Public-Private Dialogue in Developing Countries: Opportunities and Risks

Dialogue between the public and private sectors is not new, but its relevance for policy making in developing countries is attracting fresh attention. In the 1970s and 1980s, public-private dialogue (PPD) was regarded with suspicion, and justifiably so; It was found to be the source of rent-seeking, corruption and collusion, especially in the poorest countries. By the 1990s, in the light of the success of some of the Asian countries in which PPD was established practice, the image of the process began to change. None the less, the relationship between policy makers and those who stand to gain (or lose) through the policies they adopt is a delicate one.

This book insists on the fact that PPD is not a magic solution and emphasises the need to be wary of special interests’ seeking advantage through influence over policy making. On the other hand, there are great opportunities for co-operation and consultation, opportunities that donors, as well as developing-country governments, can exploit to bring the private sector into the policy-making process with enhanced efficiency and social and political acceptance. This will only happen if account is taken of the societal priorities of different contexts. For example, if the most pressing concern is for the reform of governance structures, it is unlikely that the safeguards necessary for successful PPD will be in place.

The author of Public-Private Dialogue in Developing Countries identifies the institutional conditions that could lead to successful PPD and avoid the dangers of non transparency and rent seeking. This requires each sides’ striking a balance between self interest and integrity.