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
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
2
I
Purpose of Study – Map, Assess, Recommend
IFC Initiatives
Aceh
Bangladesh
Belarus
Cambodia
Chad
Cameroun
CAR
Ethiopia
Laos
Liberia
Nepal
Pakistan
Rwanda
Sierra Leone
North Sudan
South Sudan
Timor Leste
Tonga
Vanuatu
Vietnam
Zambia
2008
2007
2007
1999
2008
2008
2007
2008
2005
2007
2008
2008
N/A
2007
2007
2007
2008
2005
2008
1997
2007
Presidential Investor
Advisory Councils (PIACs)
Benin
Ghana
Mali
Mauritania
Senegal
Tanzania
Uganda
N/A
2002
2004
N/A
2002
2002
2004
Convergence Special Projects
Initiative (SPI)
Romania
Albania
2006
2008
3
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 country’s 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
4
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
5
II
PPD Inventory – Issues Addressed
Licenses,
permits,
registration
(6)
Contract Enforcement
Debt Recovery
Macroeconomic policy
Immigration
Other
Labour/HR
(3)
Taxation
(5)
Legal &
Regulatory
(5)
Administrative
procedures
(4)
Business start
up
(4)
6
II
PPD Inventory – Sectors Addressed
IT
Export
Energy Construction
Fisheries Education
Financial
(11)
Other
Trade
(5)
Infrastructure
(10)
Agriculture
(7)
Manufacturing
(5)
Tourism
(6)
7
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
8
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
9
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
10
IV
Quality of PPD Process
Average score measures how well the secretariat is performing tasks along 12 key PPD processes:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Assessing the optimal mandate and
relationship with existing institutions
Deciding who should participate and under
what structure
Identifying the right champions and helping
them to push for reform
Engaging the right facilitator
Choosing and reaching target outputs
Devising a communication and outreach
strategy
Elaborating a monitoring and evaluation
framework
Considering the potential for dialogue on a
sub-national level
Making sector-specific dialogue work
Identifying opportunities for dialogue to play
an international role
Recognizing the specificities and potential of
dialogue in post-conflict or crisis
environments
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
11
Evaluation Wheel Examples
Vietnam
Sierra Leone
SPI Albania
South Sudan
12
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 LBBF’s outputs”
Wil Bako Freeman, Liberia
13
PPD: What’s Working, What’s Not
Working Fairly Well
Strong consultation
Not Working As Well
(SPI) Use of analysis
Broad based participation (IFC)
Fast track reform
(PIAC)
Outreach
(SPI)
(PIAC) Secretariat training
(IFC)
Use of RIA
(SPI)
Donor coordination
(IFC)
Manageable mandates
(PIAC)
Provincial level PPD
(all 3)
Host entities’ credibility (PIAC)
Project selection process (SPI)
Reconciliation platform
(IFC)
Secretariat recruitment &
training & mentoring
(SPI)
14
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
15
VI
Way Forward
 PPD useful to facilitate WBG introduction of reform service packages,
elevating WBG’s credibility as contributor to and catalyst of reform
 Good operating procedures more important than typology, structure,
scope
 Greater WBG investment: Reinforce WBG’s KM role in issuing
guidelines, training staff and offerring advisory support
 Ensure PPD implementation remains demand-driven and countrybased, 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
16
THANK YOU!!
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