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Government-Private Sector Forum (G-PSF)

A Success Story of the Royal Government of Cambodia

Sok ChendaMinister attached to the Prime Minister, Prime Minister’s Office

Secretary General of the Council for the Development of CambodiaSecretary General of the G-PSF

Global PPD WorkshopVienna, Austria - April 29, 2009

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Royal Government of Cambodia’s (RGC) mechanisms for private sector consultation

Private Sector ConsultationPrivate Sector Consultation Policy and strategyPolicy and strategyDonor and G-PSF consultationDonor and G-PSF consultation

GovernmentPrivate Sector Forum

Chair: Prime Minister Coordination: DPM, Min. of Finance

General Secretary: Minister attached to PM, Secretary General

of the Council for the Devt of Cambodia

Steering Committee on Private Sector Development (Chair: DPM, Minister of Finance)

Sub-steering Committee on

Investment Climate and PPI

(Chair: DPM, Min Eco & Finances)

Sub-steering Committee on

Trade Development and Trade Related

Investment

(Minister of Commerce)

Sub-steering Committee on

SMEs

(Minister of Industry, Mines,

Energy)

Established by sub-decree, these mechanisms are institutionalizedand demonstrate the commitment of the Royal Government of Cambodia (RGC)

To private sector development

8 Sectoral Working Groups

Cambodia G-PSF in brief

+ 1000 issues raised (in past 3 years), important results in some sectors.

Strong coordination, with regular meetings and

matrices that track issues

Structure in place. Working groups co-chaired by m

Ministers and PS rep;

Large participation of the private sector

Confidence, information btw govt PS, Gvt leadership

Democracy in action, demand for accountability

Established in 1999 by the RGC

14 Forums held

Status of an enlarged Cabinet meeting

Chaired by the Prime Minister

$100 mil savings for the private sector

(sample of 11 reforms)

8 sectoral Working Groups, cross cutting

collaboration

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1. World Bank Investment Climate Assessment lists the G-PSF as one of the key factors for the economic success of Cambodia

2. Royal Government of Cambodia uses the G-PSF to propose measures to respond to the crisis – several consultations on-going

3. 2009 Memo from World Bank to RGC recommends using the G-PSF for identification and monitoring of reforms

4. G-PSF is an integral apparatus of the RGC for private sector consultation and engagement of development partners in technical assistance.

5. Review of 31 PPDs worldwide shows G-PSF as among highest performers.

G-PSF a highly successful reform platform

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1. Political willingness from the Royal Government of Cambodia, in particular the Prime Minister

2. Cambodia is pro-private sector, we believe PS will achieve poverty alleviation

3. Cambodia is an open economy

4. RGC understands that regulations are better drafted and better implemented with PS participation

5. Private Sector willing to contribute constructively

6. G-PSF is an integral part of the government apparatus.

Why have we been successful

Trust

Education

Discovering what works / What

doesn’t

Setting up production

process

EARLY RESULTS

Phase 3Phase 2Phase 1

Results

Time

Ongoing brokering

Institutions

BMOs

Ownership without capacity

Exit

More capacity

Better production

Better products

More conflict

HIGH IMPACT

RESULTS

1 to 3 years 1 to 3 years

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Cambodia

Development cycle of PPDs

IFC IFC CoordinatioCoordinatio

nnBureauBureau3 – Provincial

dialogues(with other DPs)

1 – Dialogue management

& communication

2 – Capacity building of associations andchambers of com.

4 – Technical assistanceanalysis, research

Component 1 : IFC phasing out secretariat roleComponent 2: Temporary intervention

Component 3 : Responsibilities of other DPsComponent 4: IFC intends to continue to support

Component 1 : IFC phasing out secretariat roleComponent 2: Temporary intervention

Component 3 : Responsibilities of other DPsComponent 4: IFC intends to continue to support

IFC’s Role in Cambodia’s PPD (G-PSF)

To private sector

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Current structure of the G-PSF dialogue (Private sector)

Private Sector Working Groups / G-PSF

Secretariat

International Finance

Corporation

Business Community

G–PSF Bi-annual meetings

Law, Tax, and Governance Working Group

TourismWorking Group

Banking and Fin. ServicesWorking Group

Energy and InfrastructureW Group

Industrial Relations W Group

Manuf and SMEs Working Group

Agriculture and Agro-Industries WG

Export Process and Trade Facilit. W G

G-PSF – AN INDEPENDENT ENTITY OF THE CHAMBER OF COMMERCE

Light secretariat to liaise the WGs

Law, Tax, GovWorking Group

TourismWorking Group

Banking & Fin. Services WG

Energy and InfrastructureW Group

Export Proces. and Trade Fac. WG

Industrial Relations W Group

Manuf and SMEs Working Group

Agriculture and Agro-Industries WG

CHAMBER OF COMMERCE

Business Community

KEY ASSOCIATIONS provide administrative support to working

groups

Independent Entity under the Chamber of Commerce

G –PSF Bi-Annual Meeting

International Business Club

CATA, CHA, airlines

Association of Banks in Cambodia

CAMTA, CAMFFA, ICT-CAM

GMAC, handicraft assn…

CAMFEBAPPSMIA, SMI, CEPMEC, etc

Federation of Ricemillers, agric. assn

Business community in Phnom PenhBusiness Associations

(regional, large small,)

Provincial dialogues under

Chambers of Commerce

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Challenges in institutionalization

PSF by-laws regulate only the private sector- The Royal Government of Cambodia has strong ownership of the

process, G-PSF is an RGC mechanism

Government better prepared than the PS- Quality of RGC participants very high; - The PS has limited capacity to raise and research strategic issues;

BMOs are weak- The sustainability of BMOs is not assured, even the stronger associations may fail with the economic crisis (fewer members, less revenue from services)- Several small BMOs - not capable of serving as secretariat to a WG- Even with 2-year capacity building, no assurance of BMO sustainability- Can BMO play the role of a neutral, honest broker and ensure outreach ?

Quality of issues raised- Quality of issues raised varies with the WG- Limitations on the types of research that development partners can provide (IFC, USAID)- Quality sometimes not up to RGC expectations

Thank you!

SOK ChendaMinister attached to the Prime Minister

Secretary General of the Council for the Development of Cambodia

Government PalacePhnom Penh, Kingdom of Cambodia

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Extra slides

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1. The PSF is an independent entity under the Cambodian Chamber of Commerce

2. G-PSF works and operates like a business association

3. G-PSF has an executive committee with a president, vice-president(s) and an annual general meeting of members

4. Sectoral associations have the right to vote in election of co-chairs

5. G-PSF governing structure has a small-scale secretariat supported by several business associations.

Proposed PSF by-laws

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1. 3 staff run the liaison office / are the contact points: executive director, program assistant-translator, staff analyst

2. PSF represents the 8 working groups vis-à-vis government

3. Liaises with business associations supporting the 8 working groups to coordinate, compile, disseminate and analyze data

4. Interfaces with CDC for the organization of the Forum

5. Communications

• Newsletter

• Website

Role of the PSF Secretariat

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1. Full support of their respective Working Groups and Co-chairs in the organization

• Contact management, ensure outreach

• Organize meetings, take minutes of meetings

• Update the matrices of issues

2. Liase with the PSF central secretariat in aggregating reports for the whole Forum

3. Work with PSF central secretariat to organize the Forum

4. Organize election of co-chairs with G-PSF central secretariat

• So far: 3 business associations have agreed in principle to serve a WG : GMAC (Export Processing and Trade Facilitation WG), Camfeba (Industrial Relations WG) and IBC (Law, Tax and Governance WG)

Role of BMOs supporting the Working Group