Baghdad 4 Dec. 2011

 Related to MDG ◦ MDG 1: Eradicate extreme poverty ◦ MDG 8: Develop a global partnership for development  National Vision: ◦ Increase annual GDP by 9.38% ◦ Economic diversification and increased productivity in all economic sector ◦ Sustainable jobs and income generation especially among youth and women ◦ Reduce level of poverty by 30% ◦ Enhance role of Private sector in national development process ◦ Increase contribution of agriculture in GDP

Outcome 2.1 : People in Iraq have improved access to job and income opportunities in a diversified and competitive market economy. Outcome 2.2 : Vulnerable Iraqis are benefiting from means- tested social transfers which stimulate economic growth and reduce dependency (Sub-PWG Social Transfer) Outcome 2.3 : Government of Iraq has institutionalized a universal social security system covering unemployment, health, old age, disability and other social risks

PWG Inclusive Economic Growth Sub-PWG Social Transfer Co-Chaired by:  Government: Ministry of Industry and Minerals, Ministry of Planning (MoP)  UN: UNIDO, ILO Membership:  Government: Ministry of Industry and Minerals, Ministry of Planning, Ministry of Agriculture, National Investment Commission, Ministry of Trade, Ministry of Finance, Ministry of Labor and Social Affairs, Iraqi Federation of Chamber and Commerce, Iraqi Federation of Industries, KRG Ministry of Planning, KRG Ministry of Labor and Social Affairs.  UN: UNIDO, ILO, UNDP, UNESCO, UNICEF, FAO, IOM, WHO, UNHABITAT, IAU,WFP, UN-Women, UNCTAD.  NGOs: Iraqi Dar Al-Salam Center, Women for Peace Meetings: Monthly Co-Chaired by:  Government: Ministry of Finance (MoF), Ministry of Trade.  UN : WFP Membership:  Government: Ministry of Finance, Ministry of Trade, Prime Minster Advisory Commission, Ministry of Labor & Social Affairs, Ministry of Planning, Central Bureau of Statistics, KRG Board of Investment, KRG Ministry of Trade and Industry.  UN: WFP, UNDP,UNICEF, IAU Meetings: Every 2 months

Policy, legal and Governance Private Sector development SOE restructuringIndustrial Zone developmentInvestment policy/mappingSME developmentLand management reform Social security system and dialogue Local economic governance Development of economic institutions Vocational Training Centers Enterprise Development Centers/Business Information Centers Investment promotion agencies Laboratory for testing industrial product Economic development Committees (Governorate level) Direct support measures Pilot rehabilitation of 3 pilot SOEs Creation and expansion of M& SMEs Skills development of Iraqi beneficiaries (technical and managerial) Financial support to beneficiaries (in kind support grants, microfinance loans) Capacity Development GoI Institutions Outcome 2.1 : People in Iraq have improved access to job and income opportunities in a diversified and competitive market economy.

Inclusive Economic Growth Priority Area is 27.82% funded  Funds Requested: $ million  Funds Available as of 30 September 2011:$ million  Remaining Balance to be mobilized:$ million

UN AgencyFunds requested in (Millions of USD)Funds Available in (Millions of USD) As of 30 September, 2011 UNDP UNESCO UNICEF UN WOMEN ILO IOM UNHABITAT UNIDO WFP WHO UNCTAD UNESCWA FAO TOTAL

 Development and approval of SOE restructuring Road Map  Investment mapping  SME policy and institutional framework  Preparation of draft laws including economic reform law, PPP general framework law, land management reform  Two economic development strategies and plans completed in the first stage  Produced analytical briefs in Budget analysis, Oil and gas sector, Electricity sector and economic analysis  The first draft of the NHA report has been prepared

 Business development Centers were established and functional in 6 governorates to provide SME services  Capacity development to INIC and MoA to enhance their capacities to support investment promotion  Economic Development Units established in three Iraqi governorates  Specialized Institute for Engineering Industries (SIEI) laboratories rehabilitated and managerial and technical staff trained

 Private Sector development, Investment and Industrial Strategy for Iraq (PSDPI)  National SME support institution  Religious and eco-tourism strategy for Iraq  Land policy Road Map  Establish or rehabilitate Vocational training centers in Iraq and design training schemes/packages based on sectorial needs  Launch e-learning small and medium enterprise development services

UN  Security situation hindering staff mobility and engagement with partner institutions  On-going security challenges limit access to counterparts and information, and increase cost of programme delivery  Coordination between PWG and WB and USAID initiatives. GoI  Necessity of closer government engagement in work of PWG  Better communication between different Governmental institutions. Donor  Fund mobilization for PWG activities

 Support the GoI Institutions in the implementation of PSDPI defined policy framework to ensure sustainability and further economic diversification in Iraq: ◦ Implementation of SOEs Road-Map ◦ Pilot SOEs social mitigation programme ◦ Implementation of PSD Strategy  Stimulating job-rich growth and higher productivity of SMEs in strategic industries in Iraq  Integrated action of multiple agencies, each focusing on its own comparative advantage and core area of expertise  Application of a sector- targeted approach (through the income and employment multiplier) for balanced income and employment generation within local economies