Governments around the world spend trillions on public procurement each year for everything from office supplies to military equipment to infrastructure megaprojects like this $5 billion Panama Canal expansion.
By Kirby Bryan
For over a decade, the World Bank Group’s Doing Business index has served as quintessential tool for determining how well a country’s institutional infrastructure is suited to the promotion of a productive business environment. But something was missing. Businesses and governments interact on levels beyond permitting and regulation: the public sector can also be a client.
Public procurement can provide opportunities for corruption. When seeking lucrative public contracts, companies look for any opportunity they can take advantage of that will improve their ability to secure a successful bid. Unscrupulous government officials can use their influential positions to attain favors and gifts from businesses pursuing public procurement tenders.
In March 2015, the World Bank Group, in conjunction with the George Washington University Law School, held a release event for the first installment of its Benchmarking Public Procurement Index.
“The work of development is too important to be left in the hands of governments alone. It is the responsibility of everyone. Especially the business community.” This was Betty Maina’s main point in her speech last week at the 8th Public-Private Dialogue (PPD) Workshop in Copenhagen, Denmark.
The workshop explored how the government, private sector, and civil society organizations can effectively use PPD platforms for collaborative governance and leadership in addressing difficult challenges. Through its collaborative process, PPD provides a structured, participatory, and inclusive approach to policymaking directed at reforming governance and the business climate.
As the CEO of CIPE partner the Kenya Association of Manufacturers (KAM), Maina spoke on the crucial role that multi-stakeholder PPD platforms can play in building a better enabling environment for business. Maina recognized the social, economic and environmental challenges that we face, and the important role the business community can play in tackling those challenges.
“Instinctively people recognize that [these] challenges demand a new kind of leadership, a new way of doing things,” she said. “Business, like governments, will have to be in the forefront of this change. No one can do it alone.”
One need to look no farther than Kenya as an example of the private sector’s role in solving societal problems. During the 2007 election crisis, the business community was crucial in supporting peace efforts and dialogue which helped prevent further violence. The business community was also instrumental in supporting the development of Kenya’s new constitution in 2010 and now plays a critical role in its implementation.
Fostering a strong competitive market requires the private and public sectors to understand each other’s needs. In any country, entrepreneurs look for ways to make their businesses successful while the federal and local governments deliberate how they can boost the economy by providing loans for businesses or building up infrastructure. Developing solutions to such questions involve facilitating effective public private dialogues (PPD).
At the 8th PPD Global Workshop in Copenhagen, Denmark – which was co-organized by the World Bank Group, Ministry of Foreign Affairs, and the Confederation of Danish Industry – over 300 participants from civil society organizations, companies, governments and development partners from 54 countries came together to share their experiences with PPDs. CIPE and several current and past partner organizations from Ethiopia, Jordan, Kenya, Moldova, Serbia, and Nigeria participated in this four day event.
Betty Maina, CEO of CIPE partner Kenya Association of Manufacturers, was a featured speaker and highlighted the importance of PPD for the enabling business environment. Director for Multiregional Programs Anna Nadgrodkiewicz also presented CIPE’s joint initiative with the World Bank, an interactive knowledge hub website for the global PPD community of practice (www.publicprivatedialogue.org).
The workshop focused both on successes and challenges faced by PPD practitioners when developing, implementing, and evaluating constructive dialogues in different environments. The breakout sessions were divided by range of themes such as fragile and conflict-affected states (e.g. Palestine and Guinea), politically and socially transitioning environments (e.g. Tunisia and Slovakia) and city-level versus regional-level PPDs.
By Kirby Bryan
For sustainable economic growth, developing countries must have the capacity to functionally interact with the global market. Much of the onus for building that capacity rests on a domestic commitment to reforms compatible with global trade. Many emerging markets have lofty aspirations that are unachievable given the current state of affairs, but are determined to rectify the situation. Access to foreign markets can cement reform efforts aimed at improving the local economy and sustaining economic growth.
In late February, the Center for Strategic International Studies (CSIS) released a report from their Congressional Task Force on Trade Capacity Building (TCB) on “Opportunities in Strengthening Trade Assistance.” While the report focuses primarily on US efforts to improve the effectiveness and relevance of its TCB programs, it signals a shift in international engagement and understanding of the role trade plays on the growth of a developing economy.
The shift is also indicative of a growing global development trend toward incorporating the voice of the recipient country from the beginning stages of negotiations through agreement ratification. What is interesting about the current TCB discussions is the recognition by major players in the development world of including the knowledge and expertise of the private sector. Ultimately, it is the private sector in the developing and developed countries that will bear the fruits of economic growth and trade.
An increasing number of policy and governance challenges around the world demand private sector participation to generate viable solutions. Such challenges include poverty reduction, inclusive growth, government accountability, business integrity, national competitiveness, innovation, and access to opportunity. Although the obstacles to dialogue can be high, the value of dialogue is now widely recognized by governments and business leaders alike. Notably, the 4th High Level Forum on Aid Effectiveness in Busan, Korea, recommended that countries embrace “inclusive dialogue for building a policy environment conducive to sustainable development.”
In CIPE’s latest Economic Reform Feature Service article, Benjamin Herzberg, Program Lead, Leadership, Learning and Innovation at the World Bank Group, my colleague Kim Bettcher, Senior Knowledge Manager at CIPE, and I explore the importance of PPD and discuss its practical applications around the world.
The stakes are high in Yemen’s ongoing political transition, but recently the Yemeni government and private sector took steps to ensure that this transition will lead to greater security and opportunity for all Yemenis.
Yemen’s recent history has been marked by popular demand for better governance and a more democratic policymaking process. This demand has been seen from the 2011 popular uprisings, to political demonstrations, grassroots activism, and widespread participation in the National Dialogue Conference. Meanwhile, the price of ignoring these demands and of failing to listen to sensible recommendations for improving governance, security, and the economy has been illustrated by ongoing instability throughout the country.
On November 18, a Memorandum of Understanding (MoU) between the Government of Yemen and the Yemeni private sector was signed, establishing a public-private partnership to foster an enabling environment for business creation and youth employment, a step that is unprecedented in that country. This event marked an important step toward inclusive governance and effective policymaking in Yemen. Such cooperation between the government and non-governmental sectors like the business community is vital to ensuring that Yemeni citizens can participate in the democratic process, which is necessary to promote inclusive economic development, security, and employment, and to reduce violence and extremism.
Members of CIPE-supported business coalitions in Nigeria meet with political parties. (Photo: @sentellbarnes, IRI)
By Laura Boyette and Teodora Mihaylova
It is only natural that the world of international development would itself develop and change over the years to adapt to the changing landscape of needs and local capacity.
At a panel discussion at Georgetown University entitled “The Changing World of International Development,” three development practitioners from leading organizations provided some insight into how their work has changed over the years. The speakers emphasized how local ownership has become central to the planning and implementation of their projects.
Traditionally, the development field was focused on delivery of goods and services, especially in regions suffering humanitarian crises due to natural disasters or conflict. Over the years as the importance of local ownership of development projects became evident, the development landscape shifted to focus more on the provision of supplies and money to local actors to deploy as they saw fit. Both approaches have limitations: a mismatch between resources available and local needs, limited local capacity, delays that significantly diminish chances of success, and often corrupt actors at various points of delivery.
These days, international development actors are focusing more on building local capacity and less on the delivery of goods and services. Building local capacity in service delivery, project management, governance, advocacy, and democratic institutions does not just meet the immediate needs of the community. It also increases the sustainability of development interventions beyond the life of a particular project. Increasing local capacity both ensures the success of the project and creates a multiplier effect as local organizations take over responsibility.
CIPE’s model is locally oriented and and locally driven. Building local capacity has been central to the CIPE strategy for 30 years. Whether it’s through our national business agenda process or through legislative outreach programs that help educate local members of parliament or assembly on the economic and democratic policies and their potential impact, CIPE’s international work focuses on empowering local partners to become agents of change in their communities.