In many countries public policy stifles business. The bureaucrats or government officials don’t want to make it too easy for business, because that will reduce their side income. So, ease of doing business is not a criteria for them.
Sri Lanka’s rank on the World Bank’s well respected Ease of Doing Business Index (covering 185 economies) improved from 96th in the world to 81st, in 2013. The country rank for each topic determined through over 300 indicators, are listed below;
Starting a Business = 33
Dealing with Construction Permits = 112
Getting Electricity =103
Registering Property = 143
Getting Credit =70
Protecting Investors = 49
Paying Taxes = 169
Trading Across Borders = 56
Enforcing Contracts = 133
Resolving Insolvency = 51
I thought of sharing the following very basic essentials that I heard at a recent conference, which make common sense but difficult to implement by bureaucrats. If I were to connect this to my blog post in https://surenrajdotcom.wordpress.com/2013/10/22/why-look-for-problems-and-not-the-opportunities/ the Northern PC can consider these simple measures to improve business in the region.
1. Smart public policy to enable business and encourage entrepreneurship – shift from state & bureaucratic dominance to market dominance, embrace free trade, guarantee of the rule of law, which is important to protect investors and their properties. Amazingly, Sri Lanka is ranked 143rd in the world, on the topic of registering property.
2. Smart business environment to enable free enterprise – resource allocation by the market not by central planning or a government department, competitiveness and innovation determines success not protectionism, ease of doing business should be made a key factor.
3. Smart people need to be retained because individuals invent not governments. There should be relevant and good quality of education, make home base more attractive to talent rather than migrate to live their business dream.