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IPPG Cluster on State-Business Relations Emerging themes and policy messages

IPPG Cluster on State-Business Relations Emerging themes and policy messages. Dr Dirk Willem te Velde 15-18 December 2009 CUTS-IPPG meeting Jaipur. Introduction. Diversity; heterogeneity; disciplines Audiences, messages, channels Quick synthesis What’s next?.

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IPPG Cluster on State-Business Relations Emerging themes and policy messages

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  1. IPPG Cluster onState-Business Relations Emerging themes and policy messages Dr Dirk Willem te Velde 15-18 December 2009 CUTS-IPPG meeting Jaipur

  2. Introduction • Diversity; heterogeneity; disciplines • Audiences, messages, channels • Quick synthesis • What’s next?

  3. Diversity in methodology, methods and unit of analysis • Political/historical analysis of SBR • Country level • State level • Measuring SBR • Country level • Firm / individual level • Econometrics of effects of SBR • Multi-Country level • Meso / sector level • Micro level • Functional approaches • Case studies (sometimes combining all of this!), formal/informal

  4. Audiences • Academia (e.g. journal readers and colleagues, especially those that work in “silos”) • Policy makers (national/state) • Politicians (pro labour, pro capital) • Business (small and large) • CSOs • Media • External actors, donors, funders (bilateral eg DFID, multilateral eg World Bank, UNIDO)

  5. Messages • Academic – innovations in literature in institutions and growth • Measurement – new debates amongst disciplines, pushing the disciplinary boundaries • SBRs matter, whether formal or informal (e.g. check variation in states, or countries) • Formalised SBRs fulfill economic functions e.g. through budget process (Zambia, Mauritius) • Formalised SBRs can work, but they can fail to function when there is no buy-in (Mauritius vs South Africa) • Voice of small business in formal BAs (Mauritius) AND in informal bargaining (South Africa) often underrepresented

  6. Channels • IPPG discussion papers • IPPG briefing notes • Conferences and workshops • Breakfast meetings • Press releases • Blogs • E-mail discussions • Journal articles • Informal contacts

  7. SBR case studies (Africa)Synthesising SBR Research

  8. SBR case studies (Africa)Synthesising SBR Research

  9. Emerging themes(from African studies) • Formalised can SBRs matter. Mauritius (Rojid et. al .): Joint Economic Council is influential private sector actor in SBRs in Mauritius; Measured SBR leads to higher growth (1970-2005). How? E.g. suggested budget proposals for better industrial policies are frequently taken over by government budgets. • But effective formalised SBR cannot simply be put in place. South Africa (Natrass, Seekings): Nedlac did not provide a real consensus seeking forum, due to weaknesses in state, although some success in industrial policy. • Formal consultative fora do perform useful functions helping business at macro level. Zambia (Bwalyas, et al.): analysis of new, transparent mechanisms to channel budget proposals suggest that business organisations / actors have influenced budget outcomes (esp using civil servants), more than other stakeholders. • There are informal SBRs; is it a stepping stone towards formalisation. Ghana (Ackah et al.): more developed social networks (politicians, civil servants) of firms (#256) lead to better firm performance • BA membership associated with better form performance. Across Africa (Qureshi and Te Velde): business membership leads to better firm performance by reducing policy uncertainty and lobbying, but individual lobbying remains important!

  10. Linking audiences, messages and channels • Academics – new ways (methods and methodologies) of looking at (PP) growth which include SBRs (empirical examinations rooted in theory); journal articles and workshops • Government policy makers – we know that informal networks matter, but formalised ways of engaging with business can be useful for development, or specific interventions can help a better conduct of SBR, and we have a few specific suggestions how it can be fostered; briefings, informal contacts • Business – engaging in a well informed democratic conversation with government helps; SMEs feel underrepresented; meetings with business • Funders / donors – consider SBRs in advice and indices (eg engagement with WEF); SBRs evolve slowly over time, but there are critical junctures, and investing in SBRs matter; however, effective SBRs cannot simply be put in place; policy briefings

  11. Possible ways forward • Syntheses and messages in print / actioned (academic and policy relevant) • SBR research and practice has a bright future • It opens up new debates and can build bridges • Gaps: primarily the what and how of economic functions, interactions between formal and informal SBR, and formal/informal links, social networks/sociological • It has real relevance to today’s problems (e.g. GFC) • Keep on doing it

  12. THANK YOU

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