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P ublic- P rivate D ialogue. 5 th PPD Workshop June 1-2-3 2010 Vienna Benjamin Herzberg World Bank Group Sr. Private Sector Development Specialist PPD Global Product Specialist. 1. PPDs around the world. Herzberg , 2010. What is it, what does it look like?
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Public-Private Dialogue 5th PPD Workshop June 1-2-3 2010 Vienna Benjamin Herzberg World Bank Group Sr. Private Sector Development Specialist PPD Global Product Specialist 1
PPDs around the world Herzberg , 2010
What is it, what does it look like? • Why create or support PPDs? • How do PPDs work? • What is the impact of PPDs? • How to implement PPDs? • Ten practical tips to get results • How to enter and exit? • How to share experiences, get good practice material, tools? Herzberg , 2010 3
What is it, what does it look like? Herzberg , 2010 4
What it is PPDs are structured mechanisms, anchored at the highest practical level, coordinated by a light secretariat, and aimed at facilitating the discovery process by involving a balanced range of public and private sector actors in identifying, filtering, accelerating, implementing, and measuring competitiveness actions and policy reforms. Herzberg , 2010 5
When to use it 1- In blank field, to gather actors and define competitiveness/PSD agenda 2- On specific cross-cutting or competitiveness issues, if lack of consensus , misalignment of actors or low political will 3- In post-conflict economies, with extra benefits of reconciliation 4- In context of FDI policies, as sounding board and aftercare mechanism 5- As a way to bridge institutional gaps, or to by-pass inefficient institutions Herzberg , 2010 6
What does it look like Herzberg , 2010 7
Why create or support PPDs? Herzberg , 2010 9
1- To discover priorities Competitiveness Labor Cost Corruption Red Tape Poor Productivity Costly and unreliable Utilities Logistics Subramanian, 2006 10
2- To reduce regulatory burden Herzberg , 2010 11
+ But how to structure that engagement? 3- To ensure transparency and representativity GOVERNMENT STAKEHOLDERS Herzberg , 2010 12
4- To design and implement reforms Structured dialogue Workable reforms Reforms that work Monitoring & Evaluation Diagnostic Solution Design Implementation • Engagement • Definition • Empowerment • Watchdog • Feedback loop • Consensus building • Filtering • Ongoing support • Watchdog • Resources PPD contributes to all steps of reform process Herzberg , 2010 13
Discovery Institution 5- To increase opportunities for good policies Learning about good practice Capacity building Reform management Source: WDR05. Herzberg , 2010 14
6- To increase sustainable sector competitiveness Skills – Labor - HR f RegulationsTaxation Technology - Innovation – R&D f e e e e d f f d f f c c b d d d d c c Competi-tiveness Partnership b b b A A b b e c c e e c c e b b c c b d d b b d d d c c b f f f f d e e e e Financing f ExternalFactors f Infrastructure Herzberg , 2010 15
Increasing Sustainable Sector Competitiveness Skills – Labor - HR f RegulationsTaxation Technology - Innovation – R&D f e e e e d f f d f f c c b d d d d c c Competi-tiveness Partnership b b b A A b b e c c e e c c e b b c c b d d b b d d d c c b f f f f d e e e e Financing f ExternalFactors f Infrastructure Herzberg , 2010 16
What is the impact of PPDs? Herzberg , 2010 17
Evidence of development effectiveness 2005: Independent evaluation of 5 Investors Advisory Councils in Africa 2007: Independent evaluation of 3 Business Forums in Mekong 2009: Independent evaluation of 30 WBG-sponsored PPDs Aceh 2008 Albania 2008 Bangladesh 2007 Belarus 2007 Cambodia 1999Chad 2008Cameroun 2008CAR 2007Ethiopia 2008Laos 2005Liberia 2007Nepal 2008Pakistan 2008 Sierra Leone 2007Romania 2006 Senegal 2002 North Sudan 2007 South Sudan 2007Tanzania 2002 Timor Leste 2008Tonga 2005 Uganda 2004 Vanuatu 2008Vietnam 1997Zambia 2007 Benin N/A Ghana 2002 Mali 2004 • Over 400 reforms achieved in over 50 distinct areas • Economic impact (private sector savings) • Conservative estimate: $500 millions • Cost effectiveness • Start-up investment of 100k-200k Herzberg , 2010 18
Regulatory payoffs Stone, 2005 19
Two reductions of Export Management Fee has saved GMAC members USD 2,2 millions (2008) Reduction of bureaucracy and documentation required for import-export procedures; Certificate of Origin now issued within 48 hrs, with reduced cost and documentation (2 GMAC staff are positioned at MoC to assist factories in C/O applications); Introduction of the ASYCUDA system which has automated export documentation, saving time and money; Creation of a handbook on export procedures Suspension of Advanced Profit Tax (1%) until 2012 Reduced the employers’ contribution to the National Social Security Fund from 1.8% to 0.8% Established a Task Force on amendments to the Labor Law Reduced night shift rate from 200% to 130% Competitiveness payoffs - Cambodia Garment Van Sou Leng, 2009 20
How to implement PPDs? Herzberg , 2010 21
CHAMPION Strong PUBLIC AUTHORITIES BUSINESS COMMUNITY Weak Strong Strong Strong INSTRUMENTS Prerequisites Consider Four Dimensions Public Authorities: Engagement means sufficient capacity, political will and leadership. Business community: Needs to be somehow organized, led and feel a basic sense of security. Champion: Needs credibility, expertise and the ability to get media attention Instruments: Need logistical facilities, seed funds (may also supplement champion in QA) 22 Herzberg , 2010 22
Implementation Consider 12 Dimensions Herzberg , 2010
Implementation framework: 12 key processes • Mandate and Institutional Alignment • Structure and participation • Champions • Facilitator • Outputs • Outreach and communications • Monitoring and evaluation • Sub national initiatives • Sector-specific programs • Relevance to FDI • Post-conflict/disaster, crisis response • Development partners A number of options to choose from A number of good and bad practice to learn from A number of decisions to implement Herzberg , 2010 24
Coordinating secretariat Working group 1 Working group 2 Working group 3 Working group 4 Working group 5 Private sector advocates, associations, government representatives, donors Delivery modes To Gov/PS on institutional arrangements Public-Private Initiative To Working Groups on substantive competitiveness actions To PPD Secretariat on process improvements Herzberg , 2010 25
Ten practical tips to get results Herzberg , 2010 26
How to get results ? -1- A lot of work Huge coordination and mediation business Herzberg , 2010 27
How to get results ? -2- Design consultations for PPD Herzberg , 2010 28
How to get results ? -3- Strong focus on targeted, measurable refroms Herzberg , 2010 29
Several types of outputs Focusing on this will bring the others Herzberg , 2010 30
Coordinating secretariat Working group 1 Working group 2 Working group 3 Working group 4 Working group 5 Private sector advocates, associations, government representatives, donors How to get results ? -4- Simple, explicit organization Public-Private Mandate Herzberg , 2010 31
How to get results ? -5- A unique, transparent and disciplined way to collect reform proposals Herzberg , 2010 32
How to get results ? -6- A filtering process that ensures quality of proposed reforms Herzberg , 2010 33
How to get results ? Herzberg , 2010 34
How to get results ? -7- A lot of work (again) Simple criterias to ensure quick processing and transparency of process Herzberg , 2010 35
How to get results ? -8- Good planning Herzberg , 2010 36
How to get results ? -9- Strong convincing power Herzberg , 2010 37
How to get results ? Herzberg , 2010 38
How to get results ? -10- Monitoring process and evaluating impacts Herzberg , 2010 39
Tools and techniques for monitoring + evaluation Herzberg , 2010 40
How to start and exit? Herzberg , 2010 41
Be open and transparent – Publicize quality control – Broad based Strengthening BMOS – Equal representation – Periodic review Clear agenda and proposals – Manage expectations – Live and let die Foster bottom-up support – Secure written commitment – Prepare transition Depoliticize through outreach – Woo parliamentarians – Go local embrace institutions – Use technical ministerial staff – Transfer competencies PPDs are risky business but risk is manageable Reinforcing vested interest (e.g.Mongolia) Over and under representation (e.g. Tanzania, 18%) Sustainability issues (e.g. Bolivia) One man shows (e.g. Botswana) Political risks (e.g. Bosnia) Institutional misalignments (e.g. Uganda NF) Herzberg , 2010 42
Initiative or institution? Public authorities Private sector Herzberg , 2010 43
Trust Education Discovering what works / What doesn’t Setting up production process HIGH IMPACT RESULTS Institutions BMOs Exit More capacity Better production Better product More conflict Permanent brokering EARLY RESULTS Ownership without capacity Life and death of a PPD mechanism Phase 1 Phase 2 Phase 3 Results Time 1 to 3 years 1 to 3 years Herzberg , 2010 44
Linking the PPD to other reforms processes Reform Unit SEZ Value chain Clusters Regulatory simplification RIA and regulation review process Herzberg , 2010 45
How to share experiences, get good practice material, tools? Herzberg , 2010 46
www.publicprivatedialogue.org Community of practice KM Website Charter of good practice Lessons learned papers Interactive PPD handbook 50 case studies Operational documents Templates M&e Tools Workshop materials Workshops 2006 PPD Workshop (Paris, 30 countries represented) 2007 PPD Workshop (Douala, 7 countries represented) 2008 PPD Workshop (Dakar, 8 countries represented) 2009 PPD Workshop (Vienna, 20 countries represented) 2010 PPD Workshop (Vienna, 23 countries represented) Donor partnerships OECD (on implementation guidelines) DFID (co-funding of KM and projects) GTZ (co-implementation of PPD projects) EBRD (co-implementation of PPD projects) USAID (our PPD training to their PSD staff) Tools Implementation Diagnostic tool M&E Tools for PPD secretariats guidelines Herzberg , 2010 47
http://www.facebook.com/publicprivatedialogue Herzberg , 2010 48
Thank you! Benjamin Herzberg World Bank Group bherzberg@worldbank.org 49