PIPSO MISSION: To lead the facilitation of private sector-driven economic growth for the benefit of the region.
The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Pacific Islands Private Sector Organization concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.
October 2012 Original: English Š Pacific Islands Private Sector 2012
Pacific Islands Private Sector Organisation
CONTENTS Abbreviations .....................................................................................................2 Introduction .......................................................................................................3 PART I: PIPSO’s Strategic Achievements (2010–2012)................................................5 Capacity Building............................................................................................... 5 Partnerships ..................................................................................................... 6 Technical Support ............................................................................................. 7 PART II: New and Emerging Challenges and Opportunities in the Global Trade Environment Facing the Pacific ......................................9 Key Trends In The World Economy.................................................................... 9 Global Trade Trends .......................................................................................... 9 Pacific Outlook ................................................................................................. 9 PART III PIPSO’s Strategic Areas of Focus ................................................................11 1. Building Strong and Responsive National Private Sector Organizations (NPSOs) .................................................................. 2. Promote and Facilitate Greater Cooperation and Information Sharing with the Private Sector............................................... 3. Improve Private Sector Dialogue And Partnerships with Government And Partners ........................................................................ 4. Facilitate and Build Private Sector Business, Trade and Competitiveness ...................................................................... 5. Strengthen Private Sector Involvement in National and Regional Policy Development and Support Implementation ........................................................................... 6. Advocate for Interest of the Private Sector at Regional and International Forums ........................................................... 7. Maintain a Sustainable, Effective snd Relevant PIPSO...............................
11 12 12 13
14 15 16
PART IV PIPSO’s Approach to Monitoring and Measuring its Results and Impact.................................................................17 PART V PIPSO Strategic Goals, Key Results Area and Timelines.............................19
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ABBREVIATIONS BDF
Business Development Fund
CBF
Capacity Building Fund
FEMM
Forum Economic Ministers Meeting
FICs
Forum Island Countries
FTMM
Forum Trade Ministers Meeting
NPSOs
National Private Sector Organization
PACTMM Pacific African Caribbean Trade Ministers Meeting
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PIFS
Pacific Islands Private Sector Organization
PIPSO
Pacific Island Private Sector Organization
PSOs
Private Sector Organizations
RPSOs
Regional Private Sector Organizations
SPC
Secretariat of the Pacific Community
Pacific Islands Private Sector Organisation
INTRODUCTION Since the late 1980’s, Pacific Islands’ policy makers have realized that the future of balanced and productive economic growth in the region will depend substantially upon private sector-led involvement and curtailment of undue Government intervention and direct competition with the private sector. This realization swelled to a regional consensus at the 1992 Forum Meeting, where Leaders affirmed their “recognition of the vital role that an effective private sector should play in ensuring economic growth”. Bringing about private sector-led development has not been easy though. Macro-economic structural adjustments continue to be undertaken but institutional reorganization and nominal policy and regulatory changes have not resulted in the level of actual ‘reform’ expected and required. The residual challenges facing the Pacific Islands’ Private Sector investment and business activities have been well documented and widely lamented over the past 15 years at both national and regional levels. The PIPSO Strategic Plan for 2013 – 2015 revises and updates the 2010–2012 Plan. It presents the organization’s objectives and milestones for increasing the impact of its technical assistance activities in developing countries. While this Strategic Plan is rooted in the concepts and accomplishments of the previous one, it also represents an important step forward for the organization in terms of a more integrated approach for delivery and results measurement of PIPSO interventions, and in terms of a corporate direction to incrementally demonstrate the socio-economic impact of PIPSO’s work. The Strategic Plan affirms PIPSO’s mission to lead the facilitation of private sector- driven economic growth for the benefit of the region. In order to succeed in this mission, the Strategic Plan outlines and explains seven strategic areas of focus: 1. 2. 3. 4. 5.
Build Strong and Responsive National Private Sector Organizations (NPSOs) Promote and facilitate greater cooperation and information sharing with the private sector Improve private sector dialogue and partnerships with government and partners Facilitate and build private sector business, trade and competitiveness To strengthen private sector involvement in national and regional policy development and support implementation 6. To advocate for interest of the private sector at regional and international forums 7. To maintain a sustainable, effective and relevant PIPSO These goals reinforce each other and recognize that PIPSO requires managerial capabilities and a favorable environment to engage with national, regional and international organizations to identify and respond to opportunities that will create sustainable business growth in the Pacific. Very importantly, these goals also include the development of strong, unified, constituent national representation organizations and mechanisms and the development of effective representational capacity on their part The 2013–2015 Strategic Plan is presented in five parts: • Part I outlines past PIPSO achievements, which lay the foundation for the PIPSO’s future strategic direction; • Part II highlights new and emerging challenges and opportunities in the global trade environment facing ITC clients; • Part III describes PIPSO’s strategic areas of focus; • Part IV summarizes PIPSO’s approach to monitoring and measuring its results and impact. • Part V outlines PIPSO Strategic goals, key action items and timelines
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PIPSO also has a role in creating opportunities for growth and prosperity. Sharing of information among its members regarding business opportunities as well as on best business practice, and on new technologies to achieve efficiency, can add value to aspirations of national private sector organizations so that they themselves can be more competitive and productive. (Excerpt From the Secretary General of the Pacific Islands Forum Secretariat, Opening Speech for the 2010 PIPSO AGM)
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PART I – PIPSO’S STRATEGIC ACHIEVEMENTS (2010–2012) During 2010–2012, PIPSO committed itself to generating better value for money for both its partner and donor countries. It achieved this by progressively moving from a decentralized business model, based on a relatively large number of small projects and stand-alone tools, towards a more integrated way of working with clients; increasing its portfolio of large programmes; responding to development objectives and needs; and improving project portfolio governance. Capacity Building To have relevant and practical private sector development strategies for the Governments to promote and implement to increase economic growth, the private sector needs to engage and dialogue with government more frequently. To undertake that it would require a strong national private sector organization that would be able to organize, coordinate and prepare private sector submissions that are fact based. For the last three years, PIPSO has been building the capacities of the national private sector organizations for its 14 member countries. This work focused on the action plan below for the last three years. Figure 1: BUILDING STRONG NPSO STRATEGIES
Strengthen Core
Build Capabilities & Business
Create Options for Future
• Develop and Impement Proper Constitution • Develop and Implement appropriate policies and procedures • Develop relevant information system and communication • Have proper office and staff • Develop strategic and business plans • Develop appropriate membership drive strategies to ensure inclusiveness of members • Develop and implement approriate members services • Conduct relevant surveys and studies for the private sector • Conduct regular dialogue with members and Government • Memberships in statutory boards, public enterprises and national sector committees • Develop membersship database and develop core industry working groups • Connect with regional NPSOs and overseas private sector organisations • Plan trade missions for members • Facilitate members application for assistance
With the national private sector organizations (NPSOs) surveys that were conducted from 2008 and 2009, PIPSO undertook concrete measures to build the capacity of the national private sector organizations. The requirements of an effective NPSOs were outlined to all NPSOs on the AGM held in June 2010 with guided directions on how their organizations were to be formed, structured and developed with clear operational policies and governance structure. In summary these were the tasks that were implemented in building the capacities of the NPSOs from 2010 and 2012. • Workshop in June 2010 on guidelines on building strong NPSOs. • Six NPSOs were provided funding support in 2010 to conduct training for their members which covers business training in Tuvalu, improving business performance in Tonga, negotiation skills in Samoa, corporate governance and strategic planning in Tuvalu and attachment to sister organizations for Fiji. • A total of 134 participants benefited from the various training programmes undertaken in 2010. • In 2011, three NPSOs namely Kiribati, Nauru and Tuvalu were included in PIPSO’s mentoring programme. Representatives from strong NPSOs (Samoa & Tonga) were part of the mentoring team who would were able to share their experiences with the NPSOs that were mentored.
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Strategic Plan 2013 - 2015
• NPSOs mentoring programmes included the review of the NPSO structures and operations. Presentation on the requirement of an effective NPSOs were made to the members of the NPSOs. During these visits, PIPSO also visited individual businesses and dialogue with Government counterparts. • Four NPSOs were assisted with training their members in the area of corporate governance, corporate criminal liabilities in Fiji, HIV/AIDS workshop in Fiji, a tourism forum in Palau, business fair in Tuvalu and provisional of technical expertise on handicrafts to Nauru. A total of 145 participants benefited from these trainings conducted in 2011. • In 2012, so far four NPSOs were assisted with training and while three NPSOs continued to be mentored. Niue was assisted with their Strategic Planning workshop. Two business financial training workshops were conducted in Solomon Islands which benefited a total of 70 participants. Also a business financial training was conducted in Kiribati which benefited about 42 participants. Tonga was assisted with the Youth Entrepreneurship programme. Fiji was assisted with its participation and collaboration with the Korea Chamber of Commerce and business mentoring workshop which benefited 25 participants.
Partnerships Building and forming strategic partnerships is very important to PIPSO. The role required in this area entails more than just forming alliances and collaboration but also to provide appropriate policy advice on private sector development to the Pacific Islands Forum, assist members formulate national private sector strategies and policies and advocate the interests of the private sector at regional and international levels. It also involves building partnerships with Government which is a key stakeholder through public and private sector dialogue. The provision of policy advice is an area that PIPSO has not been able to perform well for the last three due to resources constraints. However in other areas, PIPSO has been able to undertake the following which is summarized below. • Assisted PIFS in conducting the first private sector dialogue with the Forum Leaders in Port Vila, Vanuatu in 2010. A number of key issues were raised at this dialogue which was well received by the Leaders. • Following the first ever regional conference for women in business in Port Vila, Vanuatu in March 2010, the Pacific Business Women requested PIPSO to be that organization to advocate and promote the interest of business women. For that PIPSO as an organization has been raising the issues both at national, sub-regional and regional level. • In 2010, PIPSO entered into an MOU with the Caribbean Association of Industry and Commerce (CAIC). This relation allowed for the attachment of PIPSO Chair to learn how CAIC operates in the Caribbean. • At the end of 2010, the second regional business forum was organized which covered the 14 Pacific regional and international Islands and included organizations. The business forum called for more regional collaboration. • In 2011, PIPSO participate at the FEMM in Samoa and Forum Leaders Dialogue at Auckland which involved about 35 participants from the private sector. • Towards the end of 2011, PIPSO organized the first ever sub-regional private and public sector dialogue for the North which involved Federated States of Micronesia, Republic of Marshall Islands and Palau. A total of 26 participants participated at this dialogue which included Government Ministers from the three countries. • Two trade missions were undertaken in 2011 for Guam to continue talks on labour and business opportunities in view of the relocation of the US military base to Guam from Japan. A trade mission was also conducted for PNG and Indonesia. • A number of formal partnerships on work programmes were also secured during the year which allowed PIPSO to extend its activities in the needed areas for private sector • As the recognition of PIPSO grew, it was invited to speak at a number of regional and international forums. Currently PIPSO sits in the advisory committee for SME Financing for ACP.
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Technical Support The provision of technical support to NPSOs and likewise to businesses is very important for the development of the private sector for the Forum island Countries. Given the nature of the private sector which is dominated by SMEs, a lot of assistance is required to improve the product quality and production and market access. Assistance provided included the production of promotional materials, attendance to trade shows exhibitions, training, attachment, business match making and engagement of technical expertise. • A total of 28 companies were assisted in 2010. In 2012, this increased to 40 companies. The companies assisted cuts across the different sectors in the industry which included agriculture, manufacturing, tourism, trade in services and transport. In 2012, the number of companies that are assisted continues to increase. The details of all the companies that were assisted are outlined in the annual reports. • PIPSO through the Australian Volunteers International received a Financial Services Adviser as a Volunteer to undertake work in the area of business financial training for 2012. This was a needed assistance in view of the lack of resources to support the work of PIPSO.
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“While the private sector is traditionally charged to lead economic growth, due to the sheer smallness of many island economies, private sector contribution to growth in these island nations are either very limited or, intricately tied with some form of government partnerships. As a key goal set by its Charter, this is one area that PIPSO will continue to promote heavily so as to ensure that there are win-win effective private and public sector partnerships – fostering of which can be brought through effective private and public sector dialogue” (Excerpt from Hafiz Khan 2010 PIPSO Annual Report (PIPSO Chair 2010-2012)
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PART II – New and emerging challenges and opportunities in the global trade environment facing the Pacific Key Trends in the World Economy • In October 2012, IMF revises forecast down on global growth projected at 3.3 percent while a sluggish growth of 3.6 percent for 2013 due to declining prospects and increased risks. Advanced economies are projected to grow by 1.3 percent this year, compared with 1.6 percent last year and 3.0 percent in 2010, with public spending cutbacks and the still-weak financial system weighing on prospects. • World trade slumps, hurting emerging markets and developing countries. Growth in emerging market and developing economies was marked down compared with forecasts in July and April to 5.3 percent, against 6.2 percent last year. Leading emerging markets such as China, India, Russia, and Brazil will all see slower growth. Growth in the volume of world trade is projected to slump to 3.2 percent this year from 5.8 percent last year and 12.6 percent in 2010.
According to IMF Chief Economist, low growth and uncertainty in advanced economies are affecting emerging market and developing economies through both trade and financial channels, adding to homegrown weaknesses
Global Trade Trends • The World Trade Organization has warned of a worsening outlook for global trade in 2012 and 2013. It says the slowdown in such key economies as the Eurozone, USA and China are the main decelerators. The WTO lowered its 2012 forecast to 2.5% growth from 3.7%, while the outlook for 2013 was cut to 4.5 % from the previous 5.6 %.
The reason is a gloomier picture of the world economy. Thursday’s report from the Markit research company said the Eurozone economy had its strongest contraction in September since June 2009. Figures for output and jobs in the US, the world’s largest economy, have also disappointed. The unemployment rates in the US – which have remained above 8% since February 2009 – have become a “grave concern” for the economy, according to Fed Chair Ben Bernanke. Meanwhile economic indicators point to slower growth in the world’s largest exporter, China. September reading of the country’s Purchasing Manager Index (PMI) – an indicator of business activity – also pointed to continued contraction.
• There is a rebound in international tourism especially with developing countries. Tourism in developed countries remained constrained and a lot depends on the economic recoveries of the Euro Zone and financial system.
Pacific Outlook • Pacific economies have underperformed for the last two decades compared to similar regions. Economic growth has been affected by both domestic and external factors. External conditions do impact the regional economic performance with the slowdown in global demand for products and services and reduced remittances. Regional economic growth is expected to moderate in 2012 through 2013 due to slow growth in large resource exporting economies. This is mainly due to an expected reduction in exports and completion of major infrastructure projects in the larger resource exporting economies. • According to IMF, Australia’s economy for 2013 is forecasted to have a sluggish growth. Economy is expected to grow by 3.0% rather than the 3.5% projected earlier in 2012. A slight increase in unemployment is expected in 2013.
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Strategic Plan 2013 - 2015
• While PNG is expected grow at 7.5 percent this year, its forecasted to slow down to 4.5 percent as the construction work associated with LNG project continues. • Over the short term, it is expected that tourist arrivals will continue to grow especially from Australia and New Zealand for the Pacific Island countries and likewise for remittances. Based on the experiences for 2007-2009, the strong Australian economy provided significant support via tourism, trade and remittances for the Pacific island countries. • It is expected that Pacific island governments are expected to continue with their reforms on implementing policies and pursuing reforms to create an enabling environment for the private sector. This will also include the focus on key natural resources such agriculture, fisheries and tourism and improving its comparative advantage. • Regional economic integration and trade will continue to be a key agenda. Trade opportunities are being enhanced through MSG, PICTA and upcoming PACER Plus agreements. • A lot of attention would be devoted to the development of women. With the AUD320 million committed by Australia for the Pacific for gender development, it is expected that a lot of activities will be happening around this area.
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Pacific Islands Private Sector Organisation
PART III – PIPSO’s Strategic Areas of Focus 1. Building Strong and Responsive National Private Sector Organizations (NPSOs) Strong NPSOs is needed at country level. For the private sector to have a meaningful partnership with government, strong and responsive NPSOs are essential in order to coordinate the private sector consultations, dialogue and submissions to the Government. In order to perform this role, the NPSOs must have the capacities to do so. Hence the need for PIPSO to build the capacities of the NPSOs to a level that they are seen as providing the credible voice for the private sector that are inclusive, provide market driven policies and solutions for private sector development and provide appropriate services to members to enhance their business growth. In building the capacity of the NPSO, it is important that the NPSO is inclusive its membership. Figure 2 below provides a framework for the inclusion of the various private sector bodies under the NPSO.
FIGURE 2: MEMBERSHIP FRAMEWORK
NPSO
Corporate Companies
Small and micro enterprises
Middle–Size Companies
State Owned commercial companies
Women in Business
Group Associations
Rural Companies
As an NPSO, it is expected that it would be provide a number of key essential services to its members. Figure 3 below outlines the type of services required of an NPSO and it also along the line in which PIPSO will be building the capacities of the NPSOs.
FIGURE 3: NPSO SERVICES FRAMEWORK Functional Office
Appropriate Governance Structure
Proper Internal Controls
Strategic Plans, Budget, Reports
Adequate Staffing
Training & capacity Building
Identify Training
Provide Training & attachments
Facilitate Mentoring
Feedback & Review
Assistance to Members
Funding via PIPSO & regional agencies
Provide relevant information
Business matchmaking
Feedback & review
Facilitation & Coordination
Submission to Government
Submission to regional forums
Trade Missions & Visits
Regional Meetings & Forums
Advocacy & Dialogue
Inclusive Membership
Dialogue with Government
Awareness Programmes
Board & Committees Reps
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2. Promote and Facilitate Greater Cooperation and Information Sharing with the Private Sector To increase trade and economic integration in the Pacific, there is a need for greater cooperation. Given the vast distance between the Pacific islands, PIPSO’s key role is to bring together the private sector from these Pacific Islands where they can exchange information, trade, undertake business match making and learn from each other. At the same time given the limited resources and capacities, a number of issues can be dealt with on a sub-regional and regional level. Hence the need for PIPSO to coordinate and bring together relevant stakeholders in region that can provide the solutions to the challenges issues and pool their resources together. PIPSO will endeavor to share relevant up to date information with its members.
3. Improve Private Sector Dialogue and Partnerships with Government and Partners Public-private dialogue (PPD) is a means for promoting private sector development policy reforms through raising local private sector’s voice in policy reform debates. Business forums, investor advisory councils and other types of comprehensive and systematized partnerships have become an important part of the private and financial sector reform process. Over the past years PIPSO has been initiating to conduct private and public sector dialogue at national, sub-regional and regional level to put forward pressing issues affecting the private sector. The dialogue and partnership formed with the government and development partners is important to bring about coherent growth in the private sector. The private sector includes a multitude of different actors varying from international companies, (privatised), state owned enterprises, business of different size, active in different sub-sectors and locations. Their goals are not necessarily the same. There is self-interest, mutual suspicion and some are severe competitors. Others are prepared to co-operate to defend their interest via a business organization. At the same time, there state-owned enterprises, some international companies and larger firms which might find it easier to maintain informal dialogue with government officials, while looking for one-to-one deals. This is a challenging environment in which the NPSO is to operate in and work towards building greater cooperation amongst the private sector and organized dialogues that would be mutually beneficially for the private sector as a whole rather than for a particular set of companies or industry for that matter. For the 14 FICs, there are different systems of governments that exist. This needs to be taken into account including the responsibilities handle at the various levels. Figure 3 outlines a PPD framework to guide PIPSO and its members for identifying and analyzing the different levels of dialogue and decision making on private sector development, both vertically within the private and public sectors respectively, as well as horizontally between these different sectors. PIPSO will be developing a guideline along the framework outlined in Figure 4 to guide and assist NPSOs and PSOs in conducting dialogue with government and partners.
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FIGURE 4: FRAMEWORK FOR PPD
Public Sector
Private Sector Regional Level
Forum Leaders /Ministers Forums
PIPSO Sector Working Groups
RPSOs
PSO
PSO
PSO
PSO
NPSO Country Level
Federal Government
National Government
Local Government/ Municipalities
4. Facilitate and build private sector business, trade and competitiveness Private sector businesses and trade are important for the economy. It provides tax revenue to the government and employment to the people. From the income earned, it provides for the education, savings, investment and improve the standard of living. Businesses need to grow and be supported appropriately. In this regard support would need to be provided at national as well as regional level. Each FICs have some structure in place to assist private sector businesses and facilitate trade. The work to be undertaken by the NPSOs and PIPSO is to support the current structures in place at national and regional level and should there be changes required to bring about business growth and increase trade, NPSOs and PIPSO are to advocate for it and dialogue with government. Already there are national and regional initiatives that are currently being developed like the trade agreements, harmonization of customs and quarantine standards, streamlining of investment processes and reduction of unnecessary bureaucratic procedures. The speed of such reforms varies from countries to countries, and PIPSO’s interest is to ensure that these reforms continue with full momentum especially at country level. In addition business competitiveness is very important. It requires rigorous assessment of business to ensure that businesses work smarter, be innovative, and efficient. A large part of this depends on how effectively government, trade support institutions and businesses interact and exchange information to ensure sustainable growth. The ability to cooperate to compete is essential at all level of the business process. This is the area that PIPSO will focus on in bring these key parties closer and cooperate more through sharing of information, providing the necessary support and conducting studies that will assist businesses competitiveness. The use of technology and IT to support business competitiveness is also important.
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Leaders affirmed that inclusive and sustainable economic development would lead to improved quality of life and enhanced opportunities for the peoples of the Pacific. They welcomed the opportunity provided by the Private Sector Dialogue to engage directly with Pacific business representatives on the role of the private sector in driving sustainable economic growth and creating employment opportunities. Leaders emphasized the need for governments to foster an environment that encourages entrepreneurship and allows business, particularly small and medium-sized enterprises, to thrive. (Forty-Second Pacific Islands Forum Communiqué, Auckland, NZ, 7 – 8 Sept 2011)
5. Strengthen private sector involvement in national and regional policy development and support implementation To have effective policies and legislations at national level, it requires the contribution of the private sector. This is to ensure that such policies and legislation can be effectively implemented. While the private sector would like to participate in the development of the policies and legislations from the beginning, it is important that they make the commitment. By involving the private sector from the beginning in the development of policies and legislations, it encourages the private sector to support the implementation. PIPSO’s focus is to build the capacities of the NPSOs and core private sector groups that will ably dialogue and interact with Government on policies and legislations development. This would require the provision of training and conduct of specific technical studies to strengthen the submission of the private sector. At the same time, PIPSO will also strengthen private sector interaction and dialogue at the meetings of Forum Economic Ministers and Forum Trade Ministers to push and advocate for key issues and policy matters for the benefits of the private sector. Even more essential is the need for PIPSO to monitor the outcomes and mandates of these meetings to ensure that private sector views are taken into consideration in the decision making as reflected in the outcomes statements.
We have often heard the rhetoric of “private sector-led growth” and “private public dialogue” only to have our views disregarded when policy decisions actually get made. Furthermore most business people are frankly consumed with day to day operational problems of doing business, so interacting with governments on strategic macro-economic issues, especially at regional level, is not something that we necessarily rank as our highest individual priority. We recognized that many of the major economic issues that face us within our individual countries are the products of multilateral initiatives or are being dealt with by our governments at the regional level. These included issues such as the changing regional and international trade rules and many policy initiatives that promote greater economic reform at the national level. We finally agreed that it was important for us to rise to the challenge and opportunity that regional policy leaders had offered, or the private sector to form a regional body through which to engage with government and regional organizations. (Excerpt from an interview of James Movick as PIPSO Chair in 2007 – June 2010)
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6. Advocate for Interest of the Private Sector at Regional and International Forums Enabling the private sector’s voice to be heard in regional and international forum that addresses the challenges faced by the private sector is very important for PIPSO. Experience of various countries and regions have shown that for a conducive environment for business to emerge, it is imperative for the private sector to participate openly in forums and policymaking process. Given the challenges that face many Pacific islands with regards to resources, distance and smallness, they need an organization that will speak for them and their interests. It is PIPSO’s goal to do that and highlight their challenges and draw leaders, policy makers and development attention to their issues and forge partnership to bring about amicable solutions.
As PIPSO’s recognition continues to grow, it was invited to a number of regional and international meetings to make presentation on PIPSO’s work and its perspectives on private sector in the Pacific Region. (Excerpt from Hafiz Khan 2010 PIPSO Annual Report (PIPSO Chair 2010-2012)
Advocacy, especially public policy advocacy, can be challenging because it may involve opposing the government’s stand on specific issues. Because many public policies affect business activity and consequently the health of a nation’s economy, the private sector has a right and a civic obligation to make its voice heard on policy issues. In turn, businesses have resources, human capital, and problemsolving capabilities that can benefit society as a whole, including workers who find employment in the private sector and consumers who stand to gain from cheaper, better goods and services when businesses are thriving. Advocacy does not need to be confrontational but undertaken in a manner where parties concerned respect each other and are willing to listen. In the Pacific, culture is very important and in that regard a lot can be achieve through traditional mediation. There are various advocacy options available to the private sector to use sensibly. PIPSO will be quite vocal on key issues that cross cutting for the 14 Pacific Islands countries which are not limited to the following; • SMEs Support : ease of establishment (especially for small- and medium sized enterprises – SMEs), availability of capital and credit, support for business incubators. • Access to Finance: while there are presence of financial institution, SMEs still face the difficulties in accessing finance • Energy and Transportation: fuel is a huge expense in the Pacific and this impact on transportation in the islands. Need support for renewable energy source • Quality assurance and Market Access: the need to improve the quality and standards of products produced in the Pacific which can qualify for overseas markets. • Consultations and Negotiations on Trade Agreements: the need to fully involve the private sector in consultation and negotiations of the trade agreements.
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7. Maintain a Sustainable, Effective and Relevant PIPSO In coordinating the work of 14 Pacific islands private sector a strong, effective and relevant Secretariat is required. The Secretariat does not only involve the management and staff but also include the Board and the PIPSO Council. In addressing the PIPSO members in the 2010 AGM, Mr Neroni Tuiloma Slade, the Secretary General of the Pacific Islands Forum Secretariat he stated that “as the lead body for private sector organizations in the region, PIPSO must have the support of the national private sector organizations, those which are already members as well as those still considering joining PIPSO. This will ensure PIPSO can act more effectively for its members and with a clear mandate. Having a clear and strong mandate is necessary to ensure PIPSO is influential in shaping and contributing to discourses on private sector development nationally and throughout the region.” To be sustainable, PIPSO will work hard in securing long term funding and implement programmes that are appropriate and relevant to members. It will also continually assess the effectiveness and impact of these programmes with the assistance of the NPSOs at national level. At the same time it would be proactive and continuously engage with members and would undertake country visits to make assessments and meet with local businesses and government leaders
The development of PIPSO has been slow but steady. Forging a regional organization comprising voluntary associations is not an easy task. For many us, it is difficult enough keeping our national business associations active and healthy. Nurturing a regional organization is even more challenging. It is important to keep in mind the major impetus to the creation of PIPSO was the active interest of the regional decision making bodies, especially the Forum Economic Ministers Meeting (FEMM), and regional organizations to have a representative regional private sector mechanism with which they could engage. (Excerpt from an interview of James Movick as PIPSO Chair in 2007 – June 2010)
In undertaking this strategic role, PIPSO would be mindful of the environment in which NPSOs work under. A number of NPSOs have voluntary workers and all the executive councils of the NPSOs are volunteer executives. In this regard a lot of effort and background work will have to be undertaken by PIPSO to assist NPSOs. Therefore a lot of assistance would be required at NPSO level and PIPSO is dedicated to providing as mush support and funding where appropriate to members and NPSOs. The Secretariat will operate within the guidelines set by the Board. Studies and surveys will be continuously conducted where appropriate, in order to properly ascertain the nature of the problem and also to determine the appropriate intervention.
I commence with the observation that PIPSO is an initiative of the Forum and that the Forum’s commitment and support remain undiminished. With that support since its establishment in 2005, PIPSO has continued to make headway in consolidating its position as an achieving and credible regional body. From modest beginnings, PIPSO is steadily gaining in experience, confidence and maturity. (Excerpt From the Secretary General of the Pacific Islands Forum Secretariat, Opening Speech for the 2010 PIPSO AGM)
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PART IV – PIPSO’s Approach to Monitoring and Measuring its Results and Impact Monitoring and evaluation enhance the effectiveness of PIPSO’s assistance by establishing clear links between past, present and future interventions and results. Monitoring and evaluation can help an organization to extract, from past and ongoing activities, relevant information that can subsequently be used as the basis for programmatic fine-tuning, reorientation and planning. Without monitoring and evaluation, it would be impossible to judge if work was going in the right direction, whether progress and success could be claimed, and how future efforts might be improved. Monitoring and evaluation help improve performance and achieve results. More precisely, the overall purpose of monitoring and evaluation is the measurement and assessment of performance in order to more effectively manage the outcomes and outputs known as development results. Performance is defined as progress towards and achievement of results. It is very important for PIPSO to know and understand the effectiveness and impact of the programmes and assistance it provides to its members. Otherwise the work of PIPSO will be irrelevant and something that members cannot identify with and neither support. Similarly for development partners they are also interested to see the results and impacts of the programmes that are provided. Usually monitoring and evaluation focuses on assessing inputs and implementation processes. Current developments show that the focus on assessing the contributions of various factors to a given outcome includes outputs, partnerships, policy advice and dialogue, advocacy, facilitation and coordination. From the information that will be provided and available to PIPSO, these will be actively reviewed to improve programmes and other activities. FIGURE 5: RESULTS AND IMPACT CHAINS
INPUTS
OUTPUTS
OUTCOMES
IMPACT
• • • • • •
• Trade Exhibition • People Trained/Mentored • Studies completed • Trade Missions • Dialogue • Policy Advice
• • • • • •
• Improve standard of living • Improve education opportunities • Better Facilities
Staff Expert Equipments Funds Coordination/ Facilitation
Market access Increase sales Increase incomes Increase in jobs Increase in Trade Increase women participation
With the completion of PIPSO’s Strategic Planning exercise with all its members including associates and affiliates from the 14 member countries, the members’ emphasis the need to measure the results of the work undertaken by PIPSO. This is to ensure that programmes and training that are provided and conducted do have an impact at national level with the users. If no results emanate from an activity that PIPSO is undertaking, this need to be thoroughly reviewed with change strategies. With emphasis on results, this requires PIPSO Secretariat to have proper reporting systems built in which reports on performance of each activity. Overalls it provides a coherent framework for strategic planning and management by improving learning and accountability.
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“The Private Sector of the Pacific, need to interact on an ongoing basis-for the betterment of the Private Sector, continue efforts to be seriously recognised as the Economic Engine of the Pacific Economies.�
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PART V – PIPSO STRATEGIC GOALS, KEY RESULTS AREA AND TIMELINES STRATEGIC GOAL 1: Build Strong and Responsive National Private Sector Organizations (NPSOs)
Key Actions
Key Results Areas (Measure of Success)
Timelines
● Completed guidelines by the Secretariat ● March 2013 and disseminated for use by the NPSOs ● Adoption and Implementation by NPSOs of: ● July 2013 - Governance Structures – Constitution, By Laws, Code of Ethics, Board Charter - Operational Structures – Operational Policies - ROAR (Result Oriented Annual Reports) ● Quality Reports - Submission of quality ● 5 months after annual reports by NPSOs the financial year end ● Dissemination of audited financial ● 5 months after statements to members and PIPSO the financial year end ● Regular assessments on the progress of ● Annual the level of development by Secretariat ● April 2013 2. Provide guidelines for effective ● Adoption and use of the guideline by NPSOs & strong private public sector ● On-going ● Regular dialogue between Government dialogue and private sector as organized by the ● Develop and disseminate ● On-going NPSOs guidelines to all NPSOs ● Conduct of regular effective ● Improved capacity of the private sector in undertaking the dialogue private and public dialogue by NPSOs 3. Provide demand-driven training/ capacity building/mentoring programmes to NPSOs ● Documented training needs of NPSOs ● April 2013 ● Conduct training needs survey of the NPSOs ● Dissemination of list of training providers ● Provide list of ● April 2013 recommended training providers for the training needs identified by NPSOs ● Conduct two training workshops ● June & ● Assess applications for September mentoring by the NPSOs 2013 ● Conduct and facilitate ● Conduct four mentoring programmes two training workshops/ ● March, July, attachments for NPSOs October, ● Conduct or facilitate four November mentoring programmes for 2013 NPSOs 1. Develop guidelines of best practice for NPSOs on the following: ● Governance structures; ● Operational structures; ● Funding Strategies; ● Membership Structure ● ROAR (Results Oriented Annual Reports)
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Strategic Plan 2013 - 2015
STRATEGIC GOAL 2: Promote and facilitate greater cooperation and information sharing with the private sector
Key Actions
Key Results Areas (Measure of Success)
Timeline
1. Collate relevant information, ● Quarterly/Six monthly dissemination subject ● 1 per Quarter to availability of data from national sources share information on best practices, success stories with members a. Key economic indicators and social data for member countries b. Disseminate Newsletter to members
● Quarterly dissemination of newsletter
c. Disseminate relevant trade and commodities statistics
● Monthly data dissemination of commodities ● 1 per Month prices and fuel trends ● 1 per Quarter ● Quarterly dissemination of business development trends and regional business news
d. Disseminate business success stories and businesses profile
● One business success story or business profile on every quarter
e. Update Website with latest information
● Latest news regularly received by members ● On-going ● Monthly Record ● Hits on website-blogs ● On-going ● Provide Forums for members to discuss current issues
● Conduct three technical workshops on 2. Conduct demand driven relevant issues during the year conferences and workshops on relevant issues for members 3. Conduct Annual General and Board meetings
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● One Annual General Meeting in a year ● Two Board meetings in a year
● 1 per Quarter
● 1 per Quarter
● March, June and September 2013
● June ● November
Pacific Islands Private Sector Organisation
STRATEGIC GOAL 3: Improve private sector dialogue and partnerships with government and partners
Key Actions 1. Institutionalize Public and Private Partnership and Private Sector Dialogue at national and regional level
Key Results Areas (Measure of Success)
Timeline
● Full participation of private sector in regional meetings
● As and when required
● Recognition of private sector, reflected by government’s appropriate actions
● On-going
a. Refine approach to the dialogue processes at regional level – FIC Leaders, FTMM, PACPTMM, FEMM
● Recognition of PIPSO as a partner for implementation of private sector activities and initiatives in the region.
b. Formalize bilateral meetings and regional forum meetings
● NPSOs and PIPSO to conduct bilateral meetings with development partners at regional meetings
● Subject to dates released by PIFS
c. Formalize private sector representative with country delegations
● NPSOs reps to be part of the Government Delegation at regional meetings and briefings
● On-going
d. Engagement of NPSOs with Ministers and Heads of Delegations and provide input into the necessary briefings
● NPSOs reps to provide submission to the Minister and Head of delegation prior to regional meetings
● One Week before the Schedule Meeting
2. Prioritize common issues from the private sector in the region supported with relevant information and data
● Completion of a paper that includes all the key priorities supported with relevant data for NPSOs reps and for use at regional meetings
● April 2013
3. Consultations with Public sector, development partners and regional agencies
● Regular dialogue of NPSOs and Government Officials on current issues affecting private sector. ● Regular dialogue of NPSOs with regional agencies
● On-going
● Formation and development of trade 4. Improve the effectiveness of core groups at national level to assist consultative committees for the NPSO Trade at national and regional ● Formal process of trade consultation level and negotiation for Private sector with Government officials ● Inclusion of the Private Sector in the Government negotiation team ● Close liaison with OCTA to assist private sector on technicalities
● On-going
● On-going ● March 2013 ● May 2013
● Subject to national government approvals ● On-going
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Strategic Plan 2013 - 2015
STRATEGIC GOAL 4: Facilitate and build private sector business, trade and competitiveness
Key Actions
Key Results Areas (Measure of Success)
Timeline
1. Support Marketing/Business Development Opportunities ● Conduct marketing research and product Development for new and existing business opportunities ● Enhance networking and trade shows regionally and internationally (beyond NZ/AUS/US) ● Increase the utilization of Pacific Islands Trade & Invest Offices and Pacific Islands Diplomatic Offices. ● Facilitate investment (foreign or local) in collaboration with regional agencies
● Increase in contributions to GDP
● On-going
● Increase in number of businesses
● On-going
● Increase in export dollars
● On-going
● Increase in Import substitution
● On-going
● Number of people trained
● On-going
2. Business Development Support Training ● Facilitate the following - Business mentorship - Business planning and Management training
● Improvement in competitive ranking ● Number of companies mentored
● Tap into existing training programs ● Number of trainings conducted or facilitated offered by regional agencies on areas not limited to: - Export training - Market access ● Increase in number of businesses successfully utilizing BDF (outcomes based) ● Full use of BDF and CBF ● Research other sources of funding ● Report on feasibility of venture capital financing studies
● October 2013 ● April 2013 ● May 2013
4. Improve in International Rankings for Economic and Business Indicators
● Improvement of ranking
● On-going
5. Create a regional annual business award to identify innovative efforts in the region
● Concept Paper of the Annual
● March
Awards ● Providing the Award
2013 ● November 2013
3. Facilitate access to finance ● Facilitate easier access to finance (beyond BDF) and investigate feasibility of venture capital financing and other forms of financing ● Advocate for development of export finance and guarantees
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● On-going
Pacific Islands Private Sector Organisation
STRATEGIC GOAL 5: To strengthen private sector involvement in national and regional policy development and support implementation
Key Actions 1. Increase Capacity Building for Private Sector ● PIPSO to undertake/facilitate: - Training - Advocacy at regional level - Workshops - Consultancy - NPSO partnerships - Attachments - Mentoring - Research capacity
Key Results Areas (Measure of Success) ● Number of relevant board and committees NPSOs are represented at national level
Timeline ● On-going
● On-going ● Inclusion of the private sector in national and regional forums ● On-going ● Recognized true partners and focal point on national and regional private sector ● On-going issues ● Policy intervention by NPSOs are considered and implemented
Strategic Goal 6: To advocate for interests of the private sector at regional and international forums
ACTIONS
Key Results Areas (Measure of Success)
Timeline
1. Attendance to Regional and International Forums ● Lobby for Full membership status to regional forums
● Timely submission of comprehensive intervention reports
● Submission of Proposal to PIFS on ● Facilitate selection of private sector dialogue appropriate representatives to regional forums, nominated ● Database of key industries personnels by NPSOs based from key from members personnel database
● On-going
● March 2013
● February 2013
● Facilitate participation at relevant regional and international forums ● Contribute to development of regional strategies of donors and regional agencies
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Strategic Plan 2013 - 2015
STRATEGIC GOAL 7 : To maintain a sustainable, effective and relevant PIPSO
ACTIONS
Timeline
1. Develop long-term financial strategy for core and project funding (secure TA, donor funding, ueserpay)
1. Sustainable long-term funding received from ● March 2013 donors, members and development partners 2. On-line forums developed and utilized
● January 2013
2. Strengthen 2-way communication and partnership with NPSOs and other key stakeholders.
3. Increase in the number of donors and partners supporting PIPSO
● On-going
4. 50% or more of NPSOs completed country specific strategic plans
● June 2013
3. Development of country specific strategic plans
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Key Results Areas (Measure of Success)