 1.4. Stimulating investment contributes little to job creation 23
The potential of agriculture and agro-industry is insufficiently exploited 23
Figure 1.5. Agricultural yields of the 10 main products in Côte d’Ivoire decline compared to the rest of the world 24
Industrial capacity is limited 24
The services sector has unused potential 25
Capturing new markets and ending obstacles to competition are needed for the country to use the opportunities of diversification 25
Better regional co-operation and integration will be essential to taking advantage of opportunities across all sectors 26
Figure 1.6. Côte d’Ivoire can benefit more from regional trade 26
Infrastructure is not effective enough 26
Figure 1.7. Côte d’Ivoire lacks enough electricity access for an emerging country 27
Figure 1.8. Côte d’Ivoire has very few surfaced roads 28
Figure 1.9. Internet use is below that in many emerging countries 28
Access to funding is a constraint for business and individuals 29
Figure 1.10. Bank credit to the private sector is largely inadequate 29
The workforce is neither well educated nor equipped with the required skills 30
Figure 1.11. Few students complete all school cycles because of drop-out 30
Tax policy is an inadequate instrument to provide high-quality public goods and services 31
Figure 1.12. Government revenues from Cote d’Ivoire are below that of most comparison countries 31
Cross-sector constraints affect several economic sectors at different levels 32
Many reforms, due to be carried out by 2020 and regularly assessed, form the roadmap for emergence 33
References 34
Appendix 1.A1 Methodology of multi-dimensional country reviews 35
Appendix 1.A2 Methodology of assessing well-being 36
Chapter 2 Continuing structural transformation of the economy 37
Figure 2.1. An emerging economy: More competitive and a strategic dialogue 39
Diversified and industrialised economy 40
Efficient agriculture drives growth 40
Box 2.1. Getting the most out of new technology (ICT) to promote development 40
High-potential agro-industries drive growth 40
Box 2.2. Two ways to support agricultural progress: Morocco and China 41
Box 2.3. Linking industrial firms to the world market: Cut flowers in Ethiopia and pineapples in Ghana 42
Industry diversified and creating jobs 42
Box 2.4. Using local know-how to build a “national champion” in the assembly industry: The Chinese firm Haier 44
Industry has access to good production infrastructure 44
Mining drives growth 45
The services sector helps modernise the economy 46
Box 2.5. Restoring an image: Colombia’s country-brand strategy 46
SMEs are a vibrant base of the economy 47
Box 2.6. Co-ordinating SME support activities 47
Innovation creates value 48
Box 2.7. Identify comparative advantages to encourage competitive innovation 48
Competition must improve nationally and internationally 49
The investment climate encourages the private sector 49
Quality standards are recognised 49
Robust competition ensures economic growth 50
Box 2.8. Institutions to encourage competition, adapted to changing needs 51
Easier trade will improve commercial integration 51
The economic potential of land has been fulfilled 52
Economic development benefits all regions 52
Box 2.9. Geolocation as a solution to old problems 53
References 53
Chapter 3 Expand infrastructure to support emergence 55
Figure 3.1. Access, competition and sustainability are the pillars of efficient infrastructure 56
Access to essential infrastructure for all must be improved 57
Infrastructure investment must be adequate 57
The effect of infrastructure investment is maximised 59
The life-span of existing infrastructure is extended 61
Make key infrastructure more competitive 61
More competition needed in management of infrastructure 62
Greater competition and access to ICT is needed 63
Abidjan’s port must be more competitive 64
Investment is good value for money throughout the life of an infrastructure 65
Financially sustainable infrastructure must be ensured for taxpayers and the government 66
References 67
Chapter 4 Giving business and individuals access to funding 69
Private sector access to credit must be the focus of the financial sector’s growth if emergent status is to be achieved 70
Figure 4.1. Loans to the private sector depend on returns and availability of funds 71
Financial intermediation costs must be reduced 71
Less credit risk would encourage loans to SMEs 72
Box 4.1. Mutual guarantee associations in Italy and developing countries 73
Institutional flaws prevent effective monitoring of borrowers and the system of collaterals needs upgrading 74
More private savings in banks will increase money for loans and improve funding of the economy 75
Funding the economy requires more long-term capital 75
Box 4.2. Kenya at the cutting-edge of innovative financial products 76
New ICT-based solutions to encourage bank use and financial inclusion 76
Box 4.3. Interoperability between mobile-phone operators in Tanzania 77
Box 4.4. Banking service models around the world 78
Confidence of individuals in the financial system must be strengthened 78
Box 4.5. OECD/World Bank questionnaire to assess public knowledge of finance 79
Box 4.6. Financial education strategies, a priority for many developing countries 79
Box 4.7. Senegal’s financial services quality observatory 80
Alternative funding to bank loans are under-used in Côte d’Ivoire 80
Box 4.8. The failure of share savings plans in Tunisia: Lessons for Côte d’Ivoire 81
References 81
Chapter 5 Investing in the workforce through quality education and appropriate skills 83
Figure 5.1. The education system helps emergence by training tomorrow’s workforce 85
Educational quality and access must be improved to upgrade basic training 85
Box 5.1. Training teachers: The example of Malawi 86
Box 5.2. Adapting training to boost teacher numbers 87
Box 5.3. Training teachers to introduce ICT in the classroom: Teach Initiative in Ghana 88
Technical skills must be expanded to boost growth and economic diversification 88
Box 5.4. Four priorities to ensure the TVET system meets the economy’s need for skills 91
Table 5.1. Professional skills needed for sectors driving structural transformation 91
Box 5.5. Successful adult literacy programmes in communities 92
References 92
Chapter 6 Tax policies to create a dynamic private sector and efficient government 95
The tax system must be thoroughly reformed to help the country reach emergent nation status 96
Figure 6.1. A modern tax system adapted to the economy is essential for economic emergence 97
Thorough reforms must be adapted to local conditions and the Ivorian economy 98
The tax administration must work better 98
Box 6.1. Computerising and reforming the tax system: Viet Nam and Mozambique 99
Box 6.2. Increasing formalisation of business with customers 100
The tax base should be broadened and simplified 100
Box 6.3. A simpler tax system to encourage the informal sector: Mexico’s Régimen de Incorporación Fiscal 101
The tax system works better 102
References 103
Chapter 7 Public governance and ways to implement it 105
Côte d’Ivoire has made progress since recovery began in 2012, but constraints are preventing speedier application of the emergence programme 106
A solution for continuing ambitious reform: A top-level unit to carry out reforms and guide change 106
Implementation units, solutions to be adapted to local conditions 106
Côte d’Ivoire can consider setting up an implementation unit 107
Key elements to support reform on the way to emergence: Communication, co-ordination and follow-up 108
Communicating to all a message and shared vision 109
Box 7.1. Expand informal communication to support public governance 109
Government agencies must be better co-ordinated and work together more 110
Box 7.2. Expanding public-private contacts 111
Monitoring and assessment, essential for successful reforms 112
Risk must be managed so it does not hamper the development programme 113
The scorecard system helps the move towards emergence 114
Table 7.1. The scorecard enables Côte d’Ivoire to monitor its progress toward achieving emergence 116
References 119
Annex Action plan 121
Chapter 2: Continuing structural transformation of the economy 121
Chapter 3: Expand infrastructure to support emergence 129
Chapter 4: Giving business and individuals access to funding 131
Chapter 5: Investing in the workforce through quality education and appropriate skills 134
Chapter 6: Tax policies to create a dynamic private sector and efficient government 136

Textauszug

Chapter 2. Continuing structural transformation of the economy

To achieve the status of an emerging nation, Côte d’Ivoire will need to move towards an economic structure that generates growth and jobs for people in all parts of the country, doing so by diversifying economic activity and relying on existing comparative advantages, as, for example, in agricultural processing. A vigorous and more professional services sector will support growth in other sectors while directly boosting the expansion of small and medium-sized enterprises (SMEs). Being competitive requires an encouraging investment climate, well-accepted quality standards and robust competition. Trade must be encouraged, especially through regional integration, to conquer foreign markets. Land and property laws that make best use of economic potential can also help development.

Côte d’Ivoire’s economic structure is unsuited to job creation and encouragement of productivity and must be reshaped through diversification and the modernisation of production. Figure 2.1 shows what is needed for a competitive economy committed to structural transformation. A long-term growth strategy must make use of the country’s main economic assets. Agriculture could boost overall growth by increasing productivity, and industry must expand to contribute more added value. Services, which already employ much of the workforce and help growth, must become more professional and high-quality for businesses.

Figure 2.1. An emerging economy: More competitive and a strategic dialogue

Note: This figure refers to the recommendations and action plan presented at the end of this report. “ER 1” stands for the main expected result and bracketed numbers to action plan recommendations.

Source: Authors.

The road to structural transformation must take into account products with existing comparative advantage, along with international demand and modernisation of key economic activities. The OECD analysis is based on a twofold approach pointing to the chief engines of growth. The Phase II report (2016) presents results of the “product space” analysis that lists the main opportunities, closely tied to necessary skills already existing in the country and potential improvement. The Growth Identification and Facilitation Framework (GIFF) supported this approach by comparing Côte d’Ivoire’s experience with those of other countries, taking into account initial assets, international demand and the contribution of jobs and added value from processing. This quantitative analysis was accompanied by a qualitative analysis of key sectors and activities, and identifying priorities for Côte d’Ivoire.

Listing priority products takes into account productivity, regional and world demand and potential for diversification. Côte d’Ivoire has regularly increased productivity in handling cocoa, cotton, rubber and cashew nuts. Important sub-regional food staples such as cassava and cereals have good processing potential, too. The country must also base structural transformation on activities that are already profitable and could generate much demand in the region, such as chemical and pharmaceutical products and construction materials. Other activities, such as packaging, will benefit the entire economy. Attracting assembly industries will be harder but Côte d’Ivoire could try to use its geographical position at the centre of the West African Economic and Monetary Union (WAEMU) and the Economic Community of West African States (ECOWAS), as well as its recent economic recovery, to attract flagship projects.

Improving and professionalising services will be vital for long-term development. They have growth potential and are crucial for industry, especially in the digital economy, transport and logistics. Trade will support the growth of many sectors. Tourism will need time because it requires long-term investment and targeted publicity campaigns, but it can boost the country’s international image.

The government should act as a facilitator for sectoral development. Proactive and determined authorities can exploit the country’s comparative advantages, not by interfering with market mechanisms or backing unprofitable activities, but through facilitating operations and supplying essential public assets with a focus on creating conditions for prosperity. The government’s priority must be to improve infrastructure access, monitor prices and their possible effect on wages, and continue educational reforms. More specific sectoral measures should benefit all of a sector’s enterprises or else, more competitively, its best-performing ones.

Sectoral policies cannot work without basic cross-sector reforms. The entire economy will benefit from a better investment climate and more secure land tenure. Better quality standards are essential to winning new markets and improving the quality of national production. Successful production that needs inputs, along with export activity, depends on smooth passage through ports and customs clearance. These key elements, discussed in section 2 of this chapter, are vital for growth and successful economic diversification.

Diversified and industrialised economy

Efficient agriculture drives growth

Improve sector productivity and the capacity of those involved (Recommendations 1, 2 and 3)

The government must ensure good quality inputs, and especially seeds, along the whole distribution chain, in particular at the level of small traders. The agriculture ministry plans to set up an integrated distribution chain for good quality seeds, starting experimentally in rice production. The project does not take into account the risk of the adulteration and smuggling of inputs at the end of the chain, as happened in Uganda where fertiliser and seeds were adulterated by retailers. The government should consider a monitoring operation to remedy this problem and improve the quality of inputs sold to small farmers, while continuing with plans to set up larger supply chains. This would mean creating special offices inside quality-control bodies or a special agency to monitor food and pharmaceutical quality (like the US Food and Drug Administration), collecting samples, doing laboratory tests and imposing penalties. Overall, the government must provide enough funding for agricultural development, including the national agricultural investment programme (PNIA).

Agricultural services need to be strengthened and the national agency to support rural development (Anader) has plans to overhaul them comprehensively to tackle poor access to services and key inputs for small farmers and their physical dispersion, perhaps by combining some of them and locating them close to major input suppliers. The responsibilities and performance assessment of co-operatives could be reviewed to boost the training of those involved. The structure of key sectors also needs to be improved with better-trained operators and links between professions, along with introduction of new technology (Box 2.1).

Box 2.1. Getting the most out of new technology (ICT) to promote development

The Indian firm ITC Ltd. launched its E-Choupal programme in 2000 in its agro-industry division to tackle production problems, especially dispersed farming in the countryside, and won several prizes for its design and efficiency. It provides Internet terminals for farmers linked to a regional centre manned by professionals to supply storage, maintenance and transport. The cost of running ITC is covered by the owner of the terminal, who is in turn paid by other farmers who use it. The link provides better information about prices, weather and farming practices, and ITC also supplies inputs to farmers, while the firm gains through better quality and transaction savings when buying crops from farmers.

Among many examples of successful ICT is the firm Esoko in Ghana, which used mobile phones to provide information and links to agricultural markets (text messages, buying and selling offers).

Source: ITC Ltd. (2015); Esoko (2015).

High-potential agro-industries drive growth

Expand processing of raw materials, especially in key sectors (Recommendation 4)

Agriculture faces a range of problems in modernising and expanding processing. National capacity sometimes exceeds local output (as with palm oil), so strategic reforms are needed to improve productivity through better access to high quality inputs (seeds and fertiliser) and better trained local operators. Extra processing capacity is also needed (for cashew nuts, for example), along with improved business conditions to encourage local processing through support for agricultural clusters and also steps to attract major international investors.

Vigorous and co-ordinated bodies to promote various sectors are essential for developing value chains. The government must get businesses to modernise to boost output and help them find new markets (Box 2.2). Present value chains focus on individual sectors and hinder such co-operation. The government could choose trial regions with a potential for some sectors and support clusters there to encourage exchange of information and links between value chains. The clusters could promote co-operation in packaging, storage, transport and funding and must be set up with carefully chosen participants to ensure enough skills and commitment. Then, to raise more money, they could welcome big firms in some value chains with an interest in improving quality which could help fund such initiatives.

Box...

Produkt-Details

• Erscheint lt. Verlag: 24.6.2016
• Sprache: englisch
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• ISBN-10: 92-64-25913-9 / 9264259139
• ISBN-13: 978-92-64-25913-3 / 9789264259133