ASSESSING THE IMPACT OF ENABLING ENVIRONMENT PROGRAMMES

Transcription

1 Policy Division ASSESSING THE IMPACT OF ENABLING ENVIRONMENT PROGRAMMES REFORMING THE BUSINESS ENVIRONMENT Cairo, Egypt 28 Nov 2 Dec 2005 Caroline Pinder, WISE Development For DFID Investment, Competition & Enabling Environment Team

2 Outline Objective: To present practical guidelines and tools for assessing the outcome and impact of business enabling environment programmes. The approach: Summarises a new methodology - the Integrated Impact Assessment Approach (IIAA) - that is: - Useful to policy advisers, decision-makers and practitioners - Practical and flexible for different country and policy contexts and varying resource constraints - Helpful to evidence based policy making and business environment programme design - Integrated with the Logical Framework and Project Cycle Management process

3 3 critical factors in the process of assessment: Consultation with stakeholders throughout is essential: - key stakeholders are at firm level Conducting the IIAA should be part of the partnership between donors and government: - impact of IIAA felt at a level donors can t control IIAA is best understood as a continuous process - there should be continual feedback and learning IIAA should be seen as a part of the programme itself: - not an add-on but integral to its logic and implementation

4 Scoping the Enabling Environment The enabling environment comprises: The legal and regulatory framework within which business operates The policy framework for private sector development The institutional and organisational framework for the design, implementation and compliance with the policy and regulatory framework Broad areas of focus: Includes regulatory reform, competition policy, privatisation, public private dialogue, financial sector reform, trade facilitation, commercial justice, labour laws, property rights, infrastructure policy and regulation.

5 The Challenge Going beyond performance measurement to assessment of outcomes & impacts: Break development programmes into trackable units Time scale: proxy indicators; look for trends Data availability and quality: Reconstruct a baseline Triangulate quantitative and qualitative data Demonstrating causality: Causal chain analysis Risk assessment, mitigation analysis Institutional issues: Programme ownership needs to be with government Loss of institutional memory: MIS needed to track programme history from the start Fragmentation of knowledge and focus between disciplines

6 Integration with the Programme Logframe Activities & Processes Outputs Outcomes (Purpose) Impacts (Goal) Process & output level assessment: Measuring performance Outcome & impact level assessment Programme level Enabling environment level Firm level: business behaviour Society level: economic performance

7 Linking Impact Assessment to the Programme Management Cycle Initial screening (stage 1) Programme design: Ex ante appraisal (stage 2) Programme review: Ex post evaluation (stage 4) (Output to purpose or purpose to goal review) Programme Implementation: Establish monitoring system (stage 3a) Ongoing Monitoring (stage 3b) (Activities to Output review or ongoing project reporting)

8 Summary of the stages, tasks and tools of IIAA Stage 1 Screening: a) Initial overview of country enabling environment: list of areas that need to be reformed options and priorities for action outline proposal (or programme concept note) b) Obtain agreement on programme focus.

9 Stage 2 Ex ante appraisal: a) Review / consult: Review and map current policy, legal and regulatory framework and instruments Review current and forecast country and regional economic, social, governance and environmental context and conditions Consult with all interested parties Draw up Risk Assessment: clarify risks, costs, benefits b) Design intervention: Develop policy options Select indicators; conduct causal chain analysis; assess impact significance Develop scenarios: i) Intervention-on scenario: - with the proposed policy / regulatory change. ii) Baseline scenario: - without the proposed policy / regulatory change.

10 Stage 3 - Ongoing monitoring: a) Set up M&E system b) Routine / ongoing monitoring and evaluation Stage 4 Ex post Assessment a) Compare and contrast with baseline scenario Compare actual impacts with the intervention-on scenario b) Use findings and lessons to suggest further reform areas.

11 Output, Outcome and Impact Indicators Levels of indicators for enabling environment programmes: Output indicators reflect specific changes in the enabling environment as a result of the intervention Outcome indicators reflect changes in business behaviour or economic performance as a result of changes in the enabling environment Impact indicators reflect progress towards overall goals of sustainable private sector development as a result of changes in business behaviour or economic performance

12 Examples of outcome indicators relevant to Enabling Environment Programmes Focus of EE programme General reform of the enabling environment, including - reforms to the legal, policy, regulatory and institutional framework - government capacity to analyse, plan, develop and implement strategies that promote and support PSD Competition policy Suggested outcome indicators relevant to specific programme focus Rate of new business formation Failure rates of new businesses Spread of sectoral activity / diversification of PS activity Contribution to output and employment by size of business Inspection and compliance rates and costs Transparency of regulations Customs processing: costs and compliance Mechanisms and processes for consultation with PS Consistency of policy and implementation Quality and efficiency of public services that support PS (eg utilities) Ownership and output in major economic sectors Volume and quality of business linkages (vertical and horizontal clusters) Access to factors of productivity (labour, capital, public infrastructure) Spread of ownership and output in major economic sectors Transparency in government contract tendering Access to, cost of and flexibility in supply of factors of production Product mark-up levels Application of competitive principles to regulated sectors International competitiveness by benchmarking (for example, by cost of unit output, productivity, unit value of exports, market positioning etc)

13 Sustainable development core impact indicators for enabling environment programmes Economic Macro economic performance Employment Private sector output Private investment Total private sector employment SME employment Social Poverty Reduction Social equality Absolute number of households below the poverty line Access of poor to basis services Consumer benefits Gender equality Social exclusion Environmental Resource Stocks Environmental quality Use of natural resources Waste Air, water, land pollution Biodiversity Governance Better governance Transparency and accountability in government decision making Transparency and accountability in corporate governance Institutional capacity Capacity for ensuring regulation compliance Capacity for stakeholder consultation and participation

14 Other areas covered by IIAA Guidelines Data sources and methods of collection (see also the EDIAIS website: resources/toolbox) IIAA task and tools - Selection of indicators - Causal chain analysis - Consultation and stakeholder analysis - Risk assessment Presenting and reporting findings Organising the IA and model terms of reference

15 Thank you