Underwriting Export Promotion: Best Practices in the Operation and Management of Matching Grant Sche

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Underwriting Export Promotion Best Practices
in the Operation and Management of Matching Grant
SchemesITC/FAMEXII/World Bank

• Hamid Alavi
• Middle East and North Africa Region, World Bank
• Tunis, 5-7 June 2006

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Overview
Session 7 What have we learned? Where do we go?

• MSG as part of broader export development
  strategy
• Overall principles
• Design principles
• Clear/simple/measurable objectives cannot do
  everything!
• Eligible services (end-to end)
• Firm eligibility (direct and indirect exporters
  with reasonable chance of success)
• Targeting subsectors or activities (if govt can
  identify subsector with special capacity-building
  needs)
• Approval criteria (additionality)
• Implementation principles
• Management (public or private, independent,
  adequate resources)
• Export service provision
• MSG itself or service providers?
• Link to service providers (local and if necessary
  foreign)
• Develop capacity of intermediaries
• Monitoring and fudiciary responsibilities
• Impact assessment
• Shall MSG be temporary or permanent instruments?

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Guiding Principles for MGS

• The support must be consistent with strategic
  direction of the government.
• The support must deal with a market failure. This
  can be a lack of knowledge of markets, access to
  technology, etc.
• The support should serve as a catalyst to develop
  local markets and capacity for commercial service
  providers
• The support must produce an additional behavior.
  There is no point providing the intervention if
  all you are doing is substituting public money
  for private money.
• The results must be measurable and measured.
• The support must represent value for money. Need
  to be able to defend this support to the Ministry
  of Finance.
• Someone has to be accountable.
• Private sector involvement in the administration
  and delivery of services is essential.

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THANK YOU IN ADVANCE!

• Hamid Alavi
• Middle East and North Africa Region, World Bank
• halavi_at_worldbank.org