Public-private dialogue (PPD) is a structured, participatory, and inclusive approach to policymaking. It is directed at reforming governance and the business climate, especially where other policy institutions are underperforming. Dialogue improves the flow of information relating to economic policy and builds legitimacy into the policy process. It also seeks to overcome impediments to transparency and accommodate greater inclusion of stakeholders in decision-making.
Simply put, dialogue expands the space for policy discovery. Through dialogue, policymakers, constituents, and experts can much more accurately determine the sweet spot for reforms that will satisfy the conditions of policy desirability and political and administrative feasibility. PPDs enable stakeholders to work cooperatively to address state and market collective action problems. They bring together a wide variety of actors such as the private sector, government, civil society, academia, and others who share common interests or concerns surrounding specific policy questions.
PPD is used to set policy priorities, improve legislative proposals, and incorporate feedback into regulatory implementation. It can generate insights, validate policy proposals, or build momentum for change. Dialogue helps reveal to governments the likely micro-economic foundations for growth, but also creates a sense of ownership of reform programs among the business community, which makes policies more likely to succeed in practice.