1. 1 Government-Private Sector Forum (G-PSF) A Success Story of the Royal Government of Cambodia Sok Chenda Minister attached to the Prime Minister, Prime Minister’s Office Secretary General of the Council for the Development of Cambodia Secretary General of the G-PSF Global PPD Workshop Vienna, Austria - April 29, 2009

2. 2 Royal Government of Cambodia’s (RGC) mechanisms for private sector consultation Private Sector Consultation Policy and strategy Donor and G-PSF consultation Government Private Sector Forum Chair: Prime Minister Coordination: DPM, Min. of Finance General Secretary: Minister attached to PM, Secretary General of the Council for the Devt of Cambodia Steering Committee on Private Sector Development (Chair: DPM, Minister of Finance) Sub-steering Committee on Investment Climate and PPI (Chair: DPM, Min Eco & Finances) Sub-steering Committee on Trade Development and Trade Related Investment (Minister of Commerce) Sub-steering Committee on SMEs (Minister of Industry, Mines, Energy) Established by sub-decree, these mechanisms are institutionalized and demonstrate the commitment of the Royal Government of Cambodia (RGC) To private sector development 8 Sectoral Working Groups

3. Cambodia G-PSF in brief + 1000 issues raised (in past 3 years), important results in some sectors. Strong coordination, with regular meetings and matrices that track issues Structure in place. Working groups co-chaired by m Ministers and PS rep; Large participation of the private sector Confidence, information btw govt  PS, Gvt leadership Democracy in action, demand for accountability Established in 1999 by the RGC 14 Forums held Status of an enlarged Cabinet meeting Chaired by the Prime Minister $100 mil savings for the private sector (sample of 11 reforms) 8 sectoral Working Groups, cross cutting collaboration

4. 4 1.World Bank Investment Climate Assessment lists the G-PSF as one of the key factors for the economic success of Cambodia 2.Royal Government of Cambodia uses the G-PSF to propose measures to respond to the crisis – several consultations on-going 3.2009 Memo from World Bank to RGC recommends using the G-PSF for identification and monitoring of reforms 4.G-PSF is an integral apparatus of the RGC for private sector consultation and engagement of development partners in technical assistance. 5.Review of 31 PPDs worldwide shows G-PSF as among highest performers. G-PSF a highly successful reform platform

5. 5 1.Political willingness from the Royal Government of Cambodia, in particular the Prime Minister 2.Cambodia is pro-private sector, we believe PS will achieve poverty alleviation 3.Cambodia is an open economy 4.RGC understands that regulations are better drafted and better implemented with PS participation 5.Private Sector willing to contribute constructively 6.G-PSF is an integral part of the government apparatus. Why have we been successful

6. Trust Education Discovering what works / What doesn’t Setting up production process EARLY RESULTS Phase 3Phase 2Phase 1 Results Time Ongoing brokering Institutions BMOs Ownership without capacity Exit More capacity Better production Better products More conflict HIGH IMPACT RESULTS 1 to 3 years 6 Cambodia Development cycle of PPDs

7. IFC Coordination Bureau 3 – Provincial dialogues (with other DPs) 1 – Dialogue management & communication 2 – Capacity building of associations and chambers of com. 4 – Technical assistance analysis, research Component 1 : IFC phasing out secretariat role Component 2: Temporary intervention Component 3 : Responsibilities of other DPs Component 4: IFC intends to continue to support IFC’s Role in Cambodia’s PPD (G-PSF) To private sector

8. 8 Current structure of the G-PSF dialogue (Private sector) Private Sector Working Groups / G-PSF Secretariat International Finance Corporation Business Community G–PSF Bi-annual meetings Law, Tax, and Governance Working Group Tourism Working Group Banking and Fin. Services Working Group Energy and Infrastructure W Group Industrial Relations W Group Manuf and SMEs Working Group Agriculture and Agro- Industries WG Export Process and Trade Facilit. W G

9. G-PSF – AN INDEPENDENT ENTITY OF THE CHAMBER OF COMMERCE Light secretariat to liaise the WGs Law, Tax, Gov Working Group Tourism Working Group Banking & Fin. Services WG Energy and Infrastructure W Group Export Proces. and Trade Fac. WG Industrial Relations W Group Manuf and SMEs Working Group Agriculture and Agro- Industries WG CHAMBER OF COMMERCE Business Community KEY ASSOCIATIONS provide administrative support to working groups Independent Entity under the Chamber of Commerce G –PSF Bi-Annual Meeting International Business Club CATA, CHA, airlines Association of Banks in Cambodia CAMTA, CAMFFA, ICT- CAM GMAC, handicraft assn… CAMFEBAPPSMIA, SMI, CEPMEC, etc Federation of Ricemillers, agric. assn Business community in Phnom Penh Business Associations (regional, large small,) Provincial dialogues under Chambers of Commerce

10. 10 Challenges in institutionalization PSF by-laws regulate only the private sector - The Royal Government of Cambodia has strong ownership of the process, G-PSF is an RGC mechanism Government better prepared than the PS - Quality of RGC participants very high; - The PS has limited capacity to raise and research strategic issues; BMOs are weak - The sustainability of BMOs is not assured, even the stronger associations may fail with the economic crisis (fewer members, less revenue from services) - Several small BMOs - not capable of serving as secretariat to a WG - Even with 2-year capacity building, no assurance of BMO sustainability - Can BMO play the role of a neutral, honest broker and ensure outreach ? Quality of issues raised - Quality of issues raised varies with the WG - Limitations on the types of research that development partners can provide (IFC, USAID) - Quality sometimes not up to RGC expectations

11. Thank you! SOK Chenda Minister attached to the Prime Minister Secretary General of the Council for the Development of Cambodia Government Palace Phnom Penh, Kingdom of Cambodia 11

12. 12 Extra slides

13. 13 1.The PSF is an independent entity under the Cambodian Chamber of Commerce 2.G-PSF works and operates like a business association 3.G-PSF has an executive committee with a president, vice- president(s) and an annual general meeting of members 4.Sectoral associations have the right to vote in election of co-chairs 5.G-PSF governing structure has a small-scale secretariat supported by several business associations. Proposed PSF by-laws

14. 14 1.3 staff run the liaison office / are the contact points: executive director, program assistant-translator, staff analyst 2.PSF represents the 8 working groups vis-à-vis government 3.Liaises with business associations supporting the 8 working groups to coordinate, compile, disseminate and analyze data 4.Interfaces with CDC for the organization of the Forum 5.Communications Newsletter Website Role of the PSF Secretariat

15. 15 1.Full support of their respective Working Groups and Co-chairs in the organization Contact management, ensure outreach Organize meetings, take minutes of meetings Update the matrices of issues 2.Liase with the PSF central secretariat in aggregating reports for the whole Forum 3.Work with PSF central secretariat to organize the Forum 4.Organize election of co-chairs with G-PSF central secretariat So far: 3 business associations have agreed in principle to serve a WG : GMAC (Export Processing and Trade Facilitation WG), Camfeba (Industrial Relations WG) and IBC (Law, Tax and Governance WG) Role of BMOs supporting the Working Group