Public-Private Dialogue

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Public-Private Dialogue Independent evaluation
of 30 WBG-supported Public Private Dialogue and
Reform Platforms for Private Sector Development
Malcolm Toland Vienna, Austria 28-30 April
2009
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Contents

• I Purpose of study
• II Inventory of PPD locations, typologies,
  focus
• III Reform Outcomes and Economic Impacts
• IV Quality of PPD Process (Evaluation Wheel)
• V Entry and Exit Strategies for Donor Support
• VI Way Forward

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I Purpose of Study Map, Assess, Recommend
IFC Initiatives Aceh 2008 Bangladesh
2007 Belarus 2007 Cambodia 1999Chad
2008Cameroun 2008CAR 2007Ethiopia
2008Laos 2005Liberia
2007Nepal 2008Pakistan
2008Rwanda N/A Sierra Leone
2007North Sudan 2007South Sudan 2007Timor
Leste 2008Tonga 2005 Vanuatu
2008Vietnam 1997Zambia 2007  

Presidential Investor Advisory Councils
(PIACs) Benin N/A Ghana 2002 Mali 2004 Maurita
nia N/A Senegal 2002 Tanzania 2002 Uganda  2004
 
Convergence Special Projects Initiative
(SPI) Romania 2006 Albania 2008
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II PPD Inventory 3 Typologies

• IFC supported PPD initiatives (since 1997 but
  many new)
• Forum, Working Groups, Secretariat
• Some divergence - formation oversight WGs
  location of Secretariat Government input
• PIACs (since 2002)
• Direct engagement between presidents and
  prominent investors
• Chaired by countrys President
• Smaller private sector representation (local
  international)
• Convergence SPI (since 2006, expanding Nepal,
  Bangladesh, Sri Lanka, Moldova)
• Financial sector modernisation through micro
  regulatory reforms
• Based on Better Regulation analytical methods
  (RIA)
• Local stakeholders decide the programme and take
  operational and financial responsibility after 2
  years

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II PPD Inventory Activity Focus
Cross Cutting Both Sector Specific
Belarus Bangladesh Aceh
Cameroun Ghana Cambodia
CAR Liberia Laos
Chad Pakistan Nepal
Senegal Timor Leste North Sudan
South Sudan Sierra Leone Vietnam
Tonga Uganda
Vanuatu Romania
Zambia Albania
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II PPD Inventory Issues Addressed
Contract Enforcement Debt Recovery Macroeconomic
policy Immigration
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II PPD Inventory Sectors Addressed
IT Export Energy Construction Fisher
ies Education
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III Reform Outcomes and Economic Impacts

• Over 400 reforms achieved in over 50 distinct
  areas of BEE
• Economic impact
• Conservative estimate 400 million (3/4 in
  Mekong)
• SPI an additional 100 million
• Cost effectiveness
• Start-up investment of 100k-200k highlights
  potential for high return

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III Reform Outcomes and Economic Impacts

• Reforms achieved are concentrated in small number
  of PPDs only
• Vietnam and Cambodia responsible for 250 reforms
• 8 PPDs have achieved 10 or more reforms (Vietnam,
  Cambodia, Uganda, Liberia, Ghana, Romania,
  Bangladesh, Senegal)
• Over 15 PPDs limited or no reforms
• PPDs either mature or in start up phase few in
  intermediate stage, preventing more complete
  PPD impact assessment

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III Creating the Reform Space

• Soft outputs also numerous
• Dialogue process itself
• Opened communication and advocacy channels
• Government uses PPD to improve own coordination
  and accountability
• Noteworthy achievements
• Embedded within Government
• Cambodia PPD Forum equal status to Cabinet
  meeting
• Uganda PIAC Monitoring Committee chaired by PM
• Liberia Business Reform Committee in Cabinet
• Administration
• Code of Practice for Secretariat in North Sudan
• RIA as standard analytical tool within SPI
• Communication and outreach
• Liberia, Bangladesh and Zambia
• Research
• Annual SME survey in Vietnam

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IV Quality of PPD Process
Average score measures how well the secretariat
is performing tasks along 12 key PPD processes

1. Assessing the optimal mandate and relationship
   with existing institutions
2. Deciding who should participate and under what
   structure
3. Identifying the right champions and helping them
   to push for reform
4. Engaging the right facilitator
5. Choosing and reaching target outputs
6. Devising a communication and outreach strategy
7. Elaborating a monitoring and evaluation framework
8. Considering the potential for dialogue on a
   sub-national level
9. Making sector-specific dialogue work
10. Identifying opportunities for dialogue to play an
    international role
11. Recognizing the specificities and potential of
    dialogue in post-conflict or crisis environments
12. Finding the best role for development partners

Country Total Score Country Total Score
1 Cambodia 94.50 14 Chad 58.50
2 Vietnam 91.75 15 Tonga 58.25
3 Romania 89.25 16 Vanuatu 57.75
4 Laos 88.75 17 Aceh 55.50
5 Albania 88.63 18 Timor Leste 50.25
6 Uganda 81.25 19 South Sudan 39.50
7 Liberia 78.00 20 CAR 38.75
8 Bangladesh 75.00 21 North Sudan 37.75
9 Ghana 72.00 22 Nepal 37.25
10 Pakistan 65.50 23 Cameroun 34.75
11 Zambia 64.75 24 Ethiopia 31.25
12 Belarus 64.25
13 Sierra Leone 60.50
Note Average score based on evaluation findings
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Evaluation Wheel Examples
Vietnam
SPI Albania
Sierra Leone
South Sudan
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PPD Success A Closer Look

• 3 keys to determining PPD success
• Political will of Government to make reform
  happen
• Secretariat as the PPD engine
• Right people populate the Working Groups (genuine
  commitment to reform)
• Ownership of PPD by the Government, including
  the direct involvement of the Prime Minister and
  the Minister of Finance, has resulted in the PPD
  Forum having become a key part of Government
  machinery, and now all Government mechanisms are
  aggregating around it
• Lili Sisombat, Cambodia
• The way in which Government has embraced the
  concepts of change and reform both
  philosophically and operationally has strongly
  impacted the LBBFs outputs
• Wil Bako Freeman, Liberia

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PPD Whats Working, Whats Not
Working Fairly Well Not Working As Well
Strong consultation (SPI) Broad based participation (IFC) Fast track reform (PIAC) Use of RIA (SPI) Donor coordination (IFC) Host entities credibility (PIAC) Project selection process (SPI) Reconciliation platform (IFC) Secretariat recruitment training mentoring (SPI) Use of analysis (PIAC) Outreach (SPI) Secretariat training (IFC) Manageable mandates (PIAC) Provincial level PPD (all 3)

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V Entry and Exit Strategies

• Investing at Entry
• Underinvestment at critical initial
  implementation stage
• Raising local expectations too quickly?
• Investing in building local Secretariat capacity
• Intensity of recruitment and training
• Limited inter-Secretariat exchanges of experience
• Investing in building BMO capacity
• Still an issue even for high scoring PPDs
• Inadequate formal Advocacy Scoping
• Exit strategies an emerging issue
• Being addressed more seriously
• SPI example adds a new dimension
• How to continue honest broker role when local
  stakeholder demand for it

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VI Way Forward

• PPD useful to facilitate WBG introduction of
  reform service packages, elevating WBGs
  credibility as contributor to and catalyst of
  reform
• Good operating procedures more important than
  typology, structure, scope
• Greater WBG investment Reinforce WBGs KM role
  in issuing guidelines, training staff and
  offerring advisory support
• Ensure PPD implementation remains demand-driven
  and country-based, focusing on (i) initialising
  PPD process (ii) funding and staffing the PPD
  initiative (iii) managing day to day PPD
  activities (iv) building local stakeholder
  capacity (v) managing exit strategies
• Carry out formal review of PIAC structure

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• THANK YOU!!

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