ASIA AND ECONOMIC GROWTH BEST PRACTICES PROGRAM (AMEG)

Task Order No. AID-OAA-12-00008 Quarterly Report—FY2016, Quarter 4 Inside this Report: AMEG Activity Highlights July 1, 2016 – September 30, 2016

AMEG AT A GLANCE National Trade Portal and Digitizing Employee Single Window Best Practices Registration in Kurdista….3 The USAID Asia and Middle East Bureaus’ office in South Asia ……..…...... ….1 of Technical Support Economic Growth team Summary of AMEG Activities…………..……….4 (ME.TS/EG) established AMEG to help USAID Making the Case for Revenue missions identify, strategically develop, and pilot Capital Financing in MENA...2 economic growth best practices and innovations in Financial Summary……….6 Asia and the Middle East. AMEG pursues two overarching objectives: (a) pilot innovative Outlining Options for the M&E Data………………….7 approaches in economic growth programming and Electricity Crisis in Libya…...2 (b) consolidate best practices in economic growth projects from the two bureaus. single windows. The Forum included a variety of In close collaboration with USAID, AMEG manages NTPs and single-window development topics, multiple assessments, case studies, and pilot including: designing and establishing NTPs, legal activities, while actively designing new scopes of arrangements for NTPs and NSWs, institutional work for future implementation. AMEG is currently coordination for effective platforms, the need for working on 16 activities. updated information, and functional and technical architecture. National Trade Portal and Single Window Best Practices in South Asia The Honorable Atul Keshap, U.S. Ambassador to , Mr. Thomas Bayer, USAID Acting The lack of system integration within South Asian Mission Director, and his Excellency, Ravi countries and across borders results in unnecessary Karunanayake, Minister of Finance opened the first delays and opportunities for corruption. The day of the Forum, noting the importance of trade experience of the Association of Southeast Asian connectivity in the region to bring about more Nations (ASEAN) in promoting a unified single window, on the other hand, shows the potential for countries across Asia to adopt platforms that are more efficient, transparent, and predictable. Notably, , , and Sri Lanka are individually adopting national trade portals (NTP) and the single- window (NSW) platform. Under the Indo-Pacific Economic Corridor (IPEC) Activity, AMEG hosted a National Trade Portal and Single Window Best Practices Forum in Colombo, Sri Lanka on August 9-10, 2016. AMEG brought 55 customs and trade-related officials from India, Bangladesh, , , and Sri Lanka together with trade representatives from ASEAN countries and USAID trade capacity building programs in The Petrapole-Benapole check point between India and Southeast Asia to share best practices and lessons Bangladesh will be a focus of Phase 3 of AMEG’s Indo- learned implementing national trade portals and Pacific Economic Corridor Activity. Page 2 Asia and Middle East Economic Growth Best Practices Program (AMEG) coherent economic growth through freer flow of operationalizing a revenue-capital driven fund and goods and people across borders in South Asia. how they believe that revenue-capital financing can Speakers presented successful NTP experiences, be further leveraged to support SME growth in mapping steps taken, progress to date, and the Tunisia. Takeaways gleaned from TAEF leadership positive impacts such portals have had on trade in and investees further confirmed the positive effects the region. The second day of the Forum featured that revenue-capital financing has on SME growth ASEAN country officials’ experiences with Single due to the limited or nonexistent collateral Window design and practice, and specific elements requirements, risk sharing approach, and “pay as needed for successful single window initiatives such you grow” methodology. as appropriate legal frameworks, inter-ministerial coordination, functioning steering committees, Meetings with BPL executives covered their adequate funding and staffing, and data experience utilizing revenue-capital based financing harmonization. for SMEs throughout South Africa and sub-Saharan Africa. As trendsetters in the revenue-capital financing field, BPL shared the suite of services and financial products they offer their clients; best Making the Case for Revenue Capital Financing practices and lessons learned managing the Revenue-capital financing provides growing financing mechanism, such as their streamlined due businesses with investor-funded capital in return for diligence process; hiring practices for Investment a percentage of ongoing gross revenues, creating a Officers; and methods to ensure the financing shift from capital gains to revenues. This financing mechanism is sustainable over time. model can be an incentive for investors and improve Both the TAEF and BPL case studies will be their appetite for incorporating early-stage included in the “Making the Case for Revenue businesses into their portfolio since an exit is not Capital: Summary Report,” that will be produced in required for significant profitability. the coming quarter. The activity also aims to produce a webinar and regional workshop to This quarter, AMEG launched the Revenue-Capital increase understanding and utility of this model to Finance Knowledge Sharing Activity. The objective fund SMEs in the MENA region. of this activity it to support the utility of revenue- capital financing for early-stage business development in the MENA region by analyzing the current state and impacts of revenue capital Outlining Options for Libya’s Electricity Crisis financing and carrying out capacity building efforts A side effect of ongoing conflict in Libya is a major on how to operationalize the financing mechanism. electricity shortage. Parts of the country have dealt The activity to date has focused on case study with blackouts of up to 18 hours on a regular basis. development on the Tunisian American Enterprise Mobile phone coverage has broken down due to Fund (TAEF) and Business Partners Ltd (BPL), both shortages and critical infrastructure providing of which utilize a revenue-capital financing structure potable water to citizens has become crippled in to fund SMEs. In September, Revenue-Capital places. All of this has occurred throughout 2016, Finance Specialist Tom Gibson and AMEG including through the summer, a time where air Technical Manager Christy Sisko traveled to Tunisia conditioning and water are of paramount importance to meet with TAEF leadership and to Johannesburg to Libyans. Not only a humanitarian crisis, this and Cape Town, South Africa to meet and conduct electricity shortage has caused civil unrest and in-depth interviews with BPL executives. Meetings protests, and threatens the fragile internationally with TAEF focused on the progress of the fund to backed Government of National Accord. date, best practices and lessons learned Quarterly Report : July to September 2016 Page 3

Digitizing Employee Registration in Kurdistan AMEG is playing a key role in supporting the Kurdistan Regional Government (KRG) in Iraq to introduce a new employee registration and electronic payment system that will be used to modernize the KRG’s current method of distributing wages to government employees. AMEG payroll advisor, Bill Monks devised a phased roll out for the new payroll system, including designing and introducing streamlined registration and validation processes for individual employees, military service Libya’s key stakeholders and the international community members, pensioners, and others on the government discusses a road map for Libya’s electricity shortages payroll as part of the first phase. The main goal of the new system is to identify and eliminate duplicate This quarter, responding to requests from the U.S. records (and duplicate payments). AMEG also Ambassador and the Senior Development Advisor, helped the Council of Ministers IT and software the AMEG Libya PFM team quickly mobilized a development team revise data and process models team of utility experts to develop an options paper that incorporate biometrics and improved processes for U.S. and Libyan stakeholders to respond to the for securing and validating individual data for each crisis. The paper included viable short-, medium-, person in receipt of Government funds. Prime and long-term options for alleviating the crisis, and Minister Nechirvan Barzani and Deputy Prime balancing Libya’s growing demand for electricity Minister Qubad Talabani were the first government with a more sustainable supply. In order to gather employees to have their electronic cards and data, the team met with the Government of Libya- biometric data registered at an inaugural event for run General Electricity Company of Libya the new system. The system is now live and in the (GECOL), Libyan mayors and council coming weeks, AMEG will support the KRG to roll- representatives, the Tunisian Electricity Company, out the equipment and processes in more than 80 and other stakeholders to find viable solutions. The branches of the Government Banks in Kurdistan and paper was submitted to USAID in August 2016. to enroll the remaining 1.4 million recipients of public funds. Following submission of the draft of the paper, USAID invited the electricity experts back to Tunis to support a roundtable discussion with the international donor community in September, facilitated by GECOL. GECOL proved to be an enthusiastic counterpart for the program, and developed a permanent working group to coordinate with the international community over the long-term to advocate for, and manage international assistance. This activity culminated in a letter written by GECOL to USAID to request further AMEG Libya PFM assistance to assist in implementing major institutional reforms that will address root causes of the current crisis. AMEG is currently working with KRG Prime Minister Barzani and Deputy Prime Minister USAID to determine which of these activities to add Talabani registering their biometric data as part of the to its workplan for next quarter and beyond. new employee registration system supported by AMEG. Page 4 Asia and Middle East Economic Growth Best Practices Program (AMEG)

Activities during the Reporting Period Table 1. New AMEG Activities in FY2016 Quarter 4 Title Description Status Lebanon Diaspora AMEG will partner with Netways – to support the development AMEG finalized a Trusted Engagement of a web-based platform and model for engaging members of subcontract with Netways Platform the Arab diaspora in development in their home countries. The and will launch this platform will be developed and piloted in Lebanon with roll out activity on October 24th, to additional countries in the region in 2017. The model will link 2016. members of the diaspora with a database of opportunities to support economic development in their home countries .

MENA Revenue Capital This activity supports the use of revenue-capital financing for See detailed update on Financing Activity early-stage business development in MENA. AMEG will this activity on Page 1. synthesize existing data and research, map constraints and opportunities for the financing mechanism, complete case studies of revenue-capital financing; and defining how to operationalize revenue-capital financing for increasing investment for early-stage enterprises.

Table 2. Ongoing AMEG Activities in FY2016 Quarter 4 Title Description Status Best Practices and This activity seeks to identify successful approaches to AMEG is researching Approaches for Better sustainable job creation in high-unemployment countries. Once best practices and Employment Outcomes identified, this activity will develop case studies and other tools lessons learned in the in the Middle East to help better understand those approaches and their impacts, use of ICT systems for including a focus on cost effectiveness (cost per job created). addressing employment challenges in the Middle East. Cambodia Trade Through this activity, AMEG provided technical assistance to AMEG completed the first Facilitation the Royal Government of the Kingdom of Cambodia, draft of the trade specifically the Ministry of Commerce, to identify reforms and facilitation assessment assistance needed to comply with the WTO Trade Facilitation and submitted it to USAID Agreement. for review. Indo-Pacific Economic Building on recommendations from the in-depth field AMEG organized a Corridor Phase 3 assessment under Phase 2, under IPEC Phase III AMEG National Trade Portal and developed a prioritized work plan for addressing key non-tariff Single-Window Best barriers that prevent/impede intraregional trade and investment Practices Forum in Sri in South Asia. In addition, AMEG will explore the feasibility of a Lanka in August and borderless alliance for facilitating public-private dialogue and prepared for other Phase advancing South Asia regional integration. 3 activities (see Page 1). Iraq Public Financial AMEG experts are providing senior advisory support to the AMEG provided Management Pilot Iraqi Ministry of Finance (MOF) support compliance with the assistance to the KRG to IMF Staff-Monitored Program (SMP) and to improve the revise its Chart of effectiveness and efficiency of public financial management Accounts, establish a (PFM), thereby improving the ability of the Government of Iraq Large Taxpayer Office, to conduct quality service provision. and upgrade employee registration processes.

Libya Public Financial The objective of this pilot activity is to deliver technical This activity is ongoing. Management (PFM) and assistance to develop modern PFM systems in Libya at the See snapshot of Disarmament, central and sub-national levels, as well as to address electricity sector activities Demobilization, and reintegration concerns through workforce development capacity on Page 2. Reintegration (DDR) building to national and municipal-level counterparts.

Quarterly Report : July to September 2016 Page 5

Activities during the Reporting Period (continued from previous page)

Table 2. Ongoing AMEG Activities in FY2016 Quarter 4 Title Description Status

Microsoft Ta3mal This activity established a public-private alliance with Microsoft AMEG conducted a Platform Pilot in and Lebanese IT firm, Netways to pilot and expand use survey of employers and Lebanon of Microsoft's Ta3mal online job placement and skills training users and worked on platform in Lebanon. options for sustainability of the portal past 2016.

Sri Lanka Supporting SOLID’s purpose is strengthening the capacity of vulnerable This activity is ongoing Opportunities for households to contribute productively in economically and continues to provide Livelihoods competitive value chains in a manner that generates sustained support across target Development (SOLID) increases in financial, physical, social, and human capital. value chains. Pilot Activity

Tunisia Fiscal The objective of this activity is to review the current state of AMEG drafted a report on Decentralization operationalization of Tunisia’s decentralization code and findings of the Scoping Activity provide options for USAID and other donors to support the assessment. Government of Tunisia (GoT) to enhance and speed progress.

Tunisia Tax and The objective of TCP is to support Tunisia’s economic This activity is ongoing. Customs Reform Pilot transition by facilitating tax administration and customs reform Detailed monthly and Activity (TCP) goals vital for stability and economic growth. Technical quarterly reports are assistance provided aims to improve fiscal balances and to available for those enhance effectiveness, fairness, and transparency in tax and interested in the details of customs compliance, enabling broad economic reform to TCP. increase inclusive growth and private investment.

USTR Intellectual The purpose of the USTR IPR buy-in is to determine the impact USTR is reviewing the Property Rights – of adoption of a GI sui generis system in and develop final report for this Geographic Indications tools to enable USAID EG officers to more effectively activity. and Trademarks communicate USG policy with regards to Geographic Indications (GI) in the region.

USTR Customs – Middle AMEG will organize a regional workshop and series of study AMEG, USAID, and East Regional Activity tours to expose officials in the region to best practices in trade USTR finalized facilitation. The first workshop will be built around the existing preparations for a Global Trade and Development Week conference, bringing regional trade facilitation Middle East customs officials together with representatives best practices workshop from key industries and U.S. Government customs experts to this quarter, which will be discuss the importance of trade facilitation efforts to business. held in Dubai in late October.

Table 3. AMEG Activities Completed in FY2016 Quarter 4 Title Description Status AMEG did not close any activities this quarter.

Quarterly Report : July to September 2016 Page 6

Expenditures to Date. AMEG has expended $19 million (36 percent) of the total value of approved buy-ins ($52.6 million through September 2016). The table below provide details for each buy-in.

Activity Status Obligation Invoiced Thru Funds Sep-16 Remaining Buy-In Yemen 2012 Closed $84,618 $84,618 $0 Pakistan Value Chain Closed $682,660 $682,660 $0 Yemen Mobile Money Closed $93,215 $93,215 $0 Yemen WFD I Closed $98,706 $98,706 $0 Sri Lanka Buy-In Closed $150,000 $142,833 $7,167 East Timor Agribusiness Closed $40,548 $39,776 $772 Kyrgyzstan Growth Closed $256,000 $254,488 $1,512 Yemen YMN Closed $120,283 $120,112 $171 Gender In Trade Closed $88,819 $88,819 $0 OMEP Trade Closed $279,726 $278,489 $1,237 Sri Lanka II Closed $320,183 $323,863 ($3,679) Yemen Support to MAF Closed $277,679 $277,650 $28 Libya PFM Assessment 1 Closed $326,854 $326,854 $0 Jordan FEA Closed $272,232 $272,059 $174 Mauritius BGS Closed $43,733 $43,709 $24 MENA II West Bank/Gaza Closed $160,000 $158,869 $1,131 MENA II Lebanon Closed $194,590 $193,826 $763 Libya PFM Assessment 2 Closed $673,146 $670,422 $2,724 Yemen Resident Coordinator Closed $35,221 $35,105 $116 Syria SEESBA Closed $3,850,000 $3,673,847 $176,153 Yemen CRM Closed $546,955 $546,955 $0 Indian Diaspora Bond Closed $156,966 $156,966 $0 Lebanon SME Assessment Closed $439,425 $439,425 $0 MENA II Indicators Closed $66,077 $31,899 $34,178 Sri Lanka PFM Closed $48,603 $48,603 $0 Asia Clean Energy Closed $150,000 $105,839 $44,161 Gender Lens Investing Closed $261,200 $261,200 $0 Nepal Agriculture Assessment Closed $59,094 $59,094 $0 GES Event Closed $57,389 $57,389 $0 Yemen WFD II Closing $1,342,506 $1,342,090 $415 ANSI Workshops On Hold $120,274 $0 $120,274 AMEG Ongoing $588,405 $337 $588,068 CORE Middle East Ongoing $2,114,807 $253,287 $1,861,520 CORE Asia Ongoing $300,296 $235,765 $64,531 Sri Lanka SOLID Ongoing $5,765,044 $4,801,012 $964,033 USTR Customs Ongoing $1,000,000 $540,655 $459,345 USTR IPR Ongoing $450,000 $161,714 $288,286 ME Core Program Team Ongoing $1,716,800 $1,133,996 $582,804 Libya PFM Ongoing $10,500,000 $2,295,900 $8,204,100 Middle East Employment Outcomes Ongoing $792,446 $705,097 $87,349 Tunisia Tax & Customs Reform Ongoing $10,374,907 $8,283,735 $2,091,172 IPEC Ongoing $1,863,307 $569,574 $1,293,733 Iraq PFM Ongoing $2,991,773 $2,820,809 $170,964 Gender Lens Investing II Ongoing $400,000 $17,248 $382,752 MENA II Workshops Ongoing $233,791 $133,463 $100,328 Lebanon Ta3mal Ongoing $399,152 $317,923 $81,229 E2E Events Ongoing $172,299 $71,850 $100,449 Cambodia Trade Ongoing $161,231 $113,839 $47,392 Libya DDR Ongoing $500,000 $194,714 $305,286 Lebanon Diaspora Ongoing $1,000,000 $262 $999,738 TOTAL $52,620,962 $33,560,559 $19,060,404 Page 7 Asia and Middle East Economic Growth Best Practices Program (AMEG)

AMEG M&E Data

Below is a table showing AMEG indicators by Key Result Area, with descriptions of the activities leading to the results achieved and notes on the activities this quarter.

Target (% of Indicator Level Description Baseline Actual % of Target respondents)

Increase in technical knowledge of USAID Project Objective: counterparts in 100% 0 90% 111% Support USAID economic growth issues (7 of 7) economic growth as a result of AMEG programs in Asia and technical assistance the Middle East by providing missions with the necessary tools to % of stakeholder conduct successful respondents responding economic and financial "Yes" to the assessment management question, "Does this assessments, strategic 100% research provide you 0 90% 111% planning, diagnostics, with the information that (7 of 7) pilots, and program you need to make designs. decisions and affect change?”

Dollar value of mission $0 $40,351,213 NA NA buy-ins

# of economic growth sectoral policy analyses, technical assessments and reports produced to develop new 0 61 NA NA programming or Result 1: Support to economic growth missions in Asia and strategies for USAID the Middle East on missions economic growth

Number of days used to date of USG supported technical assistance in private sector productive 0 23,474 NA NA capacity provided to counterparts or stakeholders

# of technical assistance Result 2: Support to interventions economic growth pilot implemented to support 0 12 NA NA programs USAID missions in pilot program development