Shaping an enabling business and investment climate in Asia – Making Reforms Work – Traders Hotel, Roxas Boulevard, Pasay City Manila, Philippines July 25-28, 2005 PROGRAM MONDAY, JULY 25, 2005 8.00 – 9:00 SEMINAR REGISTRATION OPENING SESSION 9:00 – 9:10 Welcome and overview Simon White, Seminar Facilitator KEYNOTE PRESENTATIONS 9:10 – 9.30 GTZ’s role in Business and Investment Climate Reforms in the Asian region Martina Vahlhaus, Program Manager, SMEDSEP, Philippines 9:30 – 9:50 Key priorities for reform of the business and investment climate Elmer C. Hernandez, Undersecretary, Industry & Investments Group, Board of Investments 9:50 – 10.10 Role of the private sector in creating a better business and investment climate Donald Dee, President, Philippines Chamber of Commerce and Industry 10.10 – 10.30 IFC SME Facility and investment climate reform in the Philippines Vipul Bhagat, Philippines Country Manager, International Finance Corporation 10:30-11:00 Morning tea break SEMINAR ORIENTATION AND INTRODUCTIONS 11:00 – 11:30 Outline of seminar aims and program Simon White, Seminar Facilitator 11:30 – 12:00 Participant introductions 12.00 – 13.00 Lunch break July 6 2005 1 REGION OVERVIEW The regional roundup provides an opportunity for all participants to understand the major issues affecting business and investment climate reforms in the countries of the region that are participating in the seminar. 13:00 – 13:30 Regional overview (Doing business and policy analysis of the region) Federico M. Macaranas, Executive Director, Asian Institute of Management, Policy Center 13:00 – 14:15 Facilitated discussion on the main business and investment climate issues in the region Simon White, Seminar Facilitator Brief overview of reforms in the Mekong Nguyen Hang Nam, Business Development Officer, Business Enabling Environment Program, Mekong Private Sector Development Facility, Vietnam Afternoon tea break 14:15 – 14:30 14:30 – 15:00 15:00 – 16:00 Small business perspective on business and investment climate Leah Zveglich, Business Consultant 16:00 – 17:00 Review of common challenges and priorities for reform in Asia Simon White, Seminar Facilitator 17:00 End of Day 1 July 6 2005 2 DAY 2: TUESDAY, JULY 26 2005 PART 1: ASSESSING THE BUSINESS AND INVESTMENT CLIMATE AND DESIGNING REFORMS A FRAMEWORK FOR ANALYSIS AND REFORM This session presents a framework for understanding the way the business and investment climate can contribute SME development. It includes a consideration of the ways business and investment climates can be assessed and programs for reform designed. 8.30 – 9:15 Role of the business and investment climate in SME development Simon White, Seminar Facilitator 9:15 – 10:15 Framework for analysis and reform of the business and investment climate: Part A: Definitions and concepts Sonja Kurz, GTZ Headquarters, Frankfurt 10:15 – 10:45 Morning tea break 10:45 – 11:20 Framework for analysis and reform of the business and investment climate Part B: Impact chains, tools and data Sonja Kurz and Julius Spatz, GTZ Headquarters, Frankfurt PART 2: IMPLEMENTING REFORM PROGRAMS – AREAS OF INTEREST: FINANCIAL AND SECTORAL REFORMS FOR A BETTER BUSINESS AND INVESTMENT CLIMATE The following presentations show the relevance of financial and sectoral reforms to improvements in the business and investment climate. Seminar participants can pursue these areas of interest in more detail in the afternoon breakout sessions. 11:20 – 11:50 A sectoral approach to improving the business and investment climate for SMEs Federico M. Macaranas, Executive Director, Asian Institute of Management, Policy Center 11:50 – 12:20 Financial sector reforms: towards a systemic approach to improving financial markets for SMEs Stefan Jansen, GTZ Indonesia 12:20 – 13:20 Lunch break PARALLEL BREAKOUT SESSIONS These sessions have been designed to provide participants with the opportunity to examine specific areas of interest to business and investment climate reform in more detail. Sessions will be held concurrently in different rooms. A rapporteur will be chosen for each session to report back some of the key issues discussed in the morning of the following day. 13:20 – 17:00 SESSION A: SECTOR DEVELOPMENT AND BUSINESS AND INVESTMENT CLIMATE REFORMS This breakout session examines the relationships between sectoral development July 6 2005 3 approaches to SME development and reforms in the business and investment climate. It presents ways in which value chain analysis can incorporate an analysis of the business and investment climate and describes the kinds of reforms that can be used to enhance sector development opportunities. This will include consideration of the advantages and disadvantages of special economic zones as strategies that have a sectoral focus and offer special concessions in the business and investment climate. Session Facilitator: Anja Gomm A sectoral approach to improving the business and investment climate for SMEs Federico M. Macaranas, Executive Director, Asian Institute of Management, Policy Center, Philippines Economic zones and sectoral business environments Wilhelm Ortaliz, Deputy Director General, Philippine Economic Zone Authority Approaches to private sector development in the tourism sector; critical issues for business and investment climate reform Cherry Lyn Rodolfo, School of Economics, University of Asia and the Pacific, Tourism sector Philippines 13:20 – 17:00 SESSION B: MAKING FINANCIAL MARKETS WORK BETTER This breakout session provides an opportunity for participants to examine in depth approaches to making financial markets work better for SMEs. It will provide practical examples and tools on how to assess financial markets and identify the obstacles to making financial markets work better for SMEs. It will also give examples of strategies that have been used to improve financial markets such as the use of credit bureaus, strategies for improving secured lending practices, leasing, etc. Session Facilitator: Martina Vahlhaus Stefan Jansen, GTZ Indonesia Hans Shrader, International Finance Corporation, Indonesia Benel Lagua, Philippines Small Business Guarantee and Finance Corporation N. Balasubramanian, Small Enterprise Development Bank of India, Chairman and Managing Director, India 17:00 July 6 2005 End of Day 2 4 DAY 3: WEDNESDAY, JULY 27 2005 8.30 – 8:45 Review of program Simon White, Seminar Facilitator GOOD REFORM PRACTICES AND CONDITIONS FOR SUCCESS 8:45 – 10:00 Reports from Tuesday breakout sessions Key lessons for good reform practices and conditions required for successful reform In this session a rapporteur from the previous breakout sessions will report on the issues discussed in these session. Emphasis will be given to the crosscutting issues that affect the success of reforms to the business and investment climate. This will include discussions in country groups. AREAS OF INTEREST: REGULATORY, ADMINISTRATIVE AND SUBNATIONAL REFORMS The following presentations show the relevance of regulatory and administrative reforms to improvements in the business and investment climate. The importance of sub-national reforms is also considered. Seminar participants can pursue these areas of interest in more detail in the afternoon breakout sessions. 10:00 – 10:30 Regulatory reforms for a more competitive business and investment climate Part 1 Jong Seok Kim, Member of Presidential Regulatory Reform Commission, Director Jacobs & Associates, Seoul, South Korea 10:30 – 11:00 Morning tea break 11:00 – 11:30 Regulatory reforms for a more competitive business and investment climate Part 2 Jong Seok Kim, Member of Presidential Regulatory Reform Commission, Director Jacobs & Associates, Seoul, South Korea 11:30 – 12:00 Creating better local business and investment climates Hans Shrader, International Finance Corporation, Indonesia 12:00 – 13:00 Lunch break PARALLEL BREAKOUT SESSIONS These sessions have been designed to provide participants with the opportunity to examine specific areas of interest to business and investment climate reform in more detail. Sessions will be held concurrently in different rooms. A rapporteur will be chosen for each session to report back some of the key issues discussed in the morning of the following day. 13:00 – 17:00 SESSION A: REGULATORY REFORM PROCESSES AND STRATEGIES This session will take an in depth look at the processes and strategies that can be used to reform the regulatory framework for private sector development. It will include information on the use of regulatory impact assessments (RIAs) and draw from the experiences of South Korea. Session Facilitator: Anja Gomm July 6 2005 5 Session overview: processes and strategies for regulatory reform Jong Seok Kim, Seoul, South Korea Case study: Viet Nam Le Duy Binh, GTZ, Hanoi, Viet Nam Observations on the dynamics of regulatory reform in the Philippines John Avila, Institute of Political Economy, University of Asia and the Pacific, Philippines Vera Songwe, Senior Economist, East Asia Pacific Region, Poverty Reduction and Economic Management Unit, World Bank, Philippines 13:00 – 17:00 SESSION B: SUB-NATIONAL REFORM PROCESSES AND STRATEGIES This breakout session will examine a range of practical processes and strategies that can be used to make local business and investment climates more competitive. It will present assessment tools and describe strategies that have been used in the region. Special consideration will be given to the role of local and provincial/regional governments. Session facilitator: Simon White Practical challenges and approaches in the design and development of sub-national business environment reforms Simon White, Consultant Hans Shrader, International Finance Corporation, Indonesia Role of local business associations in business and investment climate reform Restie Male, Program Officer, Partnership Development Facility, Philippine-Canada Local government support program, CIDA-Philippines Case study: SMEDSEP – promoting sub-national business environment reforms Martina Vahlhaus, Program Manager, SMEDSEP, Manila, Philippines OFFICIAL SEMINAR DINNER July 6 2005 6 DAY 4: THURSDAY, JULY 28 2005 8.30 – 8:45 Review of program Simon White, Seminar Facilitator GOOD REFORM PRACTICES AND CONDITIONS FOR SUCCESS 8:45 – 9:15 Reports from Wednesday breakout sessions Key lessons for good reform practices and conditions required for successful reform In this session a rapporteur from the previous breakout sessions will report on the issues discussed in these session. Emphasis will be given to the cross-cutting issues that affect the success of reforms to the business and investment climate PART 3: MONITORING AND IMPACT ASSESSMENT – DEMONSTRATING AND IMPROVING THE IMPACT OF REFORM This session examines ways in which the impact of reform programs can be measured so as to improve program design and to assess the contributions the reforms make to improving the business and investment climate 9:15 – 10:30 Evaluating the impact of reforms on the business and investment climate Julius Spatz, GTZ Headquarters, Frankfurt, Germany This session addresses the challenges to impact monitoring in BIC programs and shows what role enterprise surveys can play to overcome these challenges 10:30 – 11:00 Morning tea break 11:00 – 12:00 Bridging the Attribution Gap in Business and Investment Climate Programs Julius Spatz and Sonja Kurz, GTZ Headquarters, Frankfurt, Germany In this session, ways to establish links between business and investment climate programs and their impacts on SME development, job creation and poverty reduction are described. SEMINAR SUMMARY AND REVIEW Region round up: follow up activities, lessons learnt 12:00 – 13:00 Review of program and outcomes Simon White, Seminar Facilitator 13:00 – 14:00 Seminar evaluation Planning for next steps Martina Vahlhaus, Program Manager, SMEDSEP, Manila, Philippines 14:00 Close of seminar followed by lunch July 6 2005 7