DFID experience in reforming the business enabling environment: mechanisms and processes for PPD Richard Waddington 1 st February 2006
Presentation objectives 1. Identify difference in findings from WB research 2. Identify complementarities with WB research 3. Survey DFID’s experience in terms of payoffs, best practice and risks 4. DFID’s added value in PPD 5. Conclusions Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
DFID TOR Key objectives: • Examine international PPD experience to date WB • Identify models, mechanism and processes that work WB • Provide guidance on what donors should do in this area in future WB • Identify DFID’s added value X WB Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
What was different? Research Approach • • Definition- Competitiveness Partnership (WB) v Public Private Dialogue (DFID) Coverage: Global (WB) v Developing and Transition Country (DFID) Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
What was different? - research findings 1. • • Factors affecting PPD Private sector not homogenous SOEs dominate dialogue in many DFID partner countries Pockets of capability across government Blockages often with middle managers Fluidity: staff turnover at senior levels Lack of credibility Lack of trust Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
What was different? Research findings 2. Approach to PPD • The risk of consultation fatigue • DFID’s PPD experience mostly centralised • No ideal duration/or intensity • Issue based PPD more productive • Recognise when PPD mechanism has outlived usefulness • Prioritise a PPD host over a particular process Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
DFID and PPD: Stages of the Reform Process 2. Design 1. Diagnostics 3. Implementation 4. M & E Nigeria. Design of PPG P Zambia PSD Forum Bosnia Reform of Business Registration Malawi National Action Group Uganda: Trade Licensing Mayoral Round Tables Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
Dimensions of PPD- World Bank Consider Four Dimensions CHAMPION Strong 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 BUSINESS COMMUNITY Weak Strong PUBLIC AUTHORITIES Instruments: Need logistical facilities, seed funds (may also supplement sponsor in QA) Strong INSTRUMENTS Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600 8
g lo n N IO AT t or STRUCTURE formal sh D U R TYPOLOGIES OF PPD narrow wide informal SCOPE Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
PPD: Examples of Potential Payoffs DFID Experience 1. Policy Reform Malawi NAG= MEGS 2. Implementation Uganda= Trade License Reform Uganda= Common language of RBP 3. Macro Impact Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
PPD: Examples of Potential Payoffs DFID Experience 4. Trust, transparency & governance Ukraine= Donbass SER 5. Nurture a more holistic Majority of projects examined view 6. Bridges constituency gap Zambia- emergence of ZBF Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
PPD Best Practice Ignition DFID Experience Zambia PSD Forum Organising Participation Malawi NAG Structure Kenya EEP (KIPPRA), Nigeria BBI(AIAE) Setting and Reaching Goals Roles of donors Uganda Trade License Comms Strategy Uganda RBP P exception to rule Kenya EEP Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
Risks and Strategies Risk Strategy DFID example Vested Interests Good facilitation DFID Ukraine- Chambers of Commerce in Donetsk and Luhansk Over and under representation Strengthen BMOs Uganda RBP P Sustainability Define goals Prioritisation Zambia PSD Forum Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
DFID: Multi-dimensional approach to PPD Projects & Programmes 1. Uganda RBP P 2. Bosnia Reform of Bus Reg SWAp/DBS 1. Tanzania BEST Bespoke Approach Trust Funds 1. Zambia- ZIBAC 1. Commark 2. Malawi NAG 2. Fin. Mark 3. ICF? 3. Ukraine Donbass SER Capacity Building Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
Conclusions • WB and DFID findings provide a set of issues to explore in next few days (complementary) • PPD is context specific: no single template • DFID research adds value re political economy of PPD Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
Conclusions • • • DFID: PPD a means to an end Facilitate not dominate Multi-dimensional and flexible response Donors- Host over process/mechanism? Reconsider donor time horizons Adopt a “venture capital” approach Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
Thank you for listening! Second Floor • Strand Bridge House • 138/142 Strand • London WC 2 R 1 HH • +44 (0)20 7420 8600
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