APEI Technical Meeting
26&27 September 2013
Lilongwe, Malawi
Public-private dialogue and
learning for
economic transformat...
We focus on the relations and cooperation between
Africa, the Caribbean, the Pacific and Europe
We think ‘development’ is ...
•  Governments engage more with the private sector
as engine of growth; recognize the need to improve
the business environ...
“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 t...
No such thing as THE “private sector” => need for
tailored approach to diverse clusters
Engaging the ‘private sector for d...
•  Private sector development
i.e. Trade agenda: domestic enterprises, value-addition,
exports, firm-level skills, …
•  Pr...
•  Diversity of countries
•  Diversity of level of development
•  Diversity of economic structures
•  Diversity of busines...
APEI - Human Development Index
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
201220112010200920082007200620052000
H
D
I
V
A
l
u
e
...
•  Choose focus: Define policy and/or practical areas where
business interests & development objectives converge (i.e.
foo...
APEI –Doing Business Comparison
Economy	
   Ease	
  of	
  Doing	
  Business	
  Rank	
   Filtered	
  Rank	
   StarHng	
  a	...
“The objective is to create mutual engagement on the
part of governments and businesses to undertake policy
reforms with a...
How?
Facilitating APEI Government – private
sector engagement and progress
•  Define common challenges
•  Focus on solving...
•  Independent, non-partisan foundation
•  Strong orientation on process and ownership
•  Intense connection to African po...
•  Is the government committed to ‘going the extra
mile’ to improve the business environment in the
country?
•  Which sect...
Thank you
www.ecdpm.org
Prof Dr Ir Paul Engel
pe@ecdpm.org
Director
Page 17
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Public Private Dialogue and Learning for Economic Transformation

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Dr. Paul Engel
ECDPM Director
APEI Technical Meeting
26th & 27th September 2013

Lilongwe, Malawi

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Public Private Dialogue and Learning for Economic Transformation

  1. 1. APEI Technical Meeting 26&27 September 2013 Lilongwe, Malawi Public-private dialogue and learning for economic transformation Dr Paul Engel Director
  2. 2. 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
  3. 3. •  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
  4. 4. “We want economic reform…” = economic transformation ECDPM Page 4 AIDA
  5. 5. “We want to engage the private sector…” ECDPM Page 5
  6. 6. •  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
  7. 7. 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
  8. 8. •  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
  9. 9. •  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
  10. 10. APEI - Human Development Index 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 201220112010200920082007200620052000 H D I V A l u e 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  
  11. 11. •  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
  12. 12. 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
  13. 13. “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
  14. 14. 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 14ECDPM
  15. 15. •  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 15ECDPM
  16. 16. •  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
  17. 17. Thank you www.ecdpm.org Prof Dr Ir Paul Engel pe@ecdpm.org Director Page 17

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