The Role of TA in Government Capacity Building for Public-Private Dialogue: an IFC Example

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Secretariat of the President of Ukraine
Department of Situation Analysis
The Role of TA in Government Capacity Building
for Public-Private Dialogue an IFC Example
Rostyslav M. Pavlenko, PhDDepartment
HeadRostyslav_pavlenko_at_stpu.gov.uaInternationa
l Workshop on Public-Private Dialogue for
Investment Climate ReformParis, February 1-2,
2006
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Revival of donors interest after the Orange
Revolution
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The new government views TA seriously

• Openness of the government to TA and to the
  public
• TA projects are important in advising decision
  makers
• TA projects help build up capacity of
  middle-level officials
• TA projects participate in public monitoring of
  the government
• Civil society uses analytical capacity of TA
• TA becomes catalytical for the civil society

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Gap in high-profile advising

• TA primarily focused on grassroots, social, AIDS
  projects before 2005
• But now Public-Private Dialogue (PPD) is in
  place
• PPD the President of Ukraine conducted 4 Forums
  Authorities and Businesses are Partners each
  attended by about 700 entrepreneurs
• PPD Foreign Investment Advisory Council (FIAC)
  meets monthly FIAC working groups meet weekly,
  the President of Ukraine attended FIAC two times
  in the autumn of 2005
• PPD the Government gave temporary veto power to
  the Council of Entrepreneurs within the Cabinet
  of Ministers of Ukraine
• Ministries set up councils with the involvement
  of NGOs/business associations
• DONORS TA SHOULD TAKE
  ADVANTAGE OF OPENNESS

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IFCs SME Policy Project (EU-funded) example of
filling the gap

• Goal improve business enabling environment in
  Ukraine
• Objective 1 survey SME and do in-depth problem
  identification
• Objective 2 improve legislation and streamline
  administrative procedures
• Objective 3 inform SME on how to fight
  corruption and how to defend rights
• 
  Successful structuring
• OBJ. 1 ANALYSIS OBJ. 2 HIGH
  PROFILE OBJ. 3 GRASSROOTSDEVELOPMENT
  THEORY MIDDLE LEVEL OFFICIALS
  CIVIL SOCIETY
  
  

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Impact of joint effort of the Government IFC
types of permits decresed from gt1200 to lt100

• Objective 1 the SME Survey presented at the
  Secretariat of the President of Ukraine five
  survey-based analytical memos accompanied by case
  studies from the new EU member countries prepared
• Objective 2 Law on Permits drafted and adopted
  in Sept.2005, declaration principle for getting
  permit implemented in Jan.2006, Law on
  Inspections drafted
• Objective 3 work with business associations at
  the Council of Entrepreneurs of the Cabinet of
  Ministers, with European Business Association,
  publication of permit brochures, informing SME
  through www.VlasnaSprava.info
• Successful structuring
• OBJ. 1 ANALYSIS OBJ. 2 HIGH
  PROFILE OBJ. 3 GRASSROOTS DEVELOPMENT
  THEORY MIDDLE LEVEL OFFICIALS
  CIVIL SOCIETY

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Lessons learned
Donors timely reaction to changes in the
society is desirable appresiated