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

Benjamin HerzbergSr. PSD Specialist

Investment Climate DepartmentWorld Bank Group

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Public-Private Dialogue

• 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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4

IFC-sponsored partnerships

Partnerships with the involvement of the WBG

15 IFC-Sponsored PPDs as of 2008 + ~10

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15 IFC-Sponsored PPDs as of 2008 + ~10

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

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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

Business Entry, 21%

Licensing, Permits & Inspections, 17%

Business Taxation, 6%

Investment Policy & Promotion, 6%Sub-National Doing

Business, 2%

Alternative Dispute Resolution, 7%

Industry-Specif ic BEE, 16%

Trade Logistics, 2%

Access to Land, 2%

Doing Business Reform Rapid Response, 3%

Unassigned* (BEE other), 18%

PPDs

Why create or support PPDs?

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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

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2- Reducing regulatory burden

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Capacity building Reform management

Learning about good practice

3- Increasing opportunities for good policies

Source: WDR05.

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Discovery Institution

4- Ensure transparency and representativity

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+

GOVERNMENT

STAKEHOLDERSBut how to structure that engagement?

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PPD contributes to all steps of reform process

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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

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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

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

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Focusing on this will bring the others

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Several types of outputs

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Clarification17%

Enforcement2%

Infrastructure8%

Institution2%

Law2%

Regulation69%

Breakdown per type of reforms, 2006

More than 1000 issues raised

Regulatory payoffs

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Country Benefit Before After

Bosnia(Bulldozer)

Slashed statutory capital requirements when registering a LLC

$ 6. 500$ 1. 300Increased 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 register2 and half month

1 step, 8 procedures to register1 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 + PlanningSubsidized loans, VC, JV50 applications/week

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How to get results with PPDs?

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-1- A lot of work

Huge coordination and mediation business

How to get results ?

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-2-Assessement of PPD potential and possible approaches

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-3-Strong focus on

targeted, measurable

refroms


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Public-Private Mandate

-4- Simple, explicit organization

Coordinating secretariat

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

Private sector advocates, associations, government representatives, donors


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-5-A unique,

transparent and disciplined way to collect reform

proposals


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-6- A filtering

process that ensures

quality of proposed reforms


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ForumPropositions 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

internationnaux

Propositions votees en séance pleniere

Propositions retenues pour plus

tard

Groupe de travail 1 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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-7- A lot of work (again)

Simple criterias to ensure quick processing and transparency of process


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-8- Good planning


Mission consultant Technique Démarrage

Informalité

Mission consultant Technique

Fiscalité

Mission consultant Technique License

D’Exploitation

Mission consultant Technique Import

Export

Opinion des bailleurs

de fonds

1ère Réunion du GT Démarrage

Informalité

1ère Réunion du GT Licencesd’exploitation

1ère Réunion du GT Fiscalité

1ère Réunion du GT Import

Export

2ème Réunion du GT Démarrage

Informalité

2ème Réunion du GT Licencesd’exploitation

2ème Réunion du GT Fiscalité

2ème Réunion du GT Import

Export

Réunion plénière des chefs des GTs

17 Avr 7 MaiDay 129 Fév. 10 Sep24 Mar 26 Mar Day 30 24 Avr 8 Mai 11 Juin 18 Juin

1er Forum des Affaires

2ème Forum des

Affaires

Iden

tific

atio

n de

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refo

rmes

prio

ritai

res

Dét

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2 re

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rava

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s po

ints

foca

ux

Fin

alis

atio

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s 12

pro

posi

tions

de

refo

rme

Vote interne sur

8 Reformes

Pré

sent

atio

n pu

bliq

ue d

es 8

ref

orm

es

Rat

ific

atio

n d

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ref

orm

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ar le

PM

en

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nce

LettreInfo

LettreInfo

LettreInfo

LettreInfo

LettreInfo

LettreInfo

LettreInfo

14 Mai

Conférencede presse

Conférencede presseArticle Article Article Article Article

Conférencede presse

8 Réformes Economiques en 200 Jours

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-9- Strong convincing power


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-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 Average1.0 - - 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

How to enter and exit?

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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

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Public authorities Private sector

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IFC’s vocation is not to replace an institution

Trust

Education

Discovering what works / What doesn’t

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 1 to 3 years

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Life and death of a PPD

Linking the PPD to other reforms processes

Reform Unit

RIA and regulation review process

SEZ

Office No. 1

Applicant

Files requestfor approval

Clerk 1

Reviewsapplication

anddocuments

Clerk 2

Receivesapplication

anddocuments

Paysfee

AssignsInspector

Receivesand reviewsInspection

Report

Clerk 4

Prepares &Transmits

Request forApproval orDeficiency

Letter

ReceivesRequest forApproval orDeficiency

Letter

Prepares Approval orDeficiency

Letter

Clerk No. 3

Accepts fee

Issues Receipt

Forwards feefor deposit to

municipalaccount

Office No. 2 Office No. 3

Inspector

ContactsApplicant

ConductsInspection

PreparesReport

Sends copy toClerk 2

Clerk 5

MunicipalOfficial

Signs &Returns

Approval orDeficiency

Letter

TransmitsSigned

Approval orDeficiency

Letter

MailsApproval

orDeficiency

Letter

Process Mapping: An Illustration

ReceivesApproval or

DeficiencyLetter

Providescopy ofReceipt

Regulatory simplification

Value chain

Clusters

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http://www.ari.uni-heidelberg.de/star2000/ARI_neuenheim_02.jpg

http://www.chem.gla.ac.uk/~louis/clusters/rh13.gif

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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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Benjamin HerzbergWorld Bank Group

[email protected]

Thank you!

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