POLICY ADVOCACY AND NETWORKING

POLICY ADVOCACY AND NETWORKING CACCI Chamber Operations Course August 25-30, 2008 Taipei, Taiwan

Outline • Fundamentals of policy advocacy • Case study: Asian Bankers’ Association’s Project on Promoting the Development of Local Currency Bond Markets in APEC

Fundamentals of Policy Advocacy

Definition of policy advocacy • The effort to influence policy through various forms of persuasive communication. • Policy: includes statements, policies or prevailing practices imposed by those in authority to guide or control institutional, community and individual behavior.

Steps in policy advocacy • Analysis • Strategy • Mobilization • Action • Evaluation • Continuity

1. Analysis • Accurate information and in-depth understanding • Problem • People involved • Policies • Implementation/Non-implementation of policies • Organizations • Channels of access to influential people and decision makers

1. Analysis: Key questions • Problems? • Existing policies? How are they implemented? • Type of policy change needed? • Stakeholders? Advocates? Supporters? Opponents? Decision makers? Undecided? • Who influences key decision makers? • Channels to reach decision makers?

2. Strategy • Builds upon analysis • Direct, plan and focus on specific goals • Establish clear paths for advocacy efforts to achieve those goals and objectives

2. Strategy: Key Elements • Working group to develop strategy/plan activities • Primary and secondary audiences • Objectives (specific, measurable, appropriate, realistic, time-bound - SMART) • Identify resources, coalitions, support • Activities, channels of communication • Implementation plan, budget, indicators

3. Mobilization • Networking and coalition-building • Audiences, partnerships and resources to be considered in the design of events, activities, messages and materials • Aim for maximum participation by all coalition members and minimal responses from opposition

3. Mobilization: Key Elements • Action plan for coalition partners’ participation • Delegation of responsibilities to coalition members • Network • Linking position to interests of policy makers • Rallying grassroots support

4. Action • Keeping all partners together • Keep attention and concern on the issue • Persisting in making the case • Repeating the message • Repeated use of credible materials

4. Action: Key Elements • Carrying out planned activities • Monitoring and response to other views and opposition • Keeping all coalition members informed • Develop/maintain media support

5. Evaluation • Needed because advocacy often provides only partial results • Advocacy team to measure regularly and objectively • What has been accomplished • What remains to be done • Process evaluation and impact evaluation

5. Evaluation: Key Elements • Establish/measure intermediate and process indicators • Evaluate specific events and activities • Compare final results with indicators to measure change • Identify key factors contributing to policy changes • Sharing results with stakeholders

6. Continuity • Advocacy: an ongoing process • Articulating long-term goals • Keeping functional coalitions together • Keeping data and arguments in tune with changing situations

6. Continuity: Key Elements • Monitoring implementation of desired policy changes • Reviewing strategies and actions • Identifying new actions to be taken • Developing plans to sustain and reinforce change

Case Study

ABA: Bond markets • 1999-2007: ABA position papers calling for measures to develop and integrate local currency bond markets in Asia • 2000: ABA study on regional cooperation among domestic credit rating agencies • 2001: Establishment of the Association of Credit Rating Agencies in Asia (ACRAA) • 2003: Launch of Asian Bond Market Initiative, Asian Bond Fund, APEC supporting actions

ABA: Bond markets • 2004: Taipei conference on public-private sector collaboration to develop bond markets (collaboration with ABAC, PECC and ACRAA) • 2006: APEC Finance Ministers agree to launch APEC Public-Private Sector Forum on Bond Market Development • 2007: Forum launched in Melbourne, Australia • 2008: 2nd Forum held in Cusco, Peru

ABA Policy Advocacy • Analysis • Establishment of the ABA Special Committee on Policy Advocacy (later renamed Policy Advocacy Committee) • Discussions in committee – agreement on issues • Policy issues (complex set of issues – credit rating practices, accounting standards, benchmark yield curves, legal and policy frameworks, protection of creditor rights, corporate governance, etc.)

ABA Policy Advocacy • Analysis (continued) • What is needed – policy reforms and capacity-building • Stakeholders – governments, financial institutions, international financial institutions, multilateral development banks, institutional investors, corporate issuers • Decision-makers: finance ministries, financial regulators, legislators, regional organizations

ABA Policy Advocacy • Analysis (continued) • Who influences decision makers – advisory bodies, IFIs, MDBs, financial experts, financial industry associations

ABA Policy Advocacy • Strategy • Established Bond Market Task Force to develop strategy and plan activities • Identified primary audience: Finance Ministers in Asian and APEC member economies • Identified secondary audience: other regional organizations (ABAC, PECC), ADB, IMF, WB, IDB, SEACEN, financial regulatory agencies, central banks

ABA Policy Advocacy • Strategy (continued) • Set objectives • Get Asian and APEC Finance Ministers to launch long-term initiatives to develop/integrate local currency bond markets through policy reforms and capacity-building • Bring together Asian domestic credit rating agencies to work with ADB on convergence of rating practices • Develop a regional framework for cross-border insolvency and informal workouts and obtain governments’ support • Develop a framework for region-wide convergence toward robust international financial reporting standards

ABA Policy Advocacy • Mobilization • Developed ties to other organizations, providing inputs and co-organizing activities • ABAC • PECC • SEACEN • ADB and ADBI • Actively promoted the establishment of a permanent network of institutions: Advisory Group on APEC Financial System Capacity-Building

ABA Policy Advocacy • Action • Regular position papers – drafted and submitted to primary and secondary audiences, worked for endorsement by ABAC and PECC • Commissioned study on regional convergence of credit rating practices – concluded with recommendation to form a regional association and initiate cooperation with ADB • Co-organized meetings with ADBI/ADB to establish ACRAA and initiate cooperation with ADB

ABA Policy Advocacy • Action (continued) • Collaborated with ADB and national bankers’ associations to develop a regional framework and model agreement for informal workouts through workshops in different cities, which was officially adopted by ABA • Collaborated with SEACEN to obtain support from central banks for bond market and regional insolvency and informal workout frameworks through sessions in annual dialogue with financial regulators

ABA Policy Advocacy • Action (continued) • Co-organized sessions on bond market development during conferences hosted by PECC (2003-2005) • Co-organized conferences on public-private sector collaboration for bond market development (2004 and 2005) and corporate governance • Actively collaborated in organizing sessions of the First APEC Public-Private Sector Forum on Bond Market Development (2007, Melbourne)

ABA Policy Advocacy • Action (continued) • Speaking engagements by ABA Chairman and ABA Policy Advocacy Committee Chairman and Coordinator • Press releases and press conferences • Publications: ABA Journal of Banking and Finance, ABA website, independent publications (2005 bond market conference published by ISEAS Singapore) • Advertorials: Financial Times (2004 and 2006)

ABA Policy Advocacy • Evaluation • Annual year-end review and evaluation by Policy Advocacy Committee • Evaluation of specific activities • Evaluation of achievements vis-à-vis targets • Identification of key factors • Reporting of year-end review to ABA Board • Drafting and circulation of minutes of year-end review (as part of year-end Committee meeting)

ABA Policy Advocacy • Continuity • Drafting, discussion and approval of annual work program, incorporating new elements based on previous year’s review whenever necessary • Reporting of progress during the regular Policy Advocacy Committee meetings (beginning of the year, mid-year and year-end)

ABA Policy Advocacy • Some insights from experience • Government officials often take time to respond, and choose their own priorities • Impractical to set concrete time frames and targets over processes outside of your organization’s control • Keep long term goals in mind, but better to set priorities annually, responding to emerging opportunities • For effective networking and leadership, credibility and trust are important

POLICY ADVOCACY AND NETWORKING