Presented by Fouzia Nasreen 14 February 2018 Katalyst’s Experiences in Market System Development: A framework for Engaging with Public Agencies Study team Fouzia Nasreen Asif M. Shahan Presented by Fouzia Nasreen 14 February 2018

Content Part 1: BACKGROUND Part 2: ANALYSIS Part 3: RECOMMENDATIONS 2 Case study mandate Study methodology Part 2: ANALYSIS Role of government in PSD Katalyst’s experience of engaging with public sector Part 3: RECOMMENDATIONS Framework for Engagement with Public Sector Further recommendations for donors, government, private sector 2

Part 1 Background 3

Case Study Mandate Output 1 Capture project’s experience of working with public sector over the 3 phases Capture project’s experience of working with public sector over 3 phases Analyse processes through which Katalyst collaborated with the public sector Develop a framework as guidance for successful collaboration with public sector 02 PLEASE NOTE THAT: Engagement with government agencies occurred at two levels: i) with government agencies such as the Ministry of Commerce (MoC), Planning Commission and IMED for overall governance of the project, and ii) with other concerned agencies, such as the Ministry of Agriculture, Ministry of Fisheries and Livestock (MoFL), Business Promotion Council (BPC), for the implementation of interventions in the field. This paper largely focuses on the implementation-level engagement with public agencies. The following paragraphs highlight the evolution of Katalyst’s overall approach towards the public sector across the three phases. 4

Study Methodology (Qualitative in Nature) Selection Criteria: spread over phases, type of partners, role of the public agencies as enablers or service providers, impact (high as well as low) availability of information Step 1: Review 17 main interventions with public sector from 3 phases of Katalyst and select 8 for further analysis - Mention about Dr. Asif Shahan - Qualitative in nature 5

Study Methodology (contd.) Step 2: In-depth review of selected interventions through Review of project archives KII with relevant public sector personnel and (ex-) Katalyst staff involved in the intervention Step 3: Develop framework based on above Use of open ended questions, met personnel who managed the interventions (some who are in other ministries as well) 6

Part 2: Analysis 7

Role of Government in Private Sector Development (PSD) Nationalised economy 1971 Shift to de-nationalisation & privatisation of state-owned enterprises 1975 Gradual shift towards developing an enabling environment for PSD 1980s Early 2000s Collaborative relationships between the public and private sectors materialised 2005 onwards: PRSP (2005), PP (2010-2021), 6th & 7th Five- Year Plans emphasised collaboration between public private sectors to promote poverty reduction & economic growth. 8

Role of Government in PSD (contd…) As a result, two specific changes were observed: GoB is increasingly including private sector in the overall development effort of the country and to contribute in a number of sectors. The need for collaboration has effectively opened up the policy space where private sector are invited to share their perspectives on new and improved policy initiatives. 9

Katalyst’s Experience with Public Sector Various ways of collaboration with the public sector: 1. Support to ensure an enabling environment for PSD (e.g. improve policy for brood fish import) 2. Support public institutions to better deliver active support to PSD (e.g. public private initiative for local agri-business network services) 3. Work with state-owned entities to improve efficiency and reduce distortion (e.g. promote export through BPC) 4. Work with public sector to scale up systemic interventions (e.g. fertiliser recommendation system through SRDI) 10

Katalyst’s Experiences with Public Sector (contd.) Capacity building of BPC as facilitator for export markets (2015-17) Business Promotion Council, Ministry of Commerce Highlight government’s approach to PSD for policy formulation… ultimately to benefit the poor Developing agro-journalism as part of core course in University of Dhaka (2014-17) University of Dhaka 11

Katalyst’s Experiences with Public Sector (contd.) Strengthening Local Agri- business Network for better information exchange with farmers (2010-16) DAE, DoF, DLS, trader associations, national/local private companies Highlight government’s approach to PSD for policy formulation… ultimately to benefit the poor Capacity building of hatcheries to import quality brood fish (2011-15) Department of Fisheries 12

Katalyst’s Experiences with Public Sector (contd.) Developing the fertilizer recommendation software using ICT (2008-12) Soil Research and Development Institute Highlight government’s approach to PSD for policy formulation… ultimately to benefit the poor Improving public water body leasing policy (2007-09) Ministry of Fisheries and Livestock 13

Katalyst’s Experiences with Public Sector (contd.) Promoting Integrated Pest Management (2008-10) Ministry of Agriculture Developing a one-stop service (computerisation of business licenses) at Rajshahi City Corporation (2004-06) Highlight government’s approach to PSD for policy formulation… ultimately to benefit the poor Rajshahi City Corporation 14

Part 3 Recommendations 15

Government Effectiveness Good Governance in PSD Transparency/ Accountability An enabling political economic environment for private sector organisations to participate Government Effectiveness Equity Participation/ Ownership Mention references from NGAF and SDC’s Governance Principles Good Governance for PSD Rule of Law Presence of policy and programmatic interventions for engagement Regulatory Control Efficiency Capacity 16

Framework for Engagement with Public Sector Poverty Reduction Potential Systemic Intervention Potential Pro – poor growth potential Sector Selection Actor Identification through Public Sector Mapping Grid MSD projects understanding government agencies, priorities may be highlighted, Encourage Engage Exclude Explore Sector Assessment Decide on timing of engagement (before, during, after) 17

Intervention Design 18 Organisation Assessment Degree of Autonomy (high, moderate, low) in terms of decision-making Nature of organisation culture (relatively open vs. closed; risk-averse vs. innovative) Intervention Design Assessment and identifying complementary of goals between project and public agency Identification of Champions in the public agency Integration of Governance Principles Determining mode of collaboration (TA, advocacy, capacity building, grant) Agreement on success, results and monitoring mechanisms Intervention Implementation and Monitoring Engagement with Public Agency 18

Actor Identification ENCOURAGE ENGAGE EXCLUDE EXPLORE High ENCOURAGE (check for motivation to trigger interest) ENGAGE (focused engagement with proper time and resource planning) AUTHORITY/ MANDATE EXCLUDE (need not consider in interventions) EXPLORE (consider their views/ feedback in design and implementation) Mention examples from the cases Use one matrix with examples Low INTEREST/ INCENTIVE Low High 19

Actions based on Organisation Assessment High Push for incremental changes in policies and programs New policies and programs can be initiated; drastic policy change is also possible DEGREE OF AUTONOMY Maintenance of status-quo New policy/ policy changes will be difficult but programmatic change will be possible Mention examples from the cases Low Closed/ Risk Averse NATURE OF ORGANISATON CULTURE Open/ Innovative 20

Mode of Collaboration Financial/ Strategic support and Advocacy High Advocacy Financial/ Strategic support and Monitor implementation CAPACITY OF ORGANISATION Policy analysis support Capacity building, technical assistance and/ or implementation support Clarify that capacity low means in terms of the constraint for that particular sector; Mention examples from the cases Low Policy and regulatory change FOCUS OF ACTION Improved service delivery 21

Practical Tips for Successful Collaboration with Public Sector Alignment of priorities/ mandates justified and informed between project and relevant public agency implement pilots and invest time/ resources to scale up effectively Communication clear and (where required) well documented have know-how on public sector structures/ culture government experts add value as advisors 1. Priorities of project over a life cycle may change; but clear and justified alignment 22

Practical Tips for Successful Collaboration with Public Sector 3. Networking with multi-stakeholders build good rapport/ relations with public sector officials identify champions in the agency 4. Incentives and buy-in not be prescriptive but accommodating in terms of agency need(s) early recognition of incentives is important (linking intervention objectives with agency’s performance targets) invest in training and capacity building, as required 1. Priorities of project over a life cycle may change; but clear and justified alignment 23

Further Recommendations Donors Take proactive actions on project set-up/ exit technicalities with counterparts Ensure clear communication about MSD approach/ results to governments 01 Government of developing countries Be open to new ideas and new means of collaboration for PSD Support projects in facilitation and implementation in the field 02 Private sector in developing countries Apply good business ethics Step up investments and support govt. where there are limitations 03 24

Thank You Thank Asif Shahan, Swisscontact – Katalyst, last but not the least thanks to the persons who gave time for the interviews and for being candid. 25