Government-Private Sector Forum (G-PSF)

1. Government-Private Sector Forum (G-PSF) A Success Story of the Royal Government of Cambodia Sok Chenda Minister attached to the Prime Minister, Prime Minister’s Office Secretary General of the Council for the Development of Cambodia Secretary General of the G-PSF Global PPD Workshop Vienna, Austria - April 29, 2009 1

2. Royal Government of Cambodia’s (RGC) mechanisms for private sector consultation Private Sector Consultation Policy and strategy Donor and G-PSF consultation Government Private Sector Forum Chair: Prime Minister Coordination: DPM, Min. of Finance General Secretary: Minister attached to PM, Secretary General of the Council for the Devt of Cambodia Steering Committee on Private Sector Development (Chair: DPM, Minister of Finance) Sub-steering Committee on Investment Climate and PPI (Chair: DPM, Min Eco & Finances) Sub-steering Committee on Trade Development and Trade Related Investment (Minister of Commerce) Sub-steering Committee on SMEs (Minister of Industry, Mines, Energy) 8 Sectoral Working Groups Established by sub-decree, these mechanisms are institutionalized and demonstrate the commitment of the Royal Government of Cambodia (RGC) To private sector development 2

3. Cambodia G-PSF in brief + 1000 issues raised (in past 3 years), important results in some sectors. Strong coordination, with regular meetings and matrices that track issues Structure in place. Working groups co-chaired by m Ministers and PS rep; Large participation of the private sector Confidence, information btw govt  PS, Gvt leadership Democracy in action, demand for accountability

4. G-PSF a highly successful reform platform • World Bank Investment Climate Assessment lists the G-PSF as one of the key factors for the economic success of Cambodia • Royal Government of Cambodia uses the G-PSF to propose measures to respond to the crisis – several consultations on-going • 2009 Memo from World Bank to RGC recommends using the G-PSF for identification and monitoring of reforms • G-PSF is an integral apparatus of the RGC for private sector consultation and engagement of development partners in technical assistance. • Review of 31 PPDs worldwide shows G-PSF as among highest performers. 4

5. Why have we been successful • Political willingness from the Royal Government of Cambodia, in particular the Prime Minister • Cambodia is pro-private sector, we believe PS will achieve poverty alleviation • Cambodia is an open economy • RGC understands that regulations are better drafted and betterimplemented with PS participation • Private Sector willing to contribute constructively • G-PSF is an integral part of the government apparatus. 5

6. Trust Education Discovering what works / What doesn’t Setting up production process HIGH IMPACT RESULTS Institutions BMOs Exit More capacity Better production Better products More conflict Ongoing brokering EARLY RESULTS Ownership without capacity Development cycle of PPDs Phase 1 Phase 2 Phase 3 Results Cambodia Time 1 to 3 years 1 to 3 years 6

7. IFC’s Role in Cambodia’s PPD (G-PSF) To private sector 1 – Dialogue management & communication 2 – Capacity building of associations and chambers of com. IFC Coordination Bureau 3 – Provincial dialogues (with other DPs) 4 – Technical assistance analysis, research Component 1 : IFC phasing out secretariat role Component 2: Temporary intervention Component 3 : Responsibilities of other DPs Component 4: IFC intends to continue to support

8. Law, Tax, and Governance Working Group Export Process and Trade Facilit. W G Banking and Fin. Services Working Group Tourism Working Group Manuf and SMEs Working Group Agriculture and Agro-Industries WG Energy and InfrastructureW Group Industrial Relations W Group Current structure of the G-PSF dialogue (Private sector) G–PSF Bi-annual meetings Private Sector Working Groups / G-PSF Secretariat International Finance Corporation Business Community 8

9. Independent Entity under the Chamber of Commerce G –PSF Bi-Annual Meeting CHAMBER OF COMMERCE G-PSF – AN INDEPENDENT ENTITY OF THE CHAMBER OF COMMERCE Light secretariat to liaise the WGs Law, Tax, Gov Working Group Export Proces. and Trade Fac. WG Banking & Fin. Services WG Tourism Working Group Manuf and SMEs Working Group Agriculture and Agro-Industries WG Energy and InfrastructureW Group Industrial Relations W Group KEY ASSOCIATIONS provide administrative support to working groups International Business Club GMAC, handicraft assn… Association of Banks in Cambodia CATA, CHA, airlines PPSMIA, SMI, CEPMEC, etc Federation of Ricemillers, agric. assn CAMTA, CAMFFA, ICT-CAM CAMFEBA Business Community Provincial dialogues under Chambers of Commerce Business Associations (regional, largesmall,) Business community in Phnom Penh

10. Challenges in institutionalization • PSF by-laws regulate only the private sector • - The Royal Government of Cambodia has strong ownership of the process, G-PSF is an RGC mechanism • Government better prepared than the PS • - Quality of RGC participants very high; • - The PS has limited capacity to raise and research strategic issues; • BMOs are weak • - The sustainability of BMOs is not assured, even the stronger associations may fail with the economic crisis (fewer members, less revenue from services) • - Several small BMOs - not capable of serving as secretariat to a WG • - Even with 2-year capacity building, no assurance of BMO sustainability • - Can BMO play the role of a neutral, honest broker and ensure outreach ? • Quality of issues raised • - Quality of issues raised varies with the WG • - Limitations on the types of research that development partners can provide (IFC, USAID) • - Quality sometimes not up to RGC expectations 10

11. Thank you! SOK Chenda Minister attached to the Prime Minister Secretary General of the Council for the Development of Cambodia Government Palace Phnom Penh, Kingdom of Cambodia 11

12. Extra slides 12

13. Proposed PSF by-laws • The PSF is an independent entity under theCambodian Chamber of Commerce • G-PSF works and operates like a business association • G-PSF has an executive committee with a president, vice-president(s) and an annual general meeting of members • Sectoral associations have the right to vote in election of co-chairs • G-PSF governing structure has a small-scale secretariat supported by several business associations. 13

14. Role of the PSF Secretariat • 3 staff run the liaison office / are the contact points: executive director, program assistant-translator, staff analyst • PSF represents the 8 working groups vis-à-vis government • Liaises with business associations supporting the 8 working groups to coordinate, compile, disseminate and analyze data • Interfaces with CDC for the organization of the Forum • Communications • Newsletter • Website 14

15. Role of BMOs supporting the Working Group • Full support of their respective Working Groups and Co-chairs in the organization • Contact management, ensure outreach • Organize meetings, take minutes of meetings • Update the matrices of issues • Liase with the PSF central secretariat in aggregating reports for the whole Forum • Work with PSF central secretariat to organize the Forum • Organize election of co-chairs with G-PSF central secretariat • So far: 3 business associations have agreed in principle to serve a WG : GMAC (Export Processing and Trade Facilitation WG), Camfeba (Industrial Relations WG) and IBC (Law, Tax and Governance WG) 15