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The National Action Group Process, Malawi

The National Action Group Process, Malawi. Jason Agar, NAG Secretariat & Chancellor Kaferapanjira, Malawi Confederated Chamber of Commerce and Industry. Context at Commencement (2001). Post Independence – Govt. managed/controlled economy

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The National Action Group Process, Malawi

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  1. The National Action Group Process, Malawi Jason Agar, NAG Secretariat & Chancellor Kaferapanjira, Malawi Confederated Chamber of Commerce and Industry

  2. Context at Commencement (2001) • Post Independence – Govt. managed/controlled economy • Early 1990’s enforced liberalisation, then more willing liberalisation post democratisation (1994 onwards) • Legacy of Govt involvement in private sector: • Mistrust by public sector of old and new private sector • Mindset that public sector knows best and resist external accountability (except to donors) - policy-making not open • Relatively weak business associations – limited co-operation • Business frustrated/mistrustful of public sector – disengaged

  3. Evolution of the NAG Process • Home grown public-private initiative by Minister of Finance and CEOs of major investors to meet (end 01) • Grew organically as participants saw wider range of issues to resolve • Group and agenda grew leading to joint pub-private Business Plan for Malawi (Growth Strategy) in 2003 • Led to establishment of sub-sectoral working groups and work with established fora (Trade Policy Group) • Agenda focused on implementing Growth Strategy • Mostly public-private dialogues but also private- Dev. Partner dialogue (IMF, World Bank, CABS Group etc)

  4. The NAG Forum • Main Forum participants: • Ministers & senior civil servants & key public agencies, • Business CEOs and business associations for main sectors • Heads of Development partners interested in PSD • Meets bi-monthly – agenda proposed by participants but linked to Growth Strategy and current issues • Co-convened by Minister of Trade (ex President of MCCCI) and a senior CEO (ex Minister of Finance) • Reports received from working groups and Secretariat

  5. The Working Groups • 3 Types: • Cross-cutting (trade, investment), • Sub-sectoral (focal sectors – tea, sugar, mining etc), and • Issue-related (power, forex controls, tax reform etc) • Groups engage in dialogue with relevant stakeholders and follow own action plans/strategies (in many cases) • Some existed pre-NAG but isolated and mixed effect • Groups not run/controlled by NAG – feed in cross-cutting and unresolved WG issues to the Forum • Some groups actively facilitated by the NAG Secretariat

  6. NAG Secretariat • Tri-partite Secretariat like Forum (Govt/Donor/Pr. Sec) • Govt - Min. of Trade & PSD and Min. of Econ. Planning • Donor - DFID PSD Adviser liases with donors • Pr. Sec - 2 Mw consultants act as ‘facilitators’ – work closely with MCCCI and other Business Assocs • Convenes Forum, supports/facilitates groups, progress chases & builds capacity of Business Assocs. • Facilitates Bus Assoc. to form a network • Communicates to wider stakeholders on issues/progress

  7. Key Points about the NAG Process • Series of (facilitated) dialogue processes around a main Forum, not a single dialogue – Forum gives ‘standing’ • Home-grown, organic and still evolving – flexible, responsive and opportunistic as environment dynamic • Not a legal entity but is formal - organisational commitment to participate and act – dialogue of the willing • Govt/businesses provide resources (travel, venues etc) • Dev’t partners contract Secretariat (DFID/USAID) to facilitate, but not fund ‘projects’. • Publicity shy, media not usually helpful to dialogue – simplify and polarise… better to talk directly

  8. Challenges –1 • Need for short-term results to satisfy private sector yet without alienating public sector by pressing too hard • Understand political economy of policy change and help private sector to understand and act on it • Weak private sector capacity to engage effectively, competing agendas and lack of enabling environ focus • Coping with regular changes in Govt./public sector personnel – policy discontinuity and lack of coherence • Integrating competing processes driven by other agendas in public sector and Development Partners

  9. Challenges - 2 • Weak capacity of Parliament to legislate and capacity of public sector to implement policy and regulations • Representation vs. effectiveness – not all interests can be directly represented or necessarily need to be! • Misunderstanding of NAG – perceived by some as a representative body competing with MCCCI etc. • (Deliberate) misrepresentations of what NAG is: • Public sector resist accountability of a coherent voice • Private sector practices being exposed & Assocs shaken up • Development partners working to own (HQ-driven) agenda

  10. The Future of the NAG Process • Good opportunity for change in Mw with current Govt. – macro-economy improving & political will exists • Will always be opponents, so find strategies to deal with – be opportunistic, flexible, selective and realistic • Keep looking for changes that can be delivered short term • Build the diversity and depth of dialogues • Build a culture of constructive engagement for mutual benefit – embed dialogue as a normal helpful thing • Invest more time in explaining what NAG is/is not

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