Public-Private Dialogue

Benjamin Herzberg
Sr. PSD Specialist
Investment Climate Department
World Bank Group

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• 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?

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IFC and PPDs

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15 IFC-Sponsored PPDs as of 2008 + ~10

IFC-sponsored partnerships

Partnerships with the involvement of the WBG

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15 IFC-Sponsored PPDs as of 2008 + ~10

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

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12 projects specified as such: 6% of BEE portfolio

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

BEE FY07 Expenses

PPDs
Unassigned* (BEE
other), 18%
Business Entry, 21%

Doing Business Reform

Rapid Response, 3%

Access to Land, 2%

Trade Logistics, 2%

Licensing, Permits &

Inspections, 17%
Industry-Specific BEE,
16%

Alternative Dispute Business Taxation, 6%

Resolution, 7% Investment Policy &
Sub-National Doing Promotion, 6%
Business, 2%

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Why create or support PPDs?

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1- Discovering priorities

Infrastructure (transport, energy, waste) Innovation, R&D

Training and labor information

Logistics & Trade facilitation
Contract enforcement
Regulatory improvement
Corruption

Competition Innovation

Access to finance

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2- Reducing regulatory burden

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 3- Increasing opportunities for good policies

Learning about
good practice

Discovery
Institution

Capacity building Reform management

Source: WDR05.

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4- Ensure transparency and representativity

GOVERNMENT

STAKEHOLDERS
But how to
structure that
engagement?

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 5- PPD as tool to design and implement reforms

Structured dialogue  Workable reforms  Reforms that work

Solution
Diagnostics Implementation M&E
Design

• Engagement • Consensus building • Ongoing support • Watchdog

• Definition • Filtering • Watchdog • Feedback loop
• Empowerment • Resources

PPD contributes to all steps of reform process

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How do PPDs work?

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PPDs in pictures

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 Implementation : 12 key processes (PPD Charter)

1. Mandate and Institutional Alignment

2. Structure and participation A number of
options to
3. Champions choose from
4. Facilitator
5. Outputs
A number of
6. Outreach and communications good and bad
7. Monitoring and evaluation practice to
learn from
8. Sub national initiatives
9. Sector-specific programs
A number of
10. International role
decisions to
11. Post-conflict / Crisis / Reconciliation implement
12. Development partners

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 Several types of outputs

Focusing on this
will bring the others

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 Breakdown per type of reforms, 2006
Clarification
17%

Enforcement
2%

Infrastructure
8%

Institution
2%
Law
2%
Regulation
69%

More than 1000 issues raised

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 Regulatory payoffs

Country Benefit Before After

Slashed statutory capital $ 1. 300

Bosnia requirements when $ 6. 500 Increased number of registered
(Bulldozer) registering a LLC companies (doubled in some areas)

Vietnam Ease labor restrictions

Decree 105 limited the number of Circular 04 excluded management from
foreign employees to 3% of the limitation, and removed cap under
for expatriate employees
(VBF) total staff, with cap at 50. special permissions.

Turkey Amend law on company 19 steps to register 1 step, 8 procedures to register

(YOIIK) registration process 2 and half month 1 day process, 9 days total

Citizen Entrepreneur Dev. Agency

Public grant program with high (CEDA). Direct link to Ministries of
Setting institutional
Botswana means for economic
corruption, not investment Finance + Planning
(NACEE) guarantee agency, poor VC
empowerment Subsidized loans, VC, JV
access.
50 applications/week

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How to get results
with PPDs?

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How to get results ?

-1-
A lot of work
Huge coordination and mediation business

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 How to get results ?

-2-
Assessement of
PPD potential
and possible
approaches

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 How to get results ?

-3-
Strong focus on
targeted,
measurable
refroms

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How to get results ?

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How to get results ?

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 How to get results ?

-4-
Simple, explicit organization
Public-Private Mandate

Coordinating secretariat

Working group 1 Working group 2 Working group 3 Working group 4 Working group 5

Private sector advocates, associations, government representatives, donors

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 How to get results ?

-5-
A unique,
transparent and
disciplined way
to collect reform
proposals

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 How to get results ?

-6-
A filtering
process that
ensures
quality of
proposed
reforms

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How to get results ?

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 How to get results ?

-7-
A lot of work (again)
Simple criterias to ensure quick processing and transparency of process
Propositions
Propositions Propositions
Propositions correspondan Proposition
Propositions finalisees par correspondan
pre- tes aux Propositions votees s retenues
Forum collectees par
selectionees
les GT et tes aux
standards en séance pleniere pour plus
les GT presentees au criteres de
par les GT internationnau tard
secretariat fesabilite
x

Groupe de
travail 1 40 16 6 4 3 2 1
Groupe de
travail 2 40 16 6 4 3 2 1
Groupe de
travail 3 40 16 6 4 3 2 1
Groupe de
travail 4 40 16 6 4 3 2 1
Total 160 64 24 16 12 8 4
Ratio  100% 40% 15% 10% 7.5% 5%

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 How to get results ?

-8-
Better Business Initiative
Good planning
Partnering to improve the economic environment Timeline

1 st intergroup meeting 2nd intergroup meeting 3rd intergroup meeting 4th intergroup meeting 5th intergroup meeting
ABUJA Vetting 5 5 Roadmaps
Vetting 5 Vetting 5 Vetting 5 Vetting 5
PLENARY Business Delivered -
Business Business Business Business
MEETING Bottlenecks Preparatory
Bottlenecks Bottlenecks Bottlenecks Bottlenecks
Lagos meeting with
Lagos Lagos Lagos Lagos
Government
IFC
11:00 AM

Meeting
Meeting Meetings
with
With with Forum
Governors
Parliaments Institutions
“Better use
“Better “Better Lagos
of resources”
process” implementation”

Press
Conference
Lagos
“Better Business” Op-ed Op-ed Op-ed Op-ed
“5 Roadmaps” Op-ed
Trade & Instit- Infra- Agric-
“25 Bottlenecks” SME
Macro utions structure ulture

Feb 17 Mar 17 Apr 15 May 01 May 15 Jun 01 Jun 15 Jul 01 Jul 15 Aug 01 Aug 15 Sep 01 Sep. 15

5 BUSINESS ROADMAPS AND 25 BUSINESS BOTTLENECKS 31

 Détail des 12 reformes, travail des points focaux
1ère Réunion du Mission consultant 2ème Réunion du Réunion plénière 2ème
1er Forum des

Finalisation des 12 propositions de reforme

GT Démarrage Technique Démarrage GT Démarrage des chefs Forum des
Affaires

Identification de 12 reformes prioritaires

Présentation publique des 8 reformes

Informalité Informalité Informalité des GTs Affaires

Mission consultant

Ratification des 8 reformes par le PM en séance

1ère Réunion du 2ème Réunion du
Technique
GT Fiscalité GT Fiscalité
Fiscalité

1ère Réunion du Mission consultant 2ème Réunion du

Vote interne
GT Licences Technique License GT Licences
sur
d’exploitation D’Exploitation d’exploitation
8 Reformes

1ère Réunion du Mission consultant 2ème Réunion du

GT Import Technique Import GT Import
Export Export Export

Opinion
des bailleurs
de fonds

Lettre Lettre Lettre Lettre Lettre Lettre Lettre

Info Info Info Info Info Info Info
Conférence Conférence Conférence
de presse Article Article Article Article Article de presse de presse

29 Fév. Day 1 24 Mar 26 Mar Day 30 17 Avr 24 Avr 7 Mai 8 Mai 14 Mai 11 Juin 18 Juin 10 Sep

8 Réformes Economiques en 200 Jours

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How to get results ?

-9-
Strong convincing power

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 How to get results ?

-10-
Monitoring
process and
evaluating
impacts
Issue 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 Average
1.0 - - 1.0 2.0 1.0 2.0 2.0 3.0 2.0 2.0 1.0 1.5
2.0 - - 1.0 1.0 1.0 - - - 2.0 - 0.5
3.0 - - 1.0 2.0 2.0 2.0 1.0 3.0 1.0 2.0 1.0 1.4
4.0 - 1.0 1.0 1.0 1.0 2.0 1.0 2.0 2.0 - - 1.0 - 0.9
5.0 - 1.0 1.0 2.0 2.0 3.0 2.0 2.0 - 1.0 - 2.0 - 1.2
6.0 - - - 2.0 1.0 2.0 3.0 - 2.0 - 3.0 - 1.1
Average - 0.3 0.8 1.7 1.3 2.2 1.5 2.6 0.6 1.0 0.4 2.0 0.3 1.1

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How to enter and
exit?

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 PPDs are risky business but risk is manageable

Reinforcing vested interest (e.g. Mongolia)

Be open and transparent – Publicize quality control – Broad based

Over and under representation (e.g. Tanzania, 18%)

Strengthening BMOS – Equal representation – Periodic review

Sustainability issues (e.g. Bolivia)

Clear agenda and proposals – Manage expectations – Live and let die

One man shows (e.g. Botswana)

Foster bottom-up support – Secure written commitment – Prepare transition

Political risks (e.g. Bosnia)

Depoliticize through outreach – Woo parliamentarians – Go local

Institutional misalignments (e.g. Uganda NF)

embrace institutions – Use technical ministerial staff – Transfer competencies

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IFC’s vocation is not to replace an institution

Public authorities Private sector

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 Life and death of a PPD

Phase 1 Phase 2 Phase 3

Results Trust HIGH

Institutions
Education IMPACT
Discovering what RESULTS
works / What BMOs
doesn’t Exit

Setting up
production More capacity
Permanent brokering
process Better production
Better product

EARLY More conflict

RESULTS
Ownership without capacity

Time
1 to 3 years 1 to 3 years

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 Linking the PPD to other reforms processes

Reform Unit
SEZ Value
chain
Clusters

Regulatory
simplification
Process Mapping: An Illustration
RIA and regulation review process
Office No. 1 Office No. 2 Office No. 3

Applicant Clerk 1 Clerk 2 Clerk 4 Clerk 5 Clerk No. 3 Inspector

Reviews Receives
Files request application application
for approval and and
documents documents

Pays
Accepts fee
fee

Provides
copy of
Receipt Assigns
Issues Receipt
Inspector

Receives Forwards fee

Approval or for deposit to
Deficiency municipal
Letter Receives account
and reviews
Inspection
Report
Receives Contacts
Request for Applicant
Approval or
Municipal Deficiency
Official Prepares & Letter
Transmits
Request for Conducts
Signs & Approval or
Returns Inspection
Deficiency
Approval or Letter Mails
Deficiency Prepares Approval
Letter Approval or or
Deficiency Deficiency
Letter Prepares
Letter
Report

Transmits
Signed
Approval or
Sends copy to
Deficiency
Clerk 2
Letter

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

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PPD Handbook

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 Community of practice www.publicprivatedialogue.org

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

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Thank you!

Benjamin Herzberg
World Bank Group
bherzberg@worldbank.org

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