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Export Competitiveness: Institutions for Reform

  Institutions for Reform

An effective advocacy process is key to help set and promote the right reform agenda as well as to help maintain the reform process on track and honest. Focusing advocacy efforts around an export competitiveness agenda has two key benefits. First, there are relatively few political economy issues associated with an export growth agenda that would benefit most stakeholders in the country. Second, such an agenda invariably leads to the need to resolve tough domestic issues which can be much more effectively tackled in the name of export competitiveness. There are two crucial interfaces in the export competitiveness advocacy process. First between the private and the public sector to ensure the key constraints on existing activities encountered by the private sector are addressed by the government as well as to help identify the coordinated pro-active measures required to unleash new export industries. The second interface is within the government where there is the need for an independant entity to advocate and support reforms by the line administrations. Good practice countries actually combine both interfaces within a single government agency connected to the top level of the government. Such economic development agencies are also often in charge of donor coordination and/or of a specific economic development budget, which gives them additional leverage and resources over line administrations to get the job done.


PPD Handbook
Author: Benjamin Herzberg, Andrew Wright
Source:  The World Bank

In recent years there has been growing interest in the potential for dialogue between the public and private sectors to promote the right conditions for private sector development and poverty reduction. This handbook collated and presented the knowledge in an accessible and comprehensible way.

The Five Requirements of a Good Policy Advocacy Process in the Government
Source: The World Bank Group

Based on the insights accumulated through FIAS and MIGA advisory services projects, there are five requirements of a Good Policy Advocacy Process: 1) Independence and access to the top level of government; 2) Access to information; 3) Analytical skills; 4) Financial resources to help line administrations implement reforms advocated; 5) Monitoring.

Competitiveness Partnerships: Building and Maintaining Public-Private Dialogue to Improve the Investment Climate

Author: Benjamin Herzberg, Andrew Wright

Source: World Bank-IFC Private Sector Development Vice-Presidency


Competitiveness partnerships consist of structured dialogue between the public and private sector to improve the investment climate. In this paper, the authors investigate the experience of some countries with competitiveness partnerships and seek to identify common and replicable strategies and success factors.

Consultation with Stakeholders in the Shaping of National and Regional Policies Affecting Small Business

Source: Final Report of the Best Procedure Project, October 2005, European Commission


Better quality regulations and well formulated policies are of a crucial importance for the successful operations of European companies. This project gives out some insights about how the consultation process is structured and conducted, what consultation methods are used and how small business opinions are taken into account by policy makers across European countries.


  Case Studies

Institutional Innovation and Private Investment in Taiwan

Author:  Stephan Haggard and Yu Zheng

The effort to increase investment requires a difficult combination of credible policy and the ability to respond flexibly to changing circumstances. During the period prior to transition to democratic rule, decision-making bodies and foreign participators played an important role in the successful reform process of Taiwan.

Briefing Note: Botswana
Author: Alberto Criscuolo
Source:  The World Bank

In Botswana, clever minerals policy initiated and stimulated growth, and well-thought long-term development planning was crucial in channeling budget surpluses from diamond revenues into public investments that promoted growth and human development while maintaining fiscal discipline.

Interview with Jose Brito, Ambassador of Cape Verde to the US – November 30, 2006

Development assistance and remittances contributed to growth of Cape Verde. From the outset Cape Verde managed development assistance extremely well. A large part of growth came from ODA-financed public investment in infrastructure, basic education, and rural and social development.

  Web sites is a comprehensive one-stop shop for knowledge and advice for any stakeholder who is interested in initiating or consolidating dialogue to improve competitiveness and the conditions for investment and enterprise. This includes representatives of the public and private sectors, civil society and donor agencies. It contains the best and most current knowledge, experience and practical advice one needs to anticipate and overcome the challenges one faces in developing competitiveness partnerships.
The European Competitiveness Council, held in March 2003, invited the Commission to launch a project on better involvement of small businesses in the consultation process at national and regional level. A European model of advocacy and consultation has been developed with the aim to provide national and regional governments with a practical tool that can serve as a reference while planning and organizing competitiveness consultations in their own countries. It can help to identify the main stages of the consultation process and the main actions that might be undertaken in order to make the whole exercise more successful.
The Online Version of the Public-Private Dialogue Toolkit: For policy reforms to be effective, they must respond to the needs of existing businesses and the concerns of wary investors. Reform efforts are sometimes blocked by interest groups who benefit from the status quo. Dialogue between the public and the private sector, if well managed, can help on all these fronts. Dialogue can create the momentum necessary to move reforms through sluggish bureaucratic processes. Public-private dialogue takes many forms: ad hoc, formal or informal dialogues can take place at the local, national or international levels, and can be organized by industry sector, cluster or value chain, or cover cross-cutting economic issues. Dialogues impact all aspects of investment climate reform, including diagnosing problems, designing effective policy reform, promoting transparency and good governance, and obtaining the buy-in of stakeholders on both sides of the public-private divide. This toolkit provides guidance and practical tools for maximizing the payoffs of public-private dialogue.

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