Benjamin Herzberg Sr. PSD Specialist Investment Climate Department World Bank Group 1 P ublic- P rivate D ialogue

IFC and PPDs Why create or support PPDs? How do PPDs work? How to get results with PPDs? How to enter and exit? How to share experiences, get good practice material, tools? 2

IFC and PPDs 3

4 IFC-sponsored partnerships Partnerships with the involvement of the WBG 15 IFC-Sponsored PPDs as of ~10

5 IFC Aceh, Bangladesh, Cambodia, Chad, Cameroun, Central African Republic, East Timor, Ethiopia, Laos, Liberia, Nepal, Rwanda, Sierra Leone, N. Sudan, Tonga, and Vietnam, WB Benin, Ghana, Mali, Mauritania, Senegal, Uganda, Tanzania Zambia

6 12 projects specified as such: 6% of BEE portfolio

7 7% projects specified as such: 6% of BEE portfolio PPDs

Why create or support PPDs? 8

1- Discovering priorities Infrastructure (transport, energy, waste) Innovation, R&D Regulatory improvement Competition Logistics & Trade facilitation Access to finance Training and labor information Corruption Innovation Contract enforcement 9 9

2- Reducing regulatory burden 10

Capacity buildingReform management Learning about good practice 3- Increasing opportunities for good policies Source: WDR Discovery Institution

4- Ensure transparency and representativity 12 + GOVERNMENT STAKEHOLDERS But how to structure that engagement? 12

PPD contributes to all steps of reform process 13 Diagnostics Solution Design Implementation 5- PPD as tool to design and implement reforms Engagement Definition Empowerment Consensus building Filtering Ongoing support Watchdog Resources M&E Watchdog Feedback loop Structured dialogue Workable reforms Reforms that work 13

How do PPDs work? 14

15 PPDs in pictures 15

Implementation : 12 key processes (PPD Charter) 1.Mandate and Institutional Alignment 2.Structure and participation 3.Champions 4.Facilitator 5.Outputs 6.Outreach and communications 7.Monitoring and evaluation 8.Sub national initiatives 9.Sector-specific programs 10.International role 11.Post-conflict / Crisis / Reconciliation 12.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 16

Focusing on this will bring the others 17 Several types of outputs 17

18 Breakdown per type of reforms, 2006 More than 1000 issues raised

Regulatory payoffs 19 CountryBenefitBeforeAfter Bosnia (Bulldozer) Slashed statutory capital requirements when registering a LLC $ $ Increased number of registered companies (doubled in some areas) Vietnam (VBF) Ease labor restrictions for expatriate employees Decree 105 limited the number of foreign employees to 3% of the total staff, with cap at 50. Circular 04 excluded management from limitation, and removed cap under special permissions. Turkey (YOIIK) Amend law on company registration process 19 steps to register 2 and half month 1 step, 8 procedures to register 1 day process, 9 days total Botswana (NACEE) Setting institutional means for economic empowerment Public grant program with high corruption, not investment guarantee agency, poor VC access. Citizen Entrepreneur Dev. Agency (CEDA). Direct link to Ministries of Finance + Planning Subsidized loans, VC, JV 50 applications/week 19

How to get results with PPDs? 20

A lot of work Huge coordination and mediation business How to get results ?

22 How to get results ? -2- Assessement of PPD potential and possible approaches

23 How to get results ? -3- Strong focus on targeted, measurable refroms

How to get results ? 24

How to get results ? 25

26 Public-Private Mandate -4- Simple, explicit organization Coordinating secretariat Working group 3Working group 2Working group 1Working group 4Working group 5 Private sector advocates, associations, government representatives, donors How to get results ?

A unique, transparent and disciplined way to collect reform proposals How to get results ?

A filtering process that ensures quality of proposed reforms How to get results ?

29 How to get results ?

Forum Propositions collectees par les GT Propositions pre- selectionees par les GT Propositions finalisees par les GT et presentees au secretariat Propositions correspondan tes aux criteres de fesabilite Propositions correspondan tes aux standards internationnau x Propositions votees en séance pleniere Proposition s retenues pour plus tard Groupe de travail Groupe de travail Groupe de travail Groupe de travail Total Ratio 100%40%15%10%7.5%5% A lot of work (again) Simple criterias to ensure quick processing and transparency of process How to get results ?

Good planning How to get results ?

Mission consultant Technique Démarrage Informalité Mission consultant Technique Fiscalité Mission consultant Technique License DExploitation Mission consultant Technique Import Export Opinion des bailleurs de fonds 1ère Réunion du GT Démarrage Informalité 1ère Réunion du GT Licences dexploitation 1ère Réunion du GT Fiscalité 1ère Réunion du GT Import Export 2ème Réunion du GT Démarrage Informalité 2ème Réunion du GT Licences dexploitation 2ème Réunion du GT Fiscalité 2ème Réunion du GT Import Export Réunion plénière des chefs des GTs 17 Avr 7 Mai Day 1 29 Fév. 10 Sep 24 Mar26 MarDay 3024 Avr 8 Mai 11 Juin 18 Juin 1er Forum des Affaires 2ème Forum des Affaires Identification de 12 reformes prioritaires Détail des 12 reformes, travail des points focaux Finalisation des 12 propositions de reforme Vote interne sur 8 Reformes Présentation publique des 8 reformes Ratification des 8 reformes par le PM en séance Lettre Info Lettre Info Lettre Info Lettre Info Lettre Info Lettre Info Lettre Info 14 Mai Conférence de presse Conférence de presse Article Conférence de presse 8 Réformes Economiques en 200 Jours 32

Strong convincing power How to get results ?

Monitoring process and evaluating impacts How to get results ?

How to enter and exit? 35

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) PPDs are risky business but risk is manageable 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 36

Public authoritiesPrivate sector 37 IFCs vocation is not to replace an institution

Trust Education Discovering what works / What doesnt Setting up production process EARLY RESULTS Phase 3Phase 2Phase 1 Results Time Permanent brokering Institutions BMOs Ownership without capacity Exit More capacity Better production Better product More conflict HIGH IMPACT RESULTS 1 to 3 years 38 Life and death of a PPD

Linking the PPD to other reforms processes Reform Unit RIA and regulation review process SEZ Regulatory simplification Value chain Clusters 39

40 How to share experiences, get good practice material, tools? 40

PPD Handbook 41

Community of practice Charter of Good Practice Lessons learned Tools for practitioners Case studies Online partnerships PPD Workshops 42

Benjamin Herzberg World Bank Group Thank you! 43