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DFID experience in reforming the business enabling environment: mechanisms and processes for PPD . Richard Waddington 1 st February 2006. Presentation objectives. Identify difference in findings from WB research Identify complementarities with WB research
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DFID experience in reforming the business enabling environment: mechanisms and processes for PPD Richard Waddington 1st February 2006
Presentation objectives • Identify difference in findings from WB research • Identify complementarities with WB research • Survey DFID’s experience in terms of payoffs, best practice and risks • DFID’s added value in PPD • Conclusions
DFID TOR Key objectives: • Examine international PPD experience to date WB • Identify models, mechanism and processes that work WB • Provide guidance on what donors should do in this area in future WB • Identify DFID’s added value X WB
What was different? Research Approach • Definition- Competitiveness Partnership (WB) v Public Private Dialogue (DFID) • Coverage: Global (WB) v Developing and Transition Country (DFID)
What was different?- research findings • Factors affecting PPD • Private sector not homogenous • SOEs dominate dialogue in many DFID partner countries • Pockets of capability across government • Blockages often with middle managers • Fluidity: staff turnover at senior levels • Lack of credibility • Lack of trust
What was different? Research findings 2. Approach to PPD • The risk of consultation fatigue • DFID’s PPD experience mostly centralised • No ideal duration/or intensity • Issue based PPD more productive • Recognise when PPD mechanism has outlived usefulness • Prioritise a PPD host over a particular process
DFID and PPD: Stages of the Reform Process 1. Diagnostics 2. Design 3. Implementation 4. M & E Nigeria- Design of PPG P Zambia PSD Forum Bosnia Reform of Business Registration Malawi National Action Group Uganda: Trade Licensing Mayoral Round Tables
CHAMPION Strong PUBLIC AUTHORITIES BUSINESS COMMUNITY Weak Strong Strong Strong INSTRUMENTS Dimensions of PPD- World Bank Consider Four Dimensions Pubic 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 sponsor in QA) 8
long DURATION TYPOLOGIES OF PPD short formal STRUCTURE SCOPE informal narrow wide
DFID: Multi-dimensional approach to PPD Projects & Programmes SWAp/DBS Bespoke Approach Trust Funds 1. Uganda RBP P 1. Zambia- ZIBAC 1. Commark 1. Tanzania BEST 2. FinMark 2. Bosnia Reform of Bus Reg 2. Malawi NAG 3. ICF? 3. Ukraine Donbass SER Capacity Building
Conclusions • WB and DFID findings provide a set of issues to explore in next few days (complementary) • PPD is context specific: no single template • DFID research adds value re political economy of PPD
Conclusions • DFID: PPD a means to an end • Facilitate not dominate • Multi-dimensional and flexible response • Donors- Host over process/mechanism? • Reconsider donor time horizons • Adopt a “venture capital” approach