PublicPrivate Dialogue Independent evaluation of 30 WBGsupported Public

Public-Private Dialogue Independent evaluation of 30 WBG-supported Public Private Dialogue and Reform Platforms for Private Sector Development Malcolm Toland Vienna, Austria 28 -30 April 2009

Contents I Purpose of study II Inventory of PPD – locations, typologies, focus III Reform Outcomes and Economic Impacts IV Quality of PPD Process (Evaluation Wheel) V Entry and Exit Strategies for Donor Support VI Way Forward 2

I Purpose of Study – Map, Assess, Recommend IFC Initiatives Aceh Bangladesh Belarus Cambodia Chad Cameroun CAR Ethiopia Laos Liberia Nepal Pakistan Rwanda Sierra Leone North Sudan South Sudan Timor Leste Tonga Vanuatu Vietnam Zambia 2008 2007 1999 2008 2007 2008 2005 2007 2008 N/A 2007 2008 2005 2008 1997 2007 Presidential Investor Advisory Councils (PIACs) Benin Ghana Mali Mauritania Senegal Tanzania Uganda N/A 2002 2004 Convergence Special Projects Initiative (SPI) Romania Albania 2006 2008 3

II PPD Inventory – 3 Typologies Ø IFC supported PPD initiatives (since 1997 but many new) Ø Forum, Working Groups, Secretariat Ø Some divergence - formation; oversight; WGs; location of Secretariat; Government input Ø PIACs (since 2002) Ø Direct engagement between presidents and prominent investors Ø Chaired by country’s President Ø Smaller private sector representation (local + international) Ø Convergence SPI (since 2006, expanding: Nepal, Bangladesh, Sri Lanka, Moldova) Ø Financial sector modernisation through micro regulatory reforms Ø Based on “Better Regulation” analytical methods (RIA) Ø Local stakeholders decide the programme and take operational and financial responsibility after 2 years 4

II PPD Inventory – Activity Focus Cross Cutting Both Sector Specific Belarus Bangladesh Aceh Cameroun Ghana Cambodia CAR Liberia Laos Chad Pakistan Nepal Senegal Timor Leste North Sudan South Sudan Sierra Leone Vietnam Tonga Uganda Vanuatu Romania Zambia Albania 5

II PPD Inventory – Issues Addressed Licenses, permits, registration (6) Contract Enforcement Debt Recovery Macroeconomic policy Immigration Other Labour/HR Taxation (5) (3) Legal & Regulatory (5) Administrative procedures (4) Business start up (4) 6

II PPD Inventory – Sectors Addressed IT Export Energy Construction Fisheries Education Financial (11) Other Trade Infrastructure (10) (5) Agriculture (7) Manufacturing (5) Tourism (6) 7

III Reform Outcomes and Economic Impacts ØOver 400 reforms achieved in over 50 distinct areas of BEE ØEconomic impact ØConservative estimate: $400 million (3/4 in Mekong) ØSPI – an additional $100 million ØCost effectiveness ØStart-up investment of 100 k-200 k highlights potential for high return 8

III Reform Outcomes and Economic Impacts ØReforms achieved are concentrated in small number of PPDs only Ø Vietnam and Cambodia responsible for 250 reforms Ø 8 PPDs have achieved 10 or more reforms (Vietnam, Cambodia, Uganda, Liberia, Ghana, Romania, Bangladesh, Senegal) Ø Over 15 PPDs: limited or no reforms Ø PPDs either “mature” or in start up phase; few in “intermediate” stage, preventing more complete PPD impact assessment 9

III Creating the Reform Space Ø “Soft” outputs also numerous Ø Dialogue process itself Ø Opened communication and advocacy channels Ø Government uses PPD to improve own coordination and accountability Ø Noteworthy achievements: Ø Embedded within Government Ø Cambodia: PPD Forum equal status to Cabinet meeting Ø Uganda: PIAC Monitoring Committee chaired by PM Ø Liberia: Business Reform Committee in Cabinet Ø Administration Ø Code of Practice for Secretariat in North Sudan Ø RIA as standard analytical tool within SPI Ø Communication and outreach Ø Liberia, Bangladesh and Zambia Ø Research Ø Annual SME survey in Vietnam 10

IV Quality of PPD Process Average score measures how well the secretariat is performing tasks along 12 key PPD processes: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Assessing the optimal mandate and relationship with existing institutions Deciding who should participate and under what structure Identifying the right champions and helping them to push for reform Engaging the right facilitator Choosing and reaching target outputs Devising a communication and outreach strategy Elaborating a monitoring and evaluation framework Considering the potential for dialogue on a sub-national level Making sector-specific dialogue work Identifying opportunities for dialogue to play an international role Recognizing the specificities and potential of dialogue in post-conflict or crisis environments Finding the best role for development partners Country Total Score # Country Total Score 1 Cambodia 94. 50 14 Chad 58. 50 2 Vietnam 91. 75 15 Tonga 58. 25 3 Romania 89. 25 16 Vanuatu 57. 75 4 Laos 88. 75 17 Aceh 55. 50 5 Albania 88. 63 18 Timor Leste 50. 25 6 Uganda 81. 25 19 South Sudan 39. 50 7 Liberia 78. 00 20 CAR 38. 75 8 Bangladesh 75. 00 21 North Sudan 37. 75 9 Ghana 72. 00 22 Nepal 37. 25 10 Pakistan 65. 50 23 Cameroun 34. 75 11 Zambia 64. 75 24 Ethiopia 31. 25 12 Belarus 64. 25 13 Sierra Leone 60. 50 # Note: Average score based on evaluation findings 11

Evaluation Wheel Examples Vietnam Sierra Leone SPI Albania South Sudan 12

PPD Success: A Closer Look Ø 3 keys to determining PPD success Ø Political will of Government to make reform happen Ø Secretariat as the PPD “engine” Ø Right people populate the Working Groups (genuine commitment to reform) Ø “Ownership of PPD by the Government, including the direct involvement of the Prime Minister and the Minister of Finance, has resulted in the PPD Forum having become a key part of Government machinery, and now all Government mechanisms are aggregating around it” Lili Sisombat, Cambodia Ø “The way in which Government has embraced the concepts of change and reform both philosophically and operationally has strongly impacted the LBBF’s outputs” Wil Bako Freeman, Liberia 13

PPD: What’s Working, What’s Not Working Fairly Well Not Working As Well Strong consultation (SPI) Use of analysis (PIAC) Broad based participation (IFC) Outreach (SPI) Fast track reform (PIAC) Secretariat training (IFC) Use of RIA (SPI) Manageable mandates (PIAC) Donor coordination (IFC) Provincial level PPD (all 3) Host entities’ credibility (PIAC) Project selection process (SPI) Reconciliation platform (IFC) Secretariat recruitment & training & mentoring (SPI) 14

V Entry and Exit Strategies Ø Investing at Entry § Underinvestment at critical initial implementation stage § Raising local expectations too quickly? Ø Investing in building local Secretariat capacity § Intensity of recruitment and training § Limited inter-Secretariat exchanges of experience Ø Investing in building BMO capacity § Still an issue even for high scoring PPDs § Inadequate formal Advocacy Scoping Ø Exit strategies – an emerging issue § Being addressed more seriously § SPI example adds a new dimension § How to continue honest broker role when local stakeholder demand for it 15

VI Way Forward Ø PPD useful to facilitate WBG introduction of reform service packages, elevating WBG’s credibility as contributor to and catalyst of reform Ø Good operating procedures more important than typology, structure, scope Ø Greater WBG investment: Reinforce WBG’s KM role in issuing guidelines, training staff and offerring advisory support Ø Ensure PPD implementation remains demand-driven and countrybased, focusing on: (i) initialising PPD process; (ii) funding and staffing the PPD initiative; (iii) managing day to day PPD activities; (iv) building local stakeholder capacity; (v) managing exit strategies Ø Carry out formal review of PIAC structure 16

THANK YOU!! 17