OECD Global Relations Policy Papers

Supporting policy action via public-private dialogue

A practical tool

Volume 2025, Issue 2

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Abstract

Effective collaboration between the public and private sectors is critical to advancing inclusive, evidence-based policymaking. Supporting Policy Action via Public-Private Dialogue: A Practical Tool provides hands-on guidance for facilitators and participants engaged in public-private dialogue (PPD) initiatives. The paper outlines the essential steps in designing and managing a structured PPD process — from defining objectives and selecting participants, to identifying policy priorities, implementing actions, and sustaining outcomes over time.

Drawing on international experience and lessons from diverse policy contexts, the tool highlights the importance of inclusivity, ownership, and transparency in building trust and ensuring lasting impact. It introduces practical instruments and adaptable modalities that help align public and private perspectives, bridge information gaps, and foster shared accountability. A comprehensive checklist is included to support users in the design, implementation, and monitoring of dialogue processes.

By strengthening the capacity of stakeholders to engage in constructive dialogue, this tool aims to make public-private collaboration more strategic, results-oriented, and sustainable — ultimately improving policy coherence, responsiveness, and impact at national and local levels.

Acknowledgements

This policy paper on Public-Private Dialogue (PPD) was prepared to provide guidance to PPD facilitators and other actors involved in PPD initiatives. It outlines the key elements of an effective PPD process, including its sequencing, focus, tools and modalities and discusses essential dimensions such as inclusivity, ownership, and sustainability. The note also presents a practical checklist to support the design, implementation and monitoring of PPD initiatives.

The paper draws on the OECD’s experience, analysis and tools in the areas of public-private dialogue, private-sector engagement and development in the MENA region, namely through the MENA-OECD Business Advisory Board, the EU-OECD Project on Promoting Public-Private Dialogue in Libya and the EU-OECD Project on Promoting Economic Resilience in Yemen. The experience in other regions also provided important insights.

The policy paper was prepared by Mariarosa Lunati and Roger Fores Carrion from the OECD’s Middle East and Africa Division in the Global Relations and Cooperation Directorate, with guidance by Carlos Conde, Head of Division, and the support of Mattia Tomay.

The preparation of the paper benefited from valuable inputs and consultations across the Organisation, including: the Employment, Skills and Social Innovation Division of the Centre for Entrepreneurship, SMEs, Regions and Cities; the Economic Transformation and Development Division of the Development Centre; the Global Partnerships and Policies Division of the Development Co-operation Directorate; and the Regulatory Policy Division and Open and Innovative Government Division of the Public Governance Directorate. The paper also benefited from the careful review of Max Bulakovskiy, South Asia-Southeast Asia Division of the Global Relations and Cooperation Directorate.

The OECD acknowledges the valuable contributions of stakeholders from the public and private sectors, including Marta Blanco Quesada, President of CEOE International, Spanish Confederation of Business Organizations (CEOE) and co-chair of the MENA-OECD Business Advisory Board; Hichem Elloumi, Vice President of Tunisian Union of Industry, Trade and Handicrafts (UTICA) and co-chair of the MENA-OECD Business Advisory Board; Business at OECD, the Permanent Delegation of Türkiye to the OECD; the Business Development Centre Jordan; and COFICAB. Their insights and expertise have been instrumental in shaping the analysis and recommendations presented in the paper.

Table of contents

Abstract 3

Acknowledgements 4

1. User’s Guide 6

Why is this guidance needed? 6

Who is this guidance for? 6

What does it contain? 6

1. What is Public-Private Dialogue and what are its objectives? 7

Definition 7

Objectives 8

1. What is needed for effective PPD implementation? 10

Setting phases 10

Defining focus 10

Leveraging existing PPD tools and modalities 11

Ensuring inclusivity and representation 12

Enabling PPD facilitation 13

Identifying PPD champions 15

Ensuring ownership and sustainability 16

Assessing risks 16

1. A checklist for Public-Private Dialogue consultations 18

Preparatory phase checklist 18

Implementation phase checklist 21

Monitoring phase checklist 22

Reference 24

Annex A. Charter of Good Practice in Using Public-Private Dialogue for Private

Sector Development and Inclusive Growth 25

Annex B. Public-Private Dialogue in fragile countries 27

Notes 29

1 User’s Guide

Why is this guidance needed?

The objective of this brief methodological note is to condense the most essential points behind a successful PPD initiative and raise awareness of the importance of involving the private sector in the policy cycle. It is meant to be a simple and fast presentation of structured PPDs for countries that often are not familiar with such initiatives. It points the reader to more detailed methodologies that can be followed step-by-step when implementing a PPD.

Who is this guidance for?

The note aims to provide guidance to PPD facilitators and other actors involved in PPDs. It is mainly targeted at public officials in emerging countries. In these countries, the involvement of the private sector in policy making is common but is in most cases done on a personal rather than structured basis and often lacks transparency and broad inclusion of other actors.

What does it contain?

Section 1 introduces the concept of PPD and its importance for the policy cycle. Section 2 introduces the key phases and principles for a successful PPD process, including the steps involved, the focus, tools and facilitation; and discusses fundamental considerations that underpin it, such as inclusivity, ownership and sustainability. Section 3 proposes a simple checklist to guide users in implementing an effective PPD process.

The note draws on OECD experience, analysis and tools in the areas of PPD, private-sector engagement and development, open government and inclusive regulatory governance in the MENA region and elsewhere.

2 What is Public-Private Dialogue and what are its objectives?

Definition

Public-private dialogue (PPD) is a broad concept, encompassing different forms, levels and scope of interactions between the public and private sector. A common feature is that PPD brings together public and private actors for diagnosing the challenges to, and opportunities for, private sector development, growth and correction of market failures, often based on an institutional arrangement (OECD, 2007[1]).

To that extent, PPD is distinct from the following concepts and complementary to them:

• Public-private partnerships: these are contract-based “long term agreements between the government and a private partner whereby the private partner delivers and funds public services using a capital asset, sharing the associated risks”(OECD Principles for Public Governance of Public-Private Partnerships).
• Open government: understood as a more general and citizen-centred “culture of governance that promotes the principles of transparency, integrity, accountability and stakeholder participation in support of democracy and inclusive growth” (OECD, 2017[2]).
• Social dialogue: understood as the negotiations and consultations through a tripartite arrangement composed by labour organisations, employers’ organisations and public authorities on issues closely linked to labour market, social protection, or more generally social and economic policy.

Box 1. The OECD and PPD

Starting in 2006, the OECD has been contributing with the World Bank, DFID, IFC and the Center for International Private Enterprise (CIPE) to a series of International Workshops on PPD. This initiative led to the development of important tools, in particular the PPD Charter (updated in 2015; see Annex) and PPD Handbook (Herzberg and Wright, 2006[3]). The OECD uses the PPD Charter, which acknowledges the role of PPD on the development agenda, to measure - for instance - the implementation of commitments made at the 2011 Busan Fourth High Level Meeting on Development Effectiveness

concerning inclusive multi-stakeholder dialogues for a policy environment conducive to sustainable development.1

Additional OECD resources include the report “PPD in Developing Countries: Opportunity and Risks” (2007[4]) and the “Holistic Toolbox for Private Sector Engagement in Development Co-operation” (2016[5]). PPD and stakeholder engagement also play a central role in the OECD work and instruments on open, transparent and inclusive public governance, as reflected by the OECD Recommendation of the Council on Regulatory Policy and Governance (2012) and on Open Government (2017).

Box 2. OECD Recommendation on Regulatory Policy and Governance

Adopted in 2012, the OECD Recommendation on Regulatory Policy and Governance was the first international instrument to address regulatory policy, management and governance as a whole-of-government activity for sectoral ministries, regulatory and competition agencies.

The impact of the financial and fiscal crisis and of social change and environmental challenges highlighted the importance of sound regulatory frameworks as a basic condition for well-functioning markets and societies, protecting the environment and the promotion of economic growth.

The Recommendation sets out the measures that Governments can and should take to support the implementation and advancement of systemic regulatory reform to deliver regulations that meet public policy objectives and have a positive impact on the economy and society. This includes with particular emphasis recommendations on transparency and stakeholder participation in the along the regulatory process.

Objectives

PPD can serve different purposes:

• Most often, its final aim is to strengthen the business and investment climate and the competitiveness of an economy or of specific sectors. By promoting the joint analysis of bottlenecks, opportunities and possible interventions, PPD can build awareness of the root challenges to private sector development, reducing the information gap between private and public stakeholders and identifying commonly agreed solutions.
• PPD can serve more broadly to create consensus on a country’s vision for economic transformation and on the strategies and tools needed to get there.2
• Recent initiatives and experiences have widened the scope of application of PPD to other issues and policies beyond the business environment, in particular Service delivery and the management of natural resources and. Fight against corruption (see Box). OECD regional and country-specific work in MENA has also highlighted the great potential of multi-stakeholder dialogue platforms in these areas.³
• PPD can be valuable in fragile and post-conflict contexts, working towards resolving disputes and reconciling views of different stakeholders on particular issues.

Importantly, PPD is not an end in itself. Its success depends on the concrete outputs that will flow from the structured dialogue, which should be achievable and measurable. These can include (Herzberg and Wright, 2006[3]):

• Structure and process outputs (e.g. consultations, conferences, success showcasing, project cooperation)
• Analytical outputs (evidence-based policy papers, reviews and assessments)
• Soft outputs (increased trust, understanding and co-operation)
• Recommendations (on reform policies, laws or regulations).

Box 3. OECD Network on Open and Innovative Government in Latin America and the Caribbean

The OECD supports governments in designing and implementing policies by providing policy advice and recommendations on how to integrate the principles of transparency, integrity, accountability, and stakeholder participation into the process. This is known as Open Government, and the OECD works with both member countries and partners to enable the participation of citizens and stakeholders in the decision-making process.

An example of this work is reflected in the Network on Open and Innovative Government in Latin America and the Caribbean. The objectives of the network include:

• • Connect reformers around the region from government, civil society, business associations to exchange ideas, experiences, and knowledge on how to build better and stronger public institutions.
  • Identify good practices of open and innovative governments and create a space conducive to their dissemination, through data collection and analyses, policy assessments, and peer review processes.
  • Provide examples and recommendations to its members on how to sequence open, innovative and digital government reforms within the regional and country-specific context and support their implementation to promote socio-economic development and regional integration.

The activities of the network involve:

• • Policy dialogue and assistance to implementation
  • Supporting national and regional policy priorities
  • Collecting data and producing analyses for better decision making
  • Governance of the Network

For more information on the OECD Recommendation on Open Government, see

https://www.oecd.org/gov/Recommendation-Open-Government-Approved-Council-141217.pdf.

3 What is needed for effective PPD implementation?

Setting phases

Meaningful PPD requires the engagement of stakeholders all across the policy cycle and not exclusively at the inception of policy change. PPD sequencing should always reflect at least three main steps of execution to ensure its effectiveness and sustainability:

• Preparatory/inception phase, to gather information on the focus, objective and form of the PPD, as well as on the most relevant actors to involve both from the public and private side through desk research, informal exchanges and exploratory missions (see “Ensuring inclusiveness and representation” below).
• Implementation phase, focusing on structured and meaningful exchanges with and among public and private stakeholders.
• Monitoring and evaluation phase, focusing on the outputs of the PPD (and, if pertinent, their implementation), the assessment of the PPD to learn from it and improve future processes, and the best ways to ensure its sustainability beyond the temporal framework of the project.

Defining focus

PPD is a tool to promote an inclusive approach to problem solving and policy-making. Identifying the right focus of a PPD is key to ensuring its effectiveness and impact. The focus of the PPD will affect its output, outcome, scope, level of intervention and the stakeholders to involve.

As a general rule, PPDs should promote discussions on issues faced by the private sector that are not sensitive or politicised, and that have the prospect of attainable results in the short term (OECD, 2007[1]). Under every circumstance, the focus of debate should in every case remain neutral, non-political, and non-conflict-related, focusing on economic challenges and striving to build consensus on the way forward. Moreover, past PPD experiences have demonstrated that sectoral dialogues (i.e. PPD aimed at improving the competitiveness of a specific economic sector) have been the most effective in producing results, as they provide more focus, greater incentives to collaborate and more opportunity for action (World Bank Group, 2015[6]).

A well-targeted framing is important to avoid discussions that focus exclusively on listing symptoms and should focus instead on addressing root causes with a problem-solving approach.

Evidence-based research can hence be particularly useful and improve the credibility of the process through strong analytical guidance. Issue papers with key information, data and questions for discussions should be circulated sufficiently in advance to participants. These should be action oriented, succinct, targeted to specific technical constraints and jointly approved through bilateral consultations with actors on

the ground to ensure they address pressing and relevant themes, aiming at helping guide the discussions and structuring the dialogue.

PPD participants should also ensure an adequate mainstreaming of considerations concerning inclusiveness and sustainability, notably on youth engagement, women economic empowerment and environmental sustainability.

Leveraging existing PPD tools and modalities

Engaging private stakeholders in public policy can take different forms. In OECD countries, the most popular approach is making use of the internet to seek feedback from stakeholders, complemented by physical public meetings (OECD, 2018[7]). When choosing the tools and modalities of PPD, it is important to carefully consider the national context: if these are drastically different from those used in previous dialogues between government and private stakeholders, the likelihood of it being ignored by these actors may increase. The logic of intervention of PPDs should support, supplement and extend the scope of existing initiatives, rather than replace or add further institutions or mechanisms.

Modalities of public consultations that can support PPDs include focus groups, surveys, opinion polls, workshops, seminars and conferences or open comment periods, open to the interested general public. Most of these modalities are complementary and should be combined.

The adoption of digital tools for consultations, also for promotion and awareness raising, in the context of a PPD should be carefully designed to ensure its success, notably in developing and emerging countries. The use of digital technology is more effective for informative and consultative exercises, rather than for a two-way engagement between public and private actors (Donor Committee on Entreprise Development, 2021[8]). Tools should be as easy and user-friendly as possible to increase trust and uptake, and information should be centralised and not dispersed. The adoption of digital tools also comes with some risks that PPD organizers and sponsors should acknowledge and address, including questions of data privacy and ownership, potential marginalisation based on skills, social and economic conditions, and the exclusion of stakeholders with poor/no access to the internet. Overall, digital tools should supplement PPD, and not replace dialogue.

Box 4. National platforms for PPD: examples around the world

PPD is a common practice across the world, although the regularity and formality of consultations differs widely. Some examples of existing mechanisms include:

• Azerbaijan created in 2003 AZPROMO, a joint Public Private Initiative serving as a bridge between investors, local producers and the Government. Through the platform, the business community of Azerbaijan implemented new channels of public private dialogue that boosted the development of the non-oil sector and created access to the small and medium enterprises representatives, granting them a necessary channel to express their position and comment on their needs and concerns.
• Bangladesh launched the Business Initiative Leading Development (BUILD) as a public-private dialogue platform to facilitate structured dialogues between the public and the private sectors under an institutional framework. BUILD has become the Government’s partner as a platform to promote private sector development, investment, and jobs, with the ultimate goal of promoting growth in the country. Under this initiative, PPD dialogue is used to identify and define recommendations for reforms, supported by research and analysis on the opportunities and challenges of private sector development, which has a number of working groups that focus on key sectors such as finance, trade and SME promotion.
• Morocco possesses a strong PPD mechanism through the National Committee for the Business Climate (CNEA), which provides a formal platform for various governmental and non-governmental actors, including from the private sector, to identify design and execute actions to improve the business environment. In addition, the General Confederation of Moroccan Enterprises (CGEM) undertakes a wide range of interest representation and advocacy activities through its “commissions”, one of which is devoted to representing the interests of SMEs.
• Peru’s Ministry of Production launched in 2015 the “Mesas Ejecutivas”, a policy tool designed to identify the key bottlenecks that are holding back the country’s productive sectors. ME is a space mainly for action and execution to simplify procedures, adapt and update laws and regulations, open new markets, create or improve needed government agencies, provide adequate infrastructure, ensure sufficient incentives for innovation, and mediate between parties. ME helps policymakers take concrete actions to enhance the productivity of vertical (such as forestry, tourism and agriculture) and horizontal sectors (such as logistics and capital markets).
• Tunisia launched the National Business Agenda (NBA) to create a PPD platform to advance business climate reforms in 2014, building on the strong multi-stakeholder process that supported its post-revolutionary transition. The NBA includes the government, the Tunisian Union of Industry, Commerce and Crafts (UTICA), the Tunisian Union of Agriculture and Fisheries (UTAP) and the Arab Institute of Business Leaders (IACE).

Ensuring inclusivity and representation

The form and size of actors to involve can vary considerably depending on the scope and objective of the public-private dialogue. Ensuring inclusivity in PPDs is crucial, as these processes benefit from the broadest possible participation of the target ecosystem.

• For the public sector, representatives can comprise ministries, public agencies, national, sub-national or even international bodies responsible for the issue at stake.
• For the private sector, main actors include:
• Private sector organisations (PSO) with nation-wide representation (e.g. a federation of chambers of commerce, an employer organisation)
• Sub-national business organisations (e.g. local chambers of commerce)
• Sectoral business organisations (federations representing companies of a specific sector at sub-national, national or international level)
• Product organisations (such as local organisations of retail-business owners)
• PPD may also include micro, small and medium enterprises (MSMEs), multi-national corporations (MNCs) and start-ups and investors associations in emerging technology sectors4. It is important to maximise the representation of the entire private sector ecosystem and/or the sectors of the economy on which the discussions focus in the PPD process, yet, when involving small actors relatively disconnected from the main PSO networks, it is important to ensure these are reliable and adequate. An individualised assessment and specific background check is suggested in those cases.
• Civil society organisations can play an important role, in particular when engaging on dialogue at the grassroots level. In certain economies, civil society organisations can help reaching less-organised groups such as migrant-led or informal businesses.

When selecting the level of intervention (i.e. national, regional, local or sub-local, including rural or urban, cross-sectoral or sectoral) it is important to assess the type of stakeholders to involve in the dialogue. For

example, in local and rural areas the distinction between private organisations, civil society and the informal sector is often blurred, making the case for the inclusion of a wider range of actors (OECD, 2007[4]). Yet, the participation of representative organizations alone is no warranty for inclusiveness. Some private sector organisations, particularly in developing nations, bring together only a small part of the private sector, and big firms tend to be over-represented, at the expenses of the representation of youth and women. Moreover, membership fees can be an additional obstacle to smaller players’ representation. Indeed, SMEs are the least satisfied with PPD inclusiveness (OECD & UNDP, 2019[9]).

These challenges require an excellent understanding of the organisational characteristics and existing relations between the state and private sector, as well as the particular degree of organisation of the latter. Preliminary stakeholder mappings are necessary prior to a PPD, as well as informal exchanges with international partners present on the ground and trusted public and private representatives (while acknowledging potential bias). Particular attention should be paid to organisations representing MSMEs, as well as young and female entrepreneurs to ensure that no one is left behind. (Box 3)

Box 35. PPD and women business organisations in the MENA region

Including women, women business organisations and women entrepreneurs in PPDs is essential to promote the inclusive development of MENA countries and to ensure the inclusiveness of a PPD process. Women-owned and women-led firms in MENA count for less than 10% of total firms. Often, those businesses operate in a restricted number of sectors and are smaller than men-owned businesses. Women often find themselves in male dominated industries that do not acknowledge their leadership role and their potential. Moreover, women entrepreneurship in MENA faces obstacles that differ from those of their male counterparts. These include:

• Legal impediments to business ownership by women.
• Additional financing constraints, inter alia due to lack of collateral, gender and cultural bias and high reliance on family.
• Difficulties in balancing business and family responsibilities.
• Limited learning, training and networking opportunities.
• Unfavourable business environments characterised by discriminatory administrative practices and societal prejudice.

In this context, women business associations provide a crucial support network that is essential to their success. In addition to advocacy, these bodies offer training, networking opportunities, extension and backstopping services. PPDs should aim at promoting the engagement of women organisations, including by supporting their advocacy capacity. Discussions should mainstream gender-related obstacles, raising the awareness of public and private participants and building momentum for action.

Conflict and crisis contexts prompt for additional caveats, since private actors are often involved in sensitive political and security dynamics and could play a role in channelling resources to parties in conflict. Adequate representation of both sides in a conflict should be ensured, to avoid the platform is perceived as being partisan. Annex II elaborates on PPD in the context of conflict context and fragile countries.

Enabling PPD facilitation

The effective management of the PPD process across all its stages is an important element of high-quality PPD (OECD & UNDP, 2019). PPD can benefit from a professional and experienced actor that can nurture the effectiveness of the arrangement and increase the collaboration among participating actors. This is especially the case when distrust between public authorities and private sector stakeholders can call into question the legitimacy of the PPD exercise. A third party considered as a neutral and legitimate advisor

is essential, notably in the initial period of the PPD process. Over-representation from the public sector, in fact, can lead stakeholders to interpret PPD as a “top-down” initiative and compromise its effectiveness.

Recent OECD experience with collective action against corruption in Morocco found that the involvement of a third neutral party from outside the circle of stakeholders (in this case, civil society) can improve the efficiency of the process and reduce the risk of free riding (OECD, 2020[10]) (Box).

Box 6. Public-Private dialogue on business integrity in the MENA region

PPD has been at the core of the OECD approach to combat corruption and promote business integrity in the MENA region. Corruption, as a multi-faceted phenomenon affecting both the public and private sectors, requires a response embedded in cooperation and dialogue. As such, PPD can constitute a powerful tool to enhance the effectiveness of the anti-corruption reforms and build trust between economic actors.

Morocco, as part of its 2016 National Anti-Corruption Strategy, implemented pilot collective action initiatives in key economic sectors, i.e. health, energy and transport. The strategy was coordinated by the National Anti-Corruption Commission, gathering public, private and civil society representatives. This was done in partnership with the OECD, within the framework of the project on “Strengthening Business Integrity in Morocco”. Companies in the target sectors have successfully come together under the aegis of the General Confederation of Moroccan Enterprises (CGEM). Their pilot actions led to the adoption of a charter of ethics in the transport and energy sectors and, in the health sector, to a memorandum of understanding on collaboration to develop a charter of good commercial practices and promotion.

The experience in Morocco, as well as that of other countries around the world, allowed the OECD to identify a series of key success factors for a fruitful collective action, in particular: bring together multiple actors, include SMEs, pursue multi-sectoral and multipartite collective actions, ensure that collective effort does not replace individual action, keep structures light, offer win-win benefits, assign a neutral facilitator.

Source: Global Lessons on Collective Action against Corruption: The Case of Morocco (OECD, 2020[10]).

Strong and neutral institutions acting as a PPD implementer, can be well placed to take up the role of facilitator, notably in the early phases of the PPD process, and should invest in building trust with private actors. In contexts where this is beyond the capacity of the organisation, assigning a professional facilitator can be envisaged. When selecting a facilitator, some qualifications are important, including a strong working knowledge of the political, administrative and economic issues of the region, a strong personal and professional integrity, strong commitment and involvement, no current or potential conflicts of interest, and proven ability to perform in the required manner (ibid.). Eventually, to ensure that the PPD outcomes are influential in public policy planning and implementation, it is desirable that a public body becomes the convener (OECD, 2007[1]).

Box 37. Public-Private Policy Dialogue on circular economy issues in the Southeast Asia region, May 2023, Bangkok, Thailand

Promoting greening among MSMEs has become a high policy item for the policy makers across the world. The OECD has supported the organisation of the Public Private Policy Dialogue around greening SMEs and promotion of circular economy practices in 2023.

The objective of the public-private policy dialogue was to support the policy makers and representatives of the private sector to better understand the circular economy concept and how it affects the MSMEs and identify practical ways the governments can support the companies become greener. The policy dialogue brought together some 75 participants, including some 50 physical participants. The public-private dialogue was conducted through the following phases:

• Background research and development of the background document which included latest data and good policy practices.
• Identification of the lead key organisations and partnering with them. The OECD worked closely with Business at OECD (BIAC) as well as the ASEAN Business Advisory Council (ABAC), the local business representative bodies such as the Thai Federation of Industry, or Thai Chamber of Commerce, Thai Board of Trade etc.
• Organisation of the virtual Reflection group meeting with the representatives of the private sector from across ASEAN were able to provide feedback on the document and their general comments.
• Public-Private Policy Dialogue event, where the findings from the Reflection group meeting and the document were presented by the private sector representatives and discussed at the ASEAN Coordinating Committee on MSMEs where representatives from 10 ASEAN Member States were present.
• Translation of feedback and discussions into the final Policy Brief on circular economy issues for MSMEs, a public document for policy makers.

Source: OECD (forthcoming)

Identifying PPD champions

The PPD Charter acknowledges that it is difficult to sustain PPD without a core group of so-called “champions” from both the public and the private sector who invest in the process and drive it forward. The importance of a “core group” steering dialogue was also a central lesson learned in the past years by the MENA-OECD Business Advisory Board (Box 3). Picking the right “champions” is essential and the most important part of outside support to PPD. They need to be accountable, perceived as legitimate by the rest of participants, and with a record of accomplishment of commitment to dialogue and reforms. A fine balance is nevertheless important: if champions are too strong, the dialogue will depend too heavily on them, and they will focus discussions on their own priorities. This is why ensuring that their interests are in line with the overall objective of the PPD and their role is one of “first among equals”.

The selection of the “core group” should reflect an adequate representation of established actors as well as innovative “young” voices. Commitment from well-known associations and influential players is necessary for the overall legitimacy of the process, while the inclusion of underrepresented actors (especially MSMEs but also subnational actors, where relevant) can enhance representativeness and inclusiveness. The composition of champions should also reflect gender considerations.

Box 38. Private sector engagement in the MENA region

Private sector engagement has been a top priority in the OECD work with MENA economies since the launch of the MENA-OECD Initiative on Governance and Competitiveness for Development in 2005. In 2017, the initiative established the MENA-OECD Business Advisory Board (BAB) at the request of governments from the region.

The BAB aims to provide a structured, sustainable and well-informed platform for private sector mobilisation and involvement in public policy, through policy dialogue, capacity building and peer learning activities.

The BAB contributes to improve understanding of the structure of the private sector in MENA, including how it is represented by women and youth business associations, and to identify good practices on PPD across the region.

Ensuring ownership and sustainability

Investing in the ownership and sustainability of PPD and its outcomes is crucial to ensure that dialogue and impact continue even after the involvement of a key implementer ends.

For instance, an efficient and continuous engagement with local stakeholders and organizations, designed since the launch of the process, will contribute to the adoption of the process’ core objectives by these groups. One salient approach to achieve this is by positioning a local institution at the forefront of PPD. Such institutional leadership not only embeds local values and priorities into the process but also fosters a sense of accountability and permanence. Moreover, the PPD design must ensure this process does not remain isolated but is integrated into a broader strategic framework. This strategic integration not only augments the visibility and importance of PPDs but also fortifies the sustainability and continued relevance of these initiatives in the long term.

Furthermore, the PPD Charter recognizes that monitoring and evaluation is an effective tool to manage the PPD process and demonstrate its purpose, performance and impact.

Public and private stakeholders often focus PPD around assessing and agreeing on current issues as well as designing and legislating solutions, rather than around implementation and monitoring, potentially jeopardising the overall impact of the dialogue. While “quick-wins” are important to demonstrate to participants the usefulness of stakeholder engagement mechanisms, long-lasting change demands a long-term vision that promotes inclusive public policy making and fosters an environment of trust between public and private stakeholders.

Adequate attention and resources to monitoring and evaluation can improve both the effectiveness of the platform (through ex-post reflection on good practices and lessons learned) as well as the impact of its outcomes (by ensuring proper implementation). Setting concrete, achievable and measurable objectives (through a core document endorsed by all participants, for example) is also essential to facilitate monitoring effectiveness and manage the expectations of stakeholders. Finally, the participation of the private sector and other relevant actors in the monitoring of PPD can enhance chances of reform success, guarantee continuity and enhance ownership of the process.

Assessing risks

PPD carries potential issues that can jeopardise the main objectives of the dialogue, e.g. promoting the wrong policies, affecting the relationship between the involved actors and damaging the position of the local and international partners who may be perceived as partial actors in the host country. Among the

possible risks that PPD may entail, this note highlights the following risks, based on OECD conclusions on PPD in developing countries (OECD, 2007[4]) and the World Bank/ DFID/OECD Handbook on PPD (Herzberg and Wright, 2006[3]):

• 1. A small number of leading actors and lack of transparency in the decision-making process and its strategic activities may result in the encouragement of rent-seeking behaviours through the PPD.
  2. A limited and homogeneous public stakeholder representation at the PPD may result in the capture of a specific political party (e.g. from the government) and damage the PPD’s legitimacy and reception by the opposition.
  3. PPD’s long-term sustainability may be at risk if the PPD initiative depends on the personal support of a small number of individuals.
  4. The lack of clear objectives, involvement at a late stage of the process at hand, ambiguous implementation steps and a non-structured dialogue may result into an empty and fruitless PPD, generating loss of legitimacy, detachment and frustration among its participants.
  5. In a similar manner, setting unattainable and unrealistic objectives may result as well in detachment, frustration and affect the image of the PPD as an ineffective tool for policy reform.
  6. Not ensuring the representation of the private sector placed outside the central ecosystem (non-capital cities, rural areas, MSMEs, emerging sectors) may contribute to the PPD platform’s capture by interest groups, powerful lobbies5 and other strong actors already involved in national politics. This is particularly relevant for countries with underdeveloped private sector organisations, or those dominated by major corporations.
  7. The private sector’s lack of understanding of the need and benefits of participating and cooperating in a public-private dialogue may produce free-riding attitudes that can limit the participation of private sector representatives, hindering the legitimacy of the PPD.
  8. Isolated PPDs, non-coordinated with other existing consultation and dialogue mechanisms, may result in unnecessary duplication of efforts that can result in institutional and stakeholder fatigue.

4 A checklist for Public-Private Dialogue consultations

Preparatory phase checklist

• • • Define and clearly understand the strategic objectives of the PPD specific to the current action
    • Understand the public sector’s readiness and institutional capacity to engage in dialogue with the private sector
    • Understand the private sector’s nature in the target territory
    • Understand the private sector’s readiness and institutional capacity for participating in policy formulation with the public sector
    • Consider the participation of trade unions and other civil society actors.
    • Identify key actors for strategic steering, general actors for technical discussions and PPD Champions for sectorial/cluster/territorial support
    • Define the PPD structure and process and evaluate the specific objectives/policy or standard-setting process for which the PPD will be used

Box 9. To keep in mind when identifying and mobilising stakeholders

• Ensure the involvement of “unaware” or underrepresented stakeholders (target both the “willing but unable” and the “able but unwilling”) to ensure that “any interested and/or affected party, including: individuals, regardless of their age, gender, sexual orientation, religious and political affiliations; and institutions and organisations” are involved. Think beyond classical actors.
• Integrate a gender- and age-sensitive approach to seek fair representation of both women and men in consultations, as well as of youth and the elderly. Consider and engage to the best extent possible with other marginalised and underprivileged groups that a policy may affect. Umbrella organisations, regional and local authorities and organisations may be particularly helpful.
• To avoid the risk of conflict of interest and policy capture, consider organisations in terms of their expertise, capacity, geographic and sectoral representation, objectives, governance structure, funding sources and relevant affiliations

Source: OECD Secretariat Guidelines and Background for Consultation with Stakeholders.

Define clearly the strategic objectives of the PPD specific to the action

• • • PPD can have different objectives, ranging from broader macroeconomic aspirations (e.g. increase employment generation; accelerate growth; increase FDI from year 0 as a baseline) to specific sector-targeted technical reforms (e.g. simplify paperwork requirements on tariffs on fish-imports for local manufacturers; create private sector-led support agencies for young entrepreneurs in rural areas).
    • A strategic objective should set the long-term aspiration of the project (i.e. what should this eventually support accomplishing) and will define how the intervention is planned and implemented. Very specific objectives will often need a clear picture of the area’s economic, private sector and institutional ecosystem.

Understand the public sector’s readiness to engage in dialogue with the private sector

• • • Which actors have regulatory capacity? Which institutions control subsidies and policy support to economic activities and basic goods?
    • Does the central government maintain a dialogue/involves the regional/local governments in the decision-making process?
    • Are there specific institutions or public units in charge of private sector development?
    • Are there previous PPD experiences in the country that enjoyed public support/leadership? Where they successful? Are the involved actors still active?
    • Are there specific public actors currently supporting the PPD in their territory?

Box 10. Extending the purpose of a public sector mapping

An extensive public sector mapping could also answer the following questions:

• How many public institutions are relevant for the PPD at the different levels of the Administration? Which major actors (ministries, central bank, and advisory bodies to the Head of Government) tend to be more active at policy formulation processes? Are there specific public institutions (at any level of government) able to provide direct in kind technical and/or in-kind logistical support? (E.g. facilitate meeting and conference venues, host websites, provide an office for a support team, contribute with experts to technical discussions, provide analytical and factual support) to the PPD without deviating from their usual work? Is there a regular communication between the different public institutions?
• How strong is their human and political capacity and willingness to engage or lead the PPD process?
• Can sub-national bodies design and implement non-legislative reforms with independence from state-bodies?
• Is there potential to build the capacities of the potential public counterparts (willing and non-willing to engage in a PPD) to ensure enhanced participation in the dialogue with the private sector, trade unions and civil society, conduct analytical work, formulate and implement solutions?

Understand the private sector’s structure in the target territory

• • • What is the size of the private sector? How much does it contribute to employment generation, value added, state revenues?
    • In which economic sectors participates and to which degree? What is its share of different economic sectors in the national exports? And the imports? Are there identifiable trends over the last years?

Box 411. Extending the purpose of a private sector assessment

An extensive private sector assessment could also answer the following questions:

• Which sectors have higher potential of growth? Which local firms have a predisposition to develop local supply chains? How and where do main local corporations work? And small and micro enterprises? How relevant is the start-up ecosystem?
• Are there multinational companies present? Do they involve local SMEs? Are they confined to SEZs?
• How is the territorial and sectorial distribution of corporations, multinationals and SMEs?
• What are the main constraints of the private sector? What is the role of FDI in their development? How are public enterprises perceived? How is the concept of competition perceived?
• How integrated is the private sector with academic and research institutions? What is the innovation potential of the private sector?

Understand the private sector’s readiness and institutional capacity for participating in policy formulation with the public sector

Conduct a private sector mapping answering the following questions:

• • • How organized is the private sector? Are there specific private sector organisations? How representative are they? For how long have these actors existed? Do specific individuals lead them?
    • To what extent does it have leadership? Are organisational gaps among specific sectors? Is there cluster/umbrella organisations? Territorial organisations? Sectoral organisations?
    • Are there public-private business organisations? Which services do they offer to the private sector? How are they perceived by the private sector?
    • How strong is the private sector organisations human and political capacity and willingness to engage or lead the PPD process?
    • How do these sector actors perceive the public authorities? Are there precedents of contacts with the public authorities? Have they been successful?
    • Do entrepreneurs feel a basic sense of security in speaking out to government without fear of retribution?

Consider the participation of trade unions

• • • Are there active trade unions?
    • Are there formal or informal mechanisms of dialogue between private sector organisations and trade unions? E.g. social dialogue? Have these been successful?
    • Is trade unions’ involvement in the dialogue relevant for the specific PPD objectives?

Identify key actors for strategic steering, general actors for technical discussions and PPD Champions for sectorial/cluster/territorial support

• • • Maximise institutional representation at the technical level but identify a heterogeneous, smaller but committed group of stakeholders that may provide leadership to the whole PPD process.
    • Identify PPD champions from the public sector, private sector and civil society that are characterised by a strong commitment with the PPD objectives: to what extent are there credible and respected individuals with the expertise, profile and ability to attract the attention of participants and media?

Define the specific objectives/policy or standard-setting process for which the PPD will be used

• • • Specific objectives of the PPD should be agreed with the selected leading stakeholders and following the conclusions of the private sector assessment and mapping. Inclusivity is key, ensuring the objectives meet the needs of the least represented stakeholders is also crucial in this stage.

Define the PPD structure and process

• • • The PPD should enjoy a specific governance structure that will provide strategic steering and technical and logistical support.
    • Strategic steering: Should be composed by relevant actors from the public, private sectors and civil society.
    • Technical and logistical support: Ideally, this will be composed by a small team integrated under a resilient and well-established public or private institution, well committed with the PPD objectives.

Implementation phase checklist

• • • Provide training to strategic stakeholders, PPD Champions and facilitators.
    • Run organised PPDs
    • Avoid talk shops
    • Ensure stakeholder engagement across the whole consultation process

Provide training to strategic stakeholders, PPD Champions and facilitators

• • • Provide specific training to targeted stakeholders in charge of strategic decisions under the PPD, PPD Champions and PPD facilitators:
    • Policy advocacy, management of information, policy formulation, policy monitoring mechanisms.
    • Provide technical training for PPD Champions and PPD facilitators dealing with specific sectors and issues.

Run structured PPDs

• • • Appoint a facilitator per issue/sector/territorial PPD: Can be a PPD champion or a professional facilitator.
    • Conduct preparatory consultations with the different stakeholder blocks (private sector, public sector, civil society, trade unions) to understand their key demands and perceived issues under a

non-confrontational atmosphere. Share within these consultations the needs and demands of the other stakeholder blocks, paving the way for the PPD.

• • • Collectively define and share a precise agenda in advance of each meeting, including the issues to be raised by all sides.

Avoid talk shops

• • • Provide a clear set of discussion and consultation rules and stages.
    • Discussions should be contextualised with analytical and factual inputs prepared ad-hoc for the session and shared with stakeholders sufficiently in advance (at least one week). Questions should be results oriented.
    • Make meetings as interactive as possible, but with the meeting’s objectives in mind, allowing ample time for stakeholders to raise their views, make comments and ask questions.

Ensure stakeholder engagement across the whole consultation process

• • • Keep stakeholders informed of relevant developments and initiatives also between meetings, e.g. by e-mail
    • Outline publicly the timing of subsequent work and any further opportunities to provide input. Share the conclusions/summary/minutes of all consultations and/or exchanges of views.
    • Assess the scope of comments to ensure broad coverage, to avoid policy capture and balance the opinions expressed during the consultation process.
    • Consider for which cases consultative meetings are appropriate and when consultation through written procedure may suffice.
    • Emphasise in the summary new approaches to the question consulted on; further evidence of the impact of the proposals; and strength of feeling among similar pressure groups.
    • Indicate in the summary where public input is taken on board and where it is not, explaining why.

Monitoring phase checklist

• • • Regularly evaluate the performance of the PPD consultations
    • Develop a monitoring mechanism of the overall PPD platform

Regularly evaluate the performance of the PPD consultations

• • • Whether the consultation strategy met its objectives.
    • Whether all relevant stakeholder groups were reached.
    • Whether and how stakeholders’ views had an influence on the issues discussed and on the decisions made.
    • Benchmark with other previous consultations, if applicable, to evaluate progress over time.
    • Invite respondents to comment on the consultation process and provide suggestions for further improvement. Tools for evaluation may include
    • Informal reviews
    • Participant surveys
    • Analysis of quantitative data

Develop a monitoring mechanism of the overall PPD platform

• • • A monitoring mechanism should enjoy dedicated financial resources
    • The monitoring tool should be designed with the purpose of:
    • Promote local ownership of the process, as this activity is led by the local actors
    • Gather evidence of the work done and use it to continue the dialogue in new cycles of the PPD
    • Understand gaps and missed potential in the PPD process, to be used for enhancing the efficiency of new PPD cycles
    • Track progress of the implementation of reforms, unleash bottlenecks in the legislative process and fine-tune future policy reform plans

Reference

Donor Committee on Entreprise Development (2021), Using Business Environment Reforms to Build Back Better - Tackling PPD Online.

Herzberg, B. and A. Wright (2006), PPD Handbook: A Toolkit for Business Environment Reformers, World Bank Group, DFID, OECD, http://www.publicprivatedialogue.org/tools/PPDhandbook.pdf.

Nielsen, W. (2021), Public Private Dialogue (PPD) with the Use of New Technologies, Donor Committee for Entreprise Development, https://www.enterprise-development.org/wp-content/uploads/BEWG-PPD-report-final.pdf.

OECD (2021), Production Transformation Policy Review of Egypt: Embracing Change, Achieving Prosperity, OECD Publishing, Paris, https://doi.org/10.1787/302fec4b-en.

OECD (2020), Global Lessons on Collective Action against Corruption: The case of Morocco, https://doi.org/10.1787/07d817f0-en.

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OECD (2020), States of Fragility 2020, OECD Publishing, https://doi.org/10.1787/ba7c22e7-e. [11] OECD (2019), Unleashing the Potential of the Youth to Contribute to Economic Growth. [14] OECD (2018), Regulatory Policy Outlook, https://doi.org/10.1787/9789264303072-en. [7]

OECD (2018), SME Policy Index: Mediterranean Middle East and North Africa, https://doi.org/10.1787/9789264304161-en.

OECD (2017), OECD Recommendations on Open Government, https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0438.

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OECD (2016), Holistic Tookbox for Private Sector Engagement in Development Co-operation. [5]

OECD (2012), Recommendation of the Council on Regulatory Policy and Governance, OECD, Paris, https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0390.

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OECD (2007), Constructing Inclusive PPD, OECD Publishing, Paris. [1]

OECD (2007), PPD in Developing Countries: Opportunities and Risks, OECD Publishing, Paris. [4]

OECD & UNDP (2019), Making Development Co-operation More Effective, https://doi.org/10.1787/26f2638f-en.

World Bank (2014), Public-private dialogue in fragile and conflict-affected situations- Experiences and lessons learned.

World Bank Group (2015), CharterGood Practice in using Public Private Dialogue for Private Sector Development and Inclusive Growth, http://www.publicprivatedialogue.org/charter/New%202015%20PPD%20Charter%20of%20Go od%20Practice.pdf.

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Annex A. Charter of Good Practice in Using Public-Private Dialogue for Private Sector Development and Inclusive Growth

In 2006, in partnership with the World Bank and DFID, the OECD contributed to the identification of key principles that should guide PPD for private sector development and inclusive growth.

The Charter was updated in 2015 and encompasses the following 13 principles:

1. Contextual design: PPD can take several forms and can take place at various levels within different timeframes.
2. Open governance process: PPD needs to function under open, transparent, and fair governance rules. PPD will be more likely to succeed if its governance structure is designed to take into account political economy factors.
3. Mandate and institutional alignment: A statement of objective is helpful for clarity. A formal or legal mandate can be helpful in some political and economic contexts, but mandates are never sufficient to establish good PPDs. Wherever hosted and whenever possible, PPDs should be aligned with existing institutions to maximize the institutional potential and minimize friction.
4. Structure and participation: PPD should have a solid structure and a representative participation. The structure should be manageable while flexible, enable participation to be both balanced and effective, reflect the local private sector context and stakeholders’ interests.
5. Facilitation: The PPD process needs to be facilitated professionally with dedicated people and resources, so as to efficiently manage all aspects of the dialogue process with a view to delivering results.
6. Champions: Leadership from a set of individuals or organizations is often necessary to reduce the trust gap, sustain the energy, and keep pushing for parties’ involvement over the long run.
7. Outputs: Outputs can take the shape of structure and process outputs, analytical outputs, soft outputs or recommendations. While all should contribute to agreed private sector development outcomes, the PPD should aim for tangible, practical and measurable benefits.
8. Outreach and communication: Enabling communication of a shared vision and understanding through the development of a common language is essential for building trust among stakeholders and keeping them engaged.
9. Monitoring and evaluation: Monitoring and evaluation is an effective tool to manage the public-private dialogue process and to demonstrate its purpose, performance and impact.
10. Appropriate area and scope: The dialogue process should be tailored to the set of issues to be addressed and consider the implications for sub issues that are part of a larger agenda, and smaller jurisdictions that can play a role in the change process. Local and sector specific public-private dialogues have strong potential for focused results. National and economy-wide platforms and local and sector specific initiatives would gain by coordinating their agendas, so as to best serve the interests of their constituencies.
11. Crisis and conflict response: PPD is particularly valuable in crisis, conflict and fragile environments to mitigate entrenched interests, rebuild trust and accelerate inclusive and sustainable growth. PPD mechanisms can also work towards resolving disputes and reconciling views of different stakeholders on particular issues.
12. Development partners: PPD can benefit from the input and support of development partners when their role is determined by the local context, demand driven, and based on partnership, coordination and additionality.
13. Sustainability: “Sustainability” (or ‘Exit’) refers to the transfer of operations, management or financing of a PPD by a development partner to local institutions. Achieving sustainability is a challenge for a PPD and requires the commitment of all PPD actors.

The full text is presented in State of Play – Public-Private Dialogue, Benjamin Herzberg and Lili Sisombat, World Bank Group, Public-Private Dialogue (PPD) Practical Notes Series; see https://issuu.com/world.bank.publications/docs/state_of_play public-private_dial, Annex A, pages 48-56.

Annex B. Public-Private Dialogue in fragile countries

Public-private dialogue benefits from reliable and stable governments and organised private sector institutions. Public institutions in fragile countries are burdened by economic limitations and tend to lack capacities to deliver public services, define and reach consensual policy initiatives and public interventions (OECD, 2020[11]). The private sector tends to be fragmented and often over-represented by strong corporations that may be state-owned or be already informally participating in the country’s politics (OECD, 2007[4]). The following points summarise the recommendations that PPD initiatives in fragile countries should take into account, reflecting the work from the above-quoted works as well as (World Bank, 2014[12]):

• • PPD’s final objective is to contribute to the implementation of policy reforms in benefit of the country’s economic ecosystem. Legislative activity in fragile countries tends to be rather slow and often remains blocked for long periods of time. It is important for PPD initiatives in these scenarios to identify smaller achievable goals that remain independent from political and institutional disruptions (such as training of officials and private sector representatives, awareness raising, design of comprehensive long-term policy roadmaps). It is also important to learn how to recognise and monitor positive effects that may contribute to peacebuilding and institutionalised multi-stakeholder dialogue and collective action.
  • Lack of trust in public institutions and perceived Government’s instability can discourage stakeholders from engaging in formal dialogues with the Government, seeing them inefficient. It is thus important to ensure that the structure of the PPD involves technical-level officials from a diverse range of relevant public institutions, as these often remain relatively unaffected by government changes.
  • Organised dialogue structures among public and private actors may be lacking in fragile countries, however, informal channels of communication are not rate. An assessment of these networks and the nature of the potential stakeholders may help design a stakeholder-mobilisation approach that can contribute to the expansion of these informal networks and use them in benefit of the structured dialogue and of the identification of potential stakeholders.
  • Understanding who participates in and how authority works in the host country is an essential task at the preparation phase of a PPD initiative in a fragile country. Knowledgeable and relatively well-connected local staff in support of a PPD initiative will be crucial in order to build the necessary political network that will be essential for the initiative’s acceptance and long-term survival.
  • A key characteristic of a successful PPD is inclusiveness. Ensuring that all voices are heard is necessary for any project implementer. For fragile countries, however, identifying, reaching, and mobilising minority or marginalised groups may be difficult. This task can be affected due to geographical limitations (e.g. difficult access to rural areas), lack of trust from these groups, or lack of support from the central authorities. A PPD initiative will need to identify appropriate ways to overcome such challenges, where, again, local staff may play a fundamental role.
  • The use of social networks, national public media and other public tools of communications are necessary to guarantee the PPD’s transparency, however, in fragile countries, some of these channels may be negatively perceived by the general public, public authorities or PPD

stakeholders. It is thus necessary to clearly understand the media ecosystem of the host-country before the PPD uses such channels of communication.

• • Lastly, ensuring the continuation of a PPD initiative once the original project comes to term will depend on the local institutions’ capacity to receive the initiatives ownership. In fragile countries, this may be difficult due to limited financial and human resources and general instability. Capacity building, knowledge transfer and, when possible, transfer of infrastructure (e.g. digital tools, websites) must be part of the project well ahead its finalisation.

Notes

1 For more information on PPD and the Busan commitments, see the Kampala Principles on Effective Private Sector Engagement in Development Co-operation, especially Principle 3 on Inclusive partnership. https://www.oecd.org/dac/effectiveness/Kampala-Principles-on-effective-private-sector-engagement-development-cooperation.pdf

2 OECD et al. (2021), Production Transformation Policy Review of Egypt: Embracing Change, Achieving Prosperity, OECD Development Pathways, OECD Publishing.

³ See “SME Policy Index: Mediterranean Middle East and North Africa” (OECD, 2018[17]).

4 OECD (2016), Start-up Latin America 2016: Building an Innovative Future, Development Centre Studies, OECD Publishing, Paris

5 The OECD Recommendation on Principles for Transparency and Integrity in Lobbying provides decision makers with directions and guidance to foster transparency and integrity in lobbying. It was adopted in 2010.

OECD Global Relations Policy Papers

Supporting policy action via public-private dialogue

A practical tool

Supporting policy action via Public-Private Dialogue: A practical tool provides guidance to public-private dialogue (PPD) facilitators and participants in PPD initiatives. It introduces the key elements of a successful process of public-private dialogue, from the sequence of the steps of the process, to the focus, tools and modalities; and discusses fundamental dimensions of the process, such inclusivity, ownership, and sustainability. The paper includes a checklist for the PPD process, to facilitate the design, implementation and monitoring of public-private dialogue initiatives.