DFID experience in reforming the business enabling environment: mechanisms and processes for PPD Richard Waddington 1 st February 2006

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DFID experience in reforming the business enabling environment: mechanisms and processes for PPD Richard Waddington 1 st February 2006 Slide 2 Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 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 Slide 3 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 Slide 4 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) Slide 5 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 Slide 6 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 Slide 7 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. Implementation4. M & E Zambia PSD Forum Bosnia Reform of Business Registration Malawi National Action Group Uganda: Trade Licensing Mayoral Round Tables Nigeria- Design of PPG P Slide 8 Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 Pubic Authorities: Engagement means sufficient capacity, political will and leadership. Business community: N eeds 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) Strong BUSINESS COMMUNITY PUBLIC AUTHORITIES CHAMPION INSTRUMENTS Weak Consider Four Dimensions 8 Dimensions of PPD- World Bank Slide 9 Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 formal informal narrow wide short long STRUCTURE SCOPE DURATION TYPOLOGIES OF PPD Slide 10 Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 PPD: Examples of Potential Payoffs Potential PayoffsDFID Experience 1. Policy ReformMalawi NAG= MEGS 2. ImplementationUganda= Trade License Reform 3. Macro ImpactUganda= Common language of RBP Slide 11 Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 PPD: Examples of Potential Payoffs Potential PayoffsDFID Experience 4. Trust, transparency & governance Ukraine= Donbass SER 5. Nurture a more holistic view Majority of projects examined 6. Bridges constituency gapZambia- emergence of ZBF Slide 12 Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 PPD Best Practice Best PracticeDFID Experience IgnitionZambia PSD Forum Organising Participation Malawi NAG StructureKenya EEP (KIPPRA), Nigeria BBI(AIAE) Setting and Reaching Goals Uganda Trade License Roles of donorsKenya EEP Comms StrategyUganda RBP P exception to rule Slide 13 Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 Risks and Strategies RiskStrategyDFID example Vested InterestsGood facilitationDFID Ukraine- Chambers of Commerce in Donetsk and Luhansk Over and under representation Strengthen BMOsUganda RBP P SustainabilityDefine goals Prioritisation Zambia PSD Forum Slide 14 Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 DFID: Multi-dimensional approach to PPD Projects & Programmes Trust FundsSWAp/DBS Bespoke Approach 1. Uganda RBP P 2. Bosnia Reform of Bus Reg 3. Ukraine Donbass SER 1. Commark 2. FinMark 3. ICF? 1. Tanzania BEST 1. Zambia- ZIBAC 2. Malawi NAG Capacity Building Slide 15 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 Slide 16 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 Slide 17 Second Floor Strand Bridge House 138/142 Strand London WC2R 1HH +44 (0)20 7420 8600 Thank you for listening!