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Use of Strategic Positioning Tools for Division of Labor

March 2007

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For the Bank, we have to try to be more selective in the context of the CAS: where do we have a comparative advantage?

Better selectivity

For the Government, financing gap is not the only problem, who can bring what and in which sector?

Better coordination of development aid

Context & Objectives

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Two perspectives… Country strategy for each development partner Aid coordination by the Government

… which motivate the use of two distinctive tools: a “multi-sector / mono-donor” tool a “multi-sector / multi-donor” tool

Approach

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“Multi-sector / Mono-donor” Tools

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For a donor, the tool helps answer three questions: In which sector should I strengthen my expertise, if I want

to be part of the game? Which sector can I leave, if I lack resources? Am I present in sectors that really need it?

These are usual questions in the private sector. We found them important but difficult to answer because we lacked a bottom line. The tools we developed try to address this issue.

Specific Objectives

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Tool specifically for donors’ use A donor can visualize its portfolio according to:

The need for a sector, measured according to 4 criteria: Relative financial gap , Analytical gap , Risk not to attain the MDG, Number of development partners present in the sector

The relative added value of a given donor in a given sector, based on an evaluation by the government

Its relative weight in the sector (in terms of financial amount of aid, all donors considered)

Description

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The “bubble” diagram presents: The sector’s need (Y axis) The donor’s comparative advantage (X axis) The donor’s relative weight determines the size of

the bubble

The diagram is divided in 4 areas, to help a donor develop its strategic positioning within a given sector

How to read the diagram

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Need

Strengthen

Abandon

Build teams’ capacity or leave

it to the most

competent ones

DilemmaShould I stay in

the sector?Can the least

competent leave?

Relative added value

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Strategic positioning: simplified graph for Mauritania

1.0

2.0

3.0

4.0

5.0

1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

World Bank expertise

Sec

tor

nee

ds

90%

50%

10%

Relative weight of the WB in the sector (bubbles size)

?

Energy

Transport

Rural Devt

Fisheries

Decentralization

Mines

PSD

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The diagram helps us represent: Operations (current & future) Sectors in which the donor is absent Studies (completed & planned)

This tool is meant to trigger a discussion, not to replace a decision

This tool does not provide a pre-cooked answer; it is supposed to feed into the strategic thinking leading to a decision

Diagram Analysis

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“Multi-sector / Multi-donor” Tools

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Tool for donors’ and Government’s use Helps visualize:

Sectors’ needs Donors’ comparative advantages in each sector Size of the financial envelop provided by each donor

in the different sectors

Description

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This tool helps a given donor visualize its comparative advantage in the different sectors, compared to other donors

It also helps the Government to get an overview of each sector’s needs and the level of expertise of the donors involved in each sector

Description

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For a donor, this tool answers the following questions: In which sector should I strengthen my expertise, if I want to

be part of the game? Which sector can I leave, if I lack resources? Am I present in sectors that really need it? Should I be present in a given sector?

For the Government, this tool answers the following questions: Which donor is best positioned to take the lead? Are we spreading too thin in a given sector? Are there financial gaps in a given sector?

Specific Objectives

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Sectors are organized by level of need

Each donor is identified by a color

Example

Comparative advantage

Secto

rs,

by in

cre

asin

g level of

need

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Sector # 1: The yellow donor may question the pertinence of its contribution (it is less competent and provides less funding). It can therefore consider to leave the sector – or the Government can suggest it

Sector # 2: The yellow donor is more competent, but does only contribute marginally. The country could therefore consider: Asking the donor for an increase in its allocation in

the sector, or Setting up a multi-donor program to capitalize on

the expertise of the yellow donor and the financial resources of the others, in order to maximize overall impact

Diagram Analysis

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The Mauritania CO experience

Process & Lessons Learned

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Process & Dialogue

Government Sector needs have been assessed through government

data (MTEF, PRSP) The tool was presented by the government during its

Transition meeting (March 6)

Development partners The CAS collaborative process helped define analytical

gaps (sector needs) and partners positioning (sector needs / relative weight)

The tool has been designed in collaboration with the UNDP The EU used the tool to feed into its strategic document

(FED)

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Lessons Learned Key factors of success:

Shared sense of urgency to change Shared will to enhance the aid efficiency Leadership by the government Transparency and integrity of the information shared among donors

and with the government

Governmental assessment of the Bank’s relative added value led to a constructive dialogue on sectors: no ambiguity of expectations, action plans by sector, Results Agreements for next year

Sharing data about sector needs fosters collaboration among partners

Internally, the tool has been used as an input for the Mauritania CAS (e. g. of fisheries, PSD, transport, decentralization)

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Next Steps

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Ensure full ownership of the tool by the Government and its dissemination to all other partners

Have the expertise of each development partner assessed by all the others

Capitalize on Government feedback to analyze and discuss potential discrepancies between self-assessment and Government perceptions

Internally, feedback will potentially be used in Staffs’ results agreements

Next steps