In the framework of the OECD Development Centre’s 2005 Seminar Series, Mr. Nicolas Pinaud, Economist at the OECD Development Centre, Mr. Ben Ross Schneider, Associate Professor at
“Public-Private Dialogue: Panacea or Fake Solution”
This meeting brought together donor and private sector representatives in order to examine the how PPD could best be used to contribute to improvements in public policy in developing countries. The focus was on pinpointing the key conditions for the successful implementation of such dialogue and identifying the risks that could be associated with it, especially in situations of weak and inappropriate institutional development.
The necessity of promoting meaningful dialogue between the State and the private sector on the formulation of public policies is generally accepted across the donor community: it appears to be indispensable for identifying possible complementarities between public action and private sector objectives, and thereby maximising the effectiveness of public policy for business development. By supporting private sector investment and the development of formal sector, well-designed public policies can in turn do much to stimulate economic growth and social development in poor countries. The success of PPD initiatives has, however, frequently been mixed; it can not therefore be considered as an automatic “miracle solution”. In situations in which the state is often weak and or bloated, and in which the functioning of local politics is complex and opaque, PPD can indeed be wholly ineffectual; it might indeed exacerbate the malfunctions associated with corruption, clientelism and rent seeking.
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