IBM Business Consulting Services IBM economic development capabilities for developing countries

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1 IBM Business Consulting Services IBM economic development capabilities for developing countries Leveraging our International Financial Institutions Consulting Practice

2 To accelerate economic growth, create jobs and reduce poverty, developing countries must be able to compete in the global marketplace. To do so requires that they possess a stable macroeconomic policy environment that includes a strategic framework for economic reform, as well as stakeholder participation and the ability to develop leadership capabilities. The organizational changes that must occur to enable reform in a developing country demand a pragmatic approach, and the public must be able to participate in the reform process. Reform strategies need to include mechanisms for increasing a developing country s ability to: compete in financial sectors; improve business policies, practices and environments; and increase access to information and appropriate skill development opportunities. To attract trade and investment, it s critical that business regulatory environments be streamlined. And to improve business performance, public- and private-sector professionals, managers and members of the labor force must have access to relevant training. In both the public and private sectors, information management and communications systems help establish the foundation and the tools for global competition. As a prime United States Agency for International Development (USAID) contractor, it is IBM s goal to deliver highly effective business-of-government capabilities. These solutions are designed to enable government organizations to become more businesslike, regulate more effectively and deliver services efficiently so their private sectors can succeed in the increasingly competitive global marketplace. Economic solutions for public and private sectors IBM can deliver a range of economic development solutions for developing countries, including macroeconomic policy services, financial sector development, private sector development and workforce development. Our proven approaches help clients implement lasting organizational change at virtually every level. And they can provide the resources and capacity building components that countries need to develop and sustain the policies, practices and skills required to compete globally. First, IBM s expert economists, advisors and project managers work to identify obstacles to economic development in the developing country. We then collaborate with the client to customize, design and prioritize the activities required to achieve sustainable economic development goals while accommodating budget constraints. IBM experts help client organizations build the capacity to continuously assess needs, find solutions, and manage change effectively. We can help create efficient value and supply chains to link domestic producers to global markets. And we can leverage appropriate and effective information technology (IT) systems that help to support strategic economic initiatives and increased participation by the public in creating and implementing economic reform. IBM macroeconomic policy services Our macroeconomic policy services are designed to help developing countries achieve stability and predictability in their systems and processes for managing inflation, interest rates, exchange rates and the public sector budget. Our services in macroeconomic policy include a broad range of capabilities. Services may focus on trade policy development to assist The business of government At IBM, we believe that a government can function more effectively if it s run as if it were a business. That s why we ve developed performance-based solutions in all public sector areas, with transparent and integrated financial management systems that have built-in control processes. We have strengthened numerous institutions by helping them establish the right processes, create appropriate and efficient systems, and develop skilled workforces. We also help countries create effective and sustainable public-private partnerships that are designed to efficiently deliver goods and services.

3 countries in their compliance with World Trade Organization (WTO) requirements an essential step in being able to compete globally. Or they may involve IT solutions that can enhance transparency, helping enable greater participation by the public in economic reform. Recent and current IBM macroeconomic policy services engagements include USAID projects in Serbia and Montenegro, Lebanon, Ukraine, Vietnam, South Africa, regional West Africa, and Nigeria. In South Africa, USAID recently awarded IBM a three-year, US$8.9 million task order under the Support for Economic Growth and Institutional Reform - General Business, Trade and Investment Indefinite Quantity Contract (SEGIR GBTI IQC) to perform economic analyses with the aim of improving the country s policy and regulatory environment. IBM s intent is to help South Africa reduce poverty and unemployment within a supportive macroeconomic environment. government impact of the rollout of anti-retroviral treatment for HIV and AIDS, and enable the government to incorporate environmental concerns into its economic analysis of government activities. In addition, IBM will provide USAID-funded graduate scholarships to the Mandela Economics Scholars Program, facilitating its placement in government and strengthening its network of scholars helping them to become more effective in policy decision-making. IBM is responsible for managing technical assistance to a range of South Africa government agencies and civil society organizations in areas such as: Development of pro-poor fiscal policy Parliamentarian training Microfinance policy reform Agriculture and land reform HIV/AIDS treatment programs IBM s analyses in South Africa will focus on small business development, trade, investment, intellectual property rights, agriculture and land reform, and the socioeconomic impacts of HIV and AIDS. Specifically, IBM will help develop fiscal policy, train new members of parliament, analyze the economic and Regulatory reform Environmental economic policy Intellectual property rights The Mandela Economics Scholars Program.

4 IBM financial sector development services Our financial sector development services are designed to help developing countries expand competition within financial markets. IBM experts apply world-standard methods to help strengthen financial sector supervision and promote: Non-bank financial institutions and bond markets Long-term institutional investment Commercial money market instruments Mortgage finance Pension systems Bond markets. We work to strengthen regulatory institutions, and we apply appropriate IT solutions when necessary to help accelerate development. We can assist in broadening access to credit and productive assets for underserved populations, and help increase the quantity of bankable private sector financial obligations. Recent and current financial sector development engagements include USAID projects in India, the Philippines, Macedonia and Armenia. In India under Financial Institutions Reform and Expansion Project Regulatory Component, Phase II (FIRE-R II) IBM is promoting the development and modernization of capital markets by providing assistance directly to the Securities and Exchange Board (SEBI), the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), the broker community, Indian Law Schools and Universities, and the National Judicial Academy (NJA). FIRE-R II is organized around seven major task areas, including: Strengthening market regulation, surveillance and enforcement, including assisting SEBI in procuring and deploying information communications technology (ICT) systems Developing a long-term debt market Developing an institutional framework for disclosure Developing futures and options markets Broadening investor participation in markets Producing state-of-the-market conferences Reorganizing SEBI.

5 IBM private sector development services Our private sector development capabilities are designed to help companies become more competitive in emerging markets. We facilitate access to domestic and foreign capital that is essential for growth, and help enterprises develop the management framework and skills that are critical to enhancing business performance and trade. In addition, we help companies improve information management systems and more effectively link enterprises together in the supply and value chains helping to increase the flow of goods from producer to market. We also help the private sector identify and advocate for reforms that have the potential to improve the policies and environments crucial to enabling increased private sector competition. Recent and current IBM private sector development engagements include USAID projects in Bosnia, Serbia, Croatia and Egypt. In the Croatia Privatization Project (CPP), IBM helped develop a competitive private sector and reduced state liabilities by preparing 80 majorityowned enterprises for privatization; developing and improving tendering procedures; and improving the public perception of privatization. The USAID-hosted privatization roundtable, including World Bank, the International Monetary Fund (IMF), the European Union (EU) and Croatian Privatization Fund, serves as a means for all participants to discuss - on a regular basis- issues related to privatization and determine practical means to achieve progress. IBM also helped facilitate the Suncani Hvar public-private partnership, which is the main economic driver for the island of Hvar, Croatia. Further participating in the CPP, IBM experts assisted in coordinating all donors to reach an agreement to assist with Croatia s restructuring, workforce transition and subject matter expert development. In sum,180 entities were tendered, and 57 entities were sold through the CPP. The project helped generate approximately US$ 200 million through sales, and gain approximately US$ 450 million in investment commitments. IBM helped implement a comprehensive public education campaign and journalist training program, and helped develop communication strategies for selected enterprises on privatization issues. IBM workforce development services Our workforce development capabilities are designed to focus on helping sectors, organizations and companies increase their productivity, efficiency and accountability. IBM experts collaborate with stakeholders to identify skill gaps and determine the required education and training resources. These resources are then adapted for local needs using effective blended-learning technologies. Services are offered for private sector and government employees, as well as elected officials. Recent and current IBM workforce development services engagements include projects for USAID and government clients in Egypt, Venezuela, India and China. In Egypt, IBM successfully trained nearly 9,000 hospitality workers in 18 months and helped strengthen the ability of the Egypt Tourism Federation (ETF) to provide hospitality training to improve competitiveness. We helped foster successful working relationships between USAID, the Ministry of Tourism and the Egypt Tourism Federation. Members of the ETF were key participants in the early stakeholder meetings that resulted in an action plan to promote Egypt s competitive position in the tourism industry. Most importantly, the IBM team worked closely with the ETF to transfer ownership of the training program, assisting ETF in developing the ability to manage and execute the program on its own. IBM experts localized training modules from the American Hotel and Lodging Association/Education Institute (AHLA/ EI) and assisted the ETF in developing a training implementation plan, as well as a recruitment strategy to attract qualified candidates for the AHLA/EI master trainer testing and certification program in seven tourism regions throughout Egypt. The team also developed a cost-sharing model and fee schedule tool to promote financial sustainability, implemented systems for distributing training materials, and put in place a data monitoring system that gathers data that can be used to evaluate and continuously improve training.

6 IBM leverages its IT expertise to help governments become more efficient, and to help private sector companies become more competitive. Our international, around-the-clock offices and consulting networks with local professional expertise operate in most developing countries. As an active participant in global trading networks, we have deep knowledge of emerging market business conditions and constraints from our supply chains in the developing world and we apply that insight to our engagements in developing countries. IBM is a major service provider to public and private sector clients, including U.S. and foreign industrial country governments. The IBM Center for the Business of Government is a nonprofit subsidiary that funds extensive research focused on helping governments to be results-oriented and efficient. Center resources and lessons learned provide examples that can be adapted for developing countries IBM has vast experience in implementing large economic development projects and brings our wealth of internal resources and knowledge to every engagement. Why choose IBM? IBM is a prime contractor for several USAID indefinite quantity contracts and United States Government contracting vehicles. These help make it easy to engage IBM in economic development initiatives. They include: SEGIR Macroeconomic Policy II SEGIR Financial Services II SEGIR General Business Trade and Investment (GBTI) I Accelerated Microenterprise Advancement Project (AMAP) GSA Management, Organization, and Business Improvement Services (MOBIS) GSA Financial and Business Solutions (FABS). Bankworld Boston Global Partners Contracting Assessment Researches Development Associates Duggleby & Associates Economic Research Associates Institute for International Economics Institute of International Education International Real Property Foundation About the IBM International Financial Institutions Consulting Practice The IBM International Financial Institutions (IFI) Consulting Practice combines economic, business, workforce development and IT expertise to help facilitate growth in developing countries. The IFI consulting practice is part of the world s largest consulting organization: IBM Global Services. Practice headquarters are located in Bethesda, MD, and the team has implemented more than 100 economic development projects in 50 countries for USAID over the past decade. We team up with more than 30 U.S. companies, large and small, for-profit and not-for-profit, as well as leading think tanks to leverage our capabilities. And IBM has teaming relationships with worldwide leaders in economic development, including: KPMG PADCO Squire Sanders & Dempsey The Peoples Group The Services Group Washington Advisors Services, Inc. Williamson International Trade Strategies William Davidson Institute, University of Michigan World Learning

7 For more information To learn more about IBM International Financial Institutions consulting practice, contact your IBM representative. or visit: ibm.com/bcs

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