Enhancing the Quality of Industrial Policies (EQuIP)
Tool

The EQuIP toolbox contains simple and intuitive analytical tools, based on a set of indicators, which can help policymakers in lower income countries to address important strategic questions, such as how to:

  • move from an agrarian to an industrial economy
  • diversify the economy
  • create more jobs in industry
  • upgrade industry
  • promote the greening of industry
  • reduce poverty through industry

With the fundamental objective of capacity development, this toolbox has been operationalized through the development of training manuals, course materials on the different methodologies and an online platform which provides free global access to the toolbox.

This capacity development package was tested in two regional training events for low and lower-middle income countries in early 2015. These practitioner workshops reached out to the key stakeholders in the industrial policy process in developing countries, including government departments in charge of industrial strategy design and private sector institutions.

Ultimately, the EQuIP diagnostic toolbox, together with the accompanying training and capacity building package, aims to support industrial policy practitioners to undertake a thorough industrial diagnosis and to design evidence-based strategies for inclusive and sustainable industrial development.

EQuIP is an institutional capacity-building package to train public servants and analysts for public policy to be based on informed decisions and a critical examination of empirical evidence. This capacity development package builds on an integrated EQuIP toolbox which compiles globally available industrial performance and capability measurement approaches as well as a number of tailor-made new methodologies for industrial diagnosis that also take the social and environmental dimensions of indusrial development into account. At the same time the toolbox supports policy makers to design context-appropriate industrial policy packages and to analyze different options for institutional setups which relate to specific country and political economy contexts.

The different tools of the toolbox cover topics such as industrial growth, sub-sectoral competitive performance, diversification, productive employment generation, and greening of industry. With that, the EQuIP toolbox offers stakeholders a range of methodologies to consider for industrial diagnosis and strategy design in their countries, acknowledging that the most appropriate approaches and tools vary according to country characteristics.

Main features and components

A set of nine diagnostic tools on various issues related to inclusive and sustainable industrial development has ben developed and compiled. Each of these nine tools broadly relates to one of the three pillars of inclusive and sustainable industrial development (industrial competitiveness and economic performance, social inclusiveness, and environmental sustainability) and its "drivers".

Tool 1 Industrial capacity and growth domestic and export dimensions

Tool 2 Sub-sector competitive performance

Tool 3 Industrial and Export Upgrading

Tool 4 Diversification domestic and export dimensions

Tool 5 Industrial Employment and Poverty Alleviation

Tool 6 Greening Industry (Energy Efficiency Module and Material Efficiency Module)

Tool 7 Global Value Chains

Tool 8 Industrial Organisation and Frm Profiling at Sub-sector Level

Tool 9 Industrial capabilities indicators

The Industrial Policy Design Document outlines ten common industrial policy objectives which span across social, economic and environmental dimensions of development and contains a classification device if different types of policy instruments that countries can consider as options when designing their industrial policy packages. It presents a structures method for independently assessing and combining instruments into coherent packages that logically connect the prioritized objectives. The Annexes 1 and 2 of the Industrial Policy Design Document contains a long list of over 300 industrial policy instruments for further consideration.

The EQuIP Institutional Set up Manual focuses on the creation of institutional structures and proposes a three phase institutional setup methodology - first, analysis of state-society relations, second, analysis of institutional setup dimensions and, third, monitoring, evaluation and adaption.

Implementation / work steps

Each tool starts on page 1 with a table that provides some quick facts and an overview of the objectives of the tool, the indicators used and the key (analystical) questions addressed. This is followed by an introductory section which introduces the topic and provides a rationale why the topic is relevant for inclusive and sustainable industrial development more generally and the EQuIP project more narrowly.

Next comes a section that describes the methodolgy, i.e. the analytical process and the different analystical steps. I outlines which indicators are used and how they are calculated and it also includes some suggestions where relevant data can be found.

The third section then applies the methodology for an empirical example (i.e. a case study) in order to illustrate what kind of analyses can be undertaken with the methods presented in the previous section.

The fourth section is dedicated tot he discussion of possible extensions of the tool.

The following section discusses how the tool in question links to other tools in the toolbox or, more precisely, how the topic presented in the tool links to other subjects in the area of inclusive and sustainable industrial development.

Each tool concludes with listings of possible data sources for the analyses and, finally, of references and further readings.

Characteristics

Phase of intervention
Introducing SIA, Sensitisation, Operating SIA, Management, Resource efficiency, Social aspects, Climate change

Themes
Awareness Raising, Climate Change, Disaster Risk Management, Energy efficiency, Management, Participation and Stakeholder Management, Policies & Regulations, Resource efficiency, Social aspects

Target groups
Industrial area management and operator, Local and international consultants and advisors, Policy makers

Regions
Global

GIZ project
Sustainable Economic Development

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GIZ project
Sustainable Economic Policy and Private Sector Development