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P ublic- P rivate D ialogue. 5 th PPD Workshop June 1-2-3 2010 Vienna Benjamin Herzberg World Bank Group Sr. Private Sector Development Specialist PPD Global Product Specialist. 1. PPDs around the world. Herzberg , 2010. What is it, what does it look like?

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Public-Private Dialogue

5th PPD Workshop

June 1-2-3 2010

Vienna

Benjamin Herzberg

World Bank Group

Sr. Private Sector Development Specialist

PPD Global Product Specialist

1


Ppds around the world
PPDs around the world

Herzberg , 2010


  • 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?

Herzberg , 2010

3



What it is

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

Herzberg , 2010

5


When to use it

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

2- On specific cross-cutting or competitiveness issues, if lack of consensus , misalignment of actors or low 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

Herzberg , 2010

6


What does it look like

Herzberg , 2010

7



Why create or support PPDs?

Herzberg , 2010

9


1 to discover priorities
1- To discover priorities

Competitiveness

Labor Cost

Corruption

Red Tape

Poor Productivity

Costly and unreliable Utilities

Logistics

Subramanian, 2006

10


2- To reduce regulatory burden

Herzberg , 2010

11


+

But how to structure that engagement?

3- To ensure transparency and representativity

GOVERNMENT

STAKEHOLDERS

Herzberg , 2010

12


4- To design and implement reforms

Structured dialogue  Workable reforms  Reforms that work

Monitoring & Evaluation

Diagnostic

Solution

Design

Implementation

  • Engagement

  • Definition

  • Empowerment

  • Watchdog

  • Feedback loop

  • Consensus building

  • Filtering

  • Ongoing support

  • Watchdog

  • Resources

PPD contributes to all steps of reform process

Herzberg , 2010

13


Discovery Institution

5- To increase opportunities for good policies

Learning about good practice

Capacity building

Reform management

Source: WDR05.

Herzberg , 2010

14


6- To increase sustainable sector competitiveness

Skills – Labor - HR

f

RegulationsTaxation

Technology - Innovation – R&D

f

e

e

e

e

d

f

f

d

f

f

c

c

b

d

d

d

d

c

c

Competi-tiveness Partnership

b

b

b

A

A

b

b

e

c

c

e

e

c

c

e

b

b

c

c

b

d

d

b

b

d

d

d

c

c

b

f

f

f

f

d

e

e

e

e

Financing

f

ExternalFactors

f

Infrastructure

Herzberg , 2010

15


Increasing Sustainable Sector Competitiveness

Skills – Labor - HR

f

RegulationsTaxation

Technology - Innovation – R&D

f

e

e

e

e

d

f

f

d

f

f

c

c

b

d

d

d

d

c

c

Competi-tiveness Partnership

b

b

b

A

A

b

b

e

c

c

e

e

c

c

e

b

b

c

c

b

d

d

b

b

d

d

d

c

c

b

f

f

f

f

d

e

e

e

e

Financing

f

ExternalFactors

f

Infrastructure

Herzberg , 2010

16


What is the impact of PPDs?

Herzberg , 2010

17


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

Aceh 2008

Albania 2008

Bangladesh 2007

Belarus 2007 Cambodia 1999Chad 2008Cameroun 2008CAR 2007Ethiopia 2008Laos 2005Liberia 2007Nepal 2008Pakistan 2008

Sierra Leone 2007Romania 2006

Senegal 2002

North Sudan 2007

South Sudan 2007Tanzania 2002

Timor Leste 2008Tonga 2005 Uganda  2004

Vanuatu 2008Vietnam 1997Zambia 2007

Benin N/A

Ghana 2002

Mali 2004

  • Over 400 reforms achieved in over 50 distinct areas

  • Economic impact (private sector savings)

    • Conservative estimate: $500 millions

  • Cost effectiveness

    • Start-up investment of 100k-200k

Herzberg , 2010

18


Regulatory payoffs

Stone, 2005

19


Competitiveness payoffs cambodia garment

Two reductions of Export Management Fee

has saved GMAC members

USD 2,2 millions (2008)

Reduction of bureaucracy and documentation

required for import-export procedures;

Certificate of Origin now issued within 48 hrs, with reduced cost and documentation (2 GMAC staff are positioned at MoC to assist factories in C/O applications);

Introduction of the ASYCUDA system which has automated export documentation, saving time and money;

Creation of a handbook on export procedures

Suspension of Advanced Profit Tax (1%) until 2012

Reduced the employers’ contribution to the National Social Security Fund from 1.8% to 0.8%

Established a Task Force on amendments to the Labor Law

Reduced night shift rate from 200% to 130%

Competitiveness payoffs - Cambodia Garment

Van Sou Leng, 2009

20


How to implement PPDs?

Herzberg , 2010

21


CHAMPION

Strong

PUBLIC AUTHORITIES

BUSINESS COMMUNITY

Weak

Strong

Strong

Strong

INSTRUMENTS

Prerequisites

Consider Four Dimensions 

Public Authorities:

Engagement means sufficient capacity, political will and leadership.

Business community:

Needs to be somehow organized, led and feel a basic sense of security.

Champion:

Needs credibility, expertise and the ability to get media attention

Instruments:

Need logistical facilities, seed funds (may also supplement champion in QA)

22

Herzberg , 2010

22


Implementation

Consider 12 Dimensions 

Herzberg , 2010


Implementation framework: 12 key processes

  • Mandate and Institutional Alignment

  • Structure and participation

  • Champions

  • Facilitator

  • Outputs

  • Outreach and communications

  • Monitoring and evaluation

  • Sub national initiatives

  • Sector-specific programs

  • Relevance to FDI

  • Post-conflict/disaster, crisis response

  • 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

Herzberg , 2010

24


Coordinating secretariat

Working group 1

Working group 2

Working group 3

Working group 4

Working group 5

Private sector advocates, associations, government representatives, donors

Delivery modes

To Gov/PS

on

institutional

arrangements

Public-Private Initiative

To Working

Groups on

substantive

competitiveness

actions

To PPD

Secretariat

on process

improvements

Herzberg , 2010

25


Ten practical tips

to get results

Herzberg , 2010

26


How to get results ?

-1-

A lot of work

Huge coordination and mediation business

Herzberg , 2010

27


How to get results ?

-2-

Design consultations for PPD

Herzberg , 2010

28


How to get results ?

-3-

Strong focus on targeted, measurable refroms

Herzberg , 2010

29


Several types of outputs

Focusing on this

will bring the others

Herzberg , 2010

30


Coordinating secretariat

Working group 1

Working group 2

Working group 3

Working group 4

Working group 5

Private sector advocates, associations, government representatives, donors

How to get results ?

-4-

Simple, explicit organization

Public-Private Mandate

Herzberg , 2010

31


How to get results ?

-5-

A unique, transparent and disciplined way to collect reform proposals

Herzberg , 2010

32


How to get results ?

-6-

A filtering process that ensures quality of proposed reforms

Herzberg , 2010

33


How to get results ?

Herzberg , 2010

34


How to get results ?

-7-

A lot of work (again)

Simple criterias to ensure quick processing and transparency of process

Herzberg , 2010

35


How to get results ?

-8-

Good planning

Herzberg , 2010

36


How to get results ?

-9-

Strong convincing power

Herzberg , 2010

37


How to get results ?

Herzberg , 2010

38


How to get results ?

-10-

Monitoring process and evaluating impacts

Herzberg , 2010

39


Tools and techniques for monitoring + evaluation

Herzberg , 2010

40


How to start and exit?

Herzberg , 2010

41


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

PPDs are risky business but risk is manageable

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)

Herzberg , 2010

42


Initiative or institution? Broad based

Public authorities

Private sector

Herzberg , 2010

43


Trust Broad based

Education

Discovering what works / What doesn’t

Setting up production process

HIGH IMPACT RESULTS

Institutions

BMOs

Exit

More capacity

Better production

Better product

More conflict

Permanent brokering

EARLY RESULTS

Ownership without capacity

Life and death of a PPD mechanism

Phase 1

Phase 2

Phase 3

Results

Time

1 to 3 years

1 to 3 years

Herzberg , 2010

44


Linking the ppd to other reforms processes
Linking the PPD to other reforms processes Broad based

Reform Unit

SEZ

Value chain

Clusters

Regulatory simplification

RIA and regulation review process

Herzberg , 2010

45



www.publicprivatedialogue.org Broad based

Community of practice

KM Website

Charter of good practice

Lessons learned papers

Interactive PPD handbook

50 case studies

Operational documents

Templates

M&e Tools

Workshop materials

Workshops

2006 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 represented)

2010 PPD Workshop

(Vienna, 23 countries represented)

Donor partnerships

OECD

(on implementation guidelines)

DFID

(co-funding of KM and projects)

GTZ

(co-implementation of PPD projects)

EBRD

(co-implementation of PPD projects)

USAID

(our PPD training to their PSD staff)

Tools

Implementation Diagnostic tool M&E Tools for PPD secretariats guidelines

Herzberg , 2010

47


http://www.facebook.com/publicprivatedialogue Broad based

Herzberg , 2010

48


Thank you! Broad based

Benjamin Herzberg

World Bank Group

[email protected]

49


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