IPPG Cluster onState-Business Relations

Emerging themes and policy messagesDr Dirk Willem te Velde 15-18 December 2009

CUTS-IPPG meeting Jaipur

Introduction

Diversity; heterogeneity; disciplines

Audiences, messages, channels

Quick synthesis

What’s next?

Diversity in methodology, methods and unit of analysis

Political/historical analysis of SBR Country level State level

Measuring SBR Country level Firm / individual level

Econometrics of effects of SBR Multi-Country level Meso / sector level Micro level

Functional approaches Case studies (sometimes combining all of this!), formal/informal

Audiences

Academia (e.g. journal readers and colleagues, especially those that work in “silos”)

Policy makers (national/state) Politicians (pro labour, pro capital) Business (small and large) CSOs Media External actors, donors, funders (bilateral eg

DFID, multilateral eg World Bank, UNIDO)

Messages

Academic – innovations in literature in institutions and growth

Measurement – new debates amongst disciplines, pushing the disciplinary boundaries

SBRs matter, whether formal or informal (e.g. check variation in states, or countries)

Formalised SBRs fulfill economic functions e.g. through budget process (Zambia, Mauritius)

Formalised SBRs can work, but they can fail to function when there is no buy-in (Mauritius vs South Africa)

Voice of small business in formal BAs (Mauritius) AND in informal bargaining (South Africa) often underrepresented

Channels

IPPG discussion papers IPPG briefing notes Conferences and workshops Breakfast meetings Press releases Blogs E-mail discussions Journal articles Informal contacts

SBR case studies (Africa)Synthesising SBR Research

Drivers Describe/ measure

Economic functions

Effects on growth performance

GhanaHistorical institutionalist inductive theories

Existing data sets Micro econometrics

MauritiusAnalytical and historical account Survey

Effect SBR on budget policy proposals

Micro econometrics / firm performance / macro economics

South Africa

Tracing history of state- business organisation, explore nature of sub-national SBR

Effect SBR on trade and industrila policy

Zambia

Effect SBR on allocation of pro poor public spending

SBR case studies (Africa)Synthesising SBR Research

Drivers Describe/ measureEconomic functions

Effects on growth performance

Ghana

Politics matters for determining forms of SBRs

Number of known politicians and bureaucrats; but formalised SBRs evolving rapidly

Informal networks with civil service and politicians matter, but questions on importance of formalised SBR remain

Mauritius

Long history of co-habitation (though disputed)

Proposals taken over by budgets (new measure)

SBRs affect govt budgets (via JEC) SBRs enhance growth

South Africa

Informal networks (politicians and big business) prevail

Historical accounts of SBRs Not significant No debate within NEDLAC

Zambia Budget proposals submitted

Effect SBR on allocation of pro poor public spending

Emerging themes(from African studies)

Formalised can SBRs matter. Mauritius (Rojid et. al .): Joint Economic Council is influential private sector actor in SBRs in Mauritius; Measured SBR leads to higher growth (1970-2005). How? E.g. suggested budget proposals for better industrial policies are frequently taken over by government budgets.

But effective formalised SBR cannot simply be put in place. South Africa (Natrass, Seekings): Nedlac did not provide a real consensus seeking forum, due to weaknesses in state, although some success in industrial policy.

Formal consultative fora do perform useful functions helping business at macro level. Zambia (Bwalyas, et al.): analysis of new, transparent mechanisms to channel budget proposals suggest that business organisations / actors have influenced budget outcomes (esp using civil servants), more than other stakeholders.

There are informal SBRs; is it a stepping stone towards formalisation. Ghana (Ackah et al.): more developed social networks (politicians, civil servants) of firms (#256) lead to better firm performance

BA membership associated with better form performance. Across Africa (Qureshi and Te Velde): business membership leads to better firm performance by reducing policy uncertainty and lobbying, but individual lobbying remains important!

Linking audiences, messages and channels

Academics – new ways (methods and methodologies) of looking at (PP) growth which include SBRs (empirical examinations rooted in theory); journal articles and workshops

Government policy makers – we know that informal networks matter, but formalised ways of engaging with business can be useful for development, or specific interventions can help a better conduct of SBR, and we have a few specific suggestions how it can be fostered; briefings, informal contacts

Business – engaging in a well informed democratic conversation with government helps; SMEs feel underrepresented; meetings with business

Funders / donors – consider SBRs in advice and indices (eg engagement with WEF); SBRs evolve slowly over time, but there are critical junctures, and investing in SBRs matter; however, effective SBRs cannot simply be put in place; policy briefings

Possible ways forward

Syntheses and messages in print / actioned (academic and policy relevant)

SBR research and practice has a bright future It opens up new debates and can build bridges Gaps: primarily the what and how of economic functions,

interactions between formal and informal SBR, and formal/informal links, social networks/sociological

It has real relevance to today’s problems (e.g. GFC)

Keep on doing it

THANK YOU