Transcript Document

PPD Workshop
Paris, 2006
Public-Private Dialogue
Engaging Stakeholders through
Competitiveness Partnerships
Benjamin Herzberg
World Bank
PSD Vice-Presidency
1
1
Going through the maze
Infrastructure (transport, energy, waste)
Innovation, R&D
Training and labor information
Logistics & Trade facilitation
Contract enforcement
Regulatory improvement
Corruption
Competition
Innovation
Access to finance
2
Racing to Competitiveness
Competitiveness
Labor Cost
Corruption
3
A variety of binding constraints
Crime, Theft &
Disorder, 2%
Skills & Education
Workers, 5%
Anti-competitive
Practices, 5%
Regulatory,
Economic Policy
Uncertainty, 23%
Infrastructure, 9%
Leading constraints
identified by over
24,000 firms
Taxation,
in 58 countries
17%
Corruption, 10%
Source: Investment Climate Surveys.
Macroeconomic
Instability, 18%
Finance, 10%
4
A variety of investment climate reform policies
Learning about
good practice
Capacity building
Reform management
5
Source: WDR05.
Reform sustainability relies on engaging stakeholders
GOVERNMENT
+
STAKEHOLDERS
But how to
structure that
engagement?
6
6
Public-private dialogue mechanisms
Vietnam,
Cambodia, South
Africa, Mexico,
Bosnia, Ghana,
Nigeria, Uganda,
Malaysia,
Botswana, Japan,
Bolivia,
Indonesia,
Senegal,
Tanzania,
Bulgaria, Turkey,
Cameroon, Cook
Islands,
Germany,
Hungary, Ireland,
Kosovo, Malta,
Mozambique,
Thailand,
Mauritius, Etc.
Economic Council,
Social Council,
Gender Coalition,
National
Competitiveness
Committee, Annual
Forum, Private
Sector Forum,
Regional Forum,
Deliberation Council,
Business Forum,
Competitiveness
Review Group, High
Level Consultative
Council, Better
Business Initiative,
Bulldozer
Committee,
Investors Advisory
Council, Etc.
7
7
Types of structure
Vietnam
Turkey
Coordinating
secretariat
Working
group 1
Working
group 2
Working
group 3
Working
group 4
Working
group 5
Bosnia
Private sector advocates, associations, government representatives, donors
Nigeria
8
8
Types of engagement
National forums
Series of working groups
Regional/local initiatives
Government-endorsed
Time-bound agreements
Investors councils
9
Benefits of umbrella process
Diagnostics
Solution
Design
Implementation
M&E
• Engagement
• Consensus building
• Ongoing support • Watchdog
• Definition
• Filtering
• Watchdog
• Empower
stakeholders
• Feedback loop
• Resources
10
10
Regulatory payoffs
Country
Benefit
Bosnia
Slashed statutory capital
requirements when
registering a LLC
$ 6. 500
$ 1. 300
Increased number of registered
companies (doubled in some areas)
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.
Amend law on company
registration process
19 steps to register
2 and half month
1 step, 8 procedures to register
1 day process, 9 days total
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 + Planning
Subsidized loans, VC, JV
50 applications/week
(Bulldozer)
Vietnam
(VBF)
Turkey
(YOIIK)
Botswana
(NACEE)
Before
After
11
11
PPD dimensions
CHAMPION
Strong
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
BUSINESS
COMMUNITY
Weak
Strong
Strong
PUBLIC
AUTHORITIES
Instruments:
Need logistical facilities, seed
funds (may also supplement
sponsor in QA)
Strong
INSTRUMENTS
12
12
PPDs step-by-step
Institution vs. initiative
Mapping to government structures
Credibility and legitimacy
Implementation follow-up
Selection of participants
Branding & Logos
Secretariat and working groups
Communication techniques
Rhythm of meetings
Types and form of proposals
13
Choosing the right battle
Focusing on this
will bring the others
14
Format does matter!
Example:
Collecting
proposals
FOUR QUESTIONS
1.Issue at stake
2.Why is it a problem?
3.What is the proposed
solution?
4.What are the action items?
15
Transparency, legitimacy, accountability
Forms
distributed
by
committees
Proposals
Received by
committees
Proposals
pre-selected
by
committees
Selected
Proposals
sent to
Bulldozer
Board
Selected
proposals by
Bulldozer
Board
Proposals
vetted by
IMF, WB,
EC, USAID,
OHR
Proposals
selected in First
Plenary Session
for inclusion into
final book of 50
Proposals
on hold
for further
review
Northwest
500
29
27
8
7
6
6
1
Northeast
700
40
20
10
5
4
4
Banja Luka
Region
600
70
40
10
4
2
2
2
Sarajevo Region
450
132
32
12
9
7
5
3
Herzegovina
200
15
10
4
3
1
1
2
Central Bosnia
1200
80
25
10
3
1
1
4
Total
3650
366
154
54
31
21
19
12
 100%
42%
15%
8.5%
6%
5%
BULLDOZER
PHASE II – FIRST
PLENARY
SESSION
Ratio
Review and analyze
1
Dialogue and process
1
2
Enact and publish
1
2
3
Implement and follow-up
1
2
3
4
Verify and measure
1
2
3
4
16
5
16
Stakeholder management
Level of support
For
LEVERAGE
MOBILIZE
• Communications
• Education
• Empowerment
• Identify them
• Assign and coordinate roles
• Build consensus
BYPASS or STEAMROLL
• Communications
Against
CO-OPT or NEUTRALIZE
• Information
• Consultation
• Diversion
• Compensation
• Disempowerment
• Confrontation
Influence
Low
17
High
Communicating on reform ideas
Bosnia Bulldozer initiative, “50
reforms in 150 days”
Nigeria PPD
Georgia legal and judicial
reform
From the Protocols for Prosperity...
To the Prosperity Garden (Bosnia)
Philippines procurement reform
Cambodia SME credit reform – TV shows
on location (SMEs) + Experts
18
Accountability gets specific in
Bosnia (corporate governance
18
reform)
Issues summary
19
Strategies for challenges
Reinforcing
vested
interest
Mongolia
Over and
under
representation
CHALLENGES
Too much influence to a
small and
unrepresentative group
Create opportunities for
rent-seeking
Reinforce the power of
existing elites
CHALLENGES
Gives big/FDI businesses
a more powerful voice
than local SMEs
1/3
Be open and
transparent
Strong quality
control
Create a broad
base
Strengthen
associations
Reach out equally
to entrepreneurs
Revisit structure
& participants
Tanzania, 18%
20
20
Strategies for challenges
Sustainability
issues
Bolivia, Nigeria
One man
shows
Botswana
CHALLENGES
Becomes ineffective after a
promising start. Descends
into a talking shop from
which little substantive
action results. Participants
become disillusioned,
wasting time and energy.
Credibility of public policy
suffers.
CHALLENGES
Rests too heavily on the
personal involvement of a
senior government figure.
Looses impetus when that
person leaves.
Cannot resist shift in
political will
2/3
Clear agenda,
concrete proposals
Manage
expectations
Live and
let die
Generate bottom
up support
Secure written
commitment
Prepare in
advance
21
21
Strategies for challenges
Political risks
CHALLENGES
Too closely aligned with
political factions
Deemed to die with
government change
Instumentalized by
opposition
Bosnia
Institutional
misalignments
Uganda NF
CHALLENGES
New mechanisms for
consultation duplicate the
work of existing
mechanisms, causing
confusion and
overburdening
participants
3/3
Depoliticize
through outreach
Woo
parliamentarians
Woo local
politicians
Include existing
institutions
Use technical
ministerial staff
Quickly transfer
competencies
22
22
The way forward
Funding mechanisms (gov. p.s., donors)
Sub-national programs
Integration to specific country context
Clusters / Product markets
Post conflict
23
23