Public-Private Dialogue

Independent evaluation of30 WBG-supported PublicPrivate Dialogue and ReformPlatforms for PrivateSector Development

Malcolm Toland

Vienna, Austria28-30 April 2009

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

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Contents

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I Purpose of Study – Map, Assess, Recommend

IFC InitiativesAceh 2008Bangladesh 2007Belarus 2007 Cambodia 1999Chad 2008Cameroun 2008CAR 2007Ethiopia 2008Laos 2005Liberia 2007Nepal 2008Pakistan 2008Rwanda N/ASierra Leone 2007North Sudan 2007South Sudan 2007Timor Leste 2008Tonga 2005 Vanuatu 2008Vietnam 1997Zambia 2007 

Presidential Investor Advisory Councils (PIACs)

Benin N/AGhana 2002Mali 2004Mauritania N/ASenegal 2002Tanzania 2002Uganda  2004 

Convergence Special Projects Initiative (SPI)

Romania 2006Albania 2008

IFC supported PPD initiatives (since 1997 but many new) Forum, Working Groups, Secretariat Some divergence - formation; oversight; WGs; location of Secretariat;

Government input

PIACs (since 2002) Direct engagement between presidents and prominent investors Chaired by country’s President Smaller private sector representation (local + international)

Convergence SPI (since 2006, expanding: Nepal, Bangladesh, Sri Lanka, Moldova)

Financial sector modernisation through micro regulatory reforms Based on “Better Regulation” analytical methods (RIA) Local stakeholders decide the programme and take operational and

financial responsibility after 2 years

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II PPD Inventory – 3 Typologies

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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

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II PPD Inventory – Issues Addressed

Contract EnforcementDebt RecoveryMacroeconomic policyImmigration

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II PPD Inventory – Sectors Addressed

IT ExportEnergy ConstructionFisheries Education

Over 400 reforms achieved in over 50 distinct areas of BEE

Economic impactConservative estimate: $400 million (3/4 in

Mekong)SPI – an additional $100 million

Cost effectivenessStart-up investment of 100k-200k highlights

potential for high return

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III Reform Outcomes and Economic Impacts

Reforms achieved are concentrated in small number of PPDs only

Vietnam and Cambodia responsible for 250 reforms

8 PPDs have achieved 10 or more reforms (Vietnam, Cambodia, Uganda, Liberia, Ghana, Romania, Bangladesh, Senegal)

Over 15 PPDs: limited or no reforms

PPDs either “mature” or in start up phase; few in “intermediate” stage, preventing more complete PPD impact assessment

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III Reform Outcomes and Economic Impacts

“Soft” outputs also numerous Dialogue process itself Opened communication and advocacy channels Government uses PPD to improve own coordination and accountability

Noteworthy achievements: Embedded within Government

Cambodia: PPD Forum equal status to Cabinet meeting Uganda: PIAC Monitoring Committee chaired by PM Liberia: Business Reform Committee in Cabinet

Administration Code of Practice for Secretariat in North Sudan RIA as standard analytical tool within SPI

Communication and outreach Liberia, Bangladesh and Zambia

Research Annual SME survey in Vietnam

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III Creating the Reform Space

# CountryTotal Score

# CountryTotalScore

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

IV Quality of PPD Process

1. Assessing the optimal mandate and relationship with existing institutions

2. Deciding who should participate and under what structure

3. Identifying the right champions and helping them to push for reform

4. Engaging the right facilitator5. Choosing and reaching target outputs6. Devising a communication and outreach

strategy7. Elaborating a monitoring and evaluation

framework8. Considering the potential for dialogue on a

sub-national level9. Making sector-specific dialogue work10. Identifying opportunities for dialogue to play

an international role11. Recognizing the specificities and potential of

dialogue in post-conflict or crisis environments

12. Finding the best role for development partners

Average score measures how well the secretariat is performing tasks along 12 key PPD processes:

Note: Average score based on evaluation findings

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Evaluation Wheel Examples

SPI Albania

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Vietnam

Sierra Leone South Sudan

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PPD Success: A Closer Look

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PPD: What’s Working, What’s Not

Working Fairly Well Not Working As Well

Strong consultation (SPI)

Broad based participation (IFC)

Fast track reform (PIAC)

Use of RIA (SPI)

Donor coordination (IFC)

Host entities’ credibility (PIAC)

Project selection process (SPI)

Reconciliation platform (IFC)

Secretariat recruitment &training & mentoring (SPI)

Use of analysis (PIAC)

Outreach (SPI)

Secretariat training (IFC)

Manageable mandates (PIAC)

Provincial level PPD (all 3)

Investing at Entry Underinvestment at critical initial implementation stage Raising local expectations too quickly?

Investing in building local Secretariat capacity Intensity of recruitment and training Limited inter-Secretariat exchanges of experience

Investing in building BMO capacity Still an issue even for high scoring PPDs Inadequate formal Advocacy Scoping

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

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V Entry and Exit Strategies

PPD useful to facilitate WBG introduction of reform service packages, elevating WBG’s credibility as contributor to and catalyst of reform

Good operating procedures more important than typology, structure, scope

Greater WBG investment: Reinforce WBG’s KM role in issuing guidelines, training staff and offerring advisory support

Ensure PPD implementation remains demand-driven and country-based, 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

Carry out formal review of PIAC structure

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VI Way Forward

THANK YOU!!

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