1 The Islamic Development Bank Group “Together We Build a Better Future” OIC Workshop on “Country Partnership Models with Central Asia”

Approved in 2012 Approved in 2011 Approved in 2010 FEB 2012 MAY 1999 COUNTRYNo (4) (11)1,205.3 (57) 62.87AZERBAIJAN (5) (45) 22.73KAZAKHSTAN (1)1.0 (1) (37) 45.61KYRGYZ REPUB (1)19.0 (1)10.2 (2) (44) 23.42TAJIKISTAN (2)218.6 (3) (22) 26.62TURKMENISTAN (1)180.4(3) (36) 0UZBEKISTAN* (1)523.7 (9)1,035.6 (25)3,745.9 (241) GRAND TOTAL (Number) Number of projects *Since joining to the IDB (2003)

Approved in 2012 Approved in 2011 Approved in 2010 FEB 2012MAY 1999 IDB GROUPNo ,307, ORDINARY ICD ITFC Trust Fund SAO ,037.53, GRAND TOTAL

TOTALSAOTrust Fund ITFCICD Operations Complex* COUNTRYNo 1, ,051.1AZERBAIJAN KAZAKHSTAN KYRGYZ REPUB TAJIKISTAN TURKMENISTAN UZBEKISTAN6 3, ,307.3TOTAL 100%0.2%0.1%5.5%5.9%88.3%Percentage, % * financing under Operations Complex includes loans and ordinary operations

TA (Grant) LoFISTISNA’ALEASINGIN.SALELOANCOUNTRYNoNo 3.52 (13) (7)370.6 (3)31.03 (3)93.13 (10)AZERBAIJAN (13)214.7 (9) (4) (3)36.04 (4)KAZAKHSTAN (13) (2) (13)KYRGYZ REPUB (16) (21)TAJIKISTAN (5) (5) (6)29.57 (3)TURKMENISTAN (6)45.0 (3) (4) (4)53.72 (3)33.0 (3)UZBEKISTAN (66)259.7 (12) 1, (20) (7) (17)532.9 (54)TOTAL 0.5%7.9%54.7%15.0%6.1%16.0%Percentage, % (Number) Number of Projects % - According to the amount of the Mode of Financing

ICD`s Special Economic Zones Trusty Fund & SME Development Fund ICD`s Special Economic Zones Trusty Fund & SME Development Fund TA for Development of Islamic Finance in CIS TA for Development of Islamic Finance in CIS TA for Capacity Building Program for WTO related issues TA for Capacity Building Program for WTO related issues STATCAP – Building Capacity of Statistical Agencies STATCAP – Building Capacity of Statistical Agencies Alliance of Avoidable blindness Alliance of Avoidable blindness VOLIP – Vocation Literacy Program VOLIP – Vocation Literacy Program ITAP – Investment for Technical Assistance Program ITAP – Investment for Technical Assistance Program TCPP – Technical Cooperation and Promotion Program TCPP – Technical Cooperation and Promotion Program TACP – Technical Assistance Cooperation Program TACP – Technical Assistance Cooperation Program (New Vice Presidency complex with focusing on Cooperation & Capacity Development IDB Scholarship Program & others IDB Scholarship Program & others 6

Issue: Less focused interventions by different providers (too many cooperation areas of TA), sometimes creating duplications/repetitions; Issue: Less focused interventions by different providers (too many cooperation areas of TA), sometimes creating duplications/repetitions; Solution: Closer partnership and harmonization among OIC sister institutions and other organizations Solution: Closer partnership and harmonization among OIC sister institutions and other organizations Issue: Donor –Recipient/North-South relationship, creating unbalanced distribution of benefits of TA activities at expenses of Member Countries. Central Asia – recipient region in terms of TA; Issue: Donor –Recipient/North-South relationship, creating unbalanced distribution of benefits of TA activities at expenses of Member Countries. Central Asia – recipient region in terms of TA; Solution: Promoting South-South Cooperation (Triangular relationship MC-Facilitator-MC). Central Asia – provider of TA Solution: Promoting South-South Cooperation (Triangular relationship MC-Facilitator-MC). Central Asia – provider of TA 7

Issue: Process-oriented Technical Cooperation/TA activities, with minimal consideration of outcome/impact Issue: Process-oriented Technical Cooperation/TA activities, with minimal consideration of outcome/impact Solution: Design Results-oriented activities based on comprehensive Results-Matrix (with measurable KPIs, detailed targets, outcome evaluation and impact assessment) Solution: Design Results-oriented activities based on comprehensive Results-Matrix (with measurable KPIs, detailed targets, outcome evaluation and impact assessment) Issue: Lack of Ownership and Sustainability of targeted activity Issue: Lack of Ownership and Sustainability of targeted activity Solution: MC should ensure proper medium to long term budget allocation for subject activity Solution: MC should ensure proper medium to long term budget allocation for subject activity 8

Member Country Partnership Strategy (MCPS) Member Country Partnership Strategy (MCPS) Introduced in 2010 (Turkey, Kazakhstan in the Region),before 3-Year Work Program Formulation 9 MCPS and Results Framework Country National Development Strategy IDB Vision 1440H and Results Framework Consultations  Government  Development Partners  Civil Society  Private Sector  Academia  Research Institute Consultations  Government  Development Partners  Civil Society  Private Sector  Academia  Research Institute Knowledge Repository inputs  Diagnostic and Analytical Papers  Sector and Thematic Assessments  Sector Road Maps  Self and Independent Assessments Knowledge Repository inputs  Diagnostic and Analytical Papers  Sector and Thematic Assessments  Sector Road Maps  Self and Independent Assessments Consultation Seeks Common Grounds Diagnosis

How Do We Develop an MCPS? Start with … Diagnostic studies (CEW, SW) / desk reviews Bank-wide “Core & Multidisciplinary Team” formation Leading to … Concept Note (pre-MCPS) preparation Internal Committee`s review/clearance Consultations Operations Committee review Guidance by Management on key policy & operational issues 1. “In House”

How Do We Develop an MCPS? – Consultation with Client/ Stakeholders Active Players incl. OIC institutions, Co- ordination Group and other MDBs With Government Consultations Back to Office “Consensus” on areas of engagement Finalization Approval of Management Board for Information MCPS Field Mission 2. “In Country”

IDB Group’s Strategic Thrust (#8): “Facilitate integration of IDB Member Country economies among themselves and with the world” What is Unique about the MCPS? - Reverse Linkage Interventions to strengthen cooperation Strategic cooperation leading to Economic Integration Sharing Knowledge, Positive Experiences and Know-How RLs are mechanisms where a MC, based on its competitive advantage, can offer its expertise, knowledge and know-how to another MC with the IDB Group serving as an “enabler” in a mutually beneficial (win-win) process facilitating strategic alignments between the IDB Group and the MCs

*An MCPS for Fragile/Post-Conflict LDMCs is also under planning Completed and Under Implementation IndonesiaMaliMauritaniaTurkeyUgandaPakistan Nearing Completion KazakhstanMalaysiaMoroccoSenegal Under Preparation Bahrain Egypt GCC RegionalKuwaitNiger SyriaTunisia Progress on MCPS Initiative (End Year H)

Pillar 1: Increasing Competitiveness (Transport and Energy Infrastructure) Pillar 1: Increasing Competitiveness (Transport and Energy Infrastructure) Pillar 2: Economic Diversification (Non-extracting industry, agriculture and rural development) Pillar 2: Economic Diversification (Non-extracting industry, agriculture and rural development) Pillar 3: Financial sector deepening (Islamic Finance and Banking Advancement) Pillar 3: Financial sector deepening (Islamic Finance and Banking Advancement) Pillar 4: Regional Integration (Cross – Border Cooperation &Trade) – OIC Food Security Fund, Pillar 4: Regional Integration (Cross – Border Cooperation &Trade) – OIC Food Security Fund, IDBG Financing Envelope: USD 1.2 billion for MCPS duration IDBG Financing Envelope: USD 1.2 billion for MCPS duration 14

Prospective areas of technical cooperation: Trade & Transport Facilitation, Renewable Energy, Community- Driven Development, Islamic Finance and Promotion of Employment Generation in the region Prospective areas of technical cooperation: Trade & Transport Facilitation, Renewable Energy, Community- Driven Development, Islamic Finance and Promotion of Employment Generation in the region Regional Strategic Approach – Central Asia & Caucasus Development Program is being prepared (covering all Muslim CIS countries and Muslim Communities in non- member CIS countries) Regional Strategic Approach – Central Asia & Caucasus Development Program is being prepared (covering all Muslim CIS countries and Muslim Communities in non- member CIS countries) Uzbekistan: 2 nd MCPS in the Region and CEW by the end 2012 Uzbekistan: 2 nd MCPS in the Region and CEW by the end 2012 To include (i) Azerbaijan, being OIC MC, in the Action Plan of OIC for Central Asia and (ii) Muslim communities in non MCs of the Region To include (i) Azerbaijan, being OIC MC, in the Action Plan of OIC for Central Asia and (ii) Muslim communities in non MCs of the Region Advancement of Triangular/South-South Cooperation through New IDBG Initiative “Reverse Linkage” Advancement of Triangular/South-South Cooperation through New IDBG Initiative “Reverse Linkage” 15

Thank You “Together We Build a Better Future”