Public private dialogue

A public–private dialogue (PPD) is a dialogue between the public sector and the private sector. More specifically, PPD is a process, which might include competitiveness partnerships, investors’ advisory councils, presidential investment councils, business forums, water forums, public-private alliances, state-business relations, public-private collaboration, reform coalitions, etc, aiming at improvement of government policies. However, the essence of modern PPD is not the policy outcome as such, but rather establishment of a viable process and framework to permit the collaboration between government and business and so PPD is generally understood as improvement of economic and industrial policies in the third world countries. Simply, through PPD can policymakers and business experts accurately determine the spot for reforms. Moreover, PPD enables stakeholders to address state and market collective action problems.

Alternative definitions

PPD defines some of the rules of the game governing the interaction between the private sector and the state. These rules are both formal (dialogue procedures) and substantive (agreements and commitments). From this point of view, PPD is a co-ordination mechanism consisting of an exchange system based on the possibility of mutual gains, as opposed to means of co-ordination based on a threat system or an integrative system.

PPD is a platform for interaction between state and private sector, and is hence an organization (which can be very informal or very institutionalized).

Benefits of PPD

Private contribution to dialogue improves the quality of business representation and supplements the performance of democratic institutions, which helps with building trust and understanding between the governments and private sector by diversifying of sources of information and promoting the evidence-based policy.