3. Source: Cumulative GDP decline
OECD 2011 from 2007/8 ceiling to
2009/10 floor
Ireland -14.6%
Finland -10.2%
Greece -8.9%
Italy -7.0%
Germany -6.6%
Austria -5.4%
Netherlands -5.3%
Spain -4.9%
Belgium -4.2%
Portugal Greece during
-3.9%
France -3.9%
the economic
crisis of 2007-09
5. Japan’s car production fell
Greece during
60.1% after the March
the economic
earthquake, a reduction of
439,828 (Source: Japan Car
crisis of 2007-09
Manufacturers Association)
7. Public-Private Dialogue
5th PPD Workshop
June 1-2-3 2010
Vienna
Benjamin Herzberg
World Bank Group
Sr. Private Sector Development Specialist
PPD Global Product Specialist
7
8. What is it, what does it look like?
Herzberg , 2011 8
9. What it is
PPDs are structured mechanisms,
anchored at the highest practical level,
coordinated by a light secretariat, and
aimed at facilitating the discovery
process by involving a balanced range of
public and private sector actors in
identifying, filtering, accelerating,
implementing, and measuring
competitiveness actions and policy
reforms.
Herzberg , 2011 9
10. When to use it
1- As a growth discovery mechanism (whether at economy wide or industry
level, whether at national or local level)
2- As a crisis detection mechanism (to capture early warning signals and
take defensive actions)
3- As a post-crisis resolution platform (to quickly set up and implement
mitigation strategies)
Herzberg , 2011 10
16. 3- All voices get heard in a structured and fair manner
GOVERNMENT
+
STAKEHOLDERS
Herzberg , 2011 16
17. … which increases chances for reform success
Structured dialogue Workable reforms Reforms that work
Solution Monitoring &
Diagnostic Implementation
Design Evaluation
• Engagement • Consensus building • Ongoing support • Watchdog
• Definition • Filtering • Watchdog • Feedback loop
• Empowerment • Resources
PPD contributes to all steps of reform process
Herzberg , 2011 17
18. Zambia process for industrial policies
Stakeholder Attendance: Private Sector, Government, Organised Labour, Civil Society, Donors
Additional
3 Selected Industries Consultations to
Selection Criteria (and rationale) Narrow Scope
Shortlist
Livestock
Zambia’s comparative • Comparative advantage
• Agro-
advantage processing & • Growth potential Beef & Dairy
Attendee • Rural livelihoods
Growth potential other manu-
vote based • Linkages & value addition
(GDP contribution) facturing on selection
• Forestry
Potential for job creation, • Gemstones
criteria Tourism
Potential especially in rural areas • Horticulture • Comparative advantage Tourism
Zambian VOTE
• Livestock • Job creation, esp. rural
Industries Current and potential
• Maize • Linkages to other sectors
export contributions
• Minerals &
Linkages to other Metals Minerals & Metals
sectors of the economy Processing Processing
• Tourism • Comparative advantage Copper Mining
Amount of value
• Export contribution & Fabrication
addition involved
• Value addition
• Linkages to other sectors
Sheppard, Uy, 2011 18
19. 4- Population benefits from more good policies
Learning about
good practice
Discovery
Institution
Capacity building Reform management
Source: WDR05.
Herzberg , 2011 19
20. What is the impact of PPDs?
Herzberg , 2011 20
21. Evidence of development effectiveness
Aceh 2008
2005: Albania 2008
Bangladesh 2007
Independent evaluation of 5 Investors Advisory Belarus 2007
Cambodia 1999
Councils in Africa Chad 2008
Cameroun 2008
CAR 2007
2007: Ethiopia
Laos
2008
2005
Independent evaluation of 3 Business Forums in Liberia 2007
Nepal 2008
Mekong Pakistan 2008
Sierra Leone 2007
Romania 2006
Senegal 2002
2009: North Sudan 2007
Independent evaluation of 30 WBG-sponsored PPDs South Sudan
Tanzania
2007
2002
Timor Leste 2008
Over 400 reforms achieved in over 50 distinct areas Tonga 2005
Uganda 2004
Vanuatu 2008
Economic impact (private sector savings) Vietnam 1997
Zambia 2007
Conservative estimate: $500 millions Benin N/A
Ghana 2002
Mali 2004
Cost effectiveness
Start-up investment of 100k-200k
Herzberg , 2011 21
22. Competitiveness payoffs - Cambodia Garment
• Two reductions of Export Management Fee has
saved GMAC members USD 2,2 millions (2008)
• Reduction of bureaucracy and documentation
required for import-export procedures;
• Certificate of Origin now issued within 48 hrs, with reduced cost and
documentation (2 GMAC staff are positioned at MoC to assist factories in C/O
applications);
• Introduction of the ASYCUDA system which has automated export
documentation, saving time and money;
• Export procedures made transparent and communicated
• Reduced the employers’ contribution to the National Social Security Fund from
1.8% to 0.8%
• New Union Law established
• Decade-long Night Shift dispute resolved (night rate from 200% to 130%)
Van Sou Leng, 2009 22
23. Cambodia’s garment exports results
Annual Export
$3,500.00
$3,000.00 $2,971.00 $2,982.00
$2,866.00
$2,651.00
$2,500.00
$2,399.00
In million USD
$2,190.00
$2,000.00 $1,982.00
$1,609.00
$1,500.00
$1,343.00
$1,156.00
$1,000.00
$500.00
$0.00
1 2 3 4 5 6 7 8 9 10
Year
Van Sou Leng, 2011 23
24. Growth impact in Madagascar
• Local economic development analysis and sector
selection through PPD in 3 sub-regions
• Mining, tourism, ICT, agribusiness, garments
• Collaborative actions on cross-cutting issues
(investment climate, finance, promotion, MSME) and
location-specific issues (infrastructure, utilities)
• New Investment Law adopted
• > 1200 new loans to MSMEs (>$30 mn)
• > 9000 new direct jobs
• > 3600 new firms registered
• > 2000 workers trained
Uy, 2011 (Madagascar Growth Pole project, FPD Africa) 24
25. PPD impact on road repair in Nosy Be & Fort Dauphin
Nosy Be Pont cassé RIP 118 : Soanierana – Rue Camille Valentin
Ranomafana Nosy Be
Uy, 2011 (Madagascar Growth Pole project, FPD Africa) 25
26. Sector growth through PPD
Ethiopia Cut Flowers Peru Asparagus Chile Salmon South Africa Wine Morocco Auto Parts Andhra Pradesh ICT
Uganda Fishing Kenya Cut Flowers Kenya Tea Sri Lanka Tea Nigeria Computers China Footwear
China Textile China HH Appliance S. Africa HH Appliance Costa Rica Ecotourism Tanzania Ecotourism Malaysia Electronics
Herzberg , Kassim, Majumdar, Sudan, Standford University research team, Watson, Zeng, 2011 26
28. Prerequisites
Consider 4 dimensions to start it CHAMPION
Strong
Public Authorities:
Engagement means sufficient
capacity, political will and
leadership.
Business community:
Needs to be somehow
organized, led and feel a basic
sense of security.
Champion: BUSINESS Weak PUBLIC
COMMUNITY AUTHORITIES
Strong Strong
Needs credibility, expertise
and the ability to get media
attention
Instruments:
Need logistical facilities, seed
funds (may also supplement
champion in QA)
Strong
INSTRUMENTS
Herzberg , 2011 28 28
30. Implementation framework: 12 key processes
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 relevance
9. Sector-specificity
A number of
10. Relevance to FDI
decisions to
11. Post-conflict/disaster, crisis response implement
12. Development partners
Herzberg , 2011 30
32. How to get results ?
-1-
A lot of work
Huge coordination and mediation business
Herzberg , 2011 32
33. How to get results ?
-2-
Design
consultations
for PPD
Herzberg , 2011 33
34. How to get results ?
-3-
Strong focus on
targeted,
measurable
refroms
Herzberg , 2011 34
35. Several types of outputs
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Focusing on this
will bring the others
Herzberg , 2011 35
36. 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
Herzberg , 2011 36
37. Work format of the Regional Consultative Council (RCC) to improve the business environment
and investment climate of the Chairman of Khatlon region
Meetings of the Regional Consultative Council (RCC) to improve the
business environment and investment climate of the Chairman of Decision-making level
Khatlon region
Secretariat of the Regional Consultative Council Coordination of activities of working
groups
Working Groups
WG on attracting WG on facilitation of WG on water security
investment for tax payments, of farmer households
development of especially for farmer and timely payment
enterprises engaged in households for water supply Level of analysis and project development
harvesting and services solutions
processing of
agricultural products
Roundtables
(expanded private sector participation)
Level to identify problems and proposals
Sultanova, Rahmonov, 2011
38. How to get results ?
-5-
A unique,
transparent and
disciplined way
to collect reform
proposals
Herzberg , 2011 38
39. How to get results ?
-6-
A filtering
process that
ensures
quality of
proposed
reforms
Herzberg , 2011 39
41. 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%
Herzberg , 2011 41
42. How to get results ?
-8-
Good planning
Bulldozer Committee Bulldozer Committee Bulldozer Committee
Bulldozer Committee Reform
1st Plenary Session 2nd Plenary Session 50 REFORMS
3rd Plenary Session Enactment
Vetting 8 reforms Vetting 15 reforms PUBLISHED
Vetting 27 reforms by
IN PRESS
3
Parliaments
Joint
BC BC BC presents Parliament 3 Govts
Public meeting Public meeting 50 reforms to Meeting in give their
MOSTAR ZENICA CoM, RS, FBiH National amendments
in JOINT Theatre package
GOVERNMENT with BC to PAs
BC BC SESSION under
Public meeting Public meeting
“urgent
TUZLA BRCKO
procedure”
BC BC
Public meeting Public meeting
BANJA LUKA ORASJE
HR meeting Young HR Press Conf.
Entrepreneurs To Present BC
TRAVNIK 50 reforms
Nov 12 Dec 17 Jan 16 Jan 27 Jan 29 Feb 07 Feb 12 Feb 13 Feb 20 Feb 25 Mar 03 Mar 12 Mar 24 Mar 25 Apr 3 Apr 22
Herzberg , 2011 42
43. How to get results ?
-9-
Strong convincing power
Herzberg , 2011 43
48. 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
Herzberg , 2011 48
50. Life and death of a PPD mechanism
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
Herzberg , 2011 50
51. 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
Herzberg , 2011 51
52. How to share
experiences, get
good practice
material, tools?
Herzberg , 2011 52
53. www.publicprivatedialogue.org
Community of practice
KM Website Workshops Donor partnerships
Charter of good practice 2006 PPD Workshop OECD
Lessons learned papers
(Paris, 30 countries represented) (on implementation guidelines)
2007 PPD Workshop DFID
Interactive PPD handbook
(Douala, 7 countries represented) (co-funding of KM and projects)
50 case studies 2008 PPD Workshop GTZ
Operational documents (Dakar, 8 countries represented) (co-implementation of PPD projects)
Templates
2009 PPD Workshop EBRD
(Vienna, 20 countries represented) (co-implementation of PPD projects)
M&e Tools
2010 PPD Workshop USAID
Workshop materials (Vienna, 23 countries represented) (our PPD training to their PSD staff)
2011 PPD Workshop Catalonia ACC10
(Vienna, 20 countries represented) (research partnership)
Tools
Implementation Diagnostic tool M&E Tools for PPD secretariats
guidelines
Herzberg , 2011 53