Bangladesh Investment Climate Fund

Integrating PPDs into the Political ProcessLessons from BangladeshLaura Watson, Operations Adviser

Shihab Ansari Azhar, Stakeholder Engagement Analyst

April 29, 2009

2007: Breaking New Ground

• January 2007: Interim Government in power.

• Anti-corruption drives targeted at some prominent businessmen.

• Low business confidence.

• The case for business reforms: Relatively easy set of reforms to implement, compared to corruption

and electoral reforms Allows Caretaker Government to leave a legacy.

• Selling Interim Government on the need for business reforms results in establishment of two public-private dialogue bodies:

Bangladesh Better Business Forum Regulatory Reforms Commission

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2008: Managing Change

• December 2008: Elections scheduled to elect new political government.

• Bangladesh has history of anti-incumbency; business reform momentum may not sustain.

• Needed strategy to mitigate risk of political change effectively.

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Touch People’s Lives

Understand Your Audience

•First step is to understand how people perceive business reforms in Bangladesh.

Survey of 1,200 General Population, 353 total Opinion Leaders (37 from General Population) and 250 SME/Micro business owners and managers

10 Focus Groups in Dhaka and Chittagong with general public, opinion leaders, SME/Micro business owners and managers.

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100Approve Disapprove DK/Refused

BBBF Approval

General Population Opinion Leaders

Based on what you know, would you approve or disapprove of the next elected government continuing with the BBBF, or do you have no opinion?

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56

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46

45

91

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88

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Much more likely Somewhat more likely

BBBF Messages | Opinion Leaders

Domestic Investment. The BBBF works to improve our business climate, making Bangladesh more attractive to investors. Greater government transparency, better tax policies, and regulations that stabilize our economy will ensure greater domestic investment and growth in Bangladesh. Jobs. The BBBF is working to improve the lives of every Bangladeshi. Greater access to loans for entrepreneurs, more efficient regulations and streamlined government services will lead to more jobs, a higher standard of living and a better future for all Bangladeshis.

Foreign Investment. The BBBF works to improve our business climate, making Bangladesh more attractive to foreign investors. Greater government transparency, better tax policies, and regulations that stabilize our economy will ensure greater foreign investment and growth in Bangladesh. Public/Private. The BBBF helps the public and private sectors work together to reach the right solutions for the country. Increasing interactions between the government and business community will lead to mutually beneficial policies, combating problems and identifying solutions that will grow our economy.

High prices. High prices are placing a heavy burden on our families and damaging our country's economy. The BBBF is working to provide solutions and support to our government to help get through this crisis. In the future, the BBBF will make sure that through effective business and economic reforms, crises like this are prevented. International Similarities. Organizations similar to the BBBF are very common throughout the world. The United Kingdom and South Korea both have similar organizations that provide real solutions and reforms that stimulate their economy. Having the BBBF continue in Bangladesh will allow us to join the international stage and lead to greater economic growth.

Permanency. One of our country's major problems is the lack of permanency within our government that leads to unstable economic conditions, hindering our growth. The BBBF is an organization that will work from government to government, paving the way for consistent policies and easier transitions; so as our government leaders change our economy will remain stable.

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Very serious concerns Serious concerns

BBBF Doubts | Opinion Leaders Now I am going to read you some criticisms of the Bangladesh Better Business Forum, or the BBBF. For each one, please tell me whether it raises very serious concerns, serious concerns, minor concerns, or no concerns at all about the Bangladesh Better Business Forum.

Big Business. The BBBF is too focused on big businesses and not enough on the real problems of our country. The BBBF spends too much of its time figuring out ways for big business to make more profit while the people are struggling with high prices and low wages.

Benefits Foreigners. While the BBBF may claim to improve the lives of Bangladeshis, they will really be benefiting foreigners who come here and exploit our resources. In reality, by promoting foreign investment and tax benefits for foreigners, Bangladeshis will lose jobs and profits will be taken out of our country to companies overseas.

Part of CG. The BBBF is just one of the many failed reforms undertaken by the Caretaker Government. The BBBF has been in place for over a year and they have not implemented a single business reform. This is just another sign that the Caretaker Government is more interested in talking about reforms than actually carrying out reforms.

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1st bar = Before messages 2nd bar = After messages

BBBF Approval

General Population Opinion Leaders

Based on what you know, would you approve or disapprove of the next elected government continuing with the BBBF, or do you have no opinion?

+76 +8 +68 +5

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Permanent organization

Improve international reputation

Increase domestic investment

Increase partnership b/w gov't, private sector

Increase foreign investment

Improve business climate

Help with high prices

Create more jobs

Opinion Leaders General Population

Best reasons to continue with BBBF Based on what you know now, which TWO of the following are the best reasons the next government should continue with the Bangladesh Better Business Forum, or the BBBF?

Operationalising the Research Results•Objective: sustain the reforms process during transition

to a new government.

•Overall slogan: Better Business, Better Bangladesh.

•Overall message: Business reforms lead to job creation.

•4 week campaign; each week one reform highlighted

•Series of message events and communications around selected overall and weekly theme defined by research results: roundtables, press briefings, talk shows, regional dialogues, media visits.

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TV Commercial from the Communications Campaign

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Build and Nurture Champions Who Can Leverage Influence

Building a Coalition of Champions for Business Reforms

• Identifying at least 100 influential individuals (opinion elites)

• Establishing a coalition of 20 - 30 opinion elites

• Supporting the advocacy coalition: provide them with research support, policy notes, creating advocacy events

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A Large Range of Stakeholders May Already be Active

A Brief Stakeholder Analysis

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Degree of Support and Interest for

Business Reforms

Level of Influence

Low

Low High

High

AcademiaAcademia

ChambersChambers

MediaMedia

Think tanksThink tanks

ChampionsChampions

Policy MakersPolicy

Makers

BBBFBBBF

RAID: BICF’s Stakeholder Engagement Model

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Research and Recommend

Reforms

Research and Recommend

Reforms

Advocate For and Support

Reforms

Advocate For and Support

Reforms

Implement Reforms

Implement Reforms

Disseminate and Communicate

Implementation

Disseminate and Communicate

Implementation

AcademiaAcademia

ChambersChambers

MediaMedia

Think tanksThink tanks

ChampionsChampions

BBBFBBBF

Strategic Comms

Campaigns

ChambersChambers

AcademiaAcademia Think tanksThink tanks

BBBF M&EBBBF M&E

BBBF PRCUBBBF PRCU

MediaMedia

BICF Regulatory Reforms Programs

What Does Success Look Like?

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Degree of Support and Interest for

Business Reforms

Level of Influence

Low

Low High

High

AcademiaAcademia

ChambersChambers

MediaMedia

Think tanksThink tanks

ChampionsChampions

Policy MakersPolicy

Makers

BBBFBBBF

Policy MakersPolicy

MakersChampionsChampions

Think tanksThink tanks

MediaMedia

ChambersChambers

AcademiaAcademia

BBBFBBBF

Where they are

Where they need to be

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Branding Key to Stakeholder Buy In

“BICF Inside”

• Perception of World Bank Group in Bangladesh historically not very positive.

• Some key players from all sectors may be unwilling to engage in an IFC-driven initiative.

• Introducing “BICF Inside” model: Support to Public Private Dialogue initiatives without overt IFC

Branding

• Result: Greater stakeholder buy-in and support for PPD in Bangladesh.

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So What Has Happened?

Large Increase in Public Support for Business Reforms

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September 08 December 08

Other Key Results

• Increase in number of stakeholders who believe that business reforms are much needed, from 88% of opinion leaders and 81% of general population in September, to 95% and 91% of stakeholders respectively in December.

• 95% of garments manufacturers and 86% of lawyers and accountants surveyed recognized the campaign slogan, and 100% and 85%, respectively, agreed with the spirit of the statement.

• Business and investment climate reform issues incorporated into the election manifestos of both major political parties.

• After the elections, newly elected government publicly committed to continuation of the BBBF and the reform process.

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