Developing an 'Inclusive Growth' Strategy

Situation

Guatemala has had consistent economic growth over the last two decades. Yet, almost 3 out of 4 rural people remain poor and almost 1 out of 2 children under 5 malnourished. Dalberg worked with leaders from across the private sector, government and civil society in Guatemala to help the country overcome divisions and develop an economic growth strategy to reduce poverty.

Dalberg Approach

Dalberg conducted a 'binding constraints' analysis to determine the barriers to growth and used the 'Product-Space' analysis from Professor Ricardo Hausmann at Harvard to identify new product opportunities to make the economy more diverse and complex. In addition to the rigorous economic analysis, Dalberg set up a Leadership group comprised of 30 leaders - from CEOs to Catholic Bishops to environmental lawyers - to help inform the effort, and worked with more than 200 entrepreneurs in 25 leading-industry working groups to develop a policy reform agenda and investment plans.

Results

Several high-impact initiatives to address cross-cutting constraints have been launched including an SME Fund, entrepreneurship program, vocational training and voucher program, and new FDI plan; five industry strategies and investment plans were developed for light manufacturing, fruits and vegetables, and others; and a flagship malnutrition program using the assets and resources of the private sector to reach 10,000 families was developed.

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Setting a Post-Earthquake Private Sector Vision and Roadmap

Situation

The January 12, 2010 earthquake in Haiti made a challenging development situation harder, with significant loss of life and damage to infrastructure across the country. Immediately following the earthquake, Dalberg worked with leaders from the Haitian private sector to develop a shared articulation of the private sector's vision and strategies for the reconstruction and long-term economic and social development of the country.

Dalberg Approach

Through a facilitated process, Dalberg supported the private sector in rapidly articulating a shared vision and strategies aligned to the following pillars: Jobs and shared economic opportunity; Agriculture and the environment; Health and education; Housing and economic security; and, Governance and institutional capacity. Dalberg developed short and medium term objectives and conducted investment analyses to estimate resource requirements.

Results

The Private Sector Vision and Roadmap was presented to and accepted by President Preval and Prime Minister Bellerive, representing a landmark achievement of public and private cooperation in Haiti. The plan informed the Government of Haiti's overall economic plan and the Haitian private sector was a key participant at the major donor conference held at the United Nations Headquarters.

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Supporting Competitiveness Improvement Plans

Situation

While Chile has emerged an upper middle-income country, it still has high income inequality, particularly across regions. In order to extend socio-economic development throughout Chile, Dalberg worked with a public-private competitiveness agency to support the formulation of Competitiveness Improvement Plans for 8 out of 15 Chilean regions in 24 clusters.

Dalberg Approach

Dalberg worked with the local development agencies and the private sector to review the current situation of their most important economic clusters, research international best practices, and generate concrete initiatives for addressing their development challenges. To implement the recommendations, Dalberg built corresponding management models, action plans and monitoring systems.

Results

The project identified over 400 Action Initiatives, aimed at increasing production and productivity of the regions; empowered leaders in their implementation; and, linked private and public sector on the design and implementation of a regional development model.

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Supporting a State Sustainable Development Strategy

Situation

Following an amnesty agreement between the Government of Nigeria and militants operating in the Niger Delta, a Nigerian State with significant natural resource revenue had an opportunity to increase investments to diversify its economy for broader development and inclusion.

Dalberg Approach

Dalberg worked with the State's Governor and Cabinet to identify challenges to achieving its Sustainable Development Strategy in the agriculture, infrastructure, health and education sectors. Dalberg developed recommendations for addressing the challenges and developed business cases identifying investment opportunities to attract external partners - from donors to private investors - to the state. The team utilized a combination of data collection and analysis, field observations, and interviews with government officials, private sector organizations, donor organizations in identifying key challenges and developing recommendations.

Dalberg also worked across ministries to foster an understanding of different types of partnerships such as joint ventures and public private partnerships (PPPs) and to strengthen internal ministry processes.

Results

As a result of the project, state ministries in the key sectors better understood key challenges and were equipped with feasible solutions to address internal capacity concerns and with business cases to attract additional investment to the sectors. In addition, the state's Investment Promotion Office was better acquainted with global best practice in procurement, trade-offs of having traditional and non-traditional investors or donors, and proper public-private partnership evaluation metrics.

To learn more about our Inclusive Growth practice area, click here.