4 th ppd workshop april 2009 vienna benjamin herzberg sr. private sector development specialist
DESCRIPTION
P ublic- P rivate D ialogue. 4 th PPD Workshop April 2009 Vienna Benjamin Herzberg Sr. Private Sector Development Specialist. 1. 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? - PowerPoint PPT PresentationTRANSCRIPT
4th PPD WorkshopApril 2009
Vienna
Benjamin HerzbergSr. Private Sector Development Specialist
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Public-Private Dialogue
• 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?
2
What is it, what does it look like?
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PPDs are structured mechanisms, anchored at the highest level of government, coordinated by a light secretariat, and aimed at facilitating the reform process by involving a balanced range of public and private sector actors in identifying, filtering, accelerating, implementing, and measuring policy reforms.
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Definition
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1- In blank field, to gather actors and define PSD agenda
2- On specific reform issues, if lack of consensus or 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
Different types of use
PPDs in pictures
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Why create or support PPDs?
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Red TapePoor Productivity
Costly and unreliable Utilities
Logistics.
Competitiveness
Labor Cost
Corruption
1- To discover priorities
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2- To buffer the effects of the financial crisis
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3- To reduce regulatory burden
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Capacity building Reform management
Learning about good practice
4- To increase opportunities for good policies
Source: WDR05.
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Discovery Institution
5- To ensure transparency and representativity
+
GOVERNMENT
STAKEHOLDERSBut how to structure that engagement?
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PPD contributes to all steps of reform process
Diagnostic
Solution Design Implementation
6- To design and implement reforms
• Engagement• Definition • Empowerment
• Consensus building• Filtering
• Ongoing support• Watchdog• Resources
Monitoring & Evaluation
• Watchdog• Feedback loop
Structured dialogue Workable reforms Reforms that work
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What is the impact of PPDs?
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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
Economic impacts
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$237.9
$69.2$2.7
$309.2
Vietnam Cambodia Laos Total
Private Sector Savings from reforms processed through PPDs in the Mekong
Area ($ Million)
Regulatory payoffs
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5
Before After
Drop in Customs Clearance length as a result of the Advisory Council in Ghana (Nb of days)
Cost Savings, Efficiency and Productivity Improvement
Regulatory payoffs
Country Benefit Before After
Bosnia(Bulldozer)
Slashed statutory capital requirements when registering a LLC
$ 6. 500$ 1. 300Increased number of registered companies (doubled in some areas)
Vietnam(VBF)
Ease labor restrictions for expatriate employees
Decree 105 limited the number of foreign employees to 3% of the total staff, with cap at 50.
Circular 04 excluded management from limitation, and removed cap under special permissions.
Turkey(YOIIK)
Amend law on company registration process
19 steps to register2 and half month
1 step, 8 procedures to register1 day process, 9 days total
Botswana(NACEE)
Setting institutional means for economic empowerment
Public grant program with high corruption, not investment guarantee agency, poor VC access.
Citizen Entrepreneur Dev. Agency (CEDA). Direct link to Ministries of Finance + PlanningSubsidized loans, VC, JV50 applications/week
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How to implement PPDs?
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Implementation framework: 12 key processes
1. Mandate and Institutional Alignment 2. Structure and participation3. Champions4. Facilitator5. Outputs6. Outreach and communications7. Monitoring and evaluation8. Sub national initiatives9. Sector-specific programs10. International role11. Post-conflict / Crisis / Reconciliation 12. 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
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Public-Private Initiative
Coordinating secretariat
Working group 3Working group 2Working group 1 Working group 4 Working group 5
Private sector advocates, associations, government representatives, donors
Delivery modes
To PPD Secretariat on process
improvements
To Gov/PSon
institutionalarrangements
To WorkingGroups onsubstantive
BEE/A2F/INFrefroms
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Ten practical tips to get results
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-1- A lot of work
Huge coordination and mediation business
How to get results ?
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How to get results ?
-2-Design
consultations for PPD
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How to get results ?
-3-Strong focus on
targeted, measurable
refroms
Focusing on this will bring the others
Several types of outputs
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Clarification17%
Enforcement2%
Infrastructure8%
Institution2%
Law2%
Regulation69%
Breakdown per type of reforms, 2006
More than 1000 issues raised
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Public-Private Mandate
-4- Simple, explicit organization
Coordinating secretariat
Working group 3Working group 2Working group 1 Working group 4 Working group 5
Private sector advocates, associations, government representatives, donors
How to get results ?
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-5-A unique,
transparent and disciplined way to collect reform
proposals
How to get results ?
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-6- A filtering
process that ensures
quality of proposed reforms
How to get results ?
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How to get results ?
ForumPropositions collectees par
les GT
Propositions pre-
selectionees par les GT
Propositions finalisees par
les GT et presentees au
secretariat
Propositions correspondan
tes aux criteres de fesabilite
Propositions correspondan
tes aux standards
internationnaux
Propositions votees en séance pleniere
Propositions retenues pour plus
tard
Groupe de travail 1 40 16 6 4 3 2 1
Groupe de travail 2 40 16 6 4 3 2 1
Groupe de travail 3 40 16 6 4 3 2 1
Groupe de travail 4 40 16 6 4 3 2 1
Total 160 64 24 16 12 8 4Ratio 100% 40% 15% 10% 7.5% 5%
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-7- A lot of work (again)
Simple criterias to ensure quick processing and transparency of process
How to get results ?
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-8- Good planning
How to get results ?
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-9- Strong convincing power
How to get results ?
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How to get results ?
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How to get results ?
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-10- Monitoring
process and evaluating
impacts
How to get results ?
Issue 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 Average1.0 - - 1.0 2.0 1.0 2.0 2.0 3.0 2.0 2.0 1.0 1.5 2.0 - - 1.0 1.0 1.0 - - - 2.0 - 0.5 3.0 - - 1.0 2.0 2.0 2.0 1.0 3.0 1.0 2.0 1.0 1.4 4.0 - 1.0 1.0 1.0 1.0 2.0 1.0 2.0 2.0 - - 1.0 - 0.9 5.0 - 1.0 1.0 2.0 2.0 3.0 2.0 2.0 - 1.0 - 2.0 - 1.2 6.0 - - - 2.0 1.0 2.0 3.0 - 2.0 - 3.0 - 1.1
Average - 0.3 0.8 1.7 1.3 2.2 1.5 2.6 0.6 1.0 0.4 2.0 0.3 1.1
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Tools and techniques for monitoring + evaluation
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Software for issue tracking
How to start and exit?
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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)
PPDs are risky business but risk is manageable
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
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Public authorities Private sector
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Initiative or institution?
Trust
Education
Discovering what works / What doesn’t
Setting up production process
EARLY RESULTS
Phase 3Phase 2Phase 1
Results
Time
Permanent brokering
Institutions
BMOs
Ownership without capacity
Exit
More capacity
Better production
Better product
More conflict
HIGH IMPACT
RESULTS
1 to 3 years 1 to 3 years
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Life and death of a PPD
Linking the PPD to other reforms processes
Reform Unit
RIA and regulation review process
SEZ
Office No. 1
Applicant
Files requestfor approval
Clerk 1
Reviewsapplication
anddocuments
Clerk 2
Receivesapplication
anddocuments
Paysfee
AssignsInspector
Receivesand reviewsInspection
Report
Clerk 4
Prepares &Transmits
Request forApproval orDeficiency
Letter
ReceivesRequest forApproval orDeficiency
Letter
Prepares Approval orDeficiency
Letter
Clerk No. 3
Accepts fee
Issues Receipt
Forwards feefor deposit to
municipalaccount
Office No. 2 Office No. 3
Inspector
ContactsApplicant
ConductsInspection
PreparesReport
Sends copy toClerk 2
Clerk 5
MunicipalOfficial
Signs &Returns
Approval orDeficiency
Letter
TransmitsSigned
Approval orDeficiency
Letter
MailsApproval
orDeficiency
Letter
Process Mapping: An Illustration
ReceivesApproval or
DeficiencyLetter
Providescopy ofReceipt
Regulatory simplification
Value chainClusters
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How to share experiences, get
good practice material, tools?
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KM: Knowledge development and sharing
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KM WebsiteCharter of good practice
Lessons learned papers
Interactive PPD handbook
50 case studies
Operational documents
Templates
M&e Tools
Workshop materials
Workshops2006 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 to be represented)
Community of practice
Donor partnershipsOECD(on implementation guidelines)DFID(co-funding of KM and projects)GTZ(co-implementation of PPD projects)EBRD(our M&E + training for their PPDs)USAID (our PPD training to their PSD staff)
Tools
Implementation Diagnostic tool M&E Tools for PPD secretariats guidelines