The PPD Handbook Assessing the impact of the Mekong ... · PDF fileThe PPD Handbook +...
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Transcript of The PPD Handbook Assessing the impact of the Mekong ... · PDF fileThe PPD Handbook +...
Andrei MikhnevProgram Manager BEE Unit
SME Department
Benjamin HerzbergSr. PSD SpecialistSME Department
1
The PPD Handbook+
Assessing the impact of the Mekong business forumson the business environment
Public-Private Dialogue
Capacity building Reform management
Learning about good practice
Good policies and regulations matter
Source: WDR05.
2
Several forms of PPD mechanisms
Economic Council, Social Council, Gender Coalition, National Competitiveness Committee, Annual Forum, Private Sector Forum, Regional Forum, Deliberation Council, Business Forum, Competitiveness Review Group, High Level Consultative Council, Better Business Initiative, Bulldozer Committee, Investors Advisory Council, Etc.
Vietnam, Cambodia, South Africa, Mexico, Bosnia, Ghana, Nigeria, Uganda, Malaysia, Botswana, Japan, Bolivia, Indonesia, Senegal, Tanzania, Bulgaria, Turkey, Cameroon, Cook Islands, Germany, Hungary, Ireland, Kosovo, Malta, Mozambique, Thailand, Mauritius, Etc.
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Led by IFC/WBG, DFID, OECD
25 case studies
30 countries represented, 10 donors
Lessons learned (DFID, WBG, OECD)
Implementation guidelines (PPD Handbook, M&E Framework)
Knoweldge development framework
4
Community of practice www.publicprivatedialogue.org
Charter of Good Practice
Lessons learned
Tools for practitioners
Case studies
Online partnerships
PPD Workshop
5
Builds momentum for business environment reforms
Helps prioritize binding constraints
Ensure that reform design fits local needs and capacity
Smoothen/accelerate implementation of policy reforms
Promotes accountability, transparency, good governance
Builds trust and restore confidence in post conflict/crisis env.
Benefits of Public Private Dialogue
PPD reforms Workable reforms Reforms that work
Strong economic impact
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Reinforcing vested interest (e.g. Mongolia)
Over and under representation (e.g. Tanzania, 18%)
Sustainability issues (e.g. Bolivia)
One man shows (e.g. Botswana)
Political risks (e.g. Bosnia)
Institutional misalignments (e.g. Uganda NF)
6 basic risks to un-structured engagement
Be open and transparent – Publicize quality control – Broad based
Strengthening BMOS – Equal representation – Periodic review
Clear agenda and proposals – Manage expectations – Live and let die
Foster bottom-up support – Secure written commitment – Prepare transition
Depoliticize through outreach – Woo parliamentarians – Go local
embrace institutions – Use technical ministerial staff – Transfer competencies
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Trust
Education
Discovering what works / What doesn’t
Setting up production process
EARLY RESULTS
Phase 3Phase 2Phase 1
Results
Time
More capacity
Better production
Better product
More conflict
HIGH IMPACT
RESULTS
1 to 3 years 1 to 3 years
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Lifespan of business forums
Trust
Education
Discovering what works / What doesn’t
Setting up production process
EARLY RESULTS
Phase 3Phase 2Phase 1
Results
Time
Permanent brokering
Institutions (e.g. RIA)
BMOs (e.g. CoC, RDAs)
Ownership without capacity
Exit
More capacity
Better production
Better product
More conflict
HIGH IMPACT
RESULTS
1 to 3 years 1 to 3 years
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PPD mapping tool…
Define project brief
Investment climate constraints(Existing benchmarks and surveys)
Stakeholder investigation(Field interviews and focus groups)
Private sector Intermediaries Public authorities Civil Society
Most significant reforms(Field interviews and focus groups)
Stakeholder analysis
Design decision
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… with diagnostic instruments
Widely seen by its members as corrupt, ineffective and not democratic. Compulsory membership fee is resented.
Existing membership gives it the potential to reach all businesses. Legal mandate gives it close links with government, which could be capitalized on.
Compulsory. All businesses with more than 10 employees must join.
“Organize, represent and promote the country’s private sector interests.”
Chamber of Commerce
Narrow membership based around the automotive industry and in one city. Foreign investors are ineligible for membership.
Legal department is well regarded and arbitration service commands respect. Some successful input into recent labor regulations bill.
Voluntary. 720 businesses are members, representing 32,000 employees.
Represent manufacturers in policy discussions. Provide training services, advice on setting up companies and mediation wit unions.
Manufacturers association
Contact informationWeaknessesStrengths and accomplishments
Membership type and sizeMandateIntermediary
LEVERAGE
Build capacity
PERSUADE
CommunicateLe
vel o
f sup
port
For
Against
MOBILIZE
Assign roles and coordinate
Level of influenceLow High
CO-OPT
Inform and consult
Private sector
Intermediaries
Public Authorities
Civil society
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Implementation : 12 key processes (PPD Charter)
1. Mandate and Institutional Alignment 2. Structure and participation3. Champions4. Facilitator5. Outputs6. Outreach and communications7. Monitoring and evaluation8. Sub national initiatives9. Sector-specific programs10. International role11. Post-conflict / Crisis / Reconciliation12.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
17
M&E framework : Three scopes for PPD M&E
Organizational process effectivenesswith 24 indicators and 48 data points
Impacts on reform process
Economic impacts
Doing Business + customized indicators
Post Conflict
Mandate& alignment Structure &
participationDevelopment
partners
Monitoring
Facilitator
Champion
Outreach & communication
Outputs
Sub-national
Sector-specific
International role
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Purpose of the Mekong PSFs evaluation
• Assess the impacts of the PSFs in three different manners: - Organizational processes and effectiveness- Political economic impacts on the reform process- Regulatory and economic impacts
• Identify lessons learned to replicate- Regional scaling - Sub-national applications- Sector-specific initiatives
• Provide guidance to- Further/streamline donor support the PSFs - Increase effectiveness at generating concrete results- Coordinate PSD programs around PSFs- Help PSFs drive more investments
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11017Forums held
2006: $210,0001999-2004 : $750,0002005-2006: $610,000
Period 2000-2007$400,000 (exc. IFC ind. costs)
Expenditures to date
474Working Groups
Committee for Planning and Investment – Chair: Dpty Prime Minister
Council for Development of Cambodia. Chair: PM
Min. of Planning and Invt; chair : Dpty PM, WB director, IFC director and VCCI; linked to CG
Institutional alignment
200619991997Start
LBF(Laos)
G-PSF(Cambodia)
VBF(Vietnam)
Mekong PSFs - Background
19 combined years of technical assistance - $2 million budget
22
EARLY RESULTS
Phase 3Phase 2Phase 1
Results
Time
Permanent brokering
Institutions (e.g. RIA)
BMOs (e.g. CoC, RDAs)
Ownership without capacity
Exit
HIGH IMPACT
RESULTS
1 to 3 years 1 to 3 years
Laos
Cambodia Vietnam
23
Executive Co-Chairs WG
•Discuss Issues
Chaired by PM
RGC Ministries
PPD
EnvironmentEnvironment
PS Assoc.
Others
• Agreed agenda on issues and
recommendations (law, sub decree,
prakas, decisions)• Direct operational
impediments
G-PSF
Law, Tax and Governance
Export Processing and Trade Facilitation
Services, including Banking and Finance
Tourism
Manufacturing and SMEs
Agriculture and Agro-Industry
Energy and Infrastructure
Employment and labor law enforcement
PSWG Secretariats
Chamber of Commerce
Business Associations
Co-Chaired by RCG Ministers and PS Rep.
Bi-annual meeting
PS Co-Chairs PS+ RGC
PSWG WG
• Broad consultation process agenda on
prioritized issues and recommendations
•Can meet directly PM for national importance issues
• Decide an agenda for GPSF
PS Co-Chairs
Operational Working Group
Private Sector Working GroupsPSWGWG Working Groups
G-PSF Government Private Sector Forum
RGC Royal Government of Cambodia
Private SectorPS
Private Sector DevelopmentPSD
Issues
Implementation
Steering Committee working on PSD
T.FSub Committee
C: MEFCC:MOCFac: WB
C: MICC:MOC/MEF
Fac: ADB
P.P InvSub Committee
S.M.ESub Committee
Inputs
PS Co-Chairs
•Reduction in Unofficial Costs•Amendments of law on o Investmentso taxationo Concessiono Corporate accounting/auditingo Government bonds
•Sub Decreeo Establishment and mgmt of SEZo Trade facilitation: risk mgmt and single admin doc
•Policy on SME
o $ valueo ∆business sentimento ↑relationshipso ↑trusto Etc…
•Benefits
Issues
Outcomes/Benefits
ExamplesWG
B&F
Tourism
M&SME
A&AI
E&I
LT&G
EP&TF
Issues & Rec Outstanding Issues
Executive Co-Chairs WG
•Discuss Issues
Chaired by PM
RGC Ministries
PPD
EnvironmentEnvironment
PS Assoc.
Others
• Agreed agenda on issues and
recommendations (law, sub decree,
prakas, decisions)• Direct operational
impediments
G-PSF
Law, Tax and Governance
Export Processing and Trade Facilitation
Services, including Banking and Finance
Tourism
Manufacturing and SMEs
Agriculture and Agro-Industry
Energy and Infrastructure
Employment and labor law enforcement
PSWG Secretariats
Chamber of Commerce
Business Associations
Co-Chaired by RCG Ministers and PS Rep.
Bi-annual meeting
PS Co-Chairs PS+ RGC
PSWG WG
• Broad consultation process agenda on
prioritized issues and recommendations
•Can meet directly PM for national importance issues
• Decide an agenda for GPSF
PS Co-Chairs
Operational Working Group
Private Sector Working GroupsPSWGWG Working Groups
G-PSF Government Private Sector Forum
RGC Royal Government of Cambodia
Private SectorPS
Private Sector DevelopmentPSD
Operational Working Group
Private Sector Working GroupsPSWGWG Working Groups
G-PSF Government Private Sector Forum
RGC Royal Government of Cambodia
Private SectorPS
Private Sector DevelopmentPSD
Issues
Implementation
Steering Committee working on PSD
T.FSub Committee
C: MEFCC:MOCFac: WB
C: MICC:MOC/MEF
Fac: ADB
P.P InvSub Committee
S.M.ESub Committee
Inputs
PS Co-Chairs
•Reduction in Unofficial Costs•Amendments of law on o Investmentso taxationo Concessiono Corporate accounting/auditingo Government bonds
•Sub Decreeo Establishment and mgmt of SEZo Trade facilitation: risk mgmt and single admin doc
•Policy on SME
o $ valueo ∆business sentimento ↑relationshipso ↑trusto Etc…
•Benefits
Issues
Outcomes/Benefits
ExamplesWG
B&F
Tourism
M&SME
A&AI
E&I
LT&G
EP&TF
Issues & Rec Outstanding Issues
Cambodian G-PSF - framework
25
Direct Outputs of PSFs
-aligned to Asean standards – saved the industry about 11% of transport costs [tbc].
-Extended to 30 days vs. 15 days
- 3 million dollars saved by the PS (highway fee) – [tbc]
- Saved the Garment Industry $25 M
Circular 04 excluded management from limitation, and removed cap under special permissions.
After
-Elimination of Weight limit restrictions of trucks
-Visa policies
- Safety measures adopted for tourists (boat)
-Delay by 6 month a new tax (2%) on accommodation - reduced the highway fee from PP to the port of Sihanoukville- reduced telecoms tax from 10% to 3%- obtained 2-year tax free for Garment industry- Breach of trust
Input from PS in the Investment and Entreprise Law; Commercial Law; Land Law, Securities Law, Commercial Law.
Decree 105 limited the number of foreign employees to 3% of the total staff, with cap at 50.
Example of Outputs
-60 issues raised - 18 selected as high priority- 4 solved
- 826 issues raised between Aug 04 –June 06-315 addressed and not further discussed at the WG (38%)
- Number of legislative documents formulated
Outputs
Laos(LBF)
Cambodia(G-PSF)
Vietnam(VBF)
Country
27
A leading and overwhelming majority of businesses to want its existence maintained and to financially contribute to the G-PSF.
To what extent should the G-PSF be maintained? Are you willing to financially contribute?
Cambodia
0%
26%
74%
0
0.2
0.4
0.6
0.8
Low Medium High
Cambodia
54%
46%
40%
50%
60%
Yes No
Cambodia G-PSF
28
Implementation steps
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Phase 1: Desk Research Take stock / against the 12 points of the charter
Phase 2: Determination of indicatorsOrganizationsl process indicatorsReform process flows and stepsEconomic impact indicatorste
Phase 3: Private Sector Survey Sample : 100 in Cbd & Vn, 50 in Laos
Phase 4: In-Depth Interviews with informants
Phase 5: Report with recommendations
Using the M&E framework of the PPD handbook
Add-on to other techniques
Reform Unit
RIA and regulation review process
SEZ
Office No. 1
Applicant
Files requestfor approval
Clerk 1
Reviewsapplication
anddocuments
Clerk 2
Receivesapplication
anddocuments
Paysfee
AssignsInspector
Receivesand reviewsInspection
Report
Clerk 4
Prepares &Transmits
Request forApproval orDeficiency
Letter
ReceivesRequest forApproval orDeficiency
Letter
Prepares Approval or
DeficiencyLetter
Clerk No. 3
Accepts fee
Issues Receipt
Forwards feefor deposit to
municipalaccount
Office No. 2 Office No. 3
Inspector
ContactsApplicant
ConductsInspection
PreparesReport
Sends copy toClerk 2
Clerk 5
MunicipalOfficial
Signs &Returns
Approval orDeficiency
Letter
TransmitsSigned
Approval orDeficiency
Letter
MailsApproval
orDeficiency
Letter
Process Mapping: An Illustration
ReceivesApproval or
DeficiencyLetter
Providescopy ofReceipt
Regulatory simplification
Value chainClusters
31
Benjamin HerzbergSME Department
(202) [email protected]
Thank you!
Andrei MikhnevSME Department(202) 458 [email protected]
32