Expediting reforms to facilitate business
Monday, 18 August 2008
aOne of the laudable initiatives on the part of the incumbent government is the move to establish a mechanism to carry out reforms expressly designed to facilitate businesses. The government formed the Better Business Forum (BBF) last year to this end with participation in it by members of the government and the policy makers of the highest level. The BBF also incorporates business leaders of the country. The aim of this body has been the formulation of concrete policies or measures after forming them through the mutual consultation between government and business through the auspices of this forum. These are meant for their subsequent implementation at the fastest to build a more conducive business environment that would positively motivate entrepreneurs and investors.
But nearly a year after the formation of the BBF which created much enthusiasm when it was set up, progress appears to be far less than what was anticipated or needed. According to media reports, the BBF made 126 recommendations so far for the short, medium and longer terms. The six short-term proposals were fulfilled but only half of the 56 medium-term (one to two months) proposals had been implemented, while 64 others of the longer term proposals remain pending for either further review by the BBF or implementation. Thus, the task list of the BBF is not getting shorter from speedy acting upon them when the same is vitally necessary to better the business and investment climate. It was decided at the highest level when the BBF was formed that it would take actions with extraordinary speed to overcome the archaic conditions facing business to motivate the potential investors and entrepreneurs. But the earlier resolution has not been matched by real accomplishments.
Side by side with the BBF, government also launched the Regulatory Reforms Commission (RRC) with the objectives of removing obsolete or unhelpful rules and regulations to promote investment, commerce and trade. In many ways, RRC's relationship with the BBF is a complementary one. Full implementation of many of the reforms recommended by the BBF depend on the rewriting, annulment, substitution, amendments or enlargement of laws pertaining to different areas of business activities. The RRC, since its inception on November 19, 2007, formulated 11 interim reports and sent them for approval and implementation to respective ministries. But out of them only two reports have been implemented so far suggesting the very tardy progress in meeting its objectives.
Clearly, both the BDF and the RRC will need to work faster to be able to deliver their promises. It is so very important for this interim government to have these business related reforms pushed through to a fruitful state before it hands over power to the next government. If this is done, then the next government would be under an obligation to sustain or maintain the good works to be done by these bodies. But even the continuity of the work of the RRC has not been assured as yet. As a commission, its tenure ends on October. Therefore, government needs to extend its tenure by executive order immediately to signal its commitment to the business related reforms. Other ways of revitalizing the activities of the RRC also need to be thought out and acted upon urgently.
The Chief Adviser (CA) ought to ensure through his close supervision that current implementation of reforms of the BBF does not get muddled up from bureaucratic bottlenecks. The CA's weight and authority should be applied to clear such bureaucratic impediments.
The government side in its contacts with leaders of major political parties must impress upon them the indispensability of maintaining the BBF and the RRC beyond the tenure of the present government.
But nearly a year after the formation of the BBF which created much enthusiasm when it was set up, progress appears to be far less than what was anticipated or needed. According to media reports, the BBF made 126 recommendations so far for the short, medium and longer terms. The six short-term proposals were fulfilled but only half of the 56 medium-term (one to two months) proposals had been implemented, while 64 others of the longer term proposals remain pending for either further review by the BBF or implementation. Thus, the task list of the BBF is not getting shorter from speedy acting upon them when the same is vitally necessary to better the business and investment climate. It was decided at the highest level when the BBF was formed that it would take actions with extraordinary speed to overcome the archaic conditions facing business to motivate the potential investors and entrepreneurs. But the earlier resolution has not been matched by real accomplishments.
Side by side with the BBF, government also launched the Regulatory Reforms Commission (RRC) with the objectives of removing obsolete or unhelpful rules and regulations to promote investment, commerce and trade. In many ways, RRC's relationship with the BBF is a complementary one. Full implementation of many of the reforms recommended by the BBF depend on the rewriting, annulment, substitution, amendments or enlargement of laws pertaining to different areas of business activities. The RRC, since its inception on November 19, 2007, formulated 11 interim reports and sent them for approval and implementation to respective ministries. But out of them only two reports have been implemented so far suggesting the very tardy progress in meeting its objectives.
Clearly, both the BDF and the RRC will need to work faster to be able to deliver their promises. It is so very important for this interim government to have these business related reforms pushed through to a fruitful state before it hands over power to the next government. If this is done, then the next government would be under an obligation to sustain or maintain the good works to be done by these bodies. But even the continuity of the work of the RRC has not been assured as yet. As a commission, its tenure ends on October. Therefore, government needs to extend its tenure by executive order immediately to signal its commitment to the business related reforms. Other ways of revitalizing the activities of the RRC also need to be thought out and acted upon urgently.
The Chief Adviser (CA) ought to ensure through his close supervision that current implementation of reforms of the BBF does not get muddled up from bureaucratic bottlenecks. The CA's weight and authority should be applied to clear such bureaucratic impediments.
The government side in its contacts with leaders of major political parties must impress upon them the indispensability of maintaining the BBF and the RRC beyond the tenure of the present government.