PROMOTION OF DIALOGUE ON WAYS TO ADDRESS ECONOMIC DEVELOPMENT AT THE LOCAL LEVEL: NEW PERSPECTIVES AND APPROACHES Global practice shows that countries which pay more attention to improving the business environment and supporting entrepreneurship are more likely to achieve sustainable and inclusive growth: they tend to be more successful in increasing production, attracting new investments, creating jobs, introducing new technologies, all of which ultimately lead to enhanced economic and social development. Creating a good business environment requires an active role on the part of the government. However, governments do not always understand the ways in which they can contribute, or the range of policy tools which are available to them to do so. Governments also have a basic role to play in regulating the private sector, but it is important that this is not understood as restricting or controlling local entrepreneurs. Also it is important that this is not seen as their only role with regard to the private sector: creating a favorable environment for enterprises to operate in and flourish is just as important. Establishing a platform for dialogue between government and business – at national and local levels – is one key ways of allowing both sides to understand better each other’s needs. Governments learn to understand the concerns of the business sector, and how they can help overcome them. On the other hand, enterprises are more willing to contribute tax revenue and act in socially responsible ways, if they are involved in dialogue on national and local development strategies and policy making processes. The potential advantages to be gained from setting up a platform for private-public dialogue (PPD) can be summarized as follows: 1. It fosters relations of trust between two key sectors of society. The government will be more successful in implementing reforms if the private sector understands the nature and logic of the reforms, and is supportive of government policy. Regular meetings and open discussions contribute to establishing an atmosphere of constructive collaboration between the two sectors. 2. It provides increased opportunities to get feedback and benefit from the expertise of representatives of private sector during policy design, and more transparency in the decision-making processes related to the development of the business sector. 3. It promotes increased information exchange along vertical and horizontal lines, and involvement of other state and public institutions in the process of dialogue and problem-solving. 4. It allows for dissemination of best practices and expertise. 5. It contributes to transparency and good governance. Of course, it cannot be claimed that public and private dialogue is a tool for solving all problems, but it is a platform which provides a sound basis for improving the business environment. The concept of public-private dialogue is relatively new to Tajikistan, and is not always understood properly. However, at the national level there have been attempts to build the dialogue between the business and state by involving the private sector in policy discussions on economic development strategies. The first step towards establishing a platform for public-private dialogue in Tajikistan was the establishment of the Consultative Council on Improvement of the Investment Climate under the President of the Republic of Tajikistan in December 2007. These and other Councils established later at the regional level became key links in implementing economic reforms. They allow the voice of entrepreneurs to be heard at the different administrative levels, and to involve the private sector more in the process of local economic development. The Councils can play a significant role in promoting and supporting local economic development, in particular by pushing for improvements in the environment for private sector development and attraction of investments, strengthening the export potential of the region, through increased cooperation between the public and private sectors of society. Non-profit and international organizations also have a role to play in facilitating the dialogue. For example, the role of business associations is key, and in the majority of cases they act as initiators of the dialogue process. International organizations may provide technical support in establishing dialogue platforms, and monitoring implementation of the recommendations emerging from the discussion process. They can also promote the implementation of international best practices in facilitating such interaction between the public and private sectors. If Councils are set up at the district level, they can provide the vertical link with the higher national and regional level Councils, and can thus allow issues to be brought from the bottom-up, and ensure that local entrepreneurs have a voice in the process of decision-making and reform. Work is just beginning on setting up PPD platforms at the local (district) level in the Republic of Tajikistan. For example, in Farkhor district of Khatlon oblast, the Council on Improvement of the Investment Climate has been operating under the Chairman of Farkhor district for just over one year. It has already held two meetings. In Sughd oblast three Consultative Councils have been set up in the cities of Isfara, Istravshan and Penjikent since the beginning of 2013. Technical assistance for the establishment of these Councils was provided by UNDP within the framework of the Rural Growth Programme supported by the UK Department For International Development (DFID). The first meetings of the Councils in these cities demonstrated the importance and potential impact of facilitating the dialogue at the local level. The first Council meeting on local economic development under the Chairmen of Isfara and Istaravshan cities was devoted to discussion of issues related to business development, and ways of improving the contribution of local businesses to local economic development, such as inclusion of investment projects into the District Development Plans, collaboration on implementing such projects, and addressing issues related to the newly introduced tax legislation. At the meetings, the Chairmen of the Councils noted the importance of these platforms to help solve the problems of the private sector, and also to help with the effective implementation of national policies and reforms at the local level, socio-economic development of cities and ultimately improving the welfare of the population. In turn, the private sector participated actively in the meetings, and praised the initiative, and welcomed the attempt to strengthen cooperation between the different sectors of society contributing to local economic development. In particular, the representative of the private sector in Istravshan city had the following to say: «The establishment of the Consultative Council at the local level is an important step. If it realizes its goals, notable results can be achieved in identification of needs and opportunities of the private sector to work in collaboration with the public sector, and in facilitating the elimination of the psychological barrier between the two sectors. Councils at the local level can ideally provide the missing link in the chain of Councils set up under the President of the RT and Chairman of Sughd oblast, and can improve the interaction of private sector at various levels. Decisions and conclusions made during the Councils’ meetings may receive preliminary feedback from the level of cities and districts and may give more reliable data on the effectiveness of reform implementation as well as suggestions for improvement». It is important to understand that the Councils have been established as a platform for participatory decision-making where the private sector can openly express its opinion and put forward its proposals. Thus, participation of the various state bodies responsible for regulating entrepreneurial activities is based on the issues under discussion, and is on a temporary basis. Participation of private sector is also based on rotation principles, so that more representatives can be involved in the Council’s activities. Usually the Council comprises of 10-12 members. Rotation can take place after every 4 meetings. To involve more representatives of public, private and social sectors in its activities the Council may form working groups to discuss specific areas of activity or specific problems. These working groups may prepare concrete proposals, based on expert evaluations, and most importantly ensure the broad participation of the private sector in the Council’s work. Each working group can put forward issues for discussion at the Council meetings. It is important that the private sector is actively involved in the working groups. Activities of the Secretariat of the Council are usually supported by the local authorities (e.g. they provide venue/ meeting space and other resources, assistance in communications with other government agencies, links with the mass media) as well as by the private sector. The position of Secretary or Head of Secretariat is voluntary public position. Usually the Secretary of the Council is a representative from a Business Association, or a non-profit organization providing support to business development. They represent the main bridge between the public and private sectors, bears the main responsibility for promoting the further development of the Council. Council members do not receive any payment for their activities and membership of the Council does not bring any additional privileges. In some cases technical assistance for setting up the Council may be provided by donor organizations. Also, they may provide financial support and guidance for research and analysis. In general the essence of the dialogue platform is to provide all active citizens, particularly entrepreneurs, with the opportunity to participate in the economic development of the cities and regions. The initiators of these Councils, local authorities in consultation with the private sector, are looking for constructive dialogue. While various views and opinions will be expressed by the participants in the course of discussion, it is important that they remind members of the basic values and aims underlying the initiative, namely stable socio-economic development of the society, the welfare of the citizens, respect for human rights and freedoms. These initiatives carried out under the RGP programme have shown the relevance and potential benefits of promoting public-private dialogue at the local level. They have set in motion a process of bringing together the interests of different sectors of society, restored confidence, encouraged the involvement of various sectors in the process of local economic development, contributed to monitoring and evaluation of the implementation of national reforms at the local level, and in general to improving the economic and social indicators of the district. UNDP cooperates with all sections of society, assisting in state-building of countries, so that they can withstand crisis. It encourages and supports the growth, leading to improved quality of life for everyone. Working on the ground in 177 countries and territories, we offer a global perspective and local solutions to promote sovereign lives for people and increase the resilience of nations.
Posted on: Thu, 04 Jul 2013 07:23:38 +0000