Government-Private Sector Forum (G-PSF)

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 Ministers 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
1
2
Royal Government of Cambodias (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)
8 Sectoral Working Groups
Established by sub-decree, these mechanisms are
institutionalized and demonstrate the commitment
of the Royal Government of Cambodia (RGC) To
private sector development
2
3
Cambodia G-PSF in brief
1000 issues raised (in past 3 years), important
results in some sectors.
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
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
4
G-PSF a highly successful reform platform

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.

4
5
Why have we been successful

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.

5
6
Development cycle of PPDs
Phase 3
Phase 2
Phase 1
Results
Cambodia
Time
1 to 3 years
1 to 3 years
6
7
IFCs Role in Cambodias PPD (G-PSF)
To private sector
1 Dialogue management communication
2 Capacity building of associations
and chambers of com.
IFC Coordination Bureau
3 Provincial dialogues (with other DPs)
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
8
Current structure of the G-PSF dialogue (Private
sector)
GPSF Bi-annual meetings
Private Sector Working Groups / G-PSF
Secretariat
International Finance Corporation
Business Community
8
9
Independent Entity under the Chamber of Commerce
G PSF Bi-Annual Meeting
CHAMBER OF COMMERCE
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 InfrastructureW Group
Export Proces. and Trade Fac. WG
Industrial Relations W Group
Manuf and SMEs Working Group
Agriculture and Agro-Industries WG
KEY ASSOCIATIONS provide administrative support
to working groups
International Business Club
CATA, CHA, airlines
Association of Banks in Cambodia
CAMTA, CAMFFA, ICT-CAM
GMAC, handicraft assn
CAMFEBA
PPSMIA, SMI, CEPMEC, etc
Federation of Ricemillers, agric. assn
Business Community
Provincial dialogues under Chambers of Commerce
Business community in Phnom Penh
Business Associations (regional, large small,)
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
10
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
Extra slides
12
13
Proposed PSF by-laws

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.

13
14
Role of the PSF Secretariat

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

14
15
Role of BMOs supporting the Working Group

• 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
• Liase with the PSF central secretariat in
  aggregating reports for the whole Forum
• Work with PSF central secretariat to organize the
  Forum
• 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)

15