1. ECA Knowledge Fair Knowledge Services: Lessons from MENA
Mustapha K. Nabli
Chief Economist & PREM Director, MENA
The World Bank
Washington, DC
29 January 2004

2. Key Topics Knowledge Services (KS) vs. lending
KS and large scale change-regional ESW
Improving Effectiveness of KS
Use of reimbursable technical assistance

3. Knowledge services vs. lending
Knowledge services should not be seen as opposing Lending
AAA: precursor to lending at country level:
Morocco PER/Admin Reform  GoM comfortable/committed; now to engage in lending and serious reform
Morocco Higher Education prospect of lending/TA failed to bring about resolve for reform; ESW likely to lead to lending

4. Knowledge services vs. lending (cont’d)
Policy-based lending and MICs task force report with KS as cornerstone of the dialogue

5. Knowledge services to support large scale change
Results-oriented approach  development effectiveness depends on big paradigm shift, not possible by tinkering on the margins and scattered lending or traditional ESW
Regional approach tackling linked thorny problems (e.g. trade, governance, gender, employment)
Regional approach to ESW  major change of development paradigm in multiple countries, learning from each other (regional sector strategies: water, knowledge economy, private sector, education)

6. Effectiveness of Knowledge Services (1) Vertical Programmatic ESW
Systematic long-term engagement required:
When reforms take years & circumstances change
When sequencing depends on lessons learnt from previous steps (Morocco Agriculture)
When sustained engagement, joint problem solving is critical, without lending (Tunisia Employment)
When one product does not address client needs  tailor-make package (report, conferences, study tours, TA) to build momentum for reforms cum capacity for implementation (Iran PER)
When building bridges/linkages between sectors/ ministries to increase support for reform agenda

7. Effectiveness of Knowledge Services (2) Horizontal Programmatic ESW
One theme across countries (similar to horizontal APLs)
Address common problems across the region through concurrent PESWs (e.g. pension reform in Iran, Lebanon, Jordan)
lower transaction cost for the Bank
ability to build up critical mass of capacity
 better knowledge exchange among countries

8. Reimbursable Technical Assistance
Large program in MENA for a set of non-borrowing countries who still need knowledge services
Clients look for:
Honest broker of advice
Analytical rigor
Access to global knowledge
Credibility of advice based on experience

9. 5 Point Plan for a Knowledge-Based Business Model
Strengthen our own capacity to deliver the best and most relevant knowledge
Use talent across the Bank group (WBI, DEC, Networks, IFC, MIGA)
Adapt the skills mix (cutting edge, integrators, learning plan, etc.)
Leverage with information technology (Gateway, GDLN, etc.)

10. 5 Point Plan for a Knowledge-Based Business Model (cont’d)
2. Strengthen collaboration with local, regional and international partners (outreach and partnerships) in a CDF context – tap into local learning and knowledge institutions
3. Adopt a new country business model, including new instruments to achieve CAS objectives
4. Help design and Implement systems for better measurement and management of knowledge services
5. Sharpen our focus on outcomes driven strategies
Each is necessary but not sufficient