benjamin herzberg world bank psd vice-presidency
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PPD Workshop Paris, 2006. Public-Private Dialogue Engaging Stakeholders through Competitiveness Partnerships. Benjamin Herzberg World Bank PSD Vice-Presidency. 1. Going through the maze. Infrastructure (transport, energy, waste). Innovation, R&D. Training and labor information. - PowerPoint PPT PresentationTRANSCRIPT
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Benjamin HerzbergWorld BankPSD Vice-Presidency
Public-Private DialogueEngaging Stakeholders through Competitiveness Partnerships
PPD WorkshopParis, 2006
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Going through the maze
Infrastructure (transport, energy, waste) Innovation, R&D
Regulatory improvement
Competition
Logistics & Trade facilitation
Access to finance
Training and labor information
Corruption
Innovation
Contract enforcement
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Racing to Competitiveness
Red TapePoor Productivity
Costly and unreliable Utilities
Logistics.
Competitiveness
Labor Cost
Corruption
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A variety of binding constraints
Regulatory, Economic Policy
Uncertainty, 23%
Macroeconomic Instability, 18%
Finance, 10%Corruption, 10%
Taxation, 17%
Infrastructure, 9%
Anti-competitive Practices, 5%
Skills & Education Workers, 5%
Crime, Theft & Disorder, 2%
Leading constraints identified by over 24,000 firms in 58 countries
Source: Investment Climate Surveys.
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Capacity building Reform management
Learning about good practice
A variety of investment climate reform policies
Source: WDR05.
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Reform sustainability relies on engaging stakeholders
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+
GOVERNMENT
STAKEHOLDERSBut how to structure that engagement?
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Public-private dialogue mechanisms
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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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Types of structure
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Bosnia
VietnamTurkey
Nigeria
Coordinating secretariat
Working group 3
Working group 2
Working group 1
Working group 4
Working group 5
Private sector advocates, associations, government representatives, donors
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Types of engagement
National forums Series of working groups Regional/local initiatives
Time-bound agreements Investors councilsGovernment-endorsed
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Diagnostics
Solution Design Implementation
Benefits of umbrella process
• Engagement• Definition • Empower stakeholders
• Consensus building• Filtering
• Ongoing support• Watchdog• Resources
M&E
• Watchdog• Feedback loop
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Regulatory payoffs
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Country Benefit Before After
Bosnia(Bulldozer)
Slashed statutory capital requirements when registering a LLC
$ 6. 500$ 1. 300Increased number of registered companies (doubled in some areas)
Vietnam(VBF)
Ease labor restrictions for expatriate employees
Decree 105 limited the number of foreign employees to 3% of the total staff, with cap at 50.
Circular 04 excluded management from limitation, and removed cap under special permissions.
Turkey(YOIIK)
Amend law on company registration process
19 steps to register2 and half month
1 step, 8 procedures to register1 day process, 9 days total
Botswana(NACEE)
Setting institutional means for economic empowerment
Public grant program with high corruption, not investment guarantee agency, poor VC access.
Citizen Entrepreneur Dev. Agency (CEDA). Direct link to Ministries of Finance + PlanningSubsidized loans, VC, JV50 applications/week
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PPD dimensions
Pubic 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: Needs credibility, expertise and the ability to get media attention Instruments: Need logistical facilities, seed funds (may also supplement sponsor in QA)
StrongStrong
Strong
Stro
ng
BUSINESS COMMUNITY
PUBLIC AUTHORITIES
CHAMPION
INSTRUMENTS
Weak
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PPDs step-by-step
Selection of participants
Credibility and legitimacy
Secretariat and working groups
Rhythm of meetings
Institution vs. initiative
Types and form of proposals
Mapping to government structures
Implementation follow-up
Communication techniques
Branding & Logos
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Choosing the right battle
Focusing on this will bring the others
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Format does matter!
Example:
Collecting proposals
FOUR QUESTIONS
1.Issue at stake
2.Why is it a problem?
3.What is the proposed solution?
4.What are the action items?
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Transparency, legitimacy, accountability
1 Review and analyze
Dialogue and process
Enact and publish
Implement and follow-up
Verify and measure
1 2
1 2 3
1 2 3 4
1 2 3 4 5
BULLDOZER PHASE II – FIRST PLENARY SESSION
Forms distributed
by committees
Proposals Received by committees
Proposals pre-selected
by committees
Selected Proposals
sent to Bulldozer
Board
Selected proposals by
Bulldozer Board
Proposals vetted by IMF, WB,
EC, USAID, OHR
Proposals selected in First Plenary Session for inclusion into final book of 50
Proposals on hold
for further review
Northwest 500 29 27 8 7 6 6 1
Northeast 700 40 20 10 5 4 4
Banja Luka Region 600 70 40 10 4 2 2 2
Sarajevo Region 450 132 32 12 9 7 5 3
Herzegovina 200 15 10 4 3 1 1 2
Central Bosnia 1200 80 25 10 3 1 1 4
Total 3650 366 154 54 31 21 19 12
Ratio 100% 42% 15% 8.5% 6% 5%
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Stakeholder management
MOBILIZE
• Identify them• Assign and coordinate roles• Build consensus
LEVERAGE
• Communications• Education• Empowerment
Influence
Low High
Leve
l of
supp
ort
Against
For
BYPASS or STEAMROLL
• Communications
CO-OPT or NEUTRALIZE
• Information• Consultation• Diversion• Compensation• Disempowerment• Confrontation
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Communicating on reform ideas
Georgia legal and judicial reform
Bosnia Bulldozer initiative, “50 reforms in 150 days”
Nigeria PPD
Philippines procurement reform
Accountability gets specific in Bosnia (corporate governance reform)
Cambodia SME credit reform – TV shows on location (SMEs) + Experts
From the Protocols for Prosperity... To the Prosperity Garden (Bosnia)
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Issues summary
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Strategies for challenges 1/3
Be open and transparentCHALLENGES
Too much influence to a small and
unrepresentative groupCreate opportunities for
rent-seeking Reinforce the power of
existing elites Create a broad base
Strong quality control
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Strengthen associationsCHALLENGES
Gives big/FDI businesses a more powerful voice
than local SMEs
Revisit structure & participants
Reach out equally to entrepreneurs
Reinforcing vested interest
Over and under representation
Mongolia
Tanzania, 18%
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Strategies for challenges 2/3
Clear agenda, concrete proposals
CHALLENGESBecomes ineffective after a promising start. Descends
into a talking shop from which little substantive
action results. Participants become disillusioned,
wasting time and energy. Credibility of public policy
suffers.Live and
let die
Manage expectations
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Sustainability issues
One man shows
Generate bottom up supportCHALLENGES
Rests too heavily on the personal involvement of a senior government figure.Looses impetus when that
person leaves.Cannot resist shift in
political willPrepare in advance
Secure written commitment
Bolivia, Nigeria
Botswana
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Strategies for challenges 3/3
Depoliticize through outreachCHALLENGES
Too closely aligned with political factions
Deemed to die with government changeInstumentalized by
opposition Woo local politicians
Woo parliamentarians
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Include existing institutionsCHALLENGES
New mechanisms for consultation duplicate the work of existing
mechanisms, causing confusion and overburdening participants Quickly transfer
competencies
Use technical ministerial staff
Political risks
Institutional misalignments
Bosnia
Uganda NF
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The way forward
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Funding mechanisms (gov. p.s., donors)Sub-national programsIntegration to specific country contextClusters / Product marketsPost conflict