Champa Khamsouksay & Daniel Taras Sub-national PPD Initiatives in Lao PDR: The Provincial Public Private Dialogue (PPPD)
Country Context: Lao PDR <ul><li>Transition from a planned economy to a market-based economy with gradual reforms starting...
Particularities of Lao PDR’s PPPD <ul><li>Provincial-level PPPD and national level PPD (Lao Business Forum – LBF, supporte...
PPPD Structure, Processes, and Support as facilitator  (support via stakeholders) national level provincial level
The PPPD Timeline & Key Milestones <ul><li>Introducing PPPD  idea   </li></ul><ul><li>Familiarisation with  dialogue conc...
Major Results & Lessons Learned <ul><li>Major Results: </li></ul><ul><li>Strong central-level support for PPPD initiative,...
Challenges & Next Steps <ul><li>Challenges: </li></ul><ul><li>Lao ownership of central level secretariat </li></ul><ul><li...
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Conferences P P D Vienna2009 Presentation Laos Send Out

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Conferences P P D Vienna2009 Presentation Laos Send Out

  1. 1. Champa Khamsouksay & Daniel Taras Sub-national PPD Initiatives in Lao PDR: The Provincial Public Private Dialogue (PPPD)
  2. 2. Country Context: Lao PDR <ul><li>Transition from a planned economy to a market-based economy with gradual reforms starting in 1986 (“New Economic Mechanism”) </li></ul><ul><li>Business and investment climate still poor (‘Doing Business’ 2009: #165/181) </li></ul><ul><li>Integration into regional (AFTA) and global economy (WTO), plus rapid rise in FDI exposes Laos to strong competitive pressures: need to reform faster </li></ul><ul><li>State is slowly reducing its influence over the economy, while private sector representative bodies take an increasingly stronger role </li></ul><ul><li>However, the private sector is still relatively weak and concept of government as service provider to its people still not well developed </li></ul><ul><li>Significant differences between provinces: geography/physical endowments, but also level of good economic governance and reform-mindedness matter </li></ul><ul><li>Relatively sound economic laws and regulations, but implementation, especially at provincial level, still relatively poor </li></ul>Objective: Public and private sector jointly improve the provincial business and investment climate through an institutionalised, transparent Provincial Public Private Dialogue (PPPD) process: (i) better implementation of laws & regulations at provincial level; and (ii) feedback mechanism for drafting laws & regulations at national level.
  3. 3. Particularities of Lao PDR’s PPPD <ul><li>Provincial-level PPPD and national level PPD (Lao Business Forum – LBF, supported by IFC/MPDF) coexist, roughly started at the same time </li></ul><ul><li>PPPD initiative forms part of wider GTZ Human Resource Development for a Market Economy Programme (HRDME), which seeks to tackle the key bottlenecks for sustainable private sector development in a concerted effort of public and private sector: </li></ul><ul><ul><li>LNCCI: strategy development, incl. expansion of network and membership </li></ul></ul><ul><ul><li>MPI / DPI: investment promotion, streamlining, market economy principles </li></ul></ul><ul><ul><li>SMEPDO: SME strategy, action plan implementation and monitoring </li></ul></ul><ul><ul><li>Ministry of Education: integrated vocational education (public-private) </li></ul></ul><ul><li>Strong, participatory, public-private co-leadership approach: </li></ul><ul><ul><li>Central Taskforce on PPPD (LNCCI, MPI, SMEPDO, MoE) as key steering and support institution for the provincial dialogue </li></ul></ul><ul><ul><li>Additional support to private sector working groups via LNCCI </li></ul></ul><ul><ul><li>Drafting of guidelines, structures through consultative processes </li></ul></ul><ul><li>Institutionalisation of PPPD </li></ul><ul><ul><li>Blue-print for structure & processes, PPPD Guideline </li></ul></ul><ul><ul><li>Governor’s nomination of secretariat, approval of roles & responsibilities </li></ul></ul>public private
  4. 4. PPPD Structure, Processes, and Support as facilitator (support via stakeholders) national level provincial level
  5. 5. The PPPD Timeline & Key Milestones <ul><li>Introducing PPPD idea  </li></ul><ul><li>Familiarisation with dialogue concept  </li></ul><ul><li>Testing capacity & ownership  </li></ul><ul><li>Building trust  </li></ul><ul><li>Ensuring top-level support  </li></ul>Introduction Institutionalisation Full Ownership & Roll-out <ul><li>Developing PPPD blue print: structures & processes  </li></ul><ul><li>Approval by governors  /  </li></ul><ul><li>PPPD brand-building  </li></ul><ul><li>Quick wins  </li></ul><ul><li>Establish secretariats  /  </li></ul><ul><li>Strengthen working groups  </li></ul><ul><li>Link with LBF  </li></ul><ul><li>Lao ownership of central-level secretariat & support structures  </li></ul><ul><li>Further strengthening of ‘model’ provinces  </li></ul><ul><li>Expansion to other provinces  /  </li></ul>Now Indicator: solve min. 10 issues Legend: (  ) completed, (  ) ongoing, (  ) not yet started PPPD introduced to pilot provinces Various PPPD meetings held in pilot provinces Late 2005 Mid 2007 Central Taskforce on PPPD set up Mid 2011 PPPD guideline complete Early 2009 Roadshows to 2 additional provinces Roadshows to 4 pilot provinces Fact-finding & consultation for structures & guideline Late 2008 GTZ-HRDME support terminates Various PPPD Trainings & Coaching Central level secretariat full Lao ownership Link with LBF formalised End 2010 2010(?) Governor approval (CPS province) Additional provinces join (?) Reporting of PPPD generated issues at LBF
  6. 6. Major Results & Lessons Learned <ul><li>Major Results: </li></ul><ul><li>Strong central-level support for PPPD initiative, both by public and private, based on increased mutual trust and understanding of benefits of PPPD </li></ul><ul><li>Request for expansion to two additional provinces by themselves and demand for nationwide expansion by MPI: evidence of ownership </li></ul><ul><li>PPPD guideline disseminated: strong ownership of drafting process </li></ul><ul><li>Development of blue-print for structure & processes: highly participatory </li></ul><ul><li>Trust-building between public and private sector through joint-activities, incl. planning, budgeting, implementation </li></ul><ul><li>Comprehensive PPPD branding/marketing strategy: high name recognition and support for PPPD initiative </li></ul><ul><li>Request by MPI permanent secretary for set-up of private sector consultation website in connection with economic crisis </li></ul><ul><li>Lessons Learned: </li></ul><ul><li>Despite importance of an overall blue print for PPPD, flexibility for different preferences proved important to get initial support </li></ul><ul><li>Political support by provincial authorities (governor) crucial </li></ul><ul><li>Sound problem analysis and action planning of private sector crucial </li></ul><ul><li>Locally recruited external support important, especially at provincial level </li></ul><ul><li>Pushy approach not fruitful in Lao context, a gradual approach with strong emphasis on mutual trust and cooperation yielded better results </li></ul>
  7. 7. Challenges & Next Steps <ul><li>Challenges: </li></ul><ul><li>Lao ownership of central level secretariat </li></ul><ul><li>Linkage of national-level PPD (LBF) and provincial level PPPD </li></ul><ul><li>Degree of self-organisation of private sector working groups and capacity of support structure of chamber of commerce (albeit improving) </li></ul><ul><li>Quality of issue papers by private sector </li></ul><ul><li>Sustainable financial support </li></ul><ul><li>Differing levels of reform-mindedness of public sector by province </li></ul><ul><li>Next Steps: </li></ul><ul><li>Linkage with LBF </li></ul><ul><li>Presentation of national level issues at LBF through formalised link </li></ul><ul><li>10 issues solved by year end </li></ul><ul><li>Newsletter & website </li></ul><ul><li>Interprovincial forum on PPPD, possibly with participants from other countries </li></ul><ul><li>Increased support for PPPD ‘model’ provinces </li></ul><ul><li>Continued expansion to other provinces, depending on demand </li></ul><ul><li>Set up M&E system in line with Donor Committee for Enterprise Development (DCED) impact standards </li></ul><ul><li>Exit strategy (2011) </li></ul>
  8. 8. Thank you very much for your attention

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