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Dr. Paul Engel ECDPM Director APEI Technical Meeting 26th & 27th September 2013 Lilongwe, Malawi
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APEI Technical Meeting
26&27 September 2013 Lilongwe, Malawi
Public-private dialogue and learning for
economic transformation
Dr Paul Engel Director
We focus on the relations and cooperation between Africa, the Caribbean, the Pacific and Europe
We think ‘development’ is not just a problem in Africa, the Caribbean and the Pacific
We link policy and practice for development – What works? What doesn’t? How? Why?
We help improve the quality and impact of policy reform processes
We help accelerate structured dialogue processes between policy makers and relevant stakeholders
We study, assess and share the (intended and unintended) effects of policies in practice
We work together with national (knowledge) institutes in what we do
ECDPM – Independent European Centre
ECDPM Page 2
• Governments engage more with the private sector as engine of growth; recognize the need to improve the business environment in their countries
• Development finance institutions & banks: long tradition of engaging the private sector; but so far limited attention to improving the environment businesses operate in
• Engagement of donors with private sector is more recent for many; mixed feelings by donors (and business)
• New context…
Private sector and development
ECDPM Page 3
“We want economic reform…” = economic transformation
ECDPM Page 4
AIDA
“We want to engage the private sector…”
ECDPM Page 5
• The private sector is going there anyway…
A billion good reasons: private financial flows…!
ECDPM Page 6
…but largely to extractive… and great risk of jobless growth
No such thing as THE “private sector” => need for tailored approach to diverse clusters
Engaging the ‘private sector for development’ • Contribution to which development objectives? • CSR or core business? • Opening new markets/changing business models • Profit or non-profit? Large or SMEs? Domestic or foreign? • Employment, sustainability?
Not without policy and practical reform and ‘private sector development’ as well: • Improving the business environment & • Building private sector capacity
Different types of engagement
ECDPM Page 7
• Private sector development i.e. Trade agenda: domestic enterprises, value-addition, exports, firm-level skills, …
• Private sector investment for development New agenda: international, partnering with (international) firms, offset risk, link producers & suppliers, value chains, CSR to Shared value
• Private sector finance for development Leverage private finance for development
• Public-private dialogue and economic reform Business environment: identifying business drivers and bottlenecks; define opportunities for policy and/or practical improvement; i.e. in government regulations; credit-access, industrial policy, etc.
Tailored approaches and roles:
ECDPM Page 8
• Diversity of countries • Diversity of level of development • Diversity of economic structures • Diversity of business framework & organization
• Common integration objectives • Converging interests • Converging agenda • Sharing experiences
=> APEI public – private dialogue; diversity is a strength
No such thing as regional uniformity either - APEI
ECDPM Page 9
APEI - Human Development Index
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2012 2011 2010 2009 2008 2007 2006 2005 2000
HDI
VAlue
Malawi
Mauritius
Mozambique
Seychelles
Zambia
Human Development Index (HDI) value 2012 2011 2010 2009 2008 2007 2006 2005 2000
Malawi 0.418 0.415 0.413 0.401 0.392 0.381 0.373 0.363 0.352 Mauri4us 0.737 0.735 0.732 0.727 0.725 0.72 0.715 0.708 0.676 Mozambique 0.327 0.322 0.318 0.312 0.306 0.301 0.291 0.287 0.247 Seychelles 0.806 0.804 0.799 0.795 0.793 0.792 0.785 0.781 0.774 Zambia 0.448 0.443 0.438 0.431 0.42 0.411 0.405 0.399 0.376
• Choose focus: Define policy and/or practical areas where business interests & development objectives converge (i.e. food security, credit, customs)
• Set objective: Create ever more business-friendly regulatory environment … to promote business-driven economic transformation…for sustainable & inclusive development – define indicators for progress
• Connect to and/or build (knowledge) networks: to provide timely inputs; business options, and to document lessons and experiences; communicate results.
• Understand prerequisites for success: Requires political will and a continuous active public-private sector engagement…(i.e. monetary and time costs!) …and often, accompanying measures
⇒ Sustained public – private dialogue ⇒ The process is as important as its content
Structured Public-Private Dialogue:
ECDPM Page 11
APEI –Doing Business Comparison Economy Ease of Doing Business Rank Filtered Rank StarHng a Business ProtecHng Investors Trading Across Borders Enforcing Contracts
Mauri4us 19 1 2 2 1 8
Seychelles 74 6 16 9 2 14
Zambia 94 8 7 13 30 15
Mozambique 146 20 10 5 16 22
Malawi 157 26 26 13 39 27
0 20 40 60 80 100 120 140 160 180
Ease of Doing Business Rank
Filtered Rank
Starting a Business
Protecting Investors
Trading Across Borders
Enforcing Contracts
Rank
WB Doing Business Indicators
Malawi
Mozambique
Zambia
Seychelles
Mauritius
“The objective is to create mutual engagement on the part of governments and businesses to undertake policy reforms with a view to improving the overall business environment so as to strengthen the competitiveness of enterprises, encourage linkages and facilitate exchanges among APEI countries.” (ToR)
APEI Objective: public private engagement for economic reform
ECDPM Page 13
How? Facilitating APEI Government – private sector engagement and progress • Define common challenges • Focus on solving business bottlenecks; set goals and
monitor progress. • Build on existing national government and domestic
business experiences and, knowledge networks for documenting, sharing and learning.
• Connect with APEI national and regional formal policy making processes.
• Key principles: stakeholder drive and ownership of the process; adequate knowledge and information support; effective and efficient (virtual and face-to-face) meetings; clear outputs and outcomes in line with goals set.
Page 14 ECDPM
• Independent, non-partisan foundation
• Strong orientation on process and ownership
• Intense connection to African policy and practice
• Experienced facilitators of structured dialogue and multi-stakeholders sharing and learning
• Proven capacity to collect, synthesize and share key information in brief handy formats
• Building on relevant experiences elsewhere –
successes & failures
• Close attention to the political economy of economic transformation
• Experience in reporting back to governments and business partners
ECDPM assets & possible roles
Page 15 ECDPM
• Is the government committed to ‘going the extra mile’ to improve the business environment in the country?
• Which sector/cluster of the economy has priority? • In this sector/cluster are business interests and
and development objectives converging? • For each country, who should take part in the
structured dialogue in this cluster/sector? • Will these stakeholders, in particular the private
sector, be interested in participating? • How is this different from what is being done now? • What can be done to make sure specific, visible
results are being achieved?
Some questions for discussion:
ECDPM Page 16
Thank you www.ecdpm.org
Prof Dr Ir Paul Engel pe@ecdpm.org
Director
Page 17
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