Overview of the Book. May May V. Bruce J. Tolentino, Ph.D. Chief Economist and Director of Economic Reform and Development Programs

Transcription

1 Overview of the Book May 2011 V. Bruce J. Tolentino, Ph.D. Chief Economist and Director of Economic Reform and Development Programs Veronique Salze-Lozac h Regional Director of Economic Reform and Development Programs May 2011 Nina V. Merchant-Vega Assistant Director of Economic Reform and Development Programs

2 Outline 2 1. Overview: The Asia Foundation s Economic Reform and Development programs; 2. Economic Governance Index (EGI); 3. Public Private Dialogue (PPD); 4. The Asia Foundation s implementation of political economy approaches to reform.

3 The Asia Foundation - 1 Non-profit, private, international development organization in operation since 1954; Promotes peaceful, prosperous, just and open Asia-Pacific region; 19 offices across Asia, Washington D.C., and San Francisco HQ; 3

4 The Asia Foundation - 2 About 850 staff worldwide, mostly national; Annual budget about U.S.$150 million; Private + public donors: Australia, Belgium, Canada, Denmark, E.U., Korea, Netherlands, Norway, U.K., and U.S. 4

5 TAF Core Program Areas Economic reform and development (ERD), Governance, law and civil society, Women s empowerment, Environment, International Relations, and Books for Asia 5

6 6 TAF ERD Focus: Economic Governance Improve policy environment for private investment and enterprise, particularly SMEs; Strengthen effective economic governance institutions; Reduce unnecessary regulations and interventions, and Foster multi-sectoral, multi-level reform partnerships for reform.

7 Key TAF ERD Tools Research and surveys Economic Governance Index (EGI) Public-Private Dialogue for Reform Regulatory Impact Assessment One-Stop Shops Strengthened Local Fiscal Management 7

8 8 Key TAF ERD Tools 1. Economic Governance Index to measure, set up agenda for reform; 2. Public-Private Dialogue to harness coalitions for reform; 3. Regulatory Impact Assessment to analyze and act; 4. One-Stop Shops to demonstrate gains from reforms; 5. Strengthened Local Fiscal Management to help implement governance reforms.

9 Innovations in Strengthening Local Economic Governance in Asia Reports on direct experience in Asia: Bangladesh, Cambodia, Indonesia, Philippines, Sri Lanka, Vietnam; 2. Emphasis on empirical basis for program design, enriched through learning by doing ; 9

10 Innovations in Strengthening Local Economic Governance in Asia Medium to long-term impact enabled by stitching short-run projects together into continuing engagement, and 4. Continuing engagement facilitates programming cognizant of political economy dynamics in country context. 10

11 The Economic Governance Index Nina Merchant-Vega Assistant Director, Economic Reform and Development The Asia Foundation May 2011

12 Economic Governance Index Country-specific indexes for measuring economic governance across subnational units (provinces, districts, etc.) 12

13 Typical EGI sub-indices 1. Entry costs 2. Access to land and security of tenure 3. Transparency 4. Time costs of regulatory compliance 5. Informal charges 6. Participation 7. Law and order 8. Tax administration 9. Dispute resolution 10.Local infrastructure 13

14 EGI History Vietnam: Provincial Competitiveness Index, (continues under a different project) Cambodia: Provincial Business Environment Scorecard, Indonesia: Cities and Regencies Index, * Sri Lanka: Economic Governance Index, 2007 Bangladesh: Economic Governance Index, 2010 Malaysia: Business Environment Index, *Methodological changes introduced in 2007

15 What is the Purpose of EGI Research? Donors & NGOS Local Government Analysis Development Research Economic Governance Index: Support and Inform Reform Processes National Government Analysis Business Community Monitoring 15

16 Overview of EGI Methodology Collection Construction Calibration Indicator Indicator Indicator Indicator Indicator Indicator Indicators include both firm survey perceptions and hard data from published sources Sub-Index 1 Sub-Index 2 W W W Weights EGI 16 Indicator Indicator Indicator Sub-Index 10

17 2010 Bangladesh Final Composite Index FARIDPUR DINAJPUR KUSHTIA SYLHET COX'S BAZAR MYMENSINGH COMILLA RANGPUR PATUAKHALI DHAKA JESSORE KHULNA BOGRA PABNA NOAKHALI TANGAIL CHITTAGONG BARISAL RAJSHAHI Entry Costs Land Access & Security of Tenure Transparency Time Costs of Regulatory Compliance Informal Charges Participation Law & Order Tax Administration Dispute Resolution Infrastructure

18 18 Vietnam Provincial Competitiveness Index 2008

19 How the EGI has Influenced Policy In all countries, widespread media coverage highlighting local business environment issues. Provincial Diagnostic In An Giang In Vietnam, Indonesia and Cambodia have adopted the EGIs as instruments to monitor progress at the provincial levels. Provincial governments in Cambodia and Vietnam countries have asked for customized diagnostic analyses of their performance. In Bangladesh the Commerce Minister outlined a series of reforms based on the EGI, including license issuance standards and access to information standards. In Sri Lanka, authorities used it as a tool to identify priority areas for action and policy advocacy at the local levels. 19

20 EGI and Private Sector Development EGI and Firm-Level Outcomes: Cambodia, 2009: Using regression analysis, controlling for firm level factors, a 10-point increase in the EGI would result in a 9.9% increase in the likelihood that an entrepreneur will expand her business. Bangladesh, 2010: The same analysis in Bangladesh shows that a 10-point increase in the EGI would result in 6% increase in the likelihood that an entrepreneur will expand her business. 20

21 Public Private Dialogue Building coalitions for economic governance and private sector development - May 2011 Véronique Salze-Lozac h, Regional Director for Economic Programs

22 OBJECTIVE: To improve the business environment that too often constrains the competitiveness of MSMEs at the local level 22

23 A multi-stakeholder process With a variety of configurations Local Governments Collaboration Dialogue and Action for Reform Accountability National Governments Business Community Civil Society Transparency 23

24 LPPD PROCESS Developing a culture of dialogue and partnership for economic governance Organize Stakeholders Identify issues Document issues Present & Discuss DPPD Follow-up Working Groups RESULT-DRIVEN PROCESS Progress & Reforms Using Media Coverage as a supportive tool 24

25 A process to design and implement reforms Structured dialogue adapted reforms Diagnostic Solution Design Implementation Monitoring & Evaluation Engagement Consensus building Ongoing support Watchdog Definition Filtering Watchdog Feedback loop Empowerment Resources PPD contributes to all steps of reform process 25

26 Networking Horizontal and Vertical Linkages Government Private Sector Forum PPPD PPPD PPPD PPPD PPD PPD PPD PPD PPD PPD PPD PPD PPD PPD PPD PPD

27 he Asia Foundation s integrated approach to LPPD Reliable information Inclusive and effective processes (including sensitivity to gender, minorities, informal sector, etc.) Ownership and capacity of stakeholders Tangible and measurable results 27

28 Experience based on a variety of programs: in Indonesia, the Philippines, Cambodia, Sri Lanka, Bangladesh, more recently in Nepal, Timor Leste, India Developed tools to: 1. analyze the needs for reform and document constraints 2. measure progress 3. strengthen the PPD process for increased effectiveness and impact 28

29 1. ASSESSING BUSINESS ENVIRONMENTS SUPPORTING TOOLS Economic Governance Index 2. DOCUMENTING ISSUES Diagnostics Policy research Quick assessment / survey of the issue Regulation mainstreaming Regulatory Impact assessment (RIA) Business Barometers Best Practices Identification Ongoing Public-Private Dialogues at Local Level 3. STRENGTHENING LPPDs and MEASURING PROGRESS Trainings Networking activities Media and Communication tools M&E system Issue Tracker Online Database 29

30 How PPDs have helped Example of results In Cambodia: - Environment tax removed in 3 provinces; - Licensing information boards posted in 7 provinces; - Agreements on fishing areas signed between government and 40 fishing communities. In Sri Lanka: - Public-Private Partnerships on solid waste disposal; - Streamlining of regulations, taxes, and licenses. In Bangladesh: - Time to obtain trade license reduced from one week to one day in Sylhet province, resulting in 70-80% increase in issuance of new licenses and increased revenue for the city corporation; - Women Business Fora created in 9 districts - women s access to credit facilitated. 30

31 The Asia Foundation s Implementation of Political Economy Approaches to Reform May 2011 May 2011

32 TAF s implementation of a political economy approach Policy reform is always political; 2. Emerging from direct field experience; 3. Approach is institutionally challenging, lots of moving parts - not under direct control, may be risky and messy; 32

33 TAF s implementation of a political economy approach Conservative adoption, patient construction toward methodology; 5. Advances at local level are leveraged into national level voice and influence. 33

34 TAF s political economy approach: key elements Focus and sustained attention, Thorough analysis and metrics, Flexibility and timing, Communications, Mobilization of reform champions and coalitions, and Implementation assistance. 34

35 Mapping the Reform Arena: Transport Sector Reform - Philippines High Level of Influence Low Monopoly carrier Anti Regulator President Mayor Exporters Migrant Workers Reform REFORM! Activities and Outputs Analytics Public Private Dialogue Customized Presentations Statements/Letters Policy instruments Hotel Association Pro 35

36 TAF s political economy approach: Key reform dynamics Development entrepreneurs in local partner organizations, who: Take point in work toward desired reforms; Provide technically-correct, politicallyfeasible, context-specific assistance to reform partners. 2. Elites and leaders who invest their political capital on reforms; 36

37 TAF s political economy approach: Key reform dynamics Reform partners able to quickly adapt to emerging opportunities, and 4.Donors who provide flexible grants/ contracts and accommodate changes in activities and outputs as context and situations evolve. 37

38 A project structure amenable to TAF s political economy approach ODA Donors Grants The Asia Foundation Project design/ grant mgmt Reform Coalition Government Partner Development Entrepreneurs in local organizations Other Government Partners Private Sector Partners Other Partners Donors Provide grants for flexible, outcome-oriented implementation. The Asia Foundation Identify and manage development entrepreneurs and subgrants. Local Organization Platform to build reform coalition across various partners. 38

39 From May 25, 2011 the book is available for FREE download from: 39