Public-Private Dialogue
For Sector Competitiveness
5th PPD Workshop
June 2, 2010
Vienna
Benjamin Herzberg
Uriel Levy
Amy Cogan Wares
World Bank Group
PPD Global Product Team
1
National PPD with Sector Component
Sectoral WG are common in national PPDs
IT
Export
Energy Construction
Fisheries Education
Financial
(11)
Other
Infrastructur
e
(10)
Trade
(5)
Manufacturi
ng
(5)
Agriculture
(7)
Tourism
(6)
Herzberg, Levy, Wares, 2010
2009 PPD review by Malcolm Toland
2
National PPD with Sector Component
Works well with removing administrative
burdens but perhaps limited impact in terms
of sector competitiveness
– Large companies tend to abandon the WG process
along the way
– Heavy set-up tends to burn political capital quickly
– Limited information sharing unless feel extremely
secure or obvious benefits
– PS gathers in order to remove direct constraints
(e.g. business environment)
Herzberg, Levy, Wares, 2010
Move toward Competitiveness…
Partnerships
Competitiveness is
restrained by six basic
structural factors.
Isolated
competitiveness exists,
but highly competitive
firms limited to isolated
first movers,
innovators, sometime
foreign link.
Skills – Labor - HR
f
Regulations
Taxation
e
e
f
d
e
c
c
d
f
f
d
b
b
Some competitiveness
in firms benefiting from
conjuncture but hardly
sustainable.
Technology - Innovation
– R&D
c
b
A
b
d
c
b
c
e
b
c
d
d
e
e
f
Financing
External
Factors
f
Herzberg, 2010
Herzberg, Levy, Wares, 2010
Infrastructure
…through competitiveness partnerships
Skills – Labor - HR
f
Regulations
Taxation
Technology Innovation – R&D
e
e
f
c
b
f
b
b
d
c
c
b
c
b
e
b
d
e
d
f
e
b
f
c
d
Competi- b
A
tiveness
c
Partnership
e
b
c
f
f
Financing
External
Factors
c
e
d
c
d
e
d
e
f
d
c
cbA
b
e
f
e
d
d
f
b
d
d
c
f
e
f
Herzberg, 2010
Infrastructure
Competitiveness partnership initiatives are a tool to discover and address structural gaps in
competitiveness environment beyond individual firms. They help devise sound industrial sector policy.
Gaps are identified and addressed through coordinated joint actions. The CPI results in bringing a group of
Herzberg, Levy, Wares, 2010
lesser performing individual firms to “A” level.
5
…through competitiveness partnerships
Skills – Labor - HR
f
Regulations
Taxation
Technology Innovation – R&D
e
e
f
c
b
f
b
b
d
c
c
b
c
b
e
b
d
e
d
f
e
b
f
c
d
Competi- b
A
tiveness
c
Partnership
e
b
c
f
f
Financing
External
Factors
c
e
d
c
d
e
d
e
f
d
c
cbA
b
e
f
e
d
d
f
b
d
d
c
f
e
f
Herzberg, 2010
Infrastructure
Competitiveness partnership initiatives are a tool to discover and address structural gaps in
competitiveness environment beyond individual firms. They help devise sound industrial sector policy.
Gaps are identified and addressed through coordinated joint actions. The CPI results in bringing a group of
Herzberg, Levy, Wares, 2010
lesser performing individual firms to “A” level.
6
Where do you start?
• Where is there latent competitive advantage (in which
sector?), which a CPI would reveal?
• What specific gaps can a CPI bridge for given sectors
and what opportunities exist for joint actions that will
improve competitiveness?
• What is the process to construct and implement the
CPI action plan?
Identify
Opportunities
Analyze and
Diagnose
Create
Action Plans
Implement
Action Plans
Herzberg, Levy, Wares, 2010
Identifying opportunities
Competitive
Potential
+
Feasibility of CPI
Herzberg, Levy, Wares, 2010
Sector structure?
Herzberg, Levy, Wares, 2010
Identify specific constraints
Skills – Labor - HR
f
Regulations
Taxation
Technology - Innovation
– R&D
e
e
f
d
e
c
c
b
b
d
f
f
d
c
b
A
b
d
c
b
c
e
b
c
d
d
e
e
f
Financing
External
Factors
f
Infrastructure
Herzberg, Levy, Wares, 2010
Supply chain constraints + FDI potential?
Herzberg, Levy, Wares, 2010
From diagnosis to joint action
• Conduct research based on scientific approach
• Participatory approach to communicate research
findings - Workshops with private sector, government,
others
• Identify joint actions that will improve competitiveness
• Prioritize and implement action plan
Herzberg, Levy, Wares, 2010
Types of actions
•
•
•
•
•
•
•
Feasibility studies
Benchmarking
Market information
Joint promotion, FDI attraction
Research partnerships (university/skills)
Specialized infrastructure, financing, training
Emphasis on activities with spillover effects
Actions  Action Groups  Structure to support those and future Action Groups
• CPI set up, financing, organizational process
Herzberg, Levy, Wares, 2010
Structure to support action
PPD
WG Group
1
WG Group
2
Tourism
WG
Kenya
Tourism CPI
Beach
Action Groups
Convention
AG
Safari
AG
AG
Herzberg, Levy, Wares, 2010
AG
AG
Structure to support action
PPD
WG Group
1
WG Group
2
Tourism
WG
CPI
Finance
Action Groups
Regulations
AG
Skills
AG
AG
Herzberg, Levy, Wares, 2010
AG
AG