Emerging Trends and Challenges in Business Environment Reform

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Emerging Trends and Challenges in Business
Environment Reform

• Donor Committee for Enterprise Development
• Montreux
• 12 September 2006

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Focus of Work in 2006
Donor Guidance
Asia Regional Consultation
Research Inventory
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We recognise that reforming the business
environment is one of the most important areas in
the global development agenda for donors and
governments
Committee of Donor Agencies for Small Enterprise
Development Cairo Conference, Conference
Outcomes
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Donor Guidance
The overall purpose is to provide guidance to
donor agencies to improve their support for
business environment reform processes in
developing countries, which lead to economic
growth and poverty reduction.
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Guidance Qualities

• Compiles lessons learned about what works and
  does not work in business environment reform for
  enterprise development
• Provides general but practical, operational
  guidance for donor staff in the field and at
  headquarters
• Provides a framework of basic good practice
  principles that support a diversity of approaches
  and priorities
• Highlights issues that remain unresolved and
  where there is not yet a consensus on good
  practice

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Unique Guidance

• Aimed specifically at the international donor
  community at head-quarter and field levels
  although it is envisaged that programme partners
  will also find it useful
• Strong emphasis on practical guidance and lessons
  learned
• Focus on business environment reform for
  enterprise development in keeping with other
  products of the DCED
• Highlight key challenges, debates and priorities
  for donor supported business environment reform
• Identify other practical resources donor agencies
  can obtain

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Guidance Structure
Objectives of Business Environment Reform Deals
with the purpose of business environment reform
and how such efforts can contribute to the
achievement of development goals that are beyond
private sector development alone (e.g., poverty
reduction, MDGs)
Functional Areas of Business Environment
Reform Focuses on specific areas of business
environment reform that are of most relevance.
Unlike other guides or manuals on specific topics
that have been prepared (e.g., business
registration reform) the guidance here will focus
on the role of donor agencies
Business Environment Reform Processes Attends to
the ways donor agencies can effectively manage
reform processes, work with key stakeholders and
programme partners, monitor progress and measure
impact
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Trends and IssuesPre-Cairo Conference

• Increasing volume of work being done by donor
  agencies in BE reform
• Wide range of assessment tools, but still some
  concern regarding what was being assessed and how
  effectively
• Great challenges in designing and implementing BE
  reform programmes
• Growing recognition of the importance of the
  business environment within the broader
  investment climate issues of specific concern

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• Concern regarding the relevance of firm size
• Sub-national reforms
• Donor co-ordination and collaboration
• Why are some countries reforming faster than
  others?
• Representation and PPD
• ME and measuring the impact of donor-supported
  BE reforms

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Trends and IssuesPost-Cairo Conference

• Volume of donor-supported BE reform grows
• Assessment tools used and referred to more widely
• More guidance in how to undertake reforms
• ME and impact measurement is still an issue, but
  agencies addressing this at earlier stages and
  testing new approaches
• Donor co-ordination and collaboration
• Sector development and BE reform

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• Role of the State in business environment reform
  including the role of the developmental state
  and promotional policies and programmes
• Reforms that lead to poverty reduction and
  pro-poor growth
• The political economy of reform Currently
  positioned as managing business environment
  reforms, but who does this managing? What role
  do donor agencies play in managing reform
  processes?
• Where is the critical focal point for guidance?
  Business environment reform for indigenous
  enterprise development...?

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• Political economy of reform
• Drivers of change
• Maintaining the status quo
• Challenges to effective PPD
• Institutional self-interest and change
• Public and corporate governance
• Improving trade regimes
• Sub-national BE reforms
• What role for multi-national enterprises?

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Challenges, debates and other controversies need
to be discussed and developed in an effort to
achieve a MULTI-DONOR AGENDA for business
environment reform. This is the primary purpose
of Donor Guidance.
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Asia Regional Consultation
The purpose is to improve the effectiveness of
donor supported reform efforts by bringing
together representatives of donor agencies and
their development partners involved in the
assessment and reform of the business environment
for enterprise development.
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Conference Objectives
1 Contribute to a multi-agency agenda on
business reform that prioritises the interests,
approaches and challenges of donor agencies in
business environment
2 Document good practice and principles in
business environment reform occurring in the Asia
region and feed this into the generic set of
guiding principles
3 Discuss efforts being taken by donor agencies
to improve donor co-ordination and
collaboration/harmonisation in the Asia region
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Conference Themes
Regional Priorities for Business Environment
Reform Priority Issues Product Market
Factors Trade Facilitation Sector development
Managing Successful Business Environment Reforms
in Asia Priority Issues Drivers of change in
the reform process Public Private Dialogue
(PPD) Public and Private Governance Developing a
common agenda for business environment reform
Lessons to Learn From Business Environment Reform
in Asia
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Hot Topics
Hot Topic 2 Sustaining business environment
reform efforts
Hot Topic 3 Reforming the business environment
in specific industry sectors
Hot Topic 1 Increasing the impact of business
environment reform on poverty reduction
Hot Topic 5 Sub-national business environment
reform
Hot Topic 4 Donor co-ordination processes and
structures
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Conference Papers
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Research Inventory
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Research Inventory
DONOR AGENCY CONTACT PERSON EMAIL
TELEPHONE DATE PAST RESEARCH INTO
BUSINESS ENVIRONMENT REFORM NAME OF RESEARCH
PROJECT/COUNTRIES COVERED/DATE/WEBSITE
ACCESS CURRENT RESEARCH INTO BUSINESS
ENVIRONMENT REFORM NAME OF RESEARCH
PROJECT/COUNTRIES COVERED/EXPECTED COMPLETION
DATE/CONTACT PERSON FUTURE RESEARCH BUSINESS
ENVIRONMENT REFORM NAME OF PROPOSED RESEARCH
PROJECT/COUNTRIES COVERED/PROPOSED DATE/CONTACT
PERSON
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Thank You