JOBS NOTES Issue No. 14 BUILDING CAPACITY TO EVALUATE VALUE CHAIN DEVELOPMENT FOR JOB CREATION: A CASE STUDY FROM TUNISIA KEY MESSAGES • Value Chain Development (VCD) approaches, and building country capacity to adopt them, represent important operational tools to help World Bank client countries harness private sector potential and remove job creation constraints to create more and better jobs, especially for youth, women, and other vulnerable groups. • The WBG-coordinated pilot “Value Chain Development for Jobs in Lagging Regions—‘Let’s Work’ Program in Tunisia” targets pilot value chains that could provide job opportunities for poor or vulnerable groups in lagging regions. The project tests new tools to help inform VCD policies: (a) Cluster and value chain reinforcement initiatives (CRIs), and (b) Value chain and job focused surveys. • A “VCD Training”—the central capacity building element of the of the Let’s Work program in Tunisia—aimed to build public administration capacity to analyze value chains and support private sector development, job creation, and competitiveness, with a focus on lagging regions. • The World Bank designed and delivered the VCD Training in Tunis from April 5, 2016 to November 14, 2016. The eight VCs used for training purposes in the program all link to key WBG‑financed operations in Tunisia. Two of these value chains—olive oil and medicinal and aromatic plants—were also subjects of subsequent jobs surveys. • The VCD Training built strong capacity for VCD analysis in Tunisia. The training helped establish an inter-ministerial “Taskforce” and VCD “Platform.” Overall, 27 civil servants received training, among whom 11 were evaluated as “ready to conduct value chain analysis and development work” by the end of the training program; six of these worked as core members of the Government VCD Taskforce. • The VCD capacity development has informed ongoing WBG-financed operations in Tunisia and has been used to train subsequent generations of recruits since the end of the project. All VCs analyzed show high potential for growth, which could lead to more and better jobs in the olive oil, the medicinal and aromatic plants, and tomato sectors. WHY DOES TUNISIA NEED VALUE CHAIN DEVELOPMENT CAPACITY? Macro-economic imbalances make it difficult for growth in recent years. In 2015 unemployment was Tunisia to deal with its main problems: unem- at 15.3 percent, still well above the pre-revolution ployment and regional disparities. After a short level. Jobs created in Tunisia were mainly in low-​ economic recovery in 2012, Tunisia’s increasing polit- productivity sectors, employing low-skilled workers. ical and social instability led to slowing economic Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 Slightly less than half of Tunisia’s working-age economic prospects are threatened by unsustainable population participates in the labor market. agricultural and natural resource management prac- Unemployment can be high in some area while low tices, as well as climate change. in others, but in either case they suffer from very high informality and/or low overall job quality. Many work- Unemployment rates and household vulnera- ing age adults are excluded from full participation in bility are high. High unemployment (15 percent the labor market, usually because of low participation in 2015) especially effects women (21.1 percent rates for women and youth. against 12.5 percent for men) and college graduates (31.4 percent). Workers living in the bottom 40 per- In Tunisia, economic development has been char- cent are often in lagging regions. Employment rates acterized by significant regional imbalances, as vary considerably across regions. In Tataouine, for interior regions lag coastal areas. Regional dispar- instance, only 20 percent of the working age popula- ities persist because of meager Government invest- tion is employed; 60 percent do not participate in the ment and an inefficient public sector. The country labor market, and 20 percent are unemployed. These suffers from administrative centralization, with activ- numbers contrast with urban Tunis, Sfax, and Nabeul, ities concentrated in coastal urban areas. This comes where employment rates are above 40 percent. at the expense of the rural interior, notably in three Formal wage employment in the private and public of the country’s six regions: northwest, center-west sectors is prevalent in Tunis, Ariana, Ben Arous (over and south. Together, Tunisia’s northwest and cen- 70 percent), but it is below 15 percent in Kairouan ter-west regions are home to about 47 percent of and Sidi Bouzid, where informal wage employment, the poor, have the lowest development indicators for self-employment (in and outside agriculture), and education, employment, health, and have the highest unpaid work are the norm. unemployment rates for university graduates. Women remain quite vulnerable in Tunisia. Women Agriculture provides the bulk of employment represent 58 percent of the rural labor force and up to and income opportunities in lagging regions, and 80 percent in the northwest and center-west regions. income levels remain low. Good paying jobs and Women have always actively participated in agricul- other income opportunities are limited, and overall ture, working in the farm and the production system in FIGURE 1 Employment by Region and Type of Job 100 80 60 40 20 0 Greater Tunis North-east North-west Centre-east Centre-west South-east South-west Employment types in Tunisia by regions Wage formal public Wage formal private Wage informal Self-employed agriculture Self-employed non-agriculture Unpaid Employer Other Source: Household Budget and Consumption Survey (NSHBCSL) from 2015. 2 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 livestock, tree cultivation, vegetable crops, handicraft, b. Create more and better-quality jobs: To help and processing and storage of agricultural products. create more formal sector jobs in developing coun- While they play a key role, about 80 percent work tries, but also better jobs that increase productivity informally. Many of them head families but have very and wages, improve working conditions, and pro- limited to no access to credit. These constraints further vide more opportunities for everyone—especially limit their access to economic opportunities. women and youth. The Let’s Work strategy focuses on generating new HOW DID THE WORLD BANK HELP BUILD methods and approaches to measure, understand, VCD CAPACITY IN TUNISIA? and strengthen the creation of more and better jobs. It also seeks to systematically gather, generate, test, The World Bank Country Partnership Framework’s and widely share best practice knowledge and tools (CPF) for Tunisia focuses on: (a) Restoring an environ- to promote the jobs agenda. ment conducive to sustainable economic growth and private sector-led job creation; (b) Reducing regional WBG “Let’s Work” Program in Tunisia disparities; and (c) Promoting social inclusion, par- ticularly for youth and women. At least four WBG- The World Bank Group-coordinated pilot “Value financed investment projects aim to support this Chain Development for Jobs in Lagging Regions— strategy,1 all of which implement value chain devel- Let’s Work Program in Tunisia”2 TA targets pilot opment activities. This note focuses on the “Let’s value chains that could provide job opportunities Work” capacity building program for Tunisia, which for poor or vulnerable groups, including women benefits all four of these World Bank investment proj- and youth in selected lagging regions. The project ects. This note aims to show how VCD approaches tests two tools to help inform value chain develop- can strengthen World Bank financed projects. More ment policies: specifically, the note demonstrates how building country capacity to adopt VCD approaches can help a. Cluster and value chain reinforcement initia- client countries harness private sector potential and tives (CRIs) build on a rich analytical toolbox well remove job creation constraints to create more and tested in the private sector (including M. Porter’s better jobs, especially for youth, women, and other cluster “competitiveness diamond,” the related vulnerable groups. “five forces,” or “strategic market segmentation”). b. Value chain and job focused surveys, with World Bank’s “Let’s Work” Program benchmarking against similar value chains in com- parator economies. These piloted tools simulta- The World Bank Group’s (WBG) Finance, Competi- neously inform World Bank lending operations, tiveness and Innovation and Social Protection & while also building client country capacity to use Jobs Global Practices have partnered to deliver these tools. technical assistance (TA) through its “Let’s Work Program” to support structural change in client country economies. Let’s Work is a global partner- VCD CAPACITY BUILDING FOR TUNISIA ship that unites organizations dedicated to providing solutions to the global job crisis by harnessing the A “VCD Training” was the central element of the potential of the private sector to help create more capacity building component of the Let’s Work and better jobs (see https://www.jobsanddevelop- program in Tunisia. The objective of the training ment.org/lets-work/). The Let’s Work partnership’s was to build Tunisian public administration capacity mission is two-fold: to analyze value chains. In turn, this capacity sup- a. Removing main constraints: Work with coun- ports private sector development, job creation, and tries, private sector companies, and development competitiveness, with a focus on lagging regions. practitioners to support private-sector-led job The training focused on building Tunisia’s capacity growth by removing main constraints to job cre- to identify the most binding constraints affecting ation and strengthening value chains. creation and productivity of jobs within targeted 3 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 FIGURE 2 Let’s Work Program in Tunisia—Program Design and Key Features Impact the lending project on VCs in lagging regions in Tunisia Build local capacity of Tunisia taskforce and cluster development analysis Provide valuable inputs into future SCDs and CPFs Phase 1: Phase 2: VC development training program Jobs in VC survey implementation ACTIVITIES • Training on value chains and cluster development • Survey instrument preparation 5 learning modules over 8 months • Survey implementation Hands-on exercises focused on applying Collect quantitative information about jobs, learnings on selected value chains production, prospects, and challenges of selective VCs • Conduct FGDs and interviews to collect qualitative information TOOLS / MAIN • Cluster and VC reinforcement initiatives • Jobs in VC survey instrument TARGET ACTORS building on analytical toolkits1 tested in the • KH-coder to analyze qualitative information private sector • Targeted at informal and formal businesses • Targeted Tunisia task force (civil servants) in the VC (including farms) OUTCOMES / • Intermediate report on opportunities for • Reports detailing status quo of operations and DELIVERABLES growth in 3 pilot VCs jobs of assessed VCs and future growth and • Selection of VCs targeted for training and job potential survey analysis Note 1: Including M. Porter’s cluster “competitiveness diamond,” the related “five forces,” or “strategic market segmentation.” value chains. The training also aimed to improve and tomatoes—were identified in consultation with local administration in lagging regions to conduct Government of Tunisia counterparts, and link to sev- value chain analysis and business development. eral key WBG‑financed operations. The focus was The idea was to build local capacity so the process largely on two lagging regions, the northwest and can be replicated in as many additional regions center-west, based on the Ministry of Development, and value chains in Tunisia as needed. Training Investment and International Cooperation’s (MIDCC) was guided by a set of survey instruments to map Regional Development Index (RDI) indicators. Starting value chains and assess constraints to growth and with this component promoted capacity building in employment creation. beneficiary agencies and counterparts, ensuring that they understood how to perform VC analysis with a The World Bank designed and delivered the VCD Jobs lens, as well as the related development initia- Training (See Annex A for complete descrip- tives that can be implemented to support targeted tion) in Tunis from April 5, 2016 to November VCs. In addition, it ensured that the VC work is 14, 2016. The VCs chosen for the training and/or client-driven.3 survey—olive oil, medicinal and aromatic plants, 4 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 BOX 1: TUNISIAN VALUE CHAIN DEVELOPMENT ANALYSIS The value chains chosen for the VCD training in Tunisia mainly included products from the agri-business sector— olive oil, medicinal and aromatic plants, and tomatoes. Complete reports outlining the process of analysis and findings can be found at: Medicinal and Aromatic Plants in the North-West of Tunisia: Findings from a Value Chain and Jobs Survey (2020). Olive Oil in the North-West of Tunisia: Findings from a Value Chain and Jobs Survey (2020). Value Chain Development for Jobs in Lagging Regions : Let’s Work Program in Tunisia: Overview of the Approach, Impact, and Findings (2020). Olive Oil, Medicinal and Aromatic Plants, and Tomatoes in North-West Tunisia : A Roadmap to Developing Competitive Advantage on Strategic Markets (2020). A key part of VCD Training was conducting of a trainees to apply the coursework on a practical case. series of workshops for Government counter- Trainees were organized in teams of three to four mem- parts. The training comprised five in-class training bers, each group working on a given value chain. Two weeks (five learning modules). The training was accom- additional 3-day working sessions were also organized panied by hands-on exercises for the participants to to assist the groups in conducting their group work. work on over the training period. This enabled the TABLE 1 Overview of Training Workshop In-class session Dates (in 2016) Concepts covered Module 1 April 5–8 Clusters & Cluster Initiatives Module 2 May 2–6 Industry Analysis, Segmentation & Value Chain Analysis Module 3 May 30–June 3 Value Chain Analysis & Benchmarking Module 4 June 27–30 Change Management Refresher Class September 6–8 Review of the concepts studied to date Methodological Class September 27–29 Methodological Work with each team Module 5 October 11–13 Cluster Organization & Project Management Restitution & Closing November 14 Restitution of Field Projects to General Directors 5 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 VCD TRAINING RESULTS The Training achieved strong capacity building exchange between key Tunisian agencies and admin- for VCD analysis in Tunisia. Beyond the VC analyti- istrations, as well as donors, on VCD and job creation cal outputs, the training showed that robust capacity issues. The process of bringing together teams across building programs can be powerful tools for project multiple agencies with a joint objective and engag- preparation and client engagement. The training has ing them on real cases (internationally and locally) has helped acquaint Government officials in Tunisia with been a corner stone in promoting important institu- key VCD concepts, cases, and tools. The trainees tional reforms and creation of the new Taskforce to evolved from a somewhat inward-oriented perspec- work on common competitiveness and job-creation tive, with only Tunisian cases as benchmark, towards objectives. a broader knowledge of value chains and processes of change in other countries and contexts. In addition, The TA also informs ongoing WBG-financed training participants improved important “soft skills” operations supporting the Taskforce and created related to written and verbal presentation skills, as knowledge and formed teams now involved in imple- well ability to work in teams. menting lending operations. All VCs analyzed under the assistance show high potential for growth, which VCD Training directly contributed to establishing could lead to more and better jobs. The Taskforce is an inter-ministerial Taskforce for VCD in Tunisia working to improve the competitiveness and job-cre- (see Box 1). Overall, 27 civil servants received training, ation potential of the Olive Oil (gourmet olive oil), among whom 11 were evaluated as “ready to con- Medicinal and Aromatic (fresh rosemary for gastron- duct VC analysis and development work” by the end omy), and Tomato (fresh for demanding customers) of the training program, and six of these work as core value chains. A follow up activity to this TA is currently members of the Government’s new Taskforce. The being implemented by a WB/IFC project that trains the program was instrumental in informing both ongoing next generation of recruits of the Taskforce with the and upcoming operational projects and fostering close same training material from this TA. Photo credit: World Bank / Arne Hoel 6 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 BOX 2: JOINT VALUE CHAIN DEVELOPMENT PLATFORM IN TUNISIA Since value chain or value chain-related activities are common to four Bank operations in Tunisia, the Government decided to create a joint VCD platform (the “Platform”) to coordinate these activities, especially in the northwest and center-west regions. The Platform will act as an inter-agency one-stop-shop for relevant services offered by participating agencies, but will also provide a package of support services, including: • Identifying and analyzing higher value-added markets for targeted products and services. • Facilitating public-private dialogues (PPDs) to allow champions and motivated players to develop market-based strategies and competitive advantage, mobilize relevant economic and institutional actors, promote collaboration across the value chain, and foster business-to-business networking and cluster development activities. • Identifying policies via PPD that can strengthen the competitiveness of a value chain or improve the business climate for a targeted value chain or a region. • Assisting private sector participation in the PPDs and to help companies apply for grants or access to finance. • Identifying investments and common services (for example, cold chain, packaging, and marketing services) needed to address value chain market failures, decrease intermediation costs on local MSMEs, and increase their access to higher value-added and higher-return markets. • Facilitating preparation and coordination of key actions and provide adequate funding to implement these activities. The Platform will be composed of civil servants, mostly from three key Tunisian MSME support agencies: Tunisia’s agency for investment promotion in agriculture (APIA), Tunisia’s Industrial development agency (APII), and Tunisia’s export development Agency (CEPEX), as well as two (sub)regional development agencies, Tunisia’s agency for regional development in the center west (ODNO) and Tunisia’s agency for regional development in the North west (ODCO). Most participants in the VCD training belong to these agencies. Having participants from all these maximizes synergies between specialized MSME support agencies, an important factor since fragmentation of private sector support has led to coordination failures in lagging regions. The aim is to promote an integrated and coordinated VCD mechanism and approaches. LESSONS LEARNED FOR VCD CAPACITY BUILDING FOR WORLD BANK CLIENTS Choose VCD participants with future implemen- survey analysis focus on status quo evaluation of actors tation in mind. Collaboration across multiple agen- in the value chains, whereas strategic market segmen- cies could further be leveraged by ensuring that future tation focuses on potential future market opportuni- participants are composed in such a way that recom- ties (an outside-in assessment). Future VC analysis mendations stemming from the VCD training could could further integrate and deepen the two compo- move a step further, by assigning roles and responsi- nents to help: (a) validate perceptions and alleged bilities to actors for identified action points, providing facts of the VCs, and verify gaps identified through a start for implementation. strategic market segmentation; (b) inform initiatives to surmount constraints identified; and (c) assess The survey component could be better tailored possible effects of policy interventions for growth to respective VC analytics. The value chain and jobs and better job creation. To systematize and scale up 7 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 this approach, governments’ specialized agencies for •  Address at least mid-level professionals. Parti­ empirical and quantitative work—in this case Statistics cipants need to have enough years of experience and Tunisia, National Institute of Statistics (INS), and practice to participate in business cases and feed class Institute of Competitiveness and Quantitative Studies debates. Future trainings should require participants (ITCEQ)—could receive dedicated capacity building and to enjoy at least three years of professional achieve- resources to conduct or supervise surveys. They could ments in fields related to the training. do so in close coordination with agencies engaged in •  Have proficiency in the teaching language. The reinforcing value chain or cluster competitiveness (the training is based on the study of advanced strategy Taskforce in this case). concepts and economic theories. Anyone enrolled who would not master the teaching language, in Future projects could fully engage participants this case French, would automatically suffer from a and experts engaged in CRIs in the design and disadvantage in learning. analysis of the surveys from the outset. Under the Tunisia work, the survey instrument was only devel- •  Have Internet connection and basic IT equip- oped during the project and not closely integrated ment. While laptops are not compulsory to follow in the capacity building program. While the capacity in-class sessions, each team should bring at least building work informed survey design, the perspec- one computer per team for group workshops. More tives could be better coordinated. importantly, for the remote fieldwork to be done under the supervision of tutors, each participant Cross-administration and collaboration side ef­ should have access to a reliable Internet connection, fects in terms of networking and cross learning a communication device, and a computer to work between individuals and agencies should be pro- on project documents such as spreadsheet, text moted. Participants bonded with each other during processing and presentation software. the Tunisia VCD capacity development. They under- •  Align participants’ supervisors with the training stood better the roles of each of the various organiza- organizers. While the World Bank team met with tions and started contemplating ways to collaborate the directors/supervisors prior to the training, some more often and more effectively. confusion on participant time commitment remained a main issue raised by participants who felt they did Select tutors based on their capacity to respond not get full support from their supervisors. In such to two mandatory points: a) deep understanding of cases the World Bank team met again with the con- the methodology, and b) availability and swift respon- cerned supervisors to clarify this point and ensure full siveness. Selection of tutors is an essential component support to the participants from their management. of the training. Their contribution is critical to ensure that participants understand and assimilate the con- Engage and align staff supervisors and training cepts to replicate the full methodology at work. Tutors organizers fully from the start of training. Future should spend at least 1.5 hour per week talking with trainings, the initial briefing with participant supervi- their team and try to answer any query within 24 sors should emphasize the following points: hours. For future trainings, early recruitment of tutors is advisable, and 2–3 days of specific training (train- •  The time dedication to the training (outside and the-tutors) should be held. inside the office). •  The need to spend time visiting and interviewing Select value chains large enough to include par- companies. ticipants representing all links in targeted value chains.4 It is very unlikely to realize change in the •  The potential need to meet with and interview field when value chain representation is too small and national/regional experts. or incomplete. •  The potential need to travel outside of Tunisia (bench- marking trip). Selection of training participants should follow a few key criteria: 8 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 Plan and budget for travel and firm interviews. needed for a VCD project to deliver shared benefits. Some planned aspects of the VCD Training in Tunisia This requires economic agents (firms or farmers) to could not be executed due to lack of time and bud- develop new skills and knowledge, and governments get. National and international trips could not be to learn how to regulate to enable this shared value. financed. Instead, participants and their tutors com- At the local level, authorities should dialogue with piled information through Internet-based research on industries, with local government engaging directly press articles, white papers, and videos. While in-the- in ongoing communication with companies in the field interaction can be challenging—as it requires cluster. For example, designate a specific person to budgeting, precise logistics, and planning—it is also interact with the cluster and VC agents to manage a rewarding and eye-opening step in the curriculum. follow-up actions. Moving away from a purely regula- Future training should include firm visits, national tory and institutional role, government could engage and international expert interviews, and a 3-to4 day and partner with local entrepreneurs and the busi- benchmarking trip abroad. ness community to, for instance, provide strategic analysis capacity. EXTENDING AND SUSTAINING Further VCD training, including “on-the job,” to VCD CAPACITY ensure that participants master complex proj- ect management tools. While their learning and Align different policy-making levels. As men- memory are still “fresh,” training participants should tioned, Tunisia established a common VCD “Platform” apply the VCD analysis methodology in the field. to bring together a trained team of specialists and Future projects should include real interaction with dedicated civil servants. Aligning institutional levels local SMEs, government staff, the World Bank, and and coordinating efforts between ministries, national, external firms. Consultants can continue to help and local authorities is a long and challenging pro- guide this process. With more experience, the train- cess. Reinforcing the competitiveness of regional or ees can in turn train new staff in VCD, initiating a local value-chains must be an iterative endeavor that virtuous cycle. should be planned and integrated into a broader eco- nomic development vision. Every level of policy mak- Design VCD capacity building with financial ing (national, regional and local) should be mobilized sustainability in mind. The first steps to ensure sus- and coordinated to create “ownership” of the change tainability in Tunisia were achieved in creation of management process. the Taskforce and VCD Platform. This ensures that its members remain civil servants and on an agency Adapt existing services and programs to support payroll. By regulating that arrangement through the strategy identified for each value chain and decree, the Government of Tunisia mitigated risks motivate the agents (companies and supporting associated with dependency on recruited consul- institutions) to adhere to it. Medium-term project tants. However, WBG-financed projects in Tunisia success depends on the government having capacity cover the operational costs of the Taskforce (logistics, to manage action implementation and agreeing upon equipment, and fees) for only 3–5 years. This depen- well-defined, specific ways to move the actions for- dency on World Bank financing can be reduced by ward. Government could also end counterproductive (a) Enlarging the donor base for in VC cluster devel- services or incentives and influence technology centers, opment, perhaps through an umbrella Trust Fund norms and standardization bodies, and educational or interagency agreement, or (b) Enshrining VCD institutions, among others, about program activities. permanently in one of the MSME development agen- cies, such as CEPEX in Tunisia, and integrating its Promote dialogue between government and indus- operational costs in the budget of that agency. try. Both “bottom-up” and “top-down” approaches are 9 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 ANNEX A: VCD TRAINING PROGRAM DETAILS CURRICULUM & IMPLEMENTATION A curriculum combining in-class and on-the-field work The “Value Chain Development Training” (VCD Training) by professors and instructors. The cases were taught in was based on a simple yet effective curriculum that French by professors and instructors selected for their combines theory and practice. Five in-class joint training rich academic background and/or for their relevant weeks associated with field project activities monitored professional experience. by tutors. Following this model, participants applied key learning points studied in class on a real value Learning Modules chain analysis, and they were tested to see how much knowledge they acquired. The objective of the training The training included five learning modules organized was to reinforce governmental support in value chains in five training weeks over six months (one week per development, and hence improve the competitiveness month) made up of in-class sessions of 3 to 5 days. of local SMEs (often referred to as economic or “Porterian” clusters) to create more and better jobs. The program was conceived to cover and transmit extensive knowledge on Cluster Management In-class training and business cases Excellence and Value Chain development. The five methodology modules were: The choice of the training material was based on 1. Clusters & cluster initiatives: Cover Location European Foundation for Cluster Excellence (www. Theory, Industrial Districts, Clusters, Innovation clusterexcellence.org) recommendations, standardized Systems and Cluster Initiative Selection. under the European Commission’s European Cluster Excellence Initiative (ECEI). 2. Industry analysis, segmentation & value chain analysis: Industry analysis (Porter’s Five Forces), The training sessions were based on reading and Strategic Segmentation, Value Chains, Value Chain discussion of business cases used by leading business Systems, and Global Value Systems. schools, such as Harvard, INSEAD, and IESE. The 3. Value chain analysis & benchmarking: Value business cases approach has two advantages: a) Chains, Value Chain Systems, Global Value systems, introducing specific business concepts in a concrete Advanced Purchase Buyer Criteria, Key Success and contextualized manner; and b) basing the learning Factors, and Value Chain Activity Benchmarking. process on active participation and interaction of participants. 4. Change management: Individual Behavioral Change, Group Change, Communication Strategies, The business case approach fosters rich debates that and Presentation Skills. build common knowledge among participants and facilitate the exchange between them, making them 5. Cluster organization & project management: share opinions and related experiences from their Organizational Structures, Non-Profit Organization respective careers. It helps maximize mutual learning Management, Pattern Identification, Project and allows better transfer of knowledge transmitted Planning, Project Monitoring and Project Evaluation. 10 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 FIGURE A1 The 10-step Methodology 1. Cluster Mapping 2. Strategic Segmentation t–5y t t+5y 3. Segment Attractiveness’ Evolution (5F) 4. Advanced BPC analysis 5. Generic Strategic Options for the future 6. KSFs for the most innovative option 7. Ideal Value Chain and cluster Diamond for chosen option 8. Benchmarking our cluster against reference/ideal cluster 9. Feasible strategic options for cluster companies 10. Areas to improve at company and cluster level Source: Duch, Emiliano. 2004. “Att Stärka Klusters Konkurrenskraft.” In Att Mobilisera För Regional Tillväxt. Lund: Studentlitteratur AB. Training methodology The training’s methodology was based on the concepts methodology and allow participants to reflect on and frameworks developed by Professor Michael their Field Project using a standard and systematic Porter. Michael Porter’s work laid the foundations of framework of the “10-step Exercise” of a value chain cluster-based economics, explaining the clustering analysis. phenomenon of companies, and the role such clusters play in creating prosperity and enhancing This framework allows for a progressive and iterative competitiveness in regions and cities. analysis. This analysis will lead to a strategy formulation likely to raise the competitiveness of the studied These conceptual models and insights, and the related Value Chain. analytical tools were taught in class and applied during practical exercises. These tools form the core of the 11 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 Training Implementation Calendar The “Value Chain Development training” was delivered a. Actively engaged in private sector support, and with over a period of seven months from April to November a high-performance record within the institution. 2016 with the following agenda: b. Ready to apply the acquired knowledge and know- how in subsequent WBG-financed operations if • 1st Training Week, CEPEX, Tunis—April 4–8; required by the operations. • 2nd Training Week, CEPEX, Tunis—May 2–6; c. For a subset, based in the concerned lagging regions. Regarding the latter criterion, 35 percent • 3rd Training Week, CEPEX, Tunis—May 30 to June 3; of the civil servants involved in the training were posted in lagging regions. • 4th Training Week, COGITE incubator, Tunis—June 27–30; The final participants in the training totaled 25 • Conceptual Refresher Sessions, World Bank, Tunis— professionals grouped in seven teams of 3 to 5 September 6–8; members. Training coordinators ensured mixing the participants to balance the teams by bringing together • Phase 3 Practical Workshop, World Bank, people from different public administrations, regions, Tunis—September 27–29; and backgrounds. • 5th Training Week, CEPEX, Tunis—October 11–13; Field Projects • Closing event, Hotel Sheraton, Tunis—November 14. In parallel with the training sessions, each team conducted a field project with the objective of Tutors reinforcing the competitiveness of companies in a given local economic cluster. The objective of this 6-month To support the field project, each team was assigned exercise was to reach recommendations on how to a tutor who provided personalized coaching. Tutors develop a cluster. Field work combined application of supervised teams during in-class exercises and then change management tools used in business consulting provided continuous remote supervision. Tutors were and group psychology with a strategy formulated available by phone and online at least once a week, via the 10-step methodology previously described. providing guidance and conducting follow-up for the Each project identified modifications to increase the different steps of the field project methodology. competitiveness of studied value chains. Three corresponding methodological notes covering A total of seven field projects were conducted, as a different phases of each field project guided the work couple of projects had to be merged during training. of the tutors and their interaction with respective The structure of each field project followed the same teams. These notes provided detailed guidelines of three‑phase pattern, with each phase covering a period tasks to be executed from the beginning to the end of of two months (Figure A2). the field project. Due to budget and time constraints, the teams Selection of participants and composition of conducted their field project in a “semi-simulated” the teams manner: they applied the methodology on a real cluster in an existing region, however, they did not involve The World Bank has asked the public institutions to local entrepreneurs nor did they travel to interview select their respective participants for the training based international experts or to observe best practices on a set of criteria. Candidates had to be: on-site. The seven field projects are listed in Table A1. 12 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 FIGURE A2 The Three Phases of a Field Project 6 to 8 months Where do we want to go? What are the challenges? What do we have to do? Where can we go? ANALYSIS Understand Surprise Document PROCESS Motivate Persuade Promote TABLE A1 The Seven Field Projects Project # Location Industry Project 1 Grand Tunis • Medical Tourism Project 2 North West (Governorates of Jendouba, Beja, Siliana, and Kef) • Olive Oil Project 3 Centre West (Governorates of Sidi-Bouzid and Kairaouan) • Chili Peppers Project 4 Centre West (Governorates of Sidi-Bouzid and Kairouan) • Tomatoes Project 5 North West (Governorates of Jendouba, Beja, Siliana, and Kef) • Myrtle Project 6 North West (Governorates of Jendouba, Beja, Siliana, and Kef) • Lentisk (Mastic) Project 7 Centre West (Governorates of Kasserine, Gafsa, Sidi-Bouzid, and Kairouan) • Alfa (Esparto grass) TRAINING CAPACITY BUILDING RESULTS Testing Participant Learning Questionnaires: Participants took two multiple-choice if the participant had more than 66 percent correct questionnaire exams. One was administered at the end answers, then he/she received a “1.” of the 1st Training Week (Module 1) and the other at Participation report: In addition, a participant the end of the 5th Training Week to measure individual performance and participation report evaluated progress and evaluate change in participants’ level of overall individual performance. Training coordinators knowledge. The questionnaire included 12 questions. continuously assessed individual participation (both If the participant had less than 66 percent correct in frequency and quality) both during group work answers, then he/she received a “0” grade; conversely 13 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 and the plenary sessions. Each participant was 3. Team Players: Less proactive and showed less assessed through: a) a 1-to-10 scale for quantity motivation than their colleagues. Consequently, of interventions during the sessions, and b) another they did not demonstrate much progress on hard 1-to-10 scale for quality of intervention. Quantity or soft skills. Demonstration of their understanding was assessed considering individual interventions of the methodology was unsatisfactory. They did, compared to the average level of expression of the however, contribute to field-work. whole class. Quality was evaluated taking into account a) Participant’s capacity to share his/her ideas Based on testing and evaluation, all participants in a logical, succinct, and persuasive way; b) His/her demonstrated remarkable progress over the ability to use concepts and tools taught; and c) Level course of the training. Progress was reflected in the of self-confidence demonstrated while intervening. performance groups at the end of week 5: 11 partic- ipants ranked as “Training Champions” (46 percent); Participants were classified in one of three groups seven reached “Training Climbers” status (29 per- depending on their overall performance: cent); and six were evaluated as “Team Players” (25 percent). While only 11 percent of participants who 1. Training Champions: Demonstrated strong moti- took the test during Training-Week 1 managed to vation, willingness to learn and ultimately grew in pass it (i.e. scored higher than 66 percent of correct knowledge and confidence. Ability to apply the answers), after Training-Week 5, 95 percent of partic- methodology learned during the program. Built a ipants who took the test where able to pass. Tutor, solid basis of conceptualization and practical appli- instructor, and professor observations confirmed this cation that allows working on future VCD projects. noteworthy progress. Taken individually, each partici- 2. Training Climbers: These participants entered pant improved his or her knowledge on VCD theory, training with disadvantages in comparison to economic concepts, and strategic tools studied in other participants: when starting, they were not class. Moreover, taken collectively, participants greatly always familiar with management concepts and, improved their interaction with professors and class- sometimes coming from rural areas, they did not mates. Module after module, the participants’ level have the French language skills of other colleagues. of interventions in class became more frequent and However, they demonstrated remarkable motivation the quality of the collective debates improved. At and persistence, leading to impressive develop. Even the end of week 5, the general atmosphere in the if their overall understanding of the methodology classroom and the level of participation was much remains a short for future VC analysis projects, their improved from what it was at the beginning of the personal involvement was outstanding. training. In fact, participants progressively built a solid group dynamic that made learning more efficient and FIGURE A3 Participants’ Evaluation of Training “I will apply this new 4.56 knowledge in my next job” “My knowledge in value chain 4.61 development improved” 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Responses to “The evolution of my knowledge” (0–5 scale) 14 Building Capacity to Evaluate Value Chain Development for Job Creation: A Case Study from Tunisia . JUNE 2021 more enjoyable. Participants also showed significant satisfaction and 5 expressing high satisfaction. The improvement in “soft skills” such as presentational average rating for the overall survey was 4.26, which skills, oral communication, and teamwork over the demonstrates a very positive perception of the training training period. and a consistent participant satisfaction level. Results for average ratings for select components evaluated Participants’ Evaluation of the Training are presented below (further details of the survey can be found at https://www.jobsanddevelopment.org/ A satisfaction survey sent to participants at the end of jobs-in-value-chains-survey-toolkit/): Module 5 asked them to evaluate different components •  Training organization: 4.00 of the training, including training contents and format, performances of instructors and guest speakers, as well •  Training’s format and content: 4.19 as classroom amenities and workshop organization. •  Training’s instructors: 4.20 The objective of this evaluation was to: a) gauge the effectiveness of training to serve as a benchmark •  Quality of the follow-up to the participants’ work: for future similar trainings; b) prove the efficiency of 4.06 training to build VCD capacity; and c) contribute to •  Level of interaction granted to the participants: 4.21 competitiveness enhancement and ultimately foster job creation. •  Participants‘ improvement of VC-related knowl- edge: 4.59 Nineteen participants (76 percent completed the •  Participants’ overall appreciation of the training: anonymous questionnaire.5 The rating scale for all 4.56 questions submitted was 0 to 5, with 0 expressing low ENDNOTES 1 The Tunisia Third Export Development Project (2015–2021) aims to increase and diversify exports and Tunisian competitiveness. The Integrated Landscape Management Project (US$ 100m) (2017–2022) aims to improve landscape management and access to economic opportunities for targeted rural communities in northwest and center-west regions of Tunisia. The Productive Inclusion Opportunities for Young Women and Men (US$ 60m) (2018–2023) aims to improve economic opportunities for targeted disadvantaged youth in selected Tunisian governorates. The Intensification of Irrigated Agriculture (US$ 125m) (2018–2023) aims to improve irrigation and drainage services; improve institutional capacity for irrigation schemes and management and strengthen market linkages in selected areas. 2 Concept Note “Value Chain Development for Jobs in Lagging Regions” (P157321). 3 The WB does not lead sector selection and sector development in countries which it supports, instead taking on pilot cases and supporting governments to pursue their choices and objectives. 4 The training’s first two months witnessed a few changes affecting the distribution of the participants within teams. In addition to two participants dropping out of the training, the field projects dedicated to “Mushrooms” and “Cork” had to be abandoned: the clusters lacked the critical mass of economic agents and showed too many missing value chain links (no complementarity or synergies between agents). 5 The questionnaire was delivered in early November 2016, after the last training week and before the closing event held in Tunis. 15 This note was prepared by Michael Weber (Jobs Group) and Jade Salhab (Finance, Competitiveness and Innovation). It is based on Michael Weber and Jade Salhab. 2020. “Value Chain Development for Jobs in Lagging Regions: Let’s Work Program in Tunisia.” Jobs Working Paper Issue No. 43, World Bank, Washington, DC. The note was edited and curated by Aldo Morri. The production and publication of this report has been made possible through financial support from the World Bank’s Jobs Umbrella Multi-Donor Trust Fund (MDTF), which is supported by the UK’s Foreign, Commonwealth & Development Office/UK AID, the Governments of Austria, Germany, Italy, Norway, the Austrian Development Agency, and the Swedish International Development Cooperation Agency. All Jobs Group’s publications are available for free and can be accessed through the World Bank or the Jobs and Development Partnership website. Please send all queries or feedback to Jobs Group. Join the conversation on Twitter: @WBG_Jobs #Jobs4Dev.