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P ublic- P rivate D ialogue Independent evaluation of 30 WBG-supported Public

P ublic- P rivate D ialogue Independent evaluation of 30 WBG-supported Public Private Dialogue and Reform Platforms for Private Sector Development Malcolm Toland Vienna, Austria 28-30 April 2009. Contents. I Purpose of study II Inventory of PPD – locations, typologies, focus

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P ublic- P rivate D ialogue Independent evaluation of 30 WBG-supported Public

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  1. Public-Private Dialogue Independent evaluation of 30 WBG-supported Public Private Dialogue and Reform Platforms for Private Sector Development Malcolm Toland Vienna, Austria 28-30 April 2009

  2. Contents • I Purpose of study • II Inventory of PPD – locations, typologies, focus • III Reform Outcomes and Economic Impacts • IV Quality of PPD Process (Evaluation Wheel) • V Entry and Exit Strategies for Donor Support • VI Way Forward 2

  3. I Purpose of Study – Map, Assess, Recommend IFC Initiatives Aceh 2008 Bangladesh 2007 Belarus 2007 Cambodia 1999Chad 2008Cameroun 2008CAR 2007Ethiopia 2008Laos 2005Liberia 2007Nepal 2008Pakistan 2008Rwanda N/A Sierra Leone 2007North Sudan 2007South Sudan 2007Timor Leste 2008Tonga 2005 Vanuatu 2008Vietnam 1997Zambia 2007 Presidential Investor Advisory Councils (PIACs) Benin N/A Ghana 2002 Mali 2004 Mauritania N/A Senegal 2002 Tanzania 2002 Uganda  2004 Convergence Special Projects Initiative (SPI) Romania 2006 Albania 2008 3

  4. II PPD Inventory – 3 Typologies • IFC supported PPD initiatives (since 1997 but many new) • Forum, Working Groups, Secretariat • Some divergence - formation; oversight; WGs; location of Secretariat; Government input • PIACs (since 2002) • Direct engagement between presidents and prominent investors • Chaired by country’s President • Smaller private sector representation (local + international) • Convergence SPI (since 2006, expanding: Nepal, Bangladesh, Sri Lanka, Moldova) • Financial sector modernisation through micro regulatory reforms • Based on “Better Regulation” analytical methods (RIA) • Local stakeholders decide the programme and take operational and financial responsibility after 2 years 4

  5. II PPD Inventory – Activity Focus 5

  6. II PPD Inventory – Issues Addressed Contract Enforcement Debt Recovery Macroeconomic policy Immigration 6

  7. II PPD Inventory – Sectors Addressed IT Export Energy Construction Fisheries Education 7

  8. III Reform Outcomes and Economic Impacts • Over 400 reforms achieved in over 50 distinct areas of BEE • Economic impact • Conservative estimate: $400 million (3/4 in Mekong) • SPI – an additional $100 million • Cost effectiveness • Start-up investment of 100k-200k highlights potential for high return 8

  9. III Reform Outcomes and Economic Impacts • Reforms achieved are concentrated in small number of PPDs only • Vietnam and Cambodia responsible for 250 reforms • 8 PPDs have achieved 10 or more reforms (Vietnam, Cambodia, Uganda, Liberia, Ghana, Romania, Bangladesh, Senegal) • Over 15 PPDs: limited or no reforms • PPDs either “mature” or in start up phase; few in “intermediate” stage, preventing more complete PPD impact assessment 9

  10. III Creating the Reform Space • “Soft” outputs also numerous • Dialogue process itself • Opened communication and advocacy channels • Government uses PPD to improve own coordination and accountability • Noteworthy achievements: • Embedded within Government • Cambodia: PPD Forum equal status to Cabinet meeting • Uganda: PIAC Monitoring Committee chaired by PM • Liberia: Business Reform Committee in Cabinet • Administration • Code of Practice for Secretariat in North Sudan • RIA as standard analytical tool within SPI • Communication and outreach • Liberia, Bangladesh and Zambia • Research • Annual SME survey in Vietnam 10

  11. IV Quality of PPD Process Average score measures how well the secretariat is performing tasks along 12 key PPD processes: • Assessing the optimal mandate and relationship with existing institutions • Deciding who should participate and under what structure • Identifying the right champions and helping them to push for reform • Engaging the right facilitator • Choosing and reaching target outputs • Devising a communication and outreach strategy • Elaborating a monitoring and evaluation framework • Considering the potential for dialogue on a sub-national level • Making sector-specific dialogue work • Identifying opportunities for dialogue to play an international role • Recognizing the specificities and potential of dialogue in post-conflict or crisis environments • Finding the best role for development partners Note: Average score based on evaluation findings 11

  12. Evaluation Wheel Examples Vietnam SPI Albania Sierra Leone South Sudan 12

  13. PPD Success: A Closer Look • 3 keys to determining PPD success • Political will of Government to make reform happen • Secretariat as the PPD “engine” • Right people populate the Working Groups (genuine commitment to reform) • “Ownership of PPD by the Government, including the direct involvement of the Prime Minister and the Minister of Finance, has resulted in the PPD Forum having become a key part of Government machinery, and now all Government mechanisms are aggregating around it” • Lili Sisombat, Cambodia • “The way in which Government has embraced the concepts of change and reform both philosophically and operationally has strongly impacted the LBBF’s outputs” • Wil Bako Freeman, Liberia 13

  14. PPD: What’s Working, What’s Not 14

  15. V Entry and Exit Strategies • Investing at Entry • Underinvestment at critical initial implementation stage • Raising local expectations too quickly? • Investing in building local Secretariat capacity • Intensity of recruitment and training • Limited inter-Secretariat exchanges of experience • Investing in building BMO capacity • Still an issue even for high scoring PPDs • Inadequate formal Advocacy Scoping • Exit strategies – an emerging issue • Being addressed more seriously • SPI example adds a new dimension • How to continue honest broker role when local stakeholder demand for it 15

  16. VI Way Forward • PPD useful to facilitate WBG introduction of reform service packages, elevating WBG’s credibility as contributor to and catalyst of reform • Good operating procedures more important than typology, structure, scope • Greater WBG investment: Reinforce WBG’s KM role in issuing guidelines, training staff and offerring advisory support • Ensure PPD implementation remains demand-driven and country-based, focusing on: (i) initialising PPD process; (ii) funding and staffing the PPD initiative; (iii) managing day to day PPD activities; (iv) building local stakeholder capacity; (v) managing exit strategies • Carry out formal review of PIAC structure 16

  17. THANK YOU!! 17

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