Ppd concept note october 2012

PUBLIC PRIVATE DIALOGUE CONCEPT NOTE A robust and active Public Private Dialogue (PPD) is a key advocacy tool in any highly functioning economy. As the private sector grows in Rwanda, the business community increasingly demands more access to and influence over the changing regulatory landscape of the developing country.

Prior attempts to launch a unified PPD in Rwanda have had mixed reviews, facing a variety of challenges including: • lack of uniformity (PPD activities exist in many format) and lack of coordination between them produced redundant efforts and/or lose out on efficiencies; • private sector representation was limited to the executives of the Private Sector Federation (PSF) and needs to be more inclusive with broader representation; • Weak capacity of prior RESC and other PPD forums for developing rigorous evidencebased recommendations and lack of advocacy to the concerned institution for sustainable actions, there was not a clear responsible party for follow up, organizing the back office needs of PPDs, nor solid facilitation and meeting design to achieve outcomes; • Reforms tended to be initiated and driven by the Government with the private sector playing a reactive role, often late in process where meaningful, researched responses and upgrades are difficult if not impossible.

From the Government side, RDB has been given the mandate and resources to lead on private sector development activities of the Governent of Rwanda. The private sector has empowered the Private Sector Federation (PSF) as their advocate with the public sector so a PPD structure that brings together both stakeholders is key. Both entities can do what they are good at, RDB coordinates private sector issues among the public stakeholders, while PSF coordinates the private sector content and stakeholders in a joint effort.

While it is true that a centralized focus on PPDs has not emerged, there are a variety of success stories of PPDs where action plans were made, followed through, and outcomes achieved.

Examples include the IFC AgricultureTask Force, the Tourism Working Group, the ICT Working Group, the Tax Issues Forum and the NMC PPD at MINICOM. These offer successful lessons learned which have been incorporated in the PPD platform concept.

New PPD Structure This structure aims at streamlining the PPD and makes it more responsive, more action focused, and creates a robust joint Secretariat to be the effective machine that organizes necessary decision makers, coordinates research and positions, and creates meetings that are well designed and well facilitated to achieve action plans that will push stakeholders towards successful outcomes. This structure addresses a major challenge of PPDs - the lack of consistent organizational leadership.

Page 1 of 5

PUBLIC PRIVATE DIALOGUE CONCEPT NOTE

Proposed Framework for a Functioning PPD Platform Issues Are Demand Driven This effort must remember that any PPD needs to be issue-based otherwise it becomes irrelevant.

While the Chambers cover the spectrum of private sector actors, each one does not necessarily need a PPD Working group. Issues will arise from a variety of sources including local level, PSF Members, Third Party Studies identifying clear private sector issues, MDA’s who have regulatory issues that need to be addressed and affect the private sector and those at a local level.

Additionally, investors and the diaspora have an increasing role in the dialogue of issues.

Some of the issues may be short term, specific points that can be resolved in a single PPD cycle, while others are the continual flow of challenges in a given sector. Thematic or Sector related Platforms will likely develop and start to form more regular norms of operating within the PPD structure and support system.

Page 2 of 5

PUBLIC PRIVATE DIALOGUE CONCEPT NOTE The Joint Secretariat – the PPD hub The challenge with prior PPD attempts is addressed with a strong central PPD Secretariat who serves as facilitator. This proposed structure consolidates many of the functions of the prior structure in order to reduce issues of communication, too many stakeholders or approval steps, loss of efficiencies and one-stop engagement center for donors, government and private sector participation regardless of their interest or industry. Instead of the “working groups” being permanent structures, the Secretariat and the system are the same, while the issues and leaders change.

PPD Secretariat functions: Prioritize As issues originate up from demand driven private sector issues, they will be prioritized by the Joint Secretariat of RDB-PSF. Together, these two institutions form the PPD Secretariat. An agreed upon criteria such as issues with broad impact, timeliness, PPD feasibility to address the issue, among others, will dictate workflow for the RPPD. Research-based Combining PSF and RDB for the Secretariat leverages both resource bases for research, hiring experts and working with their respective stakeholders, Government and the private sector. The Secretariat will coordinate and conduct the research and positions with facts and solutions that will serve as the basis for the conversation in the actual High Level Decision Making PPD Platform. This will involve working with various experts. RDB will benefit from the support of the Strategy and Competitiveness Unit. RDB could also access key research or policy backgrounds and opinions, while PSF focuses on the same in the private sector. The Secretariat can hold technical working groups to further refine the position for the decision meetings or conduct surveys among other tools. The outcome will be the spectrum of positions and proposed solutions for a particular issue with supporting facts and research to frame the decision makers’ dialogue.

Meeting Design, Facilitation and PPD Platform Meeting Organization Consistent, central logistic support is key for a functioning PPD. The Secretariat will consider each issue that is chosen and determine the meeting design that will best achieve the outcomes possible by the PPD. They will use their respective insight and relationships with Government and Private Sector to determine the invite list necessary with decision-making power to address the chosen issue and handle all logistics for the day of event. They will serve as a “neutral host” of the PPD Platform, and depending on the issue, each PPD will have co-chairs determined by each side. Prior to the PPD Platform event, the Secretariat will disseminate the results of the research in a document that will frame the issues to be discussed at the PPD with relevant facts, Page 3 of 5

PUBLIC PRIVATE DIALOGUE CONCEPT NOTE data and possible solutions for decision makers to consider and come to agreement on the day of the PPD. High Level Decision Making PPD Platform àAction Plans with Follow Up Without concrete action, PPD will not be successful. PPDs need solid facilitation to drive for an action plan with clear leaders taking responsibility within timelines.

The Secretariat will facilitate meetings of high-level decision makers, informed of the spectrum of facts, policy and proposed solutions by their technical experts during the research phase.The Secretariat will have to work hard to create the appropriate design, strong facilitation, and action plans, hiring additional specialists if necessity as capacity grows.

This PPD Platform meeting is the main event in the process where leaders come together with a spectrum of informed positions and negotiate in person the next steps to overcome or address the priority issue. Of course not all issues will have a complete action plan in one session. However, if each meeting ends with clear next steps and both parties return to the table at the agreed time showing progress, they repeat until resolution. The PPD creates accountability and belief in participation, which drive parties to resolutions. Instead of a passive regime where issues are researched independently and left for private sector to submit to various Government forums and wait for a response, this structure encourages action and decision making, while increasing and supporting accountability and achievement.

The Secretariat adds crucial value with follow up on the action plans; RDB will be responsible for checking in with public sector stakeholders and reminding and helping to accomplish their agreed milestones, while PSF will do the same for those action items agreed to be accomplished by private sector. The Secretariat will need to be strong in the follow up phase for the PPD to be successful.

Joint Advisory Board The Joint Advisory Board will be co-chairedby the CEO of RDB and the Chairman/CEO of PSF. They will be responsible for considering the outstanding issues from the High Level PPD Platform that need to be channeled for further support or decision making among others Cabinet, the National Retreat, IDEC and the PPD Summit. They are not a decision making body on issues, but rather facilitate remaining actions determined at the PPD Platform among the high level public stakeholders. As and when needed, the Joint Advisory Board will call in other members of the private and public sector.

Local Issues channeled through Local PPD Solutions To reduce the Joint PPD Secretariat burden, the BDS/District have been trained in PPD and advocacy techniques at the district level by PSF. The local level will first attempt to resolve the issue using the PSF local strategies and PPD trainings. However, if inadequately addressed, the Page 4 of 5

PUBLIC PRIVATE DIALOGUE CONCEPT NOTE issue will be channeled to the PPD Secretariat for consideration. The Secretariat may support the local level PPD in various ways or consider the issue for the High Level PPD Platform decision.

Existing PPDs – Harmonize and Support There are currently a few PPD platforms, working groups, task forces which are functioning and the stakeholders are happy with the process flow and outcomes. In these cases, the PPD Secretariat will provide support and a communication arm for these PPDs and not currently require integrating into the new system. The existing PPDs will work outside the issue flow if they choose, or take advantage of the research, meeting design, facilitation, invites and back office functions required to host successful PPD within the new Secretariat. Either way, existing PPDs will submit action plans from their events to the PPD Secretariat to reduce inefficiencies and take advantage of the communication channels that will be established between the PPD Secretariatand the greater private sector, media. For issues requiring Cabinet or Executive action, the Joint Advisory Board will channel it to PSO’s, IDEC and Cabinet, the National Retreat, or PPD Summit.

Accessing National or Executive Level Dialogue Opportunities Lastly, the PPD secretariat and Joint Advisory Board will manage and reserve those issues that require national attention that were not resolved by the primary PPD structurefor presentation at the PPD summit. If an issue has passed through the PPD system and the drafted action plan was followed inadequately, it will be considered by the Joint Advisory Board who will channel it to the appropriate high-level PPD summit, National Retreat, or Cabinet review. Additionally, issues where the clear decision making stakeholder is the Executive or in cases of severe deadlock, the Joint Advisory Board will make a determination of a specific high-level course of action.

Conclusion Bringing together RDB’s strength with the public sector and their earmarked facility for these efforts with PSF’s resources and access to the private sector is the ideal PPD partnership. The Secretariat will be a joint RDB-PSF body. This structure leverages both parties’ strengths as the Secretariat plays the key role in managing the PPD process from issue consideration, research, planning, facilitation and meeting design and follow up.

For PSF this joint effort provides an effective mechanism to drive issues to actionable solutions.

Page 5 of 5