The Role of TA in Government Capacity Building for Public-Private Dialogue: an IFC Example Rostyslav M. Pavlenko, PhD Department Head International Workshop on Public-Private Dialogue for Investment Climate Reform Paris, February 1-2, 2006 Secretariat of the President of Ukraine Department of Situation Analysis

Revival of donors’ interest after the Orange Revolution

Openness of the government to TA and to the public: TA projects are important in advising decision makers TA projects help build up capacity of middle-level officials TA projects participate in public monitoring of the government Civil society uses analytical capacity of TA TA becomes catalytical for the civil society The new government views TA seriously

TA primarily focused on grassroots, social, AIDS projects before 2005 TA primarily focused on grassroots, social, AIDS projects before 2005 But now Public-Private Dialogue (PPD) is in place: PPD: the President of Ukraine conducted 4 Forums “Authorities and Businesses are Partners” each attended by about 700 entrepreneurs PPD: Foreign Investment Advisory Council (FIAC) meets monthly; FIAC working groups meet weekly, the President of Ukraine attended FIAC two times in the autumn of 2005 PPD: the Government gave temporary veto power to the Council of Entrepreneurs within the Cabinet of Ministers of Ukraine Ministries set up councils with the involvement of NGOs/business associations DONORS & TA SHOULD TAKE ADVANTAGE OF OPENNESS Gap in high-profile advising

Goal: improve business enabling environment in Ukraine Objective 1: survey SME and do in-depth problem identification Objective 2: improve legislation and streamline administrative procedures Objective 3: inform SME on how to fight corruption and how to defend rights Successful structuring: OBJ. 1 – ANALYSIS & OBJ. 2 – HIGH PROFILE OBJ. 3 – GRASSROOTS DEVELOPMENT THEORY & MIDDLE LEVEL OFFICIALS & CIVIL SOCIETY IFC’s SME Policy Project (EU-funded) – example of filling the gap

Objective 1: the SME Survey presented at the Secretariat of the President of Ukraine – five survey-based analytical memos accompanied by case studies from the new EU member countries prepared Objective 2: Law on Permits drafted and adopted in Sept.2005, declaration principle for getting permit implemented in Jan.2006, Law on Inspections drafted Objective 3: work with business associations at the Council of Entrepreneurs of the Cabinet of Ministers, with European Business Association, publication of permit brochures, informing SME through Successful structuring: OBJ. 1 – ANALYSIS & OBJ. 2 – HIGH PROFILE OBJ. 3 – GRASSROOTS DEVELOPMENT THEORY & MIDDLE LEVEL OFFICIALS & CIVIL SOCIETY Impact of joint effort of the Government & IFC – types of permits decresed from >1200 to 1200 to <100

Donors’ timely reaction to changes in the society is desirable & appresiated Lessons learned