PowerPointPrsentation

1
A new agenda for improving public-private dialogue
Dr. Sonja Kurz GTZ-Seminar 23 May 2006
2

• December 2005 Cairo Conference
• February 2006 Paris Conference
• -gt www.publicprivatedialogue.org,
• is a one stop shop of knowledge and advice on
  PPD by Worldbank, IFC, DFID, OECD, GTZ
• research papers,
• case studies,
• links
• useful tools like checklists, handbooks etc.

3
Contents

• Understanding of PPD
• Benefits and Risks
• Cyclical Process of building and improving PPD
• Charter of Good Practice in using Public Privat
  Dialogue for Private Sector Development

4
1. Understanding

• Public Private Dialogue or Competitiveness
  Partnership (World Bank) is defined as a
  structured dialogue between representatives of
  the private and the public sector to improve the
  business and investment climate.
• Private sector representatives may use PPDs to
  communicate their interests, identify problems
  and propose solutions.
• The public sector benefits by realising the
  requirements of entrepreneurs and deficits in
  business climate to implement credible and
  realistic reforms.
• PPDs may provide trust and awareness between
  public and private sector.

5
2. Benefits

• When done well, PPD can
• Facilitate investment climate reforms by
  supporting champions for reform, creating
  momentum and accelerating the reform process.
• Promote better diagnosis of investment climate
  problems and design of policy reforms.
  Governments that listen to the concerns of the
  private sector are more likely to devise sensible
  and workable reforms.
• Make policy reforms easier to implement. When
  entrepreneurs understand what a government is
  trying to achieve with a reform package, they are
  more likely to accept and work with the reforms
  in practice.
• Promote transparency and good governance by
  setting an example of openness and creating
  pressure of public scrutiny.
• Build an atmosphere of mutual trust and
  understanding between public and private sectors,
  improving social cohesion and civil society.

6
Risks

• When done badly, not only can it waste the time
  and resources of participants, it can actually
  worsen the problems it is intended to solve.
• Notably
• If not sufficiently transparent and broad-based,
  it can reinforce vested interests and create
  opportunities for rent-seeking behaviour.
• If it does not make special efforts to include
  Small and Medium-sized Enterprises (SMEs) and
  those based in provinces, it can be dominated by
  big businesses or businesses based in a capital
  city.
• If poorly planned and unfocused, it can
  degenerate into a talking shop which leads to
  disillusionment, disengagement and loss of
  credibility, giving strength to opponents of
  reform and slowing down the reform process.
• If not sufficiently well coordinated with
  existing institutions or other dialogue
  mechanisms, duplication of efforts can overburden
  and confuse participants.

7
3. Cyclical Process of building and improving PPD
Diagnosing the status and potential of PPD
Designing and Implementing PPD
Monitoring and Evaluation of PPD
diagnose the capacity of the public and private
sectors to engage in dialogue and the areas in
which dialogue can be most fruitful
design a dialogue process that gives the best
chance for productive interactions between public
and private sectors to emerge
implement dialogue with an awareness of risk
factors that can develop and the ability to
identify and address problems as they arise
evaluate the effectiveness of dialogue
mechanisms, feeding back into the diagnosis phase
for designing and implementing improvements
8
3.1 DIAGNOSING THE STATUS AND POTENTIAL OF PPD

• The PPD Diamond
• It maps the strength of four essential elements
  of PPD on two vertical and two horizontal axes.
  The dimensions are
• Public sector how strong is the capacity,
  political will to engage, and leadership?
• Private sector how organized is the private
  sector, to what extent does it have leadership,
  do entrepreneurs feel a basic sense of security
  in speaking out to government without fear of
  retribution?
• Champion to what extent are there credible and
  respected individuals with the expertise, profile
  and ability to attract the attention of
  participants and media?
• Instruments what is the quality and capacity of
  support personnel, logistical facilities and seed
  funds?

9
Dialogue can succeed when the diamond is
imbalanced although it is difficult to survive
a weakness in more than two dimensions !
10
3.2 DIAGNOSTIC PROJECT SEQUENCES
11
A. Private sector
Stakeholder

• A representative sample of businesspeople should
  be interviewed.
• It is important to include all groups which play
  a significant role in the private sector, from
  small-scale informal entrepreneurs to foreign
  multinational corporations.
• B. Public sector
• The attitute of the public sector can make or
  break public private dialogue. Public sectors are
  rarely homogenous in their willingness or
  capacity to engage in dialogue there will often
  be wide differences between different levels of
  authority, agencies, departments and regions.
  There is a need to identify the capability and
  enthusiasm.

12
C. Intermediary organizations (eg BMOs, Chambers
of Commerce etc.)
13
D. Civil society

• Dialogue between the public and private sectors
  does not take place in a vacuum. The attitude of
  civil society towards private sector input into
  policy-making is a critical success factor.
• Civil society includes
• labor union representatives
• non-governmental organizations
• academia
• media

14
3.3 Stakeholder analysis
15
GTZ Stakeholder analysis 10 Modules

• Modul 1 Identification of key stakeholders
• Modul 2 Stakeholder Mapping
• Modul 3 Profile and startegic options
• Modul 4 Power
• Modul 5 Interests and level of support
• Modul 6 Influence and participation
• Modul 7 Resistance
• Modul 8 Trustbuilding
• Modul 9 Exclusion and Empowerment
• Modul 10 Gender

16
4. DESIGNING, IMPLEMENTING AND MONITORING PPD

• The following is based around the Charter of
  Good Practice in using Public Private Dialogue
  for Private Sector Development
• See www.publicprivatedialogue.org
• PRINCIPLE I MANDATE AND INSTITUTIONAL ALIGNMENT
• A statement of objective is helpful for clarity.
  A formal or legal mandate can be an important
  help in some political and economic contexts, but
  mandates are never sufficient to establish good
  PPD. Wherever hosted and whenever possible, PPD
  should be aligned with existing institutions to
  maximize the institutional potential and minimize
  friction.
• The status of a dialogue can change over time
• Dialogue can start with an informal mission
  statement and later consider seeking a formal or
  legal mandate at a future date.

17
PRINCIPLE II. STRUCTURE AND PARTICIPATION
18

• PPDs structure should be manageable while
  flexible, enable participation to be both
  balanced and effective, and reflect the local
  private sector context.
• Too much formality in the structure can be
  stifling, while too little formality risks drift
• The structure that works best involves a
  secretariat and working groups

• The most effective secretariats are located in a
  neutral space.

19
PRINCIPLE III CHAMPIONS

• It is difficult to sustain dialogue without
  champions from both the public and private
  sectors who invest in the process and drive it
  forward.
• Backing the right champions is the most important
  part of outside support to PPD.
• It is easier for dialogue to survive weakness of
  champions in the private sector than the public
  sector.
• If champions are too strong, the agenda can
  become too narrowly focused, or dialogue can come
  to depend too heavily on individuals.
• Champions need to see the bigger picture and
  understand when they need to take a step back.

20

• PRINCIPLE IV FACILITATOR
• A facilitator who commands the respect of
  stakeholders can greatly improve the prospects of
  PPD.
• Preparatory work between meetings is important to
  maintain momentum
• Define the timetable well in advance and stick to
  it
• Pay close attention to logistical details
• Facilitators need to work hard, be transparent
  and responsive
• PRINCIPLE V OUTPUTS
• Outputs can take the shape of structure and
  process outputs, analytical outputs or
  recommendations. All should contribute to agreed
  private sector development outcomes.Outputs
  should be measurable, time bound, visible,
  tangible and linked to indicators.

21

• PRINCIPLE VI OUTREACH AND COMMUNICATIONS
• Enabling communication of a shared vision and
  understanding through the development of a common
  language is essential for building trust among
  stakeholders.
• Transparency of process in particular, an open
  approach towards the media is essential for
  outreach, and also contributes to measurement and
  evaluation
• Communication strategies must be both for
  participants and for general public
• Branding matters Visual images have power
• PRINCIPLE VII MONITORING EVALUATION
• Monitoring and evaluation is an effective tool to
  manage the public-private dialogue process and to
  demonstrate its purpose and performance.
• Definition of inputs, outputs, outcomes and
  impacts will be enhanced with designation of
  appropriate indicators with periodic review from
  stakeholders, which will rely on the collection
  of reliable data.
• To this effect, PPDs should develop a baseline
  assessment to measure their effectiveness in
  order to enable the partnership to better measure
  how it is achieving its goals over time and
  delivering on its envisaged benefits.

22

• PRINCIPLE VIII SUB-NATIONAL
• Public-private dialogue is desirable at all
  levels of decision-making down to the most local
  possible level, especially as this is likely to
  be more practically capable of involving
  micro-entrepreneurs, SMEs and other local
  stakeholders.
• Top down and buttom up
• Local dialogue can contribute to effective
  implementation of national policies.
• PRINCIPLE IX SECTOR-SPECIFIC
• Sector-specific or issue-specific public-private
  dialogues should be encouraged because they
  provide more focus, greater incentive to
  collaborate, and more opportunity for action.
• The choice of sectors to involve in dialogue can
  be controversial.
• Dialogue works best with the sectors most willing
  to invest time and resources
• Rent-seeking activity is more of a risk in
  sector-specific dialogue.
• Transparency is very important.

23

• PRINCIPLE X INTERNATIONAL ROLE
• Broad and inclusive public-private dialogue can
  effectively represent and promote national and
  regional interests of both public and private
  actors in international negotiations and
  international dialogue processes.
• PRINCIPLE XI POST-CONFLICT
• Public-private dialogue is particularly valuable
  in post-conflict and crisis environments
  including post-natural disaster to consolidate
  peace and rebuild the economy through private
  sector development.
• Social and cultural elements are important
• Trust is a prerequisite for PPD, more than under
  normal circumstances

24

• PRINCIPLE XII DEVELOPMENT PARTNERS
• Public-private dialogue initiatives can benefit
  from the input and support of donors (development
  partners) when their role is determined by the
  specific local context, when it is informed and
  demand driven, and when it is based on
  partnership, coordination and additionality.
• Development partners can encourage conditions for
  dialogue, and initiate, promote, support
  (stakeholder analysis) , fund and facilitate
  dialogue.
• Capacity building and disseminating international
  best practice are two areas where development
  partners can play a particular role.
• The role should be as neutral as possible,
  maximizing the local ownership and capacity, the
  development of trust and the maintenance of a
  conducive and transparent environment.
• Development partners should consider social,
  economic and political context, exit strategies
  and sustainability issues.
• They should coordinate among themselves to avoid
  duplicating their efforts and maximize the
  availability of funds when partnership are found
  to be worth supporting.

25
Case study GTZs role in Vietnams Investment
Law and Enterprise Law

• GTZ provided support to the consultation process
  in Vietnam prior to the passing of the Investment
  Law and Enterprise Law in 2005 in a number of
  important ways
• It directly supported dialogue meetings between
  government and key private sector associations,
  exposing participants to international best
  practice techniques in moderation, discussion and
  use of the internet.
• It supported a Regulatory Impact Assessment
  carried out by the Prime Ministers Research
  Commission. This included business test panels
  and consultation workshops held throughout the
  country.
• It used the media to publicise consultation,
  which increased the transparency of the process,
  helped to overcome reluctance and apathy on the
  part of businesspeople to make comments in
  public, and built support for the new laws.
• It published high-quality research studies
  (illustrated) on issues relevant to the two
  proposed laws. These became the neutral evidence
  base which could be discussed at consultation
  meetings.

26
Inputs from GTZ
Inputs from GTZ
Inputs from GTZ
27
Key Results Obtained

• Domestic business associations become more
  proactive and more professional in public
  consultation
• Results of policy dialogues with support from GTZ
  were documented into formal appeals and many
  recommendations were reflected in the laws when
  they were passed in Nov. 2005
• Critical issues were widely discussed by the
  public with support of the local mass media
• Business associations are becoming more and more
  aware of the importance of actively taking part
  in PPD
• GTZs inputs and approach to PPD have set an
  example and a model for other PPD activities in
  Vietnam
• New tools and mechanisms in public consultation
  and PPD are introduced and increasingly adopted
  by Vietnamese partners

28
Key Factors for Success

• It is important to emphasize the ownership of
  national stakeholders
• Make the local stakeholders aware of the benefits
  of involving in the policy dialogues with the
  Government
• Keep the participants informed about how their
  proposal and requests have been addressed by the
  Government
• Do not just complain, but suggest solutions also
• Collective voices are important
• Technical advice to consultation process is
  important
• Good advice on business law contents is
  important. However, more important is how it is
  communicated
• Identify the right dialogue partners
• Use the press and other media
• Build trust between the private and the public
  sector

29
Thank you for your attention!