Public-Private Dialogue

Definition & key success factors

TPSD Facility – September 26, 2019

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Foreword

About the TPSD/E Facility

The TPSD/E Facility is an advisory service of the European Commission (EC) managed by the Unit C4 in charge of Trade
and Private Sector Development and Engagement within the Directorate General for International Cooperation and
Development (DEVCO).

The TPSD Facility is implemented by DAI Europe.

Disclaimer

This report was produced by François Kacenelenbogen, an expert mobilised by the TPSD/E Facility at the request of the
European Commission Directorate General for International Development Cooperation (DEVCO). The contents of this
publication do not necessarily reflect the official position or opinion of the European Commission. Neither the European
Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the
following information.

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Table of content

I. PPD Definition
II. PPD Key Success Factors
III. PPD Case study

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I. PPD Definition

 Public-private dialogue (PPD) is a structured, participatory, and

inclusive approach to policymaking aiming at improving the
investment climate
 Dialogue increases the flow of information related to economic
policy and builds legitimacy of the policy process
 It allows better transparency and greater inclusion of
stakeholders in decision-making

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I. PPD Definition

Types of PPD

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II. PPD Best Practice Principles

> PPD should be:

1) conducted on the long term
2) phased
3) inclusive and transparent
> Targeted, measurable, hard and soft reforms
> Simple organizational structure, be flexible and have a strong
convening power
> Have a mandate, and be aligned w/ local institutions

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III. PPD Key Success Factors

Champions Inclusiveness

Successful
PPD

Sustainability Capacity

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III. PPD Key Success Factors

1. Champions
> Public sector champions with strong
leadership and buy-in
> Champions from the private sector are
independent and considered representative
> Take ownership of the dialogue process
and drive it forward
> Credible and considered to pursue the
broad interests of the country

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II. PPD Key Success Factors

2. Inclusiveness
> Private Sector Organizations independent
and well structured
> Facilitators support unorganized interests
to participate as well
> PPDs must accommodate and represent
the diversity of private sector interests
> Inclusive of all kinds of businesses, be
they formal and informal, small and large,
local and international

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III. PPD Key Success Factors

3. Sustainability : 3 Pillars

PPD
Sustainability

Operational Financial Sustained

sustainability sustainability Mandate

When a PPD meets the 3 sustainability pillars and is embedded in existing local
institutions, donors can exit successfully.
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III. PPD Key Success Factors

4. Capacity
> Capacity to provide coherent policy
recommendations, negotiate
constructively, analyze evidence, and
nurture a successful dialogue
> PSOs require strong skills in order to
propose evidence-based reforms and
coordinate businesses’ interests
> Public sector must have the capacity and
resources to analyze policy, formulate
coherent reforms, and communicate with
stakeholders

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III. PPD Case Study

Kenya PPD

> Established in 2008 and coordinated by the

Kenya Private Sector Alliance (KEPSA -
umbrella body for BMOs)
> Development partners provide financial
and technical assistance to KEPSA
> Several levels: from presidential to county
level

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III. PPD Case Study

Kenya PPD – Key Achievements

> Simplification of cargo clearance at the
Port of Mombasa (important impact on
easing trade logistics)
> Simplification and automation of the tax
system (improvement by 44 places in paying
taxes indicator)
> Establishment of commercial division at
the high court to deal with dispute
resolution
> Energy sector reforms leading to 20%
reduction in cost of energy
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Thank you for your attention

TPSD Facility
Devco-tpsde-facility@ec.europa.eu
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