The issue: Some PPDs have a formal mandate. This can mean anything from a mission statement drafted by participants to a presidential decree of establishment. Some even have a formal mandate with legal backing, making the consultation process mandatory. Other PPDs are effective without any form of formal or legal mandate.

Closely associated with the question of mandate is that of institutionalization. Some PPDs are formal institutions, other are informal initiatives. Some begin as informal initiatives and morph into formal institutions. All need to be aligned with existing institutions to avoid the risk of duplicating efforts.

C.1.A. Mandate

C.1.A.1 Distinguish between legal mandates, formal mandates and mission statements

When considering what legal status a dialogue mechanism should have, distinguish between mission statements, formal mandates and legal mandates. Each has its own advantages and disadvantages, as the typology of a mandates table shows.

The different options in the table below are not mutually exclusive – a PPD can combine several mandate options at once.

Typology of options to consider for establishing mandate and building momentum

See the annexes for the following examples of mandates:

• Formal mandate: a sample letter from a president (Annex C2)
• Legal mandate: Rules of Operation of the Government of the Republic of Serbia (Annex C3)
• MoU: Bosnia’s “Protocols for prosperity” (2004) (Annex C4)

C.1.A.2. Mandates can evolve as the status of a dialogue can change over time

There is no reason why dialogue cannot become more firmly legally grounded as it evolves and establishes itself. Dialogue can start with an informal mission statement and later consider seeking a formal or legal mandate at a future date if it seems helpful.

C.1.A.3. Instead of using a mandate to create momentum, consider a time-bound initiative with an artificial deadline

One reason for wanting a formal or legal mandate is to establish initial momentum and credibility for dialogue. If this is an issue, consider that the imposition of an artificial deadline through setting timebound objectives can help to do the same thing.

For example, in Mexico’s social pacts of the 1980s, talks were held on Friday nights and participants were forbidden to leave the building until an agreement had been reached – which usually happened on Saturday mornings.

In a less extreme example, a high-profile public commitment to passing “50 economic reforms in 150 days” enabled the Bulldozer Initiative in Bosnia to create a sense of urgency and momentum from the outset.

C.1.A.4. Legal requirements for public consultation may already be stipulated by law

Often countries include, either in their administrative procedure law or in the government functioning law, a requirement for public consultation. These legal requirements are often ignored by regulators but are nonetheless a good starting point of a PPD initiative.

In Serbia, for example, the Rules of Operation of the Government of the Republic of Serbia adopted in 2004 include the following text in its article 1:

In the procedure of preparation of a law which significantly changes the legal regime in a certain area or which regulates issues which are of particular interest for the public, the proposer has to previously perform public discussion, and he can perform it in other cases when they consider that this is necessary.

The program of public discussion and term in which the public discussion is being performed is determined by the competent Board of the Government at the proposal of the proposer.

“If the proposer does not perform the public discussion in accordance with the program which has been determined by the competent board, or does not propose to the competent board the performance of the public discussion although he had to, the competent board shall, while considering the draft law, oblige the proposer to perform an additional public discussion, i.e. it shall determine itself the obligation of performance of the public discussion, the bodies which shall perform the public discussion and the term in which it has to be performed.

Such a legal text can serve as a platform to organize in a more systematic manner exchanges between the public and the private sector.

C.1.A.5. Correlation between mandate and effectiveness is not guaranteed

Denmark, unlike Serbia, has no requirements in its administrative procedure law that regulators ought to consult with stakeholders while preparing new regulations. But almost all regulations in Denmark nevertheless go through a thorough consultation phase, as regulators know that failing to consult adequately is likely to create problems later.

C.1.A.6. Don’t be dogmatic about legal mandates – formal and informal structures can work indistinguishably well

“Slovakia has a law on tripartism… whereas tripartism in the Czech Republic is based on an agreement concluded between the government and the social partners. This does not prevent the tripartite arrangements in these two countries from being virtually identical and social dialogue there has been operating relatively well for some time.”
– Social Dialogue in European Union Candidate Countries, European Trade Union Confederation, September 2001

C.1.A.7. Mission statements can help clarify thinking about what PPD is trying to achieve

Mission statements serve to clarify the mission of the PPD. Having all members agree on what the goals are is already a success. Below are three examples of mission statements. Some are succinct, and some are more elaborate; the length does not matter much, although the more concise the mission statement, the easier it will be for stakeholders to agree on it, remember it, and abide by it.

C.1.A.8. Workshops can be helpful in identifying the best way forward

Some dialogue processes have been initiated through enterprise-level surveys and focus groups, which serve as the basis for a workshop with relevant stakeholders discussing how PPD can be initiated and sustained, and which issues they should prioritize.

This approach is especially useful when there are existing institutions – that is, functioning dialogue mechanisms or private sector representative associations – that are non-existent or weak. The results of field research conducted during the PPD mapping exercise can be used for this purpose.

C.1.B. Institutional Alignment

C.1.B.1. Seek a Memorandum of Understanding with existing institutions

By definition, the need for new dialogue mechanisms arises when existing institutions are not proving sufficient to do the job. But existing institutions may nonetheless have the capacity to make or break a new dialogue mechanism depending on how effectively they are brought on board.

Seek clarity with existing institutions about how a new dialogue mechanism can leverage their roles and create new opportunities for them. A Memorandum of Understanding between a new dialogue mechanism and existing relevant institutions can be helpful in achieving that.

An existing institution may be able to house the secretariat of a new dialogue mechanism. For example, the Tanzanian Investors Round Table has its secretariat run by the Tanzania National Business Council.

New dialogue mechanisms can reinvigorate business membership organizations and Chambers of Commerce – but only if handled diplomatically. When these organizations are not aligned from the start with the new dialogue mechanism, they can perceive it as a threat.

Consider the potential to set a limited time span on a new dialogue mechanism, with the explicit aim of breathing new life into existing institutions and building their capacity to carry on the work – this needs careful thought and planning.

C.1.B.2. The location of the dialogue is important for institutional alignment

PPD needs a host that is effectively linked to existing institutions and yet is not perceived as instinctively favoring the interests of any particular participant in dialogue. This can be in an existing organization, agency or government department, so long as it is perceived as being able to take a wider view.

A number of existing institutions can potentially make good hosts for dialogues – while setting up a new and independent entity is also an option. The table lists some strengths and weaknesses of possible dialogue hosts.

The most important criteria of an organization in which a secretariat is located are that it should be effective, able to build capacity and reach a wide range of businesses, acceptable to a range of stakeholders, and it should not duplicate existing institutions.