The proposed Public-Private Dialogue (PPD) framework outlined in this Concept Note provides an institutionalised process for consultations between Government and the Private Sector. The objective is to establish a regular and sustainable process of dialogue between Government and the Private Sector that encourages clarity and consistency in the implementation of private sector development and investment climate policies and regulations.

BACKGROUND AND CONTEXT
One of the most critical success factors for enhanced private sector performance and growth is the effectiveness of the Private Sector’s contribution in defining and improving the policy and regulatory environment within which they operate. Regrettably in many African countries, including Ghana, there is no institutionalised process for long-term engagement between Government, public sector institutions and private sector operators. This often results in the introduction of policies and regulations that are inimical to the interests of the private sector. It also breeds mistrust and the lack of interest in compliance on the part of the private sector, which ultimately results in a weak response to Government policy interventions to develop the private sector.
In Ghana, there have been several well-meaning attempts, either by Government, the Private Sector and Development Partners, to create forums aimed at improving consultations between Government and the Private Sector. Examples include:

1. The Ghana Investors Advisory Council (GIAC), chaired by the President of the Republic held annual meetings from 2002 to 2008. It was a 30-member Council, made up of top business executives (including nine international corporate executives), Ministers of State and other representatives from Government, Private Sector Associations and Donor Partners.
2. The Private Enterprise Foundation (now Private Enterprise Federation) was established as an apex body to facilitate consultations between Government and the Private Sector, forge consensus between Private Sector operators and promote Private Sector advocacy. This was intended to end the practice where various associations sought their individual interests making it difficult to build consensus and negotiate/advocate common interests.
3. The National Economic Dialogue/Forum (NED/NEF) – a high-level conference organized annually by some previous Governments bringing together various stakeholders to deliberate on critical economic policies and regulations.
4. PSD Working Group Meetings – under the Private Sector Development Strategy (PSD I/PSD II) funded by Development Partners, several Working Groups Meetings were organized between Government, Private Sector and Development Partners to discuss and formulate recommendations to address private sector operational bottlenecks and enhance competitiveness.

The shortcomings of previous PPD Mechanisms in Ghana include the following:

1. Lack of coordination and weak capacity for developing rigorous evidenced-based recommendations
2. Overlapping mandate between Ministries
3. Poor coordination between Donors and Development Partners in supporting Private Sector developments.
4. Lack of trust between various Stakeholders
5. Lack of authority to ensure that critical decisions taken or agreed to are consistently followed through by Government and the Private Sector
6. No specific performance assessment or evaluation mechanism to monitor actions of various stakeholders and demand accountability for results.

It is against this background that the enhancement of Public-Private Dialogue (PPD) has been identified as one of the key pillars of Government’s transformation agenda. The PPD mechanism proposed in this Concept Note is designed as the coordination and implementation framework for putting the PPD requirements of the transformation plan into operational effect.

FRAMEWORK FOR THE NEW PPD MECHANISM IN GHANA
A combination of international best practice and lessons learned from experience in the past has informed the need to make the new PPD process in Ghana permanent and sustainable. Based on international best practice, PPDs are normally structured along four phases:

• Sector Diagnostics and Prioritization of constraints affecting competitiveness of Private Sector operators; 
• Elaboration of Sector Specific Action Plans;
• Implementing Short Term Actions and Developing Longer Term Policy actions; and 
• High Level Business Forum to announce decisions and progress arising from PPD consultations or to escalate issues that have not been resolved at the level of stakeholder consultative forums.

Inclusive Participation
PPD consultations are to be organized along the following lines:

• Government to Government – between MDAs and other Public Sector institutions 
• Private to Private – between various private sector associations, bodies and groupings 
• Development Partners and Donor Agencies 
• Multi-Stakeholder Consultations - Whilst traditionally PPD has been driven mainly by Government and major Economic Operators in the private sector (and their representative bodies), the revamped PPD process will include other important stakeholders, who will contribute their own perspectives to recommendations on the key thematic priorities. They include the legislature, academia, civil society, organised labour, youth, gender advocates and the media. This will ensure that there is broader commitment and support from key stakeholders to work towards achieving agreed targets. It will also help sustain interest of other stakeholders in the PPD processes. 

All Year-Round Consultation and Coordination of PPD Implementation

• Regional and District level consultation activities will be organised all year round

PPD Coordinating Committee 

• A permanent Coordinating Committee for PPD, made up of Ministers and representatives of the Private Sector (nominated by the private sector and interest groups) will meet quarterly to discuss and take action on critical issues emerging from all year inclusive consultation process. It will be co-chaired by the Minister of Trade and Industry and a Private Sector co-chair.