DFID experience in reforming the business enabling environment:

DFID experience in reforming the business enabling environment:

DFID experience in reforming the business enabling environment: mechanisms and processes for PPD Richard Waddington 1st February 2006 Presentation objectives 1. Identify difference in findings from WB research 2. Identify complementarities with WB research 3. Survey DFIDs experience in terms of payoffs, best practice and risks 4. DFIDs added value in PPD 5. Conclusions Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +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 DFIDs added value X WB Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +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 WC2R 1HH +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 WC2R 1HH +44 (0)20 7420 8600 What was different? Research

findings 2. Approach to PPD The risk of consultation fatigue DFIDs 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 WC2R 1HH +44 (0)20 7420 8600 DFID and PPD: Stages of the Reform Process 1. Diagnostics 2. Design 3. Implementation 4. M & E NigeriaDesign 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 WC2R 1HH +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: BUSINESS COMMUNITY Needs credibility, expertise and the ability to get media attention Weak Strong 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 WC2R 1HH +44 (0)20 7420 8600 8 lo ng N O AT I STRUCTURE formal

sh or t D U R TYPOLOGIES OF PPD narrow informal SCOPE wide

Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 PPD: Examples of Potential Payoffs Potential Payoffs DFID Experience 1. Policy Reform Malawi NAG= MEGS 2. Implementation Uganda= Trade License Reform 3. Macro Impact Uganda= Common language of RBP

Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 PPD: Examples of Potential Payoffs Potential Payoffs DFID Experience 4. Trust, transparency & governance Ukraine= Donbass SER 5. Nurture a more holistic view Majority of projects examined 6. Bridges

constituency gap Zambia- emergence of ZBF Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 PPD Best Practice Best Practice DFID Experience Ignition Zambia PSD Forum Organising Participation Malawi NAG Structure Kenya EEP (KIPPRA), Nigeria BBI(AIAE)

Setting and Reaching Goals Uganda Trade License Roles of donors Kenya EEP Comms Uganda RBP P exception to rule Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +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 representatio n

Strengthen BMOs Uganda RBP P Sustainability Define goals Prioritisation Zambia PSD Forum Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 DFID: Multi-dimensional approach to PPD Projects & Programmes 1. Uganda RBP P

2. Bosnia Reform of Bus Reg 3. Ukraine Donbass SER SWAp/DBS 1. Tanzania BEST Bespoke Approach 1. ZambiaZIBAC 2. Malawi NAG Trust Funds

1. Comm 2. ark FinMark 3. ICF? Capacity Building Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +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 WC2R 1HH +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 WC2R 1HH +44 (0)20 7420 8600 Thank you for listening! Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600

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