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1 Nicolas Pinaud, OECD Development Centre Public – Private Dialogue in developing countries Beyond mottos and mantras – Some introductory considerations.

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Presentation on theme: "1 Nicolas Pinaud, OECD Development Centre Public – Private Dialogue in developing countries Beyond mottos and mantras – Some introductory considerations."— Presentation transcript:

1 1 Nicolas Pinaud, OECD Development Centre Public – Private Dialogue in developing countries Beyond mottos and mantras – Some introductory considerations

2 2 Introduction Public - Private Dialogue (PPD): a definition PPD: What for? Potential risks of PPD: make the case for a cautious approach

3 3 Public - Private Dialogue : a definition Actors: “Public” / “Private” Setting: uneven degree of institutionalisation Outcome: exchange of views to common-agreed decisions; Common component: ‘policy making’ understood in a broad sense;

4 4 What for? For the public sector: - Learn from the private sector - Legitimize public strategies - Leverage the impact of public policies

5 5 What for? For the private sector: - Influence the rules of the game - Improve the business environment and State interventions - Identify the optimal mix of market and government activities

6 6 Just do it? « There are no real secrets to participation, just a whole lot of work », USAID (1994) Is it true? Risks, historical legacies, institutional specificities, strong prerequisites, etc.  Complex issues: necessity to go beyond mottos and mantras

7 7 Just do it? PPD as a problematic “transaction” Quis custodiet ipsos custodes? The State as a problematic interlocutor PPD as a “smokescreen” for capture and predatory behaviours

8 8 Just do it? Prerequisite 1 : a developmental State 1) “Weberian bureaucracy”, i.e. autonomy / private interests  South-East Asia AND 2) proximity with the private sector (shared networks, similar background, ethnic proximity etc.) 3) Commitment and reliability: deeds must meet words  Gradual process of credibility building

9 9 Just do it? Prerequisite 2: an “appropriate” private sector. Strong and well organized private sector  Paradoxes of collective action (Olson, 1962), “trap of inorganization”. “Good” vs “Bad” Private sector  Political economy of sectoral interests

10 10 Prerequisite 3: dictatorship vs. democracy? No clear evidence –Chile & South-East Asia / Mauritius / Zambia; –Dictatorship may be supportive of the emergence of a “Weberian bureaucracy”(Geddes, 1990)… –But may also end up in pervasive corruption and haziness : cf. South Korean authoritarian regime and chaebols (Woo- Cummings, 2001)  Rule of law might be key. Just do it?

11 11 Just give it up? Sub-Saharan Africa: a worst-case scenario? –State in Africa is not developmental  ”patrimonial state” vs weberian state –Weak and hardly structured private sector: ‘missing middle’  no incentive for the state to embark on a complex PPPD –« Democracy » in Africa does not mean « rule of law » –Legacy of distrust (central planning, populist or/and socialist ideology, top-down policy-making process, etc.)  ”credibility trap”

12 12 There is room for action Room for a hands-on approach to PPD –educating local authorities –identifying “policy champions” and “pocket of efficiencies” –providing organizational, material and analytical support Failure can have durable negative consequences  Risks make the case for a cautious approach Corner stone is ownership from local actors in due course  Need for a “toolkit”?

13 13 PPD in developing countries: Follow-up DFID - World Bank Group – OECD conference early February in Paris (Postcards at your disposal) Review of country experiments Charter of best practices Design of an evaluation and monitoring framework Thank you!


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