(Grant) Spatial Analysis of Lagging Areas Technical Assistance

Project

At-a-Glance

Approval Date
Actual Completion Date
Proposal Focus
1471
Core Focus
Secondary Cities
Country Type
Tunisia

Detail

Summary
A strong political will and leadership The Government of Tunisia (GoT) has elevated regional development, with a particular focus on its lagging areas, to one of its top priorities, as expressed in its recent Note d’Orientation de Développement Régional, and its Five Year Development Plan (to be approved in early 2016). The GoT wishes to rapidly turn its policy goal of improving lagging areas into action ahead of an international conference, it is organizing to raise funds for major national projects that will contribute to lagging areas development, currently scheduled for September 2016. To do so, it has given the responsibility to its General Directorate of Regional Development (Direction Générale du Développement Régional, DGDR), under its Ministry of Investment, Development and International Cooperation. DGDR is currently overseeing several regional development bodies and platforms including: the General Commission for Regional Development (Commissariat général du développement régional); three Regional Development Offices (Offices de développement - nord ouest, centre ouest, and sud); the Commission for Regional Development and Economic Growth (Commission du développement régional et de la croissance économique); and the Platform for Territorial Articulation (Plateforme d'articulation des territoires). A strong engagement of development partners In recognition of the importance of regional development in Tunisia, during the past five years, the GoT and its development partners, in particular local think tanks, GIZ, AfDB, the EU, ILO and SECO, have conducted several exercises to quantify regional disparities and diagnose their drivers. In order to lay the foundation for a regional information system, under the auspices of the MDICI, GIZ has helped to put together a database with available statistics disaggregated at the regional level. UNDP and GIZ are currently supporting governorates in lagging areas to do the necessary diagnostics to define their new five year plans. In 2013, Switzerland (SECO) funded the WB’s Tunisia Urbanization Review (along with Cities Alliance) in order to offer the GoT, its development partners and other stakeholders diagnostic tools to assess local governance and spatial development. In addition, the GoT’s priority is now mirrored in the WB’s priorities in Tunisia – Pillar 2 of 3 in the forthcoming WBG Tunisia Country Partnership Framework (2016 – 2020) is “Reducing Regional Disparities”. Further, Tunisia was selected as the pilot country for cross-Global Practice/Country Management Unit collaboration through the Maghreb Lagging Regions Task Force. World Bank’s just-in-time response to the demand of a national partner (DGDR) To help extract from these exercises an action-oriented diagnostic, the World Bank Team submitting this Proposal, presented to an inter-ministerial audience from the GoT in October 2015, a framework for improving development outcomes in its lagging areas and for reducing regional social and economic disparities. This framework draws on international operational experience and an analytical base including the 2009 World Development Report (Reshaping Economic Geography), its MENA companion (Poor Places, Thriving People), and IEG assessments. The framework is one of several that can help the GoT prioritize interventions (policies, program and investments) bearing in mind: (i) the need to balance spatial equity and economic efficiency; and (ii) that the discrete combination of interventions that will be optimal for each lagging area in Tunisia will depend on characteristics of the area – namely its density, distance from cities and leading areas, and degree of disconnect from cities and leading areas (e.g. linguistic, social or other barriers). The framework can help identify mitigating reforms/measures including spatially blind institutions and policies, spatially connective infrastructure and spatially targeted incentives. In response to the presentation, the GoT - through DGDR - requested (formal request attached): (1) just in time technical support to answer key questions that will help GoT shape its investment and support proposals in advance of the development partner conference currently scheduled for September; and (2) support to develop a framework for prioritizing and designing lagging areas interventions drawing from international experience and lessons learned from Tunisia’s experiences. It did so because it is seeking to fill critical gaps in knowledge on what has the potential to work to reduce regional disparities, in particular on the role of inland cities in regional/local economic development, and to enhance its prioritization of investments and policy reforms outlined in the recent regional planning exercise.
Objectives
? What is the main objective of the project? The main development objective of this project is to enhance the Government of Tunisia’s knowledge oriented to reducing regional social and economic disparities and improving medium-term development outcomes in its lagging areas. To do so, the Government has requested technical assistance from the World Bank to provide advisory support in the form of technical inputs to close knowledge gaps, and support for prioritization of key investments, policies and programs from among the full set identified by the GoT. In this context, the task will be organized in 2 phases: • A first phase from March to September 2016 during which just-in-time technical support to DGDR will be provided to assist them in their development of lagging areas support proposals, in preparation of the GoT’s planned September development partner conference. This will include support to the ongoing National Dialogue and regional consultations on lagging areas but also on-demand analytical work (short policy and investment notes, notably on the role of cities and growth poles, spatial disparities in access to services disaggregated by gender) and knowledge sharing from global experts to support GoT’s decision-making process; • A second phase which is planned through mid 2016 to end 2017 will enable the team to support DGDR in the development of an-action oriented roadmap for strategic interventions to improve outcomes in Tunisia’s lagging areas. This roadmap, which will emerge through analysis done within a selected framework, will outline short to medium term policy reforms, investments and other interventions to maximize the impact of lagging areas interventions undertaken by the GoT and other DPs. There will be a particular focus on the role of inland cities in local economic development with a gender lens informed by value chains, economic sector competitiveness and agribusiness/sylvo-pastoral initiatives undertaken by the WB Global Practices involved in this Project (Trade and Competitiveness, Natural Resources, Agriculture, and Social Urban Rural and Resilience). This support will result in a roadmap of intervention priorities for lagging areas in Tunisia. ? What are the expected outcomes of the project? The expected outcomes are two-fold: For the Government of Tunisia: Tunisian decision-makers equipped with a framework and knowledge on how to enhance their interventions in lagging areas; and sound policies, investments and other interventions prioritized for implementation in Tunisia’s lagging areas. There will be a particular focus on local economic development and the role of cities in lagging areas. For the World Bank: In the course of this Project, the Team also aims to provide critical input and orientations for the preparation of the World Bank’s future lagging areas integrated operation which is outlined in the WB Tunisia Country Partnership Framework. These will be largely based on WB’s (including the Team’s) previous experiences in supporting regional development in lagging areas in other countries, including in providing technical support in the form of lagging areas analytical work, other technical support, and financing. ? What are the main components, activities and outputs of the project? The 1st Component of the Project will provide just-in-time technical support to DGDR Through consultations with DGDR and its network of experts, a series of urgent technical issues will be tackled from March to July 2016. For instance, and subject to DGDR’s expressed needs, the Project may help to respond to the following questions: - How can the role of inland cities situated in lagging areas be supported in promoting local economic development? - How can the creation of growth poles contribute to the reduction of regional disparities? - What measures can accelerate the transition out of agriculture for the roughly 95% of Tunisians in certain lagging areas working directly or indirectly in agriculture bearing in mind the important contribution and the role of women in this sector? - How do drivers of disparities differ between coastal and interior governorates? - How can lagging areas better leverage drivers of growth in leading areas to achieve higher productivity and converging standards of living for both women and men in lagging areas? - How are land policies limiting development in certain lagging areas and how they affect women? - What viable alternatives can be made attractive in contexts of substantial black market informal employment? The types of analyses that may be undertaken at the request of DGDR include: - Subnational economic potential analysis/index - Additional value chain analyses where and when needed in particular in inland cities situated in lagging areas - Analysis of agglomeration and co-agglomeration of sectors in specific areas - Growth/jobs multiplier and welfare effects of specific interventions The Team is cognizant of the political sensitivities associated with this support and will be careful to respond to DGDR/GoT’s expressed needs. As such, this Project will not displace political processes that are underway but instead provide critical input to ensure that the GoT is well-equipped to make the best intervention decisions. The 2nd Component will provide just-in-time support to the National Dialogue on Lagging Areas This component will help the team to have a global overview of who is doing what in Tunisia on Lagging Regions and foster collaboration both within the Tunisian Administration and between Development Partners. Throughout the duration of the Project, and at the request of DGDR, specific working sessions with institutional stakeholders, DPs and civil society may be organized. The 3rd Component will support the GoT in developing a framework for prioritizing and designing lagging areas interventions drawing from international experience and lessons learned from Tunisia’s experiences. Based on the results of the 2 other components and from July 2016 to approximately June 2017, the 3rd Component will (i) conduct an assessment on the existing literature on past/on-going initiatives undertaken in Lagging areas of Tunisia by the GoT and its development partners, (ii) devise packages of interventions in lagging areas of Tunisia and (iii) conduct in-depth analyses through a defined framework. Specific activities and outputs for each Component are listed in the following table.
Activities
Component 1: Just-in time technical support to DGDR Targeted just-in-time technical support to DGDR and the working group, which may include the following activities: • Proposing a definition of lagging areas: including the scale, target, and selection criteria; • Prioritizing development objectives in lagging areas: including convergence through catching up or reducing variability and vulnerabilities of marginalized groups • Understanding Government’s agenda on lagging areas and decentralization (including the various projects planned by the GoT in the 5-year plan) Component 2: Just-in-time support to the National Dialogue on Lagging Areas Conduct a thorough stakeholder analysis/mapping of all the relevant Tunisian institutions and international development partners which have or would ideally have linkages to the National Dialogue on Lagging Areas Conduct a survey on the various activities of Tunisian institutions pertaining to regional development and Lagging areas (line ministries, regional development offices, etc.) Update the survey on the actions of the various DPs on lagging areas in Tunisia based on the existing table (link provided above) Convene several roundtable discussions between key stakeholders including Tunisian institutions and development partners to enable them to reflect on the assignment findings to date and to help inform options for ways forward for Tunisia Support to National Dialogue activities as requested by the GoT Component 3: Support to the GoT to develop a framework for prioritizing and designing lagging areas interventions drawing from international experience and lessons learned from Tunisia’s experiences Conduct an assessment on the existing literature on past/on-going initiatives undertaken in Lagging areas of Tunisia by the GoT and its Development Partners including Review of past experiences/projects targeting Lagging areas in Tunisia Conduct in-depth analyses through a defined framework, which could include the following activities: 1. Identifying which areas are leading or non-leading based on spatially disaggregated statistics; 2. Identifying the characteristics of the lagging areas according to density, proximity to economic density to benefit from spillovers and private interest in locational competitive potential; 3. Identifying the types of lagging areas based on two parameters: their potential and how connected they are (transport and telecommunication); 4. Conducting preliminary assessments of intervention options (inclusive human development in lagging areas; connecting poor places to the poles of development and underpinning private sector interest in non-leading areas). Devise packages of interventions in lagging areas of Tunisia: 1. Taking as a point of departure the value chain and cluster analyses which have been done recently at the national level, drill these analyses down to the subnational level and conduct regional cluster analyses for improved local economic development with an emphasis on the role of cities in lagging areas; 2. Identify responses (policy reforms, investments and institutional development measures) and organize them in packages of activities that can be implemented to relax the key constraints to development ; 3. Through a dialogue with Tunisian institutions and development partners and cost/benefit and/or SWOT analyses of the various options, prioritize the responses/packages of activities and outline ways forward for the GoT and its partners.
Expected Impacts and Results
? What is the main objective of the project? The main development objective of this project is to enhance the Government of Tunisia’s knowledge oriented to reducing regional social and economic disparities and improving medium-term development outcomes in its lagging areas. To do so, the Government has requested technical assistance from the World Bank to provide advisory support in the form of technical inputs to close knowledge gaps, and support for prioritization of key investments, policies and programs from among the full set identified by the GoT. In this context, the task will be organized in 2 phases: • A first phase from March to September 2016 during which just-in-time technical support to DGDR will be provided to assist them in their development of lagging areas support proposals, in preparation of the GoT’s planned September development partner conference. This will include support to the ongoing National Dialogue and regional consultations on lagging areas but also on-demand analytical work (short policy and investment notes, notably on the role of cities and growth poles, spatial disparities in access to services disaggregated by gender) and knowledge sharing from global experts to support GoT’s decision-making process; • A second phase which is planned through mid 2016 to end 2017 will enable the team to support DGDR in the development of an-action oriented roadmap for strategic interventions to improve outcomes in Tunisia’s lagging areas. This roadmap, which will emerge through analysis done within a selected framework, will outline short to medium term policy reforms, investments and other interventions to maximize the impact of lagging areas interventions undertaken by the GoT and other DPs. There will be a particular focus on the role of inland cities in local economic development with a gender lens informed by value chains, economic sector competitiveness and agribusiness/sylvo-pastoral initiatives undertaken by the WB Global Practices involved in this Project (Trade and Competitiveness, Natural Resources, Agriculture, and Social Urban Rural and Resilience). This support will result in a roadmap of intervention priorities for lagging areas in Tunisia. ? What are the expected outcomes of the project? The expected outcomes are two-fold: For the Government of Tunisia: Tunisian decision-makers equipped with a framework and knowledge on how to enhance their interventions in lagging areas; and sound policies, investments and other interventions prioritized for implementation in Tunisia’s lagging areas. There will be a particular focus on local economic development and the role of cities in lagging areas. For the World Bank: In the course of this Project, the Team also aims to provide critical input and orientations for the preparation of the World Bank’s future lagging areas integrated operation which is outlined in the WB Tunisia Country Partnership Framework. These will be largely based on WB’s (including the Team’s) previous experiences in supporting regional development in lagging areas in other countries, including in providing technical support in the form of lagging areas analytical work, other technical support, and financing. ? What are the main components, activities and outputs of the project? The 1st Component of the Project will provide just-in-time technical support to DGDR Through consultations with DGDR and its network of experts, a series of urgent technical issues will be tackled from March to July 2016. For instance, and subject to DGDR’s expressed needs, the Project may help to respond to the following questions: - How can the role of inland cities situated in lagging areas be supported in promoting local economic development? - How can the creation of growth poles contribute to the reduction of regional disparities? - What measures can accelerate the transition out of agriculture for the roughly 95% of Tunisians in certain lagging areas working directly or indirectly in agriculture bearing in mind the important contribution and the role of women in this sector? - How do drivers of disparities differ between coastal and interior governorates? - How can lagging areas better leverage drivers of growth in leading areas to achieve higher productivity and converging standards of living for both women and men in lagging areas? - How are land policies limiting development in certain lagging areas and how they affect women? - What viable alternatives can be made attractive in contexts of substantial black market informal employment? The types of analyses that may be undertaken at the request of DGDR include: - Subnational economic potential analysis/index - Additional value chain analyses where and when needed in particular in inland cities situated in lagging areas - Analysis of agglomeration and co-agglomeration of sectors in specific areas - Growth/jobs multiplier and welfare effects of specific interventions The Team is cognizant of the political sensitivities associated with this support and will be careful to respond to DGDR/GoT’s expressed needs. As such, this Project will not displace political processes that are underway but instead provide critical input to ensure that the GoT is well-equipped to make the best intervention decisions. The 2nd Component will provide just-in-time support to the National Dialogue on Lagging Areas This component will help the team to have a global overview of who is doing what in Tunisia on Lagging Regions and foster collaboration both within the Tunisian Administration and between Development Partners. Throughout the duration of the Project, and at the request of DGDR, specific working sessions with institutional stakeholders, DPs and civil society may be organized. The 3rd Component will support the GoT in developing a framework for prioritizing and designing lagging areas interventions drawing from international experience and lessons learned from Tunisia’s experiences. Based on the results of the 2 other components and from July 2016 to approximately June 2017, the 3rd Component will (i) conduct an assessment on the existing literature on past/on-going initiatives undertaken in Lagging areas of Tunisia by the GoT and its development partners, (ii) devise packages of interventions in lagging areas of Tunisia and (iii) conduct in-depth analyses through a defined framework. Specific activities and outputs for each Component are listed in the following table.