Regulatory reforms
Friday, 2 November 2007
GOVERNMENT has formed a 17-member commission last Wednesday for reviewing the country's various regulations and regulatory institutions. The move is a timely one and could not have come sooner. Ideally, the least regulation is recommended by experts for a truly market driven economy. But that is only one side of the story in the context of Bangladesh. Here, non-existence of proper rules or the excess or redundancy of the others, have often come in the way of business. So, in Bangladesh, regulatory reforms have come in the light of new requirements that would be more supportive of economic growth and meeting social and other objectives. It is also necessary to have some additional regulations or to have them fine tuned in view of the fact that entrepreneurship has been fast increasing in the country but regulations have not developed to protect the physical environment in the backdrop of pollution increase caused by many enterprises.
The newly established regulatory commission should be able to provide this regime at an early date. It will be able to draw expertise from those who have been included in it. But the composition of the commission clearly indicates that it would also need the devoted services of specialists. Although most of its current members have been drawn from the civil services and are highly experienced, they are but generalists. On its part, the commission will benefit from induction of a pool of specialists from different fields to give them sound advice or for making them aware of the latest developments.
However, the commission will need, at the outset, to be guided by some fundamental policies. One of its main objectives must be simplification or reduction of regulations to the minimum, specially the ones that would relate to business. However, the simplified regulations relating to business must ensure that entrepreneurs and investors are obliged to pay heed to whatever regulations are made to protect the environment and carry out their social responsibilities. The simplified regulations should be designed to facilitate investment activities at the fastest by shortening time or doing away altogether with the present system of running from desks to desks in government departments for permission.
There are many laws in existence relating to business which outlived their utility long ago and have remained in force to be a nuisance or as a frustrating factor to trouble investors. The same should be rescinded and it should be among the first tasks of the commission. If necessary new but simple or helpful regulations can be put in place to woo investors. The commission will have to be guided by basic principles of weeding out the excess regulations and updating and putting the required ones in place where there is none or they exist only inadequately. On the whole, the commission's key objective should be to lay down a regulatory system which would be up-to-date and helpful for business while also filling the regulatory vacuum in some vital areas.
The newly established regulatory commission should be able to provide this regime at an early date. It will be able to draw expertise from those who have been included in it. But the composition of the commission clearly indicates that it would also need the devoted services of specialists. Although most of its current members have been drawn from the civil services and are highly experienced, they are but generalists. On its part, the commission will benefit from induction of a pool of specialists from different fields to give them sound advice or for making them aware of the latest developments.
However, the commission will need, at the outset, to be guided by some fundamental policies. One of its main objectives must be simplification or reduction of regulations to the minimum, specially the ones that would relate to business. However, the simplified regulations relating to business must ensure that entrepreneurs and investors are obliged to pay heed to whatever regulations are made to protect the environment and carry out their social responsibilities. The simplified regulations should be designed to facilitate investment activities at the fastest by shortening time or doing away altogether with the present system of running from desks to desks in government departments for permission.
There are many laws in existence relating to business which outlived their utility long ago and have remained in force to be a nuisance or as a frustrating factor to trouble investors. The same should be rescinded and it should be among the first tasks of the commission. If necessary new but simple or helpful regulations can be put in place to woo investors. The commission will have to be guided by basic principles of weeding out the excess regulations and updating and putting the required ones in place where there is none or they exist only inadequately. On the whole, the commission's key objective should be to lay down a regulatory system which would be up-to-date and helpful for business while also filling the regulatory vacuum in some vital areas.