USAID COMPETE PROJECT QUARTERLY REPORT, OCTOBER 1 – DECEMBER 31 2013

The project's strategic framework was revamped in early September following a retreat with USAID colleagues. This period saw an acceleration of activities to support Palestinian firms, organizations, and individuals in driving economic growth through increased exports and jobs. Key themes emerged from the breadth of activities, guiding the Compete team's instigation of development momentum. One theme was driving industry growth by encouraging innovation. USAID through the Compete Project played a disruptive and positive role in the ICT sector by supporting startups through Hi-Tech Hub events, launching the 1st high-tech Angel Investor Fund, and continuing leadership development activities. Innovators who combined business savvy and gender sensitivity were also supported. The Compete team launched "Breaking Bread Journeys," a joined-up venture of two leading ladies of the Israeli and Palestinian tourism industry. The Compete agriculture team's effort to support the rapidly growing Palestinian commercial agro-business sector was based on leveraging innovation to compete in challenging markets. Another theme was laying the groundwork for comprehensive and long-lasting change by investing in infrastructure and skill development. USAID through the Compete Project continued to ramp up support by stimulating or co-financing with the private sector commercial infrastructure. This included site renovation and urban rehabilitation in key tourism destinations, supporting a private sector "not-for-profit" owned hospitality hotel school, and linking a "forward-contract" scheme between food industries and commercial farmers to major investments in state-of-the-art pack house machinery and accredited testing facilities. The project also pushed the boundaries of skills development and high-tech start-ups by challenging Palestinian universities and established ICT firms to look beyond computer engineering to content-rich applications and animation services. These highlights and others contained in this report show the effort of USAID to support Palestinian businesses in driving economic growth through innovation and infrastructure development. The Compete Project's activities in the last three months of 2013 focused on supporting Palestinian businesses in driving economic growth through increased exports and jobs. The project's strategic framework was revamped in early September, and this period saw an acceleration of activities to support Palestinian firms, organizations, and individuals. Key accomplishments included the launch of the 1st high-tech Angel Investor Fund, the continuation of leadership development activities, and the support of innovators who combined business savvy and gender sensitivity. The Compete agriculture team's effort to support the rapidly growing Palestinian commercial agro-business sector was based on leveraging innovation to compete in challenging markets. The Compete Project's activities in the last three months of 2013 had a significant impact on the Palestinian business community. The project's focus on innovation and infrastructure development helped to drive economic growth through increased exports and jobs. The project's support of Palestinian businesses and individuals also helped to build the foundations for industrial supply chains and vigorous "ecosystems" in the high-tech sector. The project's progress was also reflected in the improvement of key indicators, including the increase in household income among program participants compared to the control group. Overall, the Compete Project's activities in the last three months of 2013 were a significant step forward in supporting Palestinian businesses and driving economic growth. The project's focus on innovation and infrastructure development helped to build the foundations for long-term economic growth and competitiveness.