Public-Private Dialogue for Competitiveness & Economic
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Public-Private Dialogue www.publicprivatedialogue.org Public-Private Dialogue for Sector Competitiveness and Local Economic Development: Lessons from the Mediterranean Region A report produced by The Cluster Competitiveness Group, S.A. for the Public-Private Dialogue program of the Investment Climate Department of the World Bank Group, and funded through the Catalonia (COPCA) / IFC Technical Assistance Trust Fund Public-Private Dialogue for Sector Competitiveness and Local Economic Development: Lessons from the Mediterranean Region A report produced by The Cluster Competitiveness Group, S.A. for the Public-Private Dialogue program of the Investment Climate Department of the World Bank Group, and funded through the Catalonia (COPCA) / IFC Technical Assistance Trust Fund ©2011 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved This report was produced for the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. 4 Contents ABBREVIATIONS/ACRONYMS ............................................................................................. 7 EXECUTIVE SUMMARY ..................................................................................................... 9 A ABOUT THIS STUDY .................................................................................................. 15 A.1 OBJECTIVES OF THE STUDY .................................................................................. 15 A.2 METHODOLOGY OF THE STUDY .............................................................................. 15 B BACKGROUND: PUBLIC-PRIVATE DIALOGUE AND CHANGE IN THE MEDITERRANEAN COUNTRIES ....... 30 B.1 EGPYT: MANAGING POLITICAL AND ECONOMIC TRANSITION ........................................... 31 B.2 LEBANON: REBUILDING TRUST AFTER CONFLICT ......................................................... 32 B.3 MALTA: ENSURING VIABILITY OF A SMALL ISLAND ECONOMY IN A LARGE REGIONAL ENSEMBLE . 32 B.4 TURKEY: MANAGING FOR INCLUSIVE GROWTH ........................................................... 33 B.5 SPAIN: DRIVING LOCAL ECONOMIC DEVELOPMENT THROUGH DIALOGUE ............................ 33 C SECTOR-SPECIFIC PPD: COMPARING CITRUS AND CRUISE TOURISM IN EGYPT, LEBANON, MALTA, SPAIN AND TURKEY .......................................................................................................... 36 C.1 FIVE SPPD MEDITERRANEAN EXPERIENCES IN THE CITRUS FRUIT SECTOR ........................... 38 C.2 FIVE SPPD MEDITERRANEAN EXPERIENCES IN THE CRUISE SECTOR ................................... 129 D PPD FOR LOCAL ECONOMIC DEVELOPMENT: EXPERIENCES FROM CATALONIA (SPAIN) .................. 213 D.1 TWO CASES IN RURAL AREAS (AGRICULTURAL MACHINERY, RURAL TOURISM) ..................... 218 D.2 TWO CASES IN SMALL-MEDIUM TOWNS (CERAMICS, LEATHER TANNING) ............................ 236 D.3 TWO CASES AT COUNTY LEVEL (METALLURGY, FOOTWEAR) .......................................... 256 D.4 TWO CASES IN METROPOLITAN AREAS (INNOVATION, ENERGY EFFICIENCY) ....................... 276 D.5 TWO CASES IN CLUSTERS INTEGRATED TO INTERNATIONAL VALUE CHAIN (MOTORCYCLES, MOULDS) ..... 295 E IMPLICATIONS OF THE STUDY ..................................................................................... 321 E.1 METHODOLOGICAL OBSERVATIONS ........................................................................ 321 E.2 GUIDELINES FOR LOCAL ECONOMIC DEVELOPMENT AND SPPD PRACTITIONERS .................... 323 E.3 LOCAL SPPDs AND THE GOVERNANCE AGENDA .......................................................... 338 E.4 CONCLUSION ................................................................................................... 340 ANNEXES ................................................................................................................. 341 The Charter of Good Practice in Using Public-Private Dialogue for Private Sector Development .... 341 List of interviews ................................................................................................... 347 Selected References ............................................................................................... 354 5 ACKNOWLEDGMENTS This study is an output of an initiative aimed at building knowledge and capacity for Public - Private Dialogue, managed by the World Bank Group Investment Climate Department and IFC‘s Investment Climate Business Line (see http://www.wbginvestmentclimate.org and http://www.publicprivatedialogue.org). The production of this study was made possible due to the generous support from the Catalonia (COPCA) / IFC Technical Assistance Trust Fund. This study was coordinated by Benjamin Herzberg, Senior Private Sector Development Specialist at the World Bank Group, and was written by a team of experts from the consulting company The Cluster Competitiveness Group S.A.: Emiliano Duch, Saskia Bonnefoi, José Manuel Sánchez, Gloria Ferrer, Jana Krajcovicova, Magda Flórez, Ernesto Cuéllar, Andrés Guimón Echevarria, Mar Cervera and María Pierrestegui. The authors want to recognize and thank all of the representatives of the organizations who generously agreed to be interviewed and share expertise as part of this project. We are extremely thankful to them for their kindness and commitment and for enabling the study to be enriched with their knowledge and experience. Specific contributors are noted in the annexes which contain a summary of all meetings and interviews held. Consultations with World Bank Group staff were crucial to identify issues and to improve the quality and usefulness of this report. The team wishes to thank in particular: Suhail Kassim, Maha Hussein, Etienne Raffi Kechichian, Lili Sisombat, Ulas Doag Eralp, Cecilia Sager, Gokhan Akinci, Damien Shiels, Madgi Amin, Shaun Mann and Andrew Stone. Finally, the team wishes to thank the participation of Enric Pedrós (Manager of the Agricultural Machinery Cluster in Catalonia), Jordi Roger (Export Manager from Agric Bemvig SA), Ramon Masià (Member of the Executive Committee Turisme de Barcelona) and Jordi Conejos (Former Director General of Industry and Executive VP Catalonia Development Agency, 1995-2001) for their presentations during discussions on the preliminary findings of this report in Vienna during the 2011 Global Workshop on Public-Private Dialogue. 6 ABBREVIATIONS/ACRONYMS ACC1Ó: Catalonia Competitiveness Agency ACEM: European Motorcycle Manufacturers Association AEI: Group of Innovation Companies ASCAMM: Catalan Association of Mould Makers bTEC: Barcelona Technological Innovation Foundation CAM: Mediterranean Savings Bank CAP: Common Agricultural Policy CEEC: Catalonia Energy Efficiency Cluster CLIA: Cruise Line International Association COPCA: Catalonia Export Promotion Agency CTB: Technological Committee of Bages CTM: Technological Center of Manresa ECC: European Cruise Council ENCC: Egyptian National Competitiveness Council ERRADA: Egyptian Regulatory Reform and Development Activity EU: European Union FAO: Food and Agriculture Organization of the United Nations FDI: Foreign Direct Investment FEMAC: Cluster of Agricultural Machinery in Catalonia FCCA: Florida Caribbean Cruise Association GDP: Gross Domestic Product GDS: Global Distribution System Ha: Hectare 7 HEIA: Horticultural Export Improvement Association in Egypt ICAEN: Catalan Energy Institute ICT: Information and Communication Technology IMPIVA: Institute for Small and Medium Industry of the Valencian Region IVEX: Valencian Institute of Export IVIA: Valencian Agricultural Research Institute İZTO: İzmir Chamber of Commerce LARI: Lebanese Agricultural Research Institute MCN: Malta Cruise Network MOA: Ministry of Agriculture MSC: Mediterranean Shipping Cruises MTA: Malta Tourism Authority OECD: Organization for Economic Co-operation and Development OEM: Original Equipment Manufacturer PA: Port Authorities PAVACE: Valencian Pact for Growth and Employment PPD: Public-Private Dialogue PrS: Private Sector PuS: Public Sector SPPD: Sector-Specific Public-Private Dialogue SME: Small and Medium-Sized Enterprise USAID: United States Agency for