PublicPrivate Dialogue Benjamin Herzberg Sr PSD Specialist Investment

Public-Private Dialogue Benjamin Herzberg Sr. PSD Specialist Investment Climate Department World Bank Group 1

• • • 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? 2

IFC and PPDs 3

15 IFC-Sponsored PPDs as of 2008 + ~10 IFC-sponsored partnerships Partnerships with the involvement of the WBG 4

15 IFC-Sponsored PPDs as of 2008 + ~10 WB IFC • • • • Aceh, Bangladesh, Cambodia, Chad, Cameroun, Central African Republic, East Timor, Ethiopia, Laos, Liberia, Nepal, Rwanda, Sierra Leone, N. Sudan, Tonga, and Vietnam, • • Benin, Ghana, Mali, Mauritania, Senegal, Uganda, Tanzania Zambia 5

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

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

Why create or support PPDs? 8

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 9 9

2 - Reducing regulatory burden 10

3 - Increasing opportunities for good policies Learning about good practice Discovery Institution Capacity building Reform management Source: WDR 05. 11

4 - Ensure transparency and representativity GOVERNMENT + STAKEHOLDERS But how to structure that engagement? 12 12

5 - PPD as tool to design and implement reforms Structured dialogue Workable reforms Reforms that work Diagnostics Solution Design M&E Implementation • Engagement • Consensus building • Ongoing support • Watchdog • Definition • Filtering • Watchdog • Empowerment • Feedback loop • Resources PPD contributes to all steps of reform process 13 13

How do PPDs work? 14

PPDs in pictures 15 15

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 16

Several types of outputs Focusing on this will bring the others 17 17

Breakdown per type of reforms, 2006 More than 1000 issues raised 18

Regulatory payoffs Country Benefit Bosnia Slashed statutory capital requirements when registering a LLC $ 6. 500 $ 1. 300 Increased number of registered companies (doubled in some areas) 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. Amend law on company registration process 19 steps to register 2 and half month 1 step, 8 procedures to register 1 day process, 9 days total Public grant program with high corruption, not investment guarantee agency, poor VC access. Citizen Entrepreneur Dev. Agency (CEDA). Direct link to Ministries of Finance + Planning Subsidized loans, VC, JV 50 applications/week (Bulldozer) Vietnam (VBF) Turkey (YOIIK) Botswana (NACEE) Setting institutional means for economic empowerment Before 19 After 19

How to get results with PPDs? 20

How to get results ? -1 A lot of work Huge coordination and mediation business 21

How to get results ? -2 Assessement of PPD potential and possible approaches 22

How to get results ? -3 Strong focus on targeted, measurable refroms 23

How to get results ? 24

How to get results ? 25

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 26

How to get results ? -5 A unique, transparent and disciplined way to collect reform proposals 27

How to get results ? -6 A filtering process that ensures quality of proposed reforms 28

How to get results ? 29

How to get results ? -7 A lot of work (again) Simple criterias to ensure quick processing and transparency of process Propositions collectees par les GT Propositions preselectionees par les GT Propositions finalisees par les GT et presentees au secretariat Propositions correspondan tes aux criteres de fesabilite Propositions correspondan tes aux standards internationnau x Propositions votees en séance pleniere Proposition s retenues pour plus tard 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% Forum 30

How to get results ? -8 Good planning 31

1ère Réunion du GT Import Export Mission consultant Technique License D’Exploitation 2ème Réunion du GT Fiscalité 2ème Réunion du GT Licences d’exploitation Mission consultant Technique Import Export 2ème Réunion du GT Import Export Vote interne sur 8 Reformes Opinion des bailleurs de fonds Lettre Info Conférence de presse 29 Fév. Day 1 Lettre Info Article 24 Mar 26 Mar Lettre Info Article Day 30 17 Avr 24 Avr Lettre Info Article 7 Mai 8 Mai Lettre Info Conférence de presse 14 Mai 2ème Forum des Affaires Ratification des 8 reformes par le PM en séance 1ère Réunion du GT Licences d’exploitation Mission consultant Technique Fiscalité Réunion plénière des chefs des GTs Présentation publique des 8 reformes 1ère Réunion du GT Fiscalité Mission consultant 2ème Réunion du Technique Démarrage GT Démarrage Informalité Finalisation des 12 propositions de reforme 1ère Réunion du GT Démarrage Informalité Détail des 12 reformes, travail des points focaux Identification de 12 reformes prioritaires 1 er Forum des Affaires 11 Juin Conférence de presse 18 Juin 10 Sep 8 Réformes Economiques en 200 Jours 32

How to get results ? -9 Strong convincing power 33

How to get results ? -10 Monitoring process and evaluating impacts 34

How to enter and exit? 35

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 36

IFC’s vocation is not to replace an institution Public authorities Private sector 37

Life and death of a PPD Phase 1 Results Trust Education Discovering what works / What doesn’t Setting up production process Phase 2 Phase 3 HIGH IMPACT RESULTS Institutions BMOs Exit More capacity Permanent brokering Better production Better product EARLY RESULTS More conflict Ownership without capacity Time 1 to 3 years 38

Linking the PPD to other reforms processes SEZ Value chain Clusters Regulatory simplification Reform Unit RIA and regulation review process 39 39

How to share experiences, get good practice material, tools? 40 40

PPD Handbook 41

Community of practice www. publicprivatedialogue. org Charter of Good Practice Lessons learned Tools for practitioners Case studies Online partnerships PPD Workshops 42

Thank you! Benjamin Herzberg World Bank Group bherzberg@worldbank. org 43 43