VISION STATEMENT AND STRATEGIC OBJECTIVES Establishing an economically, socially and environmentally viable Private Sector system that: operates under efficient institutions and a fair and transparent governance structure is supported by an efficient business environment contributing to economic growth within an effective transition to open market economy, to creation of job opportunities, to the improvement of the standards of living for the Iraqi people is regionally and internationally competitive is integrated into the regional and global value chains. The vision: Is ambitious but achievable. Is broad and comprehensive with sufficient flexibility to change implementation strategies according to new developments. Is the result of a consultative and participatory process engaging multiple stakeholders to build consensus and agree on implementation means. Its implementation is designed in phases that add up to realizing the aspired future vision: 2030: There is rapid growth in the private sector due to the concentrated efforts in private sector development by GoI from 2013 – 2022 Employment in the private sector has increased to constitute 60%-70 % of total employment Assuming a conservative GDP growth (around 6% CAGR), the private sector contributes to 45 -50% of the total national GDP
Formulation, adoption and implementation of strategies and social mitigation plans in priority sectors (industry, agriculture, construction, tourism, IT)) Preparation and adoption of sectoral strategies at national and governorate levels with the participation of line ministries and Private Sector institutions and associations. Formulation of national social Establishment of a comprehensive and dynamic strategy and social mitigation framework covering all economic sectors. Review and integrate national and governorate sectoral development strategies and plans Review, update and integrate national and governorate sectoral development strategies. Work developed by international organizations Bank, UN, USAID).
71. Strengthening the Private Sector institutional framework Adoption of clear, transparent and independent governance systems Preparation of institutions' and associations' strategies, completion of BoDs and set up of efficient management structures. Strengthening of the governance systems. Reviews of institutions and associations strategies. Strengthening of the governance systems. Reviews of intuitions and associations strategies. Existing legislation, bylaws, acts, decisions and other relevant documents.
Achievement of at least 50% (average) sustainability of all key Private Sector institutions and association.s Review of the legal frameworks, bylaws, and financial management system of Private Sector institutions and associations. Achievement of at least 70% (average) sustainability of all key Private Sector institutions and associations. of laws, system and Achievement of 100% sustainability of all key Private Sector institutions and associations Financial records of Private Sector institutions and associations; membership fees and sate contributions/subsidies.
contributions) of Private Sector institutions and associations. institutions and associations. 50% of businesses are members of key institutions, organized in relevant sectoral unions and benefiting of their services. Formulation of a reorganization plan for the Private Sector institutional framework. Formulation, adoption and implementation of institutions' and associations' strategies. Strengthening the 50% increase of membership in Private Sector institutions and associations. 50% increase of memberships in PS institutions and associations. List of members of PS institutions and associations.
competencies and the IT systems. PS institutions and associations actively participating in the PSD Strategy governance system, in the preparation and disseminations of sectoral and social mitigation strategies and in a number of Full roll out of the PSD Strategy with active Private Sector institutions and associations participation. Public sector - private sector dialogue fully in place. Establishment of teams of specialized experts in relevant disciplines. Networking and cooperation with international similar Increased role of the Private Sector in contributing to the full implementation of Pillar 2 and in the management of Pillar 3 of the PSD Strategy. Expansion and full consolidation of strengthening processes. Position papers and other relevant documentation produced by the PS institutions and associations. Work developed by international organizations Bank, UN, USAID).
PILLAR II: ESTABLISHING A STABLE AND CONDUCIVE FRAMEWORK AND DOMESTIC MARKET CONDITIONS FOSTERING THE CREATION AND GROWTH OF THE PRIVATE SECTOR STRATEGIC OBJECTIVES 2017 2022 2030 RESOURCES AND INSTRUMENTS Targets Strategic Paths Targets Strategic Paths Targets Strategic Paths 72. Easy and transparent access to finance for businesses A targeted decentralized credit and targeted funding and guarantee system is established to support start up businesses and enhance competitiveness, operated by both and private banks at equal terms and conditions, and effectively utilized by at least 10% of the registered businesses. Review, amendment, preparation and adoption of relevant policy (decentralized SME Development and Financing), legislative and regulatory frameworks and instruments. Establishment of Competitiveness Fund System (by intervention sectors and areas) to be utilized under Pillar 3. Full decentralization of SME financial support system and instruments, effectively and efficiently utilized by min 20% of the registered businesses. Monitoring and evaluation reports. Review and update of the SME financial support policy, regulatory and fiscal frameworks. Full decentralization of funds' management. SME support financial instruments effectively and efficiently utilized by min 40% of the registered businesses. Review and update of the financial and fiscal instruments. Already available SME financing, credit, soft loan and guarantee schemes (Tijara, IFC, IMMDF, MoA, MoIM, MoLSA, etc).
73. Establishment of a comprehensive and harmonized framework of policies and strategies in all PSD areas Adoption and implementation of priority key policies (for cross cutting economic support, social and environment), consistent and building on sectral strategies developed under Pillar 1. Achievement of at least 50% of the objectives of the PSD Strategy. Establishment and full operation of specialized and public-private joint Technical Committees, under the coordination of the PSDC. Enhancement of the whole legislative and enforcement process also through the establishment and operation of implementation agencies. Updating and integration of policies and strategies. Achievement of 70% of the objectives, Review of the PSD Strategy and other relevant policies and strategies. Work and recommendations of the Technical Committees Review, updating and integration of policies and strategies. Consolidation of the achievements at at the same previous levels. Review of the PSD Strategy and other relevant policies and strategies. Work and recommendations of the Technical Committees Already drafted or adopted polices and strategies. Work conducted under Pillar 1. 74. Establishment, adoption and enforcement of coherent and harmonized legislative and regulatory frameworks supporting PSD Adoption and enforcement of priority legislative and regulatory frameworks (economic reform, land regime, PPP, SME support system, companies, investment, competition, public procurement). continuation and expansion of the process, targeting other areas and reviewing already adopted legislation and regulations for completing the needed national framework, complemented by consistent regulatory frameworks in the Governorates Already drafted or adopted legislative and regulatory frameworks. 75. Expansion of IT networks and systems throughout Iraq. Access to IT networks and systems by all registered businesses under Pillar 1 in 50% of the governorates Developing IT infrastructure and collaborative schemes between public and private service providers and operators. Financial and fiscal incentives. Access to IT networks and systems ensured for all registered businesses Pillar 1. Expansion of IT infrastructure. IT systems utilized by 100% of registered businesses. Full roll out of the IT service industry Current IT expansion programmes.
78. Competitiveness and innovation enhancement, through technology upgrade, quality, adoption of inclusive business models, establishment of clusters and value chains and strategic partnerships among private businesses (other than those established within the SME System and SOEs restructuring process) and among the latter and national and international educational and academic institutions Increased employment in 50% of registered private businesses and increase of business profitability. At least 20 clusters and 20 value chains, and 50 strategic partnerships established in key economic target sectors Formulation of sectoral strategies (Pillar 1) and preparation and implementation of strategic business development plans. Effective and efficient utilization of targeted funding instruments (established under Pillar 2) also through the SME Agency and PS infrastructure support system. 50% employment increase and 50% increase in the number of clusters and value chains. Integration in global markets and chains. Review and update of strategies. Further integration in global markets and chains. The cumulative (including above areas) employment in the Private Sector has reached 60% of total employment and the contribution of the Private Sector to the non - oil GDP has reached 70%. Review and consolidation of all relevant support measures and actions. Projects undertaken and reports prepared by international and national organizations in all relevant areas. Energy and Industrial strategies. 10 value chains established. linking the industry, agriculture, construction and energy sectors.
PILLAR IV: ESTABLISHMENT OF AN EFFICIENT GOVERNANCE SYSTEM SUPPORTING THE OTHER PILLARS STRATEGIC OBJECTIVES 2017 2022 2030 RESOURCES AND INSTRUMENTS Targets Strategic Paths Targets Strategic Paths Targets Strategic Paths 79. Full and efficient implementation of the PSD Strategy Establishment and operation of an efficient governance system. Design of the governance system and CoM Resolution / CoR legislation establishing the PSD Council supported by the TFER and specialized Technical Committees in the different target areas of the PSD Strategy, with the participation of relevant public, Private Sector, unions and financial sector representatives, both at central and governorate levels. Decreased GoI financial support and initial transfer of the management of selected components of the revised PSD Strategy to the Private Sector (constituting at least one - third of the members of the PSD Council). Review and adoption of relevant resolutions or acts. Two - thirds representation by the Private Sector in the PSD Council. All components under Pillars 1 and 3 are entirely managed and implemented by the Private Sector. Further reviews and adoption of relevant resolutions or acts. Preparation and adoption of clear and transparent bylaws, regulations and procedures at all levels of the governance system. Completion of the set up of the governance system and full roll out of the PSD Strategy. Further strengthening of the governance system though enhanced skills and competencies, as required. Reviews, as required.
Establishment and operation of a transparent and efficient monitoring and evaluation system of GoI support effectiveness and Private Sector performance and dynamics. Achievement of at 30% of the objectives under each Pillar. At least 50% of the objectives effectively and efficiently achieved in the other Pillars Pillars. Full roll out of the monitoring and evaluation system and review of the PSD Strategy. At least 80% of the previous objectives effectively and efficiently achieved in all Pillars. Further review of the PSD Strategy. 80. Decentralization of PSD Strategy management Minimum 15% of representation by the local Private Sector and Local Governments in the PSD Council. Formulation and adoption of a national decentralization policy within the framework of the economic reform process. Min 30% of representation by the Private Sector and Local Governments in the PSD Council. Enhancement of the consultation processes between local governments and the local Private Sector. Enforcement of relevant governorate resolutions or acts Full decentralized management and implementation of the PSD Strategy, with the GoI supporting through measures of national interest. Further strengthening of management capacity. Present central - consultation mechanisms and committees 81. Increased effectiveness of donors' assistance to PSD Fully coordinated and consistent international assistance programmes and projects, with focus on enhancement of Exposure to best international practices; provision of capacity building and management advisory assistance to the PSD Council, the TFER and the Technical Committees. further consolidation and international networking assistance as required
management capacity. Regular consultation mechanisms between the PSD Council and international organizations, for setting and achieving objectives consistent with those of the PSD Strategy. Joint Monitoring and Evaluation A number of international funded assistance and management capacity building projects successfully completed, contributing to the management and implementation of the PSD Strategy. Joint monitoring and evaluation
TABLE - 2. DIRECT SUPPORT ACTIONS FOR THE PRIVATE SECTOR AXIS 1: SME DEVELOPMENT SUPPORT SYSTEM Target Sub-Areas Pillar Relevance Eligible components for GoI Support Instruments and Resources Policy and Legislation Direct Technical Assistance Actions Implementation Actions Available Instruments and Resources New Instruments to be created under Pillar 2 International Assistance SME Agency with branches in selected governorates with bank participation 1, 2, 3 Review, integration approval, adoption and enforcement of relevant national policy, legislative and regulatory frameworks, including for SME financing. Sectoral strategies. System design, manuals of operation, bylaws and regulations, business planning, inclusiveness business models, training and capacity building (also for the banking sector), international networking. Businesses' mapping, market surveys, business planning, manuals of operation, regulations. Buildings, IT, equipment and facilities, staffing. Draft policy and law. State Budget allocation. Private banks’ and Private Sector participation. Management and organizational capacity building. Capacity building for the banking sector. Business Development Services and Centers 2, 3 Existing Tijara network. Targeted competitiveness funds Counseling and advisory assistance Incubators 2, 3 Industrial Zones 2, 3 Finalization of a national strategy and of legislative & regulatory framework in relevant priority areas land, infrastructures, PPP, National IZ Board etc). Sectoral strategies. Buildings, IT, equipment and facilities, physical infrastructures, staffing and organization. World Bank feasibility studies in Erbil and Al Basra; UNIDO feasibility study for Al Faw Port; draft legislation (WB, UNIDO). State and governorate budget allocations for funding infrastructures and local staffing. Private sector resources. Targeted competitiveness funding support. Management and organizational capacity building assistance. Clusters and value chains in key target economic sectors supported by the SME Agency System 1, 3 Sectoral inclusiveness strategies. IT facilities and networks, databases, support facilities. IFC, Tijara and Private sector resources. UNIDO Enterprise Development Programme. Targeted Competitiveness Funds. Private sector resources. Counseling and advisory assistance; specialized sectoral assistance. AXIS 2: PRIVATE SECTOR INTEGRATION WITH THE SYSTEM OF STATE OWNED ENTERPRISES
Target Sub - Areas Pillar Relevance Eligible components for GoI Support Instruments and resources Policy and Legislation Direct Technical Assistance Actions Implementation Actions Available Instruments and Resources New Instruments to be Created under Pillar 2 International Assistance Participation in restructuring of SOEs 1,2, 3 Preparation of sector strategies (Pillar 1). Design of collaborative strategies, training. Joint workshops, Common information system. State budget allocations for SOEs Restructuring Roadmap; Restructuring plans of line ministries. Targeted competitiveness funds Process management assistance and formulation of plans. Strategic and public-private partnerships 2,3 Finalization of PPP law, regulations and formulation of national strategy. Identification and design of partnership schemes, training. Support facilities, marketing and other support actions. State budget allocations for SOEs. Private sector resources. Targeted competitiveness funds Specialized technical and training assistance Social mitigation 1,2, 3 Formulation of national and policies and strategies. Surveys, skill gap analysis and training needs assessment, preparation of specific plans, training/retraining for excess employees. Design and training of service outsourcing systems and new businesses. Participation in establishment of new businesses and creation of new jobs for excess employees. State budget allocations for SOEs; preparatory plans (MIM). Targeted competitiveness funds. Process management assistance and formulation of plans. Clusters and value chains (with SOEs) 1, 2, 3 Finalization of SME Development policy and coverage in sector strategies, legislative and regulatory frameworks. Surveys, business planning, inclusiveness business models, design, researches and studies, training and capacity building. IT and other support facilities. ILO and World Bank surveys. UNIDO enterprise development Programme, UNIDO work on quality infrastructures. Financing schemes by IFC, Tijara, IMMDF and other national lending programmes. Targeted competitiveness funds. Management and specialized assistance. International networking. GoI / public sector - private sector dialogue platforms 3, 4 Preparation of plans and agendas Workshops and support events As targeted components of competitiveness funds Management assistance AXIS 3: CLUSTERS AND VALUE CHAINS FOR COMEPTITIVENESS ENHANCEMENT AND JOB CREATION
Target Sub - Areas Pillar Relevance Eligible Components for GoI Support Instruments and Resources Policy and Legislation Direct Technical Assistance Actions Implementation Actions Available Instruments and Resources New Instruments to be Created Pillar 2 International Assistance Product and service quality 1,2 3 Finalization and adoption of SME Development and other relevant policies and strategies (sectoral, quality, innovation), and associated legislative and regulatory frameworks Surveys, business planning, inclusiveness business models, design, researches and studies, training and capacity building Prototypes, applied researches, national and international certifications, marketing actions, IT facilities, and other support facilities ILO and Bank surveys. UNIDO Enterprise. Development Programme, UNIDO work on quality infrastructures. Financing schemes by IFC, Tijara, IMMDF and other national lending programmes Targeted competitiveness funds. Management and specialized assistance Quality management Technology upgrade sectoral linkages and synergies Increase of local contents in products and services Innovation, renewable energy sources and environmental protection Strategic and public-private partnerships
areas AXIS 4: PARTNERING WITH NATIONAL AND INTERNATIONAL TECHNICAL, EDUCATIONAL AND ACADEMIC INSTITUIONS Target Pillar relevance Eligible components for GoI Support Instruments and resources Policy and Legislation Direct technical assistance actions Implementation actions Available instruments and resources New instruments to be created under Pillar 2 International Assistance Joint Research and development in target sectors and sub-areas 2, 3 Completion and contributions to Science & Technology Strategy (under preparation). Formulation of sectoral plans and strategies. Design of actions and training. Study tours. Research equipment and facilities Existing collaborative schemes. UNESCO Science and Technology Strategy for Innovation. Targeted competitiveness International networking. Management and specialized assistance for national and international certifications. Quality assurance and certification Contribution to the formulation of national quality infrastructure & standardization policy framework Plans and strategies Certifications and commentary actions Ongoing work in quality management policy area Training and staging of students Integrations and contributions to the national Education Strategy Training, negotiation and preparation of agreements. IT and support facilities National Education Strategy. Existing VET and TVET structures. International networking and provision of specialized trainers. Training and employment of post students Support to upgrading of Technology and Training and Educational institutes and centers Preparation of relevant plans and strategies Preparation of specifications and design; training and capacity building. Study tours Equipment and facilities Previous assistance provided by international organizations Specialized assistance.