The Road to the SDGs

function as a tool that can be used to develop IsDB's project pipeline through proactive needs assessment. X MCPS 2.0 allows IsDB to prioritise its projects in areas with highest impact and, at the same time, provide greater opportunity for countries to be interconnected. In this way, it can achieve the objectives of creating sustainable employment, boosting industrial innovation levels, and crowding-in resources from all market players. X MCPS 2.0 is an important part of IsDB’s approach to support its MCs in meeting the SDGs. Meanwhile, IsDB’s Regional Hubs are at the forefront of proactive needs assessment of MCs, providing regular dialogue to focus investment on areas that have high potential for growth, employment generation and sustainable human development. X IsDB has committed to an industrial transformation by helping MCs move into higher value-added products with strong backward and forward linkages based on higher complexity as well as STI. X To maintain competitiveness, countries need to meet the new levels of productivity achieved through Industry 4.0. The MCPS 2.0 framework identifies priority interventions that help shift countries towards this fourth generation of industrialisation. ACHIEVEMENTS X There has been significant progress with the implementation of the MCPS 2.0 approach, which has replaced the previous way of formulating the MCPS. X In 2019, four MCPS 2.0 initiatives were launched (Gabon, Maldives, Morocco and Turkey) of which those of Gabon and Maldives have already been formulated and the remaining two are still under formulation. In addition, seven more are being formulated in 2021 (Guinea, Indonesia, Malaysia, Nigeria, Pakistan, Saudi Arabia and Senegal). X IsDB has also set up RL operations in eight MCs, with a view to supporting SSTrC among MCs for various development programmes. The share of the MCPS allocations will be increased from 20% in 2020 to 80% in 2022. INVESTMENT X The COVID-19 pandemic has presented particular challenges to MCs, requiring many of them to reposition themselves on their GVCs to mitigate the impacts of the crisis. IsDB’s 57 MCs include many of the world’s fastest-growing economies. With a combined GDP of approximately US$ 7 trillion and historical GDP growth rates of up to 8% per year, they have strong potential not only for recovery but also for continued growth. X The MCPS strategy has paved the way for IsDB to align its programming with MCs’ needs. Currently, there are 11 GVC-based MCPSs at various stages of processing. We keep a tight rein on administrative expenses and monitor costs against the promised financial benefits of programmes. X IsDB will continue to support its MCs as they manage the short- to medium-term risks while working to increase their market share in GVCs. M C P S 2 . 0 I N I T I A T I V E S Gabon, Turkey, Morocco, Maldives, Senegal, Malaysia, Indonesia, Guinea, Saudi Arabia, Pakistan, Nigeria [ 163 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S