Promoting design for global business in Brazil

Guest blog by Isabel Tarrisse da Fontoura

“The flow of life envelopes everything. That’s life: it heats up and cools down, it tightens and then loosens up, it becomes calm and then unrests. What it wants from us is courage”.

João Guimaraes Rosa

1. An act of courage

The Harvard Kennedy School (HKS) program Implementing Public Policy (IPP) is an act of courage. It is so from the day you decide to commit to six months of action learning in the middle of a global pandemic to, today, as we end this journey with 142 peers from 47 countries and the HKS team, and we’re moving ahead working on pressing challenges we care too much about to let go.

The good part is that every ending is a new beginning.

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Leading Economic Growth in Kazakhstan

Guest blog written by Baur Bektemirov

There is an old cliché that crisis is an opportunity. In my case, the Great Lockdown has certainly become an opportunity to learn and even re-think my work as the Chief Economist for a government organization, which just recently was tasked with an expanded role to help the government to attract more investment and contribute to the economic growth.

The Leading Economic Growth program has helped me to assess, once again, the main problems and obstacles for the economic development of Kazakhstan, look for the real roots of these problems (the binding constraints), analyze possible solutions to these barriers, and even formulate a draft for solving some of them.

It does not, however, gives you a ready recipe to address current problems, instead, the program teaches and provides methodology: how to assess the problem, look for solutions, take a problem-driven iterative approach, build authority, ability, and acceptance to solve the problem in the existing political circumstances.

For example, Kazakhstan is showing all the symptoms of classical Dutch decease problem. The pro-growth policies adopted in late ‘90s—early 2000s, have led to rapid growth of the GDP at the expense of economic diversity (economic complexity). This has led to all the standard problems: strengthening of the national currency, growth of mining and non-tradable sectors of the economy with little productivity growth at the expense of other tradable goods and services. As the result, the economic growth has been stagnating for about 6-7 years now, while investment into economy has contracted, mostly due to the stagnation of banking lending.

The current pandemic does not help solving this problem either. But now, in addition to the short-term economic stimulus, central authorities must decide on economic policies, which will ensure long-term sustainable development. It is imperative to review the current model based on old pro-growth policies, which do not yield the same results as they used to 10—15 years ago.

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PDIA in Sri Lanka: Attracting Anchor Investors in Solar Panel Manufacturing

Guest blog written by Ganga Palakatiya

The Investor Engagement team (I team) consisted of government officials working at the Board of Investment, Sri Lanka, to diversify the economy by engaging new anchor investors and attracting Foreign Direct Investors (FDI) in new sectors. This was part of a PDIA engagement from May 2016 to September 2017.

I team members: L K D Lawrance, Nelson Kumaratunga, Dilip Samarasinghe, Vipula Jayasinge, Ganga Palakatiya, Dhammika Basnayake, Krishnatha Britto, Indunil Perera, Hemadree Naotunna, and Rushda Niyas. This is their story!

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Based on the Targeting Team (T team) findings on sector targeting, Solar Panel Manufacturing was identified as a potential sector for investment in Sri Lanka. The “I Team,” consisting of dedicated officers for investment promotion, was assigned to promote Sri Lanka as an attractive destination for this and other priority sectors and attract key “anchor investors.” The timeframe given for this task was period of one year. Solar Panel Manufacturing would be a pioneer sector for Sri Lanka. There were no existing manufacturers in the country except one player who was under construction status. Thus, this was a new technology for the country, unfamiliar to Sri Lanka’s workers, suppliers and government bodies. This formed a challenge for the I Team, but with trainings from CID, the team crafted a four-step strategic approach (Figure 1), combining existing BOI investment promotion methods with a more proactive targeting of key sectors, countries and companies.

Figure 1: Strategic Approach of I Team in Investor Engagement Targeting Sectors for FDI Attraction & Export Promotion

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Learning to improve Sri Lanka’s business and investment climate using PDIA

written by Peter Harrington

This past week, the Building State Capability (BSC) program published two new papers about our work doing PDIA-in-practice in Sri Lanka.

The first paper is about working to improve Sri Lanka’s business and investment climate, and is the subject of this blog post. The second is about working to promote foreign direct investment in Sri Lanka, and will be covered in a separate post .  Continue reading Learning to improve Sri Lanka’s business and investment climate using PDIA