P ublic- P rivate D ialogue Independent evaluation of 30 WBG-supported Public Private Dialogue and Reform Platforms for Private Sector Development Malcolm Toland Vienna, Austria April 2009

I Purpose of study IIInventory of PPD – locations, typologies, focus IIIReform Outcomes and Economic Impacts IVQuality of PPD Process (Evaluation Wheel) VEntry and Exit Strategies for Donor Support VIWay Forward 2 Contents

3 I Purpose of Study – Map, Assess, Recommend IFC Initiatives Aceh 2008 Bangladesh 2007 Belarus 2007 Cambodia 1999 Chad 2008 Cameroun 2008 CAR2007 Ethiopia 2008 Laos 2005 Liberia 2007 Nepal 2008 Pakistan 2008 Rwanda N/A Sierra Leone 2007 North Sudan 2007 South Sudan 2007 Timor Leste 2008 Tonga 2005 Vanuatu 2008 Vietnam1997 Zambia2007 Presidential Investor Advisory Councils (PIACs) BeninN/A Ghana2002 Mali2004 MauritaniaN/A Senegal2002 Tanzania2002 Uganda 2004 Convergence Special Projects Initiative (SPI) Romania 2006 Albania2008

 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 – 3 Typologies

5 II PPD Inventory – Activity Focus Cross CuttingBothSector Specific BelarusBangladeshAceh CamerounGhanaCambodia CARLiberiaLaos ChadPakistanNepal SenegalTimor LesteNorth Sudan South SudanSierra LeoneVietnam TongaUganda VanuatuRomania ZambiaAlbania

6 II PPD Inventory – Issues Addressed Other Labour/HR (3) Administrative procedures (4) Business start up (4) Legal & Regulatory (5) Taxation (5) Licenses, permits, registration (6) Contract Enforcement Debt Recovery Macroeconomic policy Immigration

7 II PPD Inventory – Sectors Addressed Other Trade (5) Manufacturing (5) Tourism (6) Agriculture (7) Infrastructure (10) Financial (11) IT Export Energy Construction Fisheries Education

 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 Reform Outcomes and Economic Impacts

 “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 III Creating the Reform Space

#Country Total Score #Country Total Score 1Cambodia Chad Vietnam Tonga Romania Vanuatu Laos Aceh Albania Timor Leste Uganda South Sudan Liberia CAR Bangladesh North Sudan Ghana Nepal Pakistan Cameroun Zambia Ethiopia Belarus Sierra Leone60.50 IV Quality of PPD Process 1.Assessing the optimal mandate and relationship with existing institutions 2.Deciding who should participate and under what structure 3.Identifying the right champions and helping them to push for reform 4.Engaging the right facilitator 5.Choosing and reaching target outputs 6.Devising a communication and outreach strategy 7.Elaborating a monitoring and evaluation framework 8.Considering the potential for dialogue on a sub-national level 9.Making sector-specific dialogue work 10.Identifying opportunities for dialogue to play an international role 11.Recognizing the specificities and potential of dialogue in post-conflict or crisis environments 12.Finding the best role for development partners Average score measures how well the secretariat is performing tasks along 12 key PPD processes: Note: Average score based on evaluation findings 11

Evaluation Wheel Examples SPI Albania 12 Vietnam Sierra LeoneSouth Sudan

 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 Success: A Closer Look

14 PPD: What’s Working, What’s Not Working Fairly WellNot Working As Well Strong consultation (SPI) Broad based participation (IFC) Fast track reform (PIAC) Use of RIA (SPI) Donor coordination (IFC) Host entities’ credibility (PIAC) Project selection process (SPI) Reconciliation platform (IFC) Secretariat recruitment & training & mentoring (SPI) Use of analysis (PIAC) Outreach (SPI) Secretariat training (IFC) Manageable mandates (PIAC) Provincial level PPD (all 3)

 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 VEntry and Exit Strategies

 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 country- based, 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 VIWay Forward

THANK YOU!! 17