Transcript Document

Public-Private Dialogue
5th PPD Workshop
June 1-2-3 2010
Vienna
Benjamin Herzberg
World Bank Group
Sr. Private Sector Development Specialist
PPD Global Product Specialist
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PPDs around the world
Herzberg , 2010
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Herzberg , 2010
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?
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What is it, what does it look like?
Herzberg , 2010
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What it is
PPDs are structured mechanisms,
anchored at the highest practical level,
coordinated by a light secretariat, and
aimed at facilitating the discovery
process by involving a balanced range of
public and private sector actors in
identifying, filtering, accelerating,
implementing, and measuring
competitiveness actions and policy
reforms.
Herzberg , 2010
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When to use it
1- In blank field, to gather actors and define competitiveness/PSD agenda
2- On specific cross-cutting or competitiveness issues, if lack of consensus ,
misalignment of actors or low 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
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What does it look like
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Why create or support PPDs?
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1- To discover priorities
Competitiveness
Labor Cost
Corruption
Subramanian, 2006
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2- To reduce regulatory burden
Herzberg , 2010
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3- To ensure transparency and representativity
GOVERNMENT
+
STAKEHOLDERS
But how to
structure that
engagement?
Herzberg , 2010
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4- To design and implement reforms
Structured dialogue  Workable reforms  Reforms that work
Diagnostic
Solution
Design
Monitoring &
Evaluation
Implementation
• Engagement
• Consensus building
• Ongoing support • Watchdog
• Definition
• Filtering
• Watchdog
• Empowerment
• Feedback loop
• Resources
PPD contributes to all steps of reform process
Herzberg , 2010
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5- To increase opportunities for good policies
Learning about
good practice
Discovery
Institution
Capacity building
Reform management
Source: WDR05.
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6- To increase sustainable sector competitiveness
Skills – Labor - HR
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Regulations
Taxation
Technology Innovation – R&D
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Competi- b
tiveness
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Partnership
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Financing
External
Factors
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Infrastructure
Herzberg , 2010
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Increasing Sustainable Sector Competitiveness
Skills – Labor - HR
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Regulations
Taxation
Technology Innovation – R&D
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Competi- b
tiveness
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Partnership
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Financing
External
Factors
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Infrastructure
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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
Over 400 reforms achieved in over 50 distinct areas
Economic impact (private sector savings)
Conservative estimate: $500 millions
Cost effectiveness
Start-up investment of 100k-200k
Herzberg , 2010
Aceh
Albania
Bangladesh
Belarus
Cambodia
Chad
Cameroun
CAR
Ethiopia
Laos
Liberia
Nepal
Pakistan
Sierra Leone
Romania
Senegal
North Sudan
South Sudan
Tanzania
Timor Leste
Tonga
Uganda
Vanuatu
Vietnam
Zambia
Benin
Ghana
Mali
2008
2008
2007
2007
1999
2008
2008
2007
2008
2005
2007
2008
2008
2007
2006
2002
2007
2007
2002
2008
2005
2004
2008
1997
2007
N/A
2002
2004
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Regulatory payoffs
Drop in Customs Clearance length as a result
of the Advisory Council in Ghana (Nb of days)
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Cost Savings,
Efficiency and
Productivity
Improvement
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Before
Stone, 2005
After
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Competitiveness payoffs - Cambodia Garment
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Two reductions of Export Management Fee
has saved GMAC members
USD 2,2 millions (2008)
Reduction of bureaucracy and documentation
required for import-export procedures;
Certificate of Origin now issued within 48 hrs, with reduced cost and
documentation (2 GMAC staff are positioned at MoC to assist factories in C/O
applications);
Introduction of the ASYCUDA system which has automated export
documentation, saving time and money;
Creation of a handbook on export procedures
Suspension of Advanced Profit Tax (1%) until 2012
Reduced the employers’ contribution to the National Social Security Fund from
1.8% to 0.8%
Established a Task Force on amendments to the Labor Law
Reduced night shift rate from 200% to 130%
Van Sou Leng, 2009
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How to implement PPDs?
Herzberg , 2010
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Prerequisites
Consider Four Dimensions
CHAMPION
Strong
Public 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
champion in QA)
Strong
INSTRUMENTS
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Implementation
Consider
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12 Dimensions
Implementation framework: 12 key processes
1. Mandate and Institutional Alignment
2. Structure and participation
3. Champions
4. Facilitator
5. Outputs
6. Outreach and communications
7. Monitoring and evaluation
8. Sub national initiatives
9. Sector-specific programs
10. Relevance to FDI
11. Post-conflict/disaster, crisis response
12. Development partners
Herzberg , 2010
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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Delivery modes
To Gov/PS
on
institutional
arrangements
Public-Private Initiative
To PPD
Secretariat
on process
improvements
Working group 1
Coordinating secretariat
Working group 2
Working group 3
Working group 4
To Working
Groups on
substantive
competitiveness
actions
Working group 5
Private sector advocates, associations, government representatives, donors
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Ten practical tips
to get results
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How to get results ?
-1A lot of work
Huge coordination and mediation business
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How to get results ?
-2Design
consultations
for PPD
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How to get results ?
-3Strong focus on
targeted,
measurable
refroms
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Several types of outputs
Focusing on this
will bring the others
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How to get results ?
-4Simple, explicit organization
Public-Private Mandate
Coordinating secretariat
Working group 1
Working group 2
Working group 3
Working group 4
Working group 5
Private sector advocates, associations, government representatives, donors
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How to get results ?
-5A unique,
transparent and
disciplined way
to collect reform
proposals
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How to get results ?
-6A filtering
process that
ensures
quality of
proposed
reforms
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How to get results ?
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How to get results ?
-7A lot of work (again)
Simple criterias to ensure quick processing and transparency of process
Propositions
collectees par
les GT
Propositions
preselectionees
par les GT
Propositions
finalisees par
les GT et
presentees au
secretariat
Propositions
correspondan
tes aux
criteres de
fesabilite
Propositions
correspondan
tes aux
standards
internationnau
x
Propositions votees
en séance pleniere
Proposition
s retenues
pour plus
tard
Groupe de
travail 1
40
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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
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16
12
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Ratio
 100%
40%
15%
10%
7.5%
5%
Forum
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How to get results ?
Phase I timeline
-8Good planning
Bulldozer Committee
1st Plenary Session
Vetting 8 reforms
Bulldozer Committee
2nd Plenary Session
Vetting 15 reforms
BC
Public meeting
MOSTAR
BC
Public meeting
BRCKO
BC
Public meeting
BANJA LUKA
Dec 17 Jan 16
Herzberg , 2010
3 Govts
give their
amendments
package
to PAs
under
“urgent
procedure”
BC
Public meeting
ORASJE
HR meeting Young
Entrepreneurs
TRAVNIK
50
Reform
Enactment
by
3
Parliaments
Joint
Parliament
Meeting in
National
Theatre
with BC
BC presents
50 reforms to
CoM, RS, FBiH
in JOINT
GOVERNMENT
SESSION
BC
Public meeting
ZENICA
BC
Public meeting
TUZLA
Nov 12
Bulldozer Committee
50 REFORMS
PUBLISHED
IN PRESS
Bulldozer Committee
3rd Plenary Session
Vetting 27 reforms
Jan 27
Jan 29
Feb 07
E C O N O M I C
HR Press Conf.
To Present BC
50 reforms
Feb 12 Feb 13
Feb 20
Feb 25
R E F O R M S
Mar 03
I N
Mar 12
150
Mar 24
Mar 25
Apr 3
Apr 22
D A Y S
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How to get results ?
-9Strong convincing power
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How to get results ?
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How to get results ?
-10Monitoring
process and
evaluating
impacts
Issue
1.0
2.0
3.0
4.0
5.0
6.0
Average
Herzberg , 2010
1.0
-
2.0
1.0
1.0
0.3
3.0
1.0
1.0
1.0
1.0
1.0
0.8
4.0
2.0
1.0
2.0
1.0
2.0
2.0
1.7
5.0
1.0
1.0
2.0
1.0
2.0
1.0
1.3
6.0
2.0
2.0
2.0
3.0
2.0
2.2
7.0
2.0
1.0
1.0
2.0
1.5
8.0
3.0
3.0
2.0
2.0
3.0
2.6
9.0
10.0
1.0
2.0
0.6
2.0
1.0
2.0
1.0
11.0
2.0
-
12.0
2.0
2.0
0.4
1.0
2.0
3.0
2.0
13.0
1.0
1.0
0.3
Average
1.5
0.5
1.4
0.9
1.2
1.1
1.1
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Tools and techniques for monitoring + evaluation
Herzberg , 2010
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How to start and
exit?
Herzberg , 2010
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PPDs are risky business but risk is manageable
Reinforcing vested interest
(e.g. Mongolia)
Be open and transparent – Publicize quality control – Broad based
Over and under representation
(e.g. Tanzania, 18%)
Strengthening BMOS – Equal representation – Periodic review
Sustainability issues
(e.g. Bolivia)
Clear agenda and proposals – Manage expectations – Live and let die
One man shows
(e.g. Botswana)
Foster bottom-up support – Secure written commitment – Prepare transition
Political risks
(e.g. Bosnia)
Depoliticize through outreach – Woo parliamentarians – Go local
Institutional misalignments
(e.g. Uganda NF)
embrace institutions – Use technical ministerial staff – Transfer competencies
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Initiative or institution?
Public authorities
Herzberg , 2010
Private sector
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Life and death of a PPD mechanism
Phase 1
Results
Trust
Education
Discovering what
works / What
doesn’t
Setting up
production
process
Phase 2
Phase 3
HIGH
IMPACT
RESULTS
Institutions
BMOs
Exit
More capacity
Permanent brokering
Better production
Better product
EARLY
RESULTS
More conflict
Ownership without capacity
Time
1 to 3 years
Herzberg , 2010
1 to 3 years
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Linking the PPD to other reforms processes
SEZ
Clusters
Value
chain
Reform Unit
Regulatory
simplification
RIA and regulation review process
Process Mapping: An Illustration
Office No. 1
Applicant
Clerk 1
Clerk 2
Files request
for approval
Reviews
application
and
documents
Receives
application
and
documents
Clerk 4
Clerk 5
Pays
fee
Provides
copy of
Receipt
Receives
Approval or
Deficiency
Letter
Municipal
Official
Signs &
Returns
Approval or
Deficiency
Letter
Office No. 3
Clerk No. 3
Inspector
Accepts fee
Assigns
Inspector
Issues Receipt
Forwards fee
for deposit to
municipal
account
Receives
and reviews
Inspection
Report
Prepares &
Transmits
Request for
Approval or
Deficiency
Letter
Receives
Request for
Approval or
Deficiency
Letter
Contacts
Applicant
Conducts
Inspection
Prepares
Approval or
Deficiency
Letter
Transmits
Signed
Approval or
Deficiency
Letter
Herzberg , 2010
Office No. 2
Mails
Approval
or
Deficiency
Letter
Prepares
Report
Sends copy to
Clerk 2
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How to share
experiences, get
good practice
material, tools?
Herzberg , 2010
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www.publicprivatedialogue.org
Community of practice
KM Website
Charter of good practice
Lessons learned papers
Interactive PPD handbook
50 case studies
Operational documents
Templates
M&e Tools
Workshop materials
Workshops
Donor partnerships
2006 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 represented)
2010 PPD Workshop
(Vienna, 23 countries represented)
OECD
(on implementation guidelines)
DFID
(co-funding of KM and projects)
GTZ
(co-implementation of PPD projects)
EBRD
(co-implementation of PPD projects)
USAID
(our PPD training to their PSD staff)
Tools
Implementation
guidelines
Herzberg , 2010
Diagnostic tool
M&E Tools for PPD secretariats
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http://www.facebook.com/publicprivatedialogue
Herzberg , 2010
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Thank you!
Benjamin Herzberg
World Bank Group
[email protected]
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