ey dynamics-doorway-to-development
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Doorway to development
Nigerian know-how Planning for sustainable growth
Next stop, Brussels Charting Serbia’s way to the EU
Under the Tanzanian sun Bridging the energy gap with solar
DynamicsSupporting international development around the world
December 2014Issue 10
WelcomeDynamics Issue 10 December 2014
As 2014 draws to a close, it’s only natural to look up and take stock. It’s been quite a
Dynamics, EY’s
Africa rising…
why.
EU’re on track…
A doctor in the house… Rohan Malik
and Dynamics
01Dynamics Issue 10 December 2014
Dynamics Issue 10 December 201402
ContentsWe meet ...
Nigerian know-how
08
Life in the hot seat
22
Next stop, Brussels
16
Under the Tanzanian sun
24
Dynamics Issue 10 December 2014 03
About EY
ey.com
EY
Features Regulars
Contacts
40
Country spotlight: Chile
38
Round up, refresh
06My story, my views...
3226
Moving forward, moving up
Accelerating Africa’s progress
12
Better management boosts economic growth in Africa
Dr. Caleb Fundanga, who took over as director of the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) in July, said that Africa’s recent
management. According to her, although the organization was established to help countries manage their
management. Speaking at MEFMI’s combined forum in Washington, DC on October 6, he said: “Unless economies are properly managed, the debt problem will continue recurring. Much of the growth that we’ve seen in our countries has been because there has been an improvement in the way we manage our economies.”
MEFMI, which celebrates its 20th anniversary this year, had played its part in these improvements, he added, by organizing courses in macroeconomic management, monetary policy, reserves management and bank supervision. As a result, central banks in MEFMI member countries were now able to spot emerging problems in the banking sector and take the necessary actions.
04
hard to access and use.
speeches there are around openness, a
Donors urged to improve information sharing
Africa’s economic growth set to pass 5%
Economic growth in Africa could exceed 5% in 2015-16, according to fresh projections from The World Bank. Economies across the continent continue to rise at a moderately quick pace, with regional growth estimated to strengthen to 5.2% in the next two years, from 4.6% in 2014.
Francisco Ferreira, the WBG’s Chief Economist for Africa, said the continent is projected to remain one of the world’s three fastest growing regions and maintain “its impressive 20 years of continuous expansion.” But he added: “Downside risks that require enhanced preparedness include
economic fallouts from the activities of terrorist groups such as Boko Haram and Al Shabaab and, most urgently, the onslaught of the Ebola epidemic in West Africa.” The
in infrastructure, increased agricultural production and expanding services in African retail, telecoms and transportation to continue to boost the growth in the region.
Meanwhile, a separate WBG study, Africa’s Pulse, noted that economic transformation would become more critical, as it found the region “was largely bypassing industrialization as a major driver of growth and jobs.” Instead, the study said, extractive industries in the natural resources sector and a surging services industry were behind Africa’s growth.
Co-author of Africa’s Pulse and WBG lead economist for Africa, Punam Chuhan-Pole, added: “Nearly two decades of strong growth is transforming Africa’s economies, but the structural change is not what the world expected. The majority of Africa’s jobs continue to be in agriculture and is surging into services — but not into industry and manufacturing. The good news is that in Africa, this growth in agriculture and the services sector has been more effective in reducing poverty than growth in industry. In the rest of the world, by contrast, industry and services have a larger impact on reducing poverty.”
Round up, refresh
Dynamics Issue 10 December 2014
Regular |
05Dynamics Issue 10 December 2014
Afghan women and girls poised for USAID boost
USAID sustains peacebuilding partnership in central Africa
The US Agency for International Development (USAID) has announced an extra US$7m in funding for the Central African Republic (CAR) Peacebuilding Partnership.
The public-private partnership will support and strengthen locally led peacebuilding and atrocity prevention efforts in the
support is focused on empowering interreligious leaders, as well as women and youth, who are critical players in promoting peace and reconciliation in communities affected by violence.
“In the midst of unprecedented humanitarian challenges across the globe, we cannot and have not, lost sight of the urgent situation in the Central African Republic,” said Assistant
Assistance Nancy Lindborg. “The Peacebuilding Partnership is a vehicle for public and private donors to invest their resources around a common purpose of promoting a more resilient, peaceful and inclusive future in the Central African Republic.”
In addition to making the US$7m donation, USAID is
to reach a total of US$15m. The initiative will build on current USAID programs in the CAR, including US$7.5m in peacebuilding programs to empower local voices for peace, promote interreligious and other community dialog, and improve access to accurate information in local media.
Dynamics Issue 10 December 201406
The Ebola outbreak in West Africa is impairing the ability of governments to raise revenues, increasing their exposure to domestic and foreign debts and may make them more dependent on aid, according to the latest study on the socioeconomic impact of the crisis carried out by the the United Nations Development Programme (UNDP).
“We need to make sure that the Ebola outbreak does not lead to socioeconomic collapse,” said Abdoulaye Mar Dieye, the Director of the UNDP’s Regional Bureau for Africa. “This crisis is already taking a toll on budgets and reducing the governments’ policy leeway to make much-needed investments in critical areas such as health and education for their citizens.” He added that the effects of the Ebola crisis will last long after the epidemic is brought under control.
In total, the governments of Guinea, Liberia and Sierra Leone are experiencing a shortfall of US$328m to be able to function at pre-crisis levels, the study shows. The gaps are caused by increased spending to tackle
a slowdown of economic activities such as tourism, mining and trade. Because of Ebola, government expenses have risen by about
are rising.
the three countries are resorting to domestic and international borrowing and have
International Monetary Fund and the World Bank. “These countries were heavily reliant on aid but beginning to see healthy rates of economic growth and opportunities for
domestic resource mobilization,” said Dieye. “We need to avoid a situation where these countries increase their dependence on
In recent weeks, West African and global development leaders have appealed for a massive coordinated reinforcement of international health teams to the three countries in order to contain the epidemic. The health workers are needed to treat and care for patients, boost local health capacity, manage Ebola treatment centers, and resume essential health services for non-Ebola conditions. Current estimates by the United Nations indicate that about 5,000 international medical, training and support personnel are needed in the three countries
over the coming months to respond to the Ebola outbreak, including 700-1,000 foreign health workers to treat patients in the Ebola treatment centers. “The world’s response to
recent weeks, but we still have a huge gap in getting enough trained health workers to the areas with the highest infection rates,” said World Bank Group President Jim Yong Kim.
barriers to the deployment of more health workers.”
Ebola draining development budgets in West Africa
US and El Salvador agree investment compact
Dynamics Issue 10 December 2014
Regular |
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Round up, refresh
to understand whether its anti-corruption
DFID’s anti-corruption approach set for Philippines mission
A team of meteorologists and senior
is heading to the Philippines to help develop their national weather center. One year on from the devastating Typhoon Haiyan, the UK team is tasked with helping the country to better plan evacuations, put in place life-saving public warning services and build infrastructure that can withstand natural disasters.
Weather scientists from the Philippines will also be brought to the UK to be trained in how to use the supercomputers and sophisticated software behind the Met
systems. “By sending a team of specialists from
of British expertise and weather know-how to strengthen the Philippines’ resilience to future disasters,” said the UK’s International Development Secretary, Justine Greening.
and farming industries so thousands of the poorest women-led households can get their livelihoods back. It will not happen overnight, but the sooner people can get back to work and get on with their lives the sooner the country as a whole can fully recover.”
The World Bank (WBG) and the Australian Government have teamed up with Myanmar to improve the quality of education provided to millions of poor students. Both have pledged US$100m to the country’s Decentralizing Funding School Project and the World Bank is providing an US$80m credit agreement through its International Development Association, which provides concessional loans and grants to the world’s poorest developing countries.
“The project provides direct support to the Ministry of Education to expand funding
Education, and a student stipends program that will focus on 40 townships,” it said in a statement. “The project will also strengthen the ministry’s capacity to monitor and implement these programs.”
World Bank and Australia back Myanmar education program
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underpinned by abundant natural resources and a
Ngozi Okonjo-Iweala is
Nigerian know-how
9Dynamics Issue 10 December 2014
We meet ... |
Npowerhouse blessed with rich natural
her career has, in addition, taken her to
Lessons from change went about it was to look at where it was
I think that all countries
10 Dynamics Issue 10 December 2014
Going for growth
Africa Attractiveness Survey
11Dynamics Issue 10 December 2014
We meet ... |
and interest has also been boosted by the
that can boost their technical capacity otherwise we will not be able to create
tribute to its ability to create jobs.
Spending solutions
bad person who doesn’t want to support
The issue is within the priority set and
poised to continue its ascent in the years
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Accelerating Africa’s progress
says EY’s Joe Cosma
13
Feature |
C
cycle.
do not yet operate in the continent. Those with an established
continent’s prospects, while those with no business presence in
destination.
Five priorities for inclusive, sustainable growth
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action.I. Embracing a philosophy of shared value
II. Promoting entrepreneurship
III. Accelerating regional integration
1988 - 2000 2001 - 2012 2013 - 2030
Ab
GDP growth CAGR
The African growth story is real
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Feature |
11 11
1 2 1 1
4
21
24
Source: Oxford Economics Database, EY analysis
Joe Cosma is EY’s Government & Public Sector Partner in Africa
Download EY’s report, Africa 2030: Realizing the possibilities at www.ey.com/za
IV. Bridging the infrastructure gap
projects to the point at which they are bankable.V. Forging productive partnerships
Eyes on the horizon
story.
work.
Number of economies growing at a rate greater than 5%
2001 - 2012
16 Dynamics Issue 10 December 2014
Next stop, Brussels European Union, Tanja
Tpolitical union continues to enjoy substantial allure.
way.
accession process.
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We meet ... |
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On the road to accession
1 October 05
3 May 06
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We meet ... |
Making the case for Europe
into their backyard and we need to ensure
eastern European countries when they
13 June 07
7 November 07
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properly.
not because we are not enthusiastic, but
Beyond bordersacross European capitals. The two nations
1 January 08
18 February 08
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We meet ... |
In part, this is due to the EU’s
decision on what will happen with this
Between Brussels and Belgrade
because now we are in a phase where we
are on the phone on a daily basis and
dedicated, enthusiastic and educated
her.
29 April 08
19 December 09
Stephen Fish is EY’s Country Leader in Serbia
Ioanna Kokkinou is an Associate Director in EY’s EU Account Team
22 Dynamics Issue 10 December 2014
prosperity in an unequal world is hardly
Dr. Jim Yong Kim. He tells us about his
T
Medical matters
Life in the hot
seat
23
We meet ... |
Eyes on the prize
A “bumpy road” to progress
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Under the Tanzanian sun
Patrick Ngowi’s L
Moving on up
2014 Africa Attractiveness Survey
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Feature ... |
in rural areas where the people
phones and accessories direct
Reach for the sky
couldn’t abide that, no way, but I
least, that was the plan.
Spreading the word
slow down.
opportunity
26 Dynamics Issue 10 December 2014
Fisn’t bad.
stability.EY recently launched our latest Kazakhstan
Attractiveness Survey
Moving forward,
moving upsays EY’s Erlan Dosymbekov. Here,
years ahead.
27Dynamics Issue 10 December 2014
Feature ... |
Building “brand Kazakhstan”
trade partners.
Macroeconomic stability
Stable political and social environment
Telecommunication infrastructure
Domestic market
Corporate taxation
81.2%
79.6%
72.8%
63.4%
56.8%
17.7%
16.8%
17.8%
30.9%
20.1%
1.1%
3.6%
9.4%
5.7%
23.1%
Attractive Non-attractive Can't say
Source: EY's 2014 Kazakhstan attractiveness survey (total respondents: 211; established in Kazakhstan: 78 and not established: 133).
Local labor costs
Telecommunication infrastructure
Domestic market
Macroeconomic stability
Entrepreneurial culture
46.5%
40.6%
37.4%
35.9%
35.4%
36.0%
42.7%
50.5%
53.0%
51.4%
17.5%
16.7%
12.1%
13.2%
11.1%
28 Dynamics Issue 10 December 2014
question.
Global Competitiveness Report 2014–2015
and European countries, will also enhance trade
Maintaining momentum
29Dynamics Issue 10 December 2014
Feature ... |
Growth and opportunity in the industrial sector
Action plan for success
1. Create a consistent business environment
established operations in the country, are
30 Dynamics Issue 10 December 2014
Erlan Dosymbekov is EY’s Managing Partner, Kazakhstan and Central Asia
Download EY’s 2014 Kazakhstan attractiveness survey 2014, The brand paves the way, at www.ey.com/attractiveness
2. Invest in infrastructure
3. Develop human capital
4. Ensure judicial independence
5. Adopt a proactive approach to attracting investors
Three investment enablers
1. International integration
2. An innovation-driven economy
industrial sector.
3. Focus on green technologies
A bright future …
the world around us.
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Feature ... |
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Sir Suma Chakrabarti’s career has
he looks back on his career and
my views ...My story,
33Dynamics Issue 10 December 2014
D
Beginnings
the UK.
We meet ... |
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Moving up Whitehall’s ladder
I then returned to the UK and joined
ownership, accountability and results.
heart and head was. I was appointed to be
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We meet ... |
To the EBRD
and we’re now well underway. I think it is
we operate in and
how our projects are
policy issues are and
those countries are
under that president’s watch and so we
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an outsider has. In our case, we’re not
Blending the public and private
need public sector solutions. Indeed,
direction with shareholders. To be
37Dynamics Issue 10 December 2014
We meet ... |
to help.
If you ask me…years later how a place that was in the
38 Dynamics Issue 10 December 2014
Population (census 2012): Projected annual GDP growth rate, 2014 in October 2014: Projected annual GDP growth rate, 2015 in October 2014: Total FDI in 2013 (Banco Central de Chile):
Total FDI: Life expectancy (world health statistics 2014, OMS):
GNI per capita in 2014: Ethnic groups:
Size: Number of states:
EY contact
Charles Bunce Jones
Jorge Vio Niemeyer
ChileCo
untr
y sp
otlig
ht
39Dynamics Issue 10 December 2014
Regular | Chile
Cand is endowed with abundant natural resources and wildernesses, such lakes,
as well as the driest desert in the world.
as the wine industry which has been
years.
This is why EY has recently created
clients.
Dynamics Issue 10 December 2014
a project.
For more information, visit ey.com/international-development. Contacts
Development: why EY?
International development is a priority for EY. We have extensive experience working on international development projects around the world and we’d like to hear more about your needs. Contact one of our professionals today.
40
41Dynamics Issue 10 December 2014
Regular | EY contacts
AmericasMarc E. AndersenUS
Cherie Anne FaiellaUS
Switzerland
Dan KaplanUS
Michael BeaulieuUS
Olaf SmuldersUS
Charles-Antoine St JeanCanada
Claudia ValenzuelaBrazil
Moises AlcaldeMexico
Carlos GallegosCosta Rica
AfricaJoe CosmaSouth Africa
Baïdy DiengSenegal
Laban GathunguKenya
Adekunle SalauNigeria
Lindsey DomingoDemocratic Republic of the Congo
Djabanor NarhGhana
Julius Ngonga Kenya
Brunhilde BarnardSouth Africa
Mildred TanSingapore
Bill BanksSydney
Lynn ThoSingapore
Zaqy MohammedSingapore
EuropeAlessandro CenderelloBelgium
Dave ReadUK
Michael CupitUK
Maryam HussainUK
Petr MedvedevUK
Ioanna KokkinouGreece
Dexippos AgouridesBelgium
Daina BelickaLatvia
Anton AnitsevRussia
Olesya MelnykUkraine
Middle East and North AfricaNelson JorgeJordan
Abbas AliPakistan
Aqueel Merchant Pakistan
IndiaSiddhartha DasIndia
Guru MalladiIndia
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