Martina Vahlhaus Program Manager, SMEDSEP

1. The GTZ Philippines Experience: Convergence of Donor Assistance towards developing the SME Sector Martina Vahlhaus Program Manager, SMEDSEP

2. 1. Ownership (partner countries) 4. Results (mutual accountability) Partners set the agenda 2. Alignment (donors – partners) Aligning with partners’ agenda Using partners’ systems 3. Harmonization (donors – donors) Establishing common arrangements Simplifying procedures Sharing information Background: The Paris Declaration on Aid Effectiveness Objectives • improve effectiveness of development cooperation • Contribute to achieve Millennium Development Goals

3. 1. Ownership (partner countries) 4. Results (mutual accountability) Ownership:Partners (DTI) set the Agenda Partners set the agenda 2. Alignment (donors – partners) Aligning with partners’ agenda Using partners’ systems 3. Harmonization (donors – donors) Establishing common arrangements Simplifying procedures Sharing information • SMED Plan and SMED Action Plan are owned by the SMED Council, DTI • Donors respect DTI’s policies and help strengthen their capacity to implement (result oriented) and monitor results • Since Feb. 2006 • DTI Usec. Mel Alonzo has taken the lead in donor-co-ordination • The DTI Secretary has taken leadership with regard to streamlining of business licensing/registration (as announced during the final plenary of the Philippine Development Forum last March 06)

4. 2004 – donors try to align to SMED Plan (matrix, difficult, too many activities) 2005 – SMED-Council/DTI/partners prioritize the SMED Plan (CIDA and GTZ) 1. Ownership (partner countries) 4. Results (mutual accountability) Alignment:with Partners’ Agenda, within Partners’ System Partners set the agenda 2. Alignment (donors – partners) Aligning with partners’ agenda Using partners’ systems 3. Harmonization (donors – donors) Establishing common arrangements Simplifying procedures Sharing information SMED Plan48 Activities SMED Action Plan10 Groups Provinces Provinces Provinces

5. 1. Ownership (partner countries) 4. Results (mutual accountability) Alignment:with Partners’ Agenda, within Partners’ System Partners set the agenda 2. Alignment (donors – partners) Aligning with partners’ agenda Using partners’ systems 3. Harmonization (donors – donors) Establishing common arrangements Simplifying procedures Sharing information *N = National, L = Luzon, V = Visayas, M = Mindanao

6. 1. Ownership (partner countries) 4. Results (mutual accountability) Partners set the agenda 2. Alignment (donors – partners) Aligning with partners’ agenda Using partners’ systems 3. Harmonization (donors – donors) Establishing common arrangements Simplifying procedures Sharing information Alignment:with Partners’ Agenda, within Partners’ System *funded by CIDA, AusAID, and World Bank

7. 1. Ownership (partner countries) 4. Results (mutual accountability) Harmonization:Establishing Common Agreements, Sharing Information Partners set the agenda 2. Alignment (donors – partners) Aligning with partners’ agenda Using partners’ systems 3. Harmonization (donors – donors) Establishing common arrangements Simplifying procedures Sharing information • Donors and DTI agreed to focus on Activity No. 10 “Streamlining of Business Regulatory Requirements” with their action plan” (1 year) • Donors and DTI agree on common action plan for streamlining business registration • Common analysis (Consultative Working Group) • Sharing of Good Practices (Handbook for LGUs) • Advocacy activities • Supporting selected LGUs in Streamlining • Capacity Building for accelerating smooth business registration (Training of SME Counselors)

8. 1. Ownership (partner countries) 4. Results (mutual accountability) Results and Mutual Accountability Partners set the agenda 2. Alignment (donors – partners) Aligning with partners’ agenda Using partners’ systems 3. Harmonization (donors – donors) Establishing common arrangements Simplifying procedures Sharing information Message from the Mayor and BPLO Chief of Ormoc City on Business Registration Streamlining

9. 1. Ownership (partner countries) 4. Results (mutual accountability) Results and Mutual Accountability Partners set the agenda 2. Alignment (donors – partners) Aligning with partners’ agenda Using partners’ systems 3. Harmonization (donors – donors) Establishing common arrangements Simplifying procedures Sharing information Outlook and Results • Development of a Common Monitoring Framework • Performance Assessment • Measure progress against accountability SMED Activity Groups 1-10 Implemented Action Plan What results Lessons achieved? learned

10. 1. Ownership (partner countries) 4. Results (mutual accountability) Results and Mutual Accountability Partners set the agenda 2. Alignment (donors – partners) Aligning with partners’ agenda Using partners’ systems 3. Harmonization (donors – donors) Establishing common arrangements Simplifying procedures Sharing information Outlook and Results • 2005 World Bank Report • Minimum of 11 procedures and 48 days to register • Questions • Business regulations? • How many days does it take? • Does this reduce the time? • What are the costs for …? • Are sufficient information and instructions available? SMED Activity Groups 1-10 Implemented Action Plan What results Lessons achieved? learned Activity Group 10