4th PPD WorkshopApril 2009

Vienna

Benjamin HerzbergSr. Private Sector Development Specialist

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Public-Private Dialogue

• 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?

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PPDs are structured mechanisms, anchored at the highest level of government, coordinated by a light secretariat, and aimed at facilitating the reform process by involving a balanced range of public and private sector actors in identifying, filtering, accelerating, implementing, and measuring policy reforms.

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Definition

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1- In blank field, to gather actors and define PSD agenda

2- On specific reform issues, if lack of consensus or 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

Different types of use

PPDs in pictures

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Why create or support PPDs?

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Red TapePoor Productivity

Costly and unreliable Utilities

Logistics.

Competitiveness

Labor Cost

Corruption

1- To discover priorities

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2- To buffer the effects of the financial crisis

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3- To reduce regulatory burden

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Capacity building Reform management

Learning about good practice

4- To increase opportunities for good policies

Source: WDR05.

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Discovery Institution

5- To ensure transparency and representativity

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GOVERNMENT

STAKEHOLDERSBut how to structure that engagement?

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PPD contributes to all steps of reform process

Diagnostic

Solution Design Implementation

6- To design and implement reforms

• Engagement• Definition • Empowerment

• Consensus building• Filtering

• Ongoing support• Watchdog• Resources

Monitoring & Evaluation

• Watchdog• Feedback loop

Structured dialogue Workable reforms Reforms that work

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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

Economic impacts

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$237.9

$69.2$2.7

$309.2

Vietnam Cambodia Laos Total

Private Sector Savings from reforms processed through PPDs in the Mekong

Area ($ Million)

Regulatory payoffs

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Before After

Drop in Customs Clearance length as a result of the Advisory Council in Ghana (Nb of days)

Cost Savings, Efficiency and Productivity Improvement

Regulatory payoffs

Country Benefit Before After

Bosnia(Bulldozer)

Slashed statutory capital requirements when registering a LLC

$ 6. 500$ 1. 300Increased number of registered companies (doubled in some areas)

Vietnam(VBF)

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.

Turkey(YOIIK)

Amend law on company registration process

19 steps to register2 and half month

1 step, 8 procedures to register1 day process, 9 days total

Botswana(NACEE)

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 + PlanningSubsidized loans, VC, JV50 applications/week

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How to implement PPDs?

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Implementation framework: 12 key processes

1. Mandate and Institutional Alignment 2. Structure and participation3. Champions4. Facilitator5. Outputs6. Outreach and communications7. Monitoring and evaluation8. Sub national initiatives9. Sector-specific programs10. International role11. Post-conflict / Crisis / Reconciliation 12. Development partners

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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Public-Private Initiative

Coordinating secretariat

Working group 3Working group 2Working group 1 Working group 4 Working group 5

Private sector advocates, associations, government representatives, donors

Delivery modes

To PPD Secretariat on process

improvements

To Gov/PSon

institutionalarrangements

To WorkingGroups onsubstantive

BEE/A2F/INFrefroms

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Ten practical tips to get results

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-1- A lot of work

Huge coordination and mediation business

How to get results ?

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How to get results ?

-2-Design

consultations for PPD

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How to get results ?

-3-Strong focus on

targeted, measurable

refroms

Focusing on this will bring the others

Several types of outputs

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Clarification17%

Enforcement2%

Infrastructure8%

Institution2%

Law2%

Regulation69%

Breakdown per type of reforms, 2006

More than 1000 issues raised

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Public-Private Mandate

-4- Simple, explicit organization

Coordinating secretariat

Working group 3Working group 2Working group 1 Working group 4 Working group 5

Private sector advocates, associations, government representatives, donors

How to get results ?

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-5-A unique,

transparent and disciplined way to collect reform

proposals

How to get results ?

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-6- A filtering

process that ensures

quality of proposed reforms

How to get results ?

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How to get results ?

ForumPropositions collectees par

les GT

Propositions pre-

selectionees par les GT

Propositions finalisees par

les GT et presentees au

secretariat

Propositions correspondan

tes aux criteres de fesabilite

Propositions correspondan

tes aux standards

internationnaux

Propositions votees en séance pleniere

Propositions retenues pour plus

tard

Groupe de travail 1 40 16 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 64 24 16 12 8 4Ratio 100% 40% 15% 10% 7.5% 5%

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-7- A lot of work (again)

Simple criterias to ensure quick processing and transparency of process

How to get results ?

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-8- Good planning

How to get results ?

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-9- Strong convincing power

How to get results ?

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How to get results ?

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How to get results ?

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-10- Monitoring

process and evaluating

impacts

How to get results ?

Issue 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 Average1.0 - - 1.0 2.0 1.0 2.0 2.0 3.0 2.0 2.0 1.0 1.5 2.0 - - 1.0 1.0 1.0 - - - 2.0 - 0.5 3.0 - - 1.0 2.0 2.0 2.0 1.0 3.0 1.0 2.0 1.0 1.4 4.0 - 1.0 1.0 1.0 1.0 2.0 1.0 2.0 2.0 - - 1.0 - 0.9 5.0 - 1.0 1.0 2.0 2.0 3.0 2.0 2.0 - 1.0 - 2.0 - 1.2 6.0 - - - 2.0 1.0 2.0 3.0 - 2.0 - 3.0 - 1.1

Average - 0.3 0.8 1.7 1.3 2.2 1.5 2.6 0.6 1.0 0.4 2.0 0.3 1.1

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Tools and techniques for monitoring + evaluation

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Software for issue tracking

How to start and exit?

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Reinforcing vested interest (e.g. Mongolia)

Over and under representation (e.g. Tanzania, 18%)

Sustainability issues (e.g. Bolivia)

One man shows (e.g. Botswana)

Political risks (e.g. Bosnia)

Institutional misalignments (e.g. Uganda NF)

PPDs are risky business but risk is manageable

Be open and transparent – Publicize quality control – Broad based

Strengthening BMOS – Equal representation – Periodic review

Clear agenda and proposals – Manage expectations – Live and let die

Foster bottom-up support – Secure written commitment – Prepare transition

Depoliticize through outreach – Woo parliamentarians – Go local

embrace institutions – Use technical ministerial staff – Transfer competencies

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Public authorities Private sector

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Initiative or institution?

Trust

Education

Discovering what works / What doesn’t

Setting up production process

EARLY RESULTS

Phase 3Phase 2Phase 1

Results

Time

Permanent brokering

Institutions

BMOs

Ownership without capacity

Exit

More capacity

Better production

Better product

More conflict

HIGH IMPACT

RESULTS

1 to 3 years 1 to 3 years

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Life and death of a PPD

Linking the PPD to other reforms processes

Reform Unit

RIA and regulation review process

SEZ

Office No. 1

Applicant

Files requestfor approval

Clerk 1

Reviewsapplication

anddocuments

Clerk 2

Receivesapplication

anddocuments

Paysfee

AssignsInspector

Receivesand reviewsInspection

Report

Clerk 4

Prepares &Transmits

Request forApproval orDeficiency

Letter

ReceivesRequest forApproval orDeficiency

Letter

Prepares Approval orDeficiency

Letter

Clerk No. 3

Accepts fee

Issues Receipt

Forwards feefor deposit to

municipalaccount

Office No. 2 Office No. 3

Inspector

ContactsApplicant

ConductsInspection

PreparesReport

Sends copy toClerk 2

Clerk 5

MunicipalOfficial

Signs &Returns

Approval orDeficiency

Letter

TransmitsSigned

Approval orDeficiency

Letter

MailsApproval

orDeficiency

Letter

Process Mapping: An Illustration

ReceivesApproval or

DeficiencyLetter

Providescopy ofReceipt

Regulatory simplification

Value chainClusters

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How to share experiences, get

good practice material, tools?

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KM: Knowledge development and sharing

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KM WebsiteCharter of good practice

Lessons learned papers

Interactive PPD handbook

50 case studies

Operational documents

Templates

M&e Tools

Workshop materials

Workshops2006 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 to be represented)

Community of practice

Donor partnershipsOECD(on implementation guidelines)DFID(co-funding of KM and projects)GTZ(co-implementation of PPD projects)EBRD(our M&E + training for their PPDs)USAID (our PPD training to their PSD staff)

Tools

Implementation Diagnostic tool M&E Tools for PPD secretariats guidelines

Benjamin HerzbergWorld Bank Group

bherzberg@worldbank.org

Thank you!

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