Africa PPD 2008 Training, Dakar, Using PPDs to deliver reforms Africa PPD 2008 Training, Dakar, April 2-3, 2008 Julien Levis Mary Agboli

Outline The Doing Business report DB Reform Unit: objective and delivery model Using PPDs help articulate effective requests DB reforms in Liberia: an example of how we work Conclusions

Visibility of DB Report increases Governments’ willingness to reform; DB tight deadlines help focus actions and increase speed of reforms. DB triggers several factors that are needed for sucessfull reforms: Start with simple reforms: focus on administrative changes first, while preparing the ground for long-term reforms. Measure: use simple indicators to assess progress. Communicate: document successful reforms and the challenges faced. DB’s contribution to reforms

Objective: Improve countries’ environment for doing business and DB indicators 1. Receive Government request 2. Prepare DB Reform Memo 3.Discussions with the Government Identify priority areas for reform Action plan with short term reforms Design a TA program for medium-long term reforms 4. Monitoring & evaluation Delivery Model (and where PPD can help) DB reform unit Delivery Model

When do PPDs kick in? Governments may not have decided what areas of their investment climate they want to improve

The missing piece in fragile state Identifying a strategy for reform implies: Having one or several “champions” to drive reforms; Establishing reform committees, technical leaders and working groups; Obtaining inputs from the private sector.

Why are PPDs and appropriate forum? On the private sector side: Private actors are the ones affected by the imperfections of the investment climate Private actors can communicate changes to the rest of the private sector

Why are PPDs and appropriate forum? On the public sector side: Public actors are the ones who know why the current options have be chosen and whether suggested changes are praticable Public actors are the ones who will eventually enact and implement reforms: they need to truly adhere

PPD In Liberia Building Consensus on Reforms Dialogue in post-conflict environment: consolidating on the peace dividend Agreement on priority and structure Priority: JOBS! Administrative reforms (business start-up and trade logistics) Enhancement of legal framework Institutional enhancement The Business Reform Committee: to monitor DB reforms in 2008

The Business Reform Committee Regular membership MOFLRDC Sec MOCIMOL NIC MPW Participate in special issues MOFA, MOJ, Central Bank ERC Business Reform Committee ICTA Technical Assistance Liberia Better Business Forum

BRC: Composition, Mandate Composition: senior level officials (Min of Commerce, Finance, Land, and Public Works); and four technical working groups Mandate: from the President, “focus on short term reforms” Format: regular, structured meetings and review of the technical support from ICTA.

BRC: Achievement Business registration: reduce time from 99 days to 10 days. How? Standardized forms, one-stop shop at Min of Commerce, staff secondment (Min of Foreign Affairs and Central Bank Impact: improvement in DB indicator, feed into longer term efforts to create a modern and comprehensive business registry

BRC: Other Achievements Getting Construction Permits: Goal: improve access to information Achievement: checklist of required forms and publication of fee schedule Committed outcome: reduce time from 90 to 30 days.

Conclusion DB Report as a catalyst for reform PPD as the necessary foundation to stimulate and sustain reforms Needed ingredients for success: Commitment Stakeholder engagement Technical support Honest Broker: IFC