Business reforms
Monday, 20 April 2009
Notwithstanding what a participant speaker in a seminar on business reforms on Friday underlined to be the greatest problem in the realm of businesses in Bangladesh today, the severe shortfall of energy in relation to demand, the facts are that continuing of business reforms in clear view of business operators by the government will keep on helping the creation of a dynamic business environment. There are no two views about improving energy supply as a sort of precondition for enthusing more investment operations in the economy. But it is not much less important to keep businesses interested in stepped up investment activities by sending signals to them that the overall business situation will go on improving further from reducing the costs of doing business . From such a perception gaining ground among potential entrepreneurs and from tangible signs that government is really trying to seize the energy supply problem by the horns, both will contribute towards raising the confidence of businesses.
Thus, it would be imprudent for the new government to call off or scale down activities initiated by the caretaker government to carry out deep and driving business reforms. The caretakers had formed two bodies to that end, the Better Business Forum (BBF) and the Regulatory Reforms Commission (RRC). The BBF is a consultative mechanism between government and businesses while the RRC was brought into existence to upgrade, add or change rules and regulations considered as unfriendly for businesses. It is unfortunate to see that both these bodies are stagnating after the change of government. No convincing signal has come from the government in power that the working of these two bodies with full flair is indeed desired. The BBF and the RRC are suffering from uncertainty and lack of motivation. The ones in charge of running them are in doubt whether these bodies would have a long lease of life and this has happened for no other reason than the uncertain and indecisive attitude of the government itself about clearly stating whether these bodies would be retained or their recommendations considered as seriously as in the recent past. Therefore, it is very important that government should take a positive decision in this matter allaying all fears that would cause an acceleration in business reform activities.
The institutional process of getting a feedback from businesses about what constraints them from doing better business, can be fruitful. The experiences in operating the BBF with some energy over the last one year, has proved this point. The same applies to the RCC. The measures implemented by it have been already appreciated by businesses. But a great deal of business reforms are yet to be completed. For example, it still takes an extraordinarily long time for new enterprises in Bangladesh to be set up overcoming the maze of bureaucracies and frustrating overdose of regulations in some cases. Thus, the costs of doing business in terms of time and resources, are considered as a burden by many potential investors. Clearly, the new government has to address these issues and others related to costs of doing business, promptly and efficiently, to achieve improvements in one area of creating incentives for businesses. At the same time it should make all-out endeavours to augment power supply.
There is, no doubt, the need to give high priority to increasing energy supply . But simultaneously government must not sit on other things it can do in the meanwhile by overhauling archaic rules and regulations, adding to them or easing them on a case by case basis, to achieve overall business related reforms leading to improvement in opportunities for businesses as a whole.
Thus, it would be imprudent for the new government to call off or scale down activities initiated by the caretaker government to carry out deep and driving business reforms. The caretakers had formed two bodies to that end, the Better Business Forum (BBF) and the Regulatory Reforms Commission (RRC). The BBF is a consultative mechanism between government and businesses while the RRC was brought into existence to upgrade, add or change rules and regulations considered as unfriendly for businesses. It is unfortunate to see that both these bodies are stagnating after the change of government. No convincing signal has come from the government in power that the working of these two bodies with full flair is indeed desired. The BBF and the RRC are suffering from uncertainty and lack of motivation. The ones in charge of running them are in doubt whether these bodies would have a long lease of life and this has happened for no other reason than the uncertain and indecisive attitude of the government itself about clearly stating whether these bodies would be retained or their recommendations considered as seriously as in the recent past. Therefore, it is very important that government should take a positive decision in this matter allaying all fears that would cause an acceleration in business reform activities.
The institutional process of getting a feedback from businesses about what constraints them from doing better business, can be fruitful. The experiences in operating the BBF with some energy over the last one year, has proved this point. The same applies to the RCC. The measures implemented by it have been already appreciated by businesses. But a great deal of business reforms are yet to be completed. For example, it still takes an extraordinarily long time for new enterprises in Bangladesh to be set up overcoming the maze of bureaucracies and frustrating overdose of regulations in some cases. Thus, the costs of doing business in terms of time and resources, are considered as a burden by many potential investors. Clearly, the new government has to address these issues and others related to costs of doing business, promptly and efficiently, to achieve improvements in one area of creating incentives for businesses. At the same time it should make all-out endeavours to augment power supply.
There is, no doubt, the need to give high priority to increasing energy supply . But simultaneously government must not sit on other things it can do in the meanwhile by overhauling archaic rules and regulations, adding to them or easing them on a case by case basis, to achieve overall business related reforms leading to improvement in opportunities for businesses as a whole.