The Business Climate, Productivity and Competitiveness.
This practice area serves donors and assists Host Governments to
(i) Reduce risk of business entry: We are experienced in improving investor protections, legal certainty and contract enforcement, through improved Corporate Governance ( especially for unlisted and closely held firms), quick wins in judicial reforms, alternative dispute resolution and other means, both in common law as well as civil law countries.
(ii) Remove or lower the barriers to business entry: Our team has worked in different administrative systems around the world in lowering administrative and other barriers to business entry. Our experience includes dealing with business registration ( setting up one stop shops), licensing and permits, improving access to finance,
(iii) Reduce the Government related cost of doing business: We help donors and Host Government design and implement programs that: Improve legal recourse by helping to set up and strengthen administrative and judicial processes and structures to provide recourse and redress especially in case of SMEs. Eliminate unnecessary inspections by designing and helping to Implement reformed laws and regulations as well as training on inspections. Design and implementation of risk based inspection regimes. Rationalize product standards and certification by designing and implementing reforms in the legal basis for certification and the agency tasked to oversee it. Provide quick and simple customs clearance by reforming the customs code and introducing electronic filing and other proven methods such as risk based inspections, minimizing personal contact with customs officials, pre-clearance protocols. Enable reasonable access to finance by strengthening mortgage and collateral laws, property registries, and establishing a nationwide or regional credit information systems. For other financial sector services see our page on sectors. Simplify the tax system with amendments to the tax code, reduction in the number of taxes being paid and the time it takes to prepare, file and pay taxes. Design and implement transitions to risk based systems. Strengthening insolvency laws and processes, moderating tax inspection processes in winding up situations, selection and training for bankruptcy judges, and in the longer term setting up bankruptcy courts or sections.
(iv) Increase (total factor) productivity of businesses We bring international best practice to design, develop and implement Laws, Regulations and Institutions to foster competition and contain monopolistic behaviour among domestic firms. Along side the legal, regulatory and institutional support we can also provide or design and implement institutional capacity for supporting enterprise productivity growth which may include vendor development, assistance to small firms to improve the quality and reliability of their products and to establish linkages with larger firms in the domestic and international market place and assistance to small enterprises to organize themselves effectively in order to gain and better tolerate, increased exposure to market competition.
(v) Transform comparative advantage to competitive advantage. We can conduct the necessary research and analyses to identify evident and latent comparative advantages of a country as well as the barriers and obstacles that prevent full exploitation of these advantages. We help to deploy several instruments to transform comparative advantage to competitive advantage. To achieve this, we can help design and implement institutions and facilities to make business services available on a demand basis, help improve access to markets, attract and facilitate foreign direct investment, improve the skills of the work force so that businesses can be more competitive.
We can also help to design and implement a number of possible Donor interventions which could be targeted at fostering commercial relationships with business people from outside the country. These include trade fairs, shows and missions, as well as a matchmaking assistance schemes, which would match the local enterprise with trained intermediaries who get compensated mostly on results. These programs are discussed in more detail in some of the materials in the Resources section of this web site.
(vi) Competition Policy and Trade Policy: There is now a substantial body of evidence demonstrating the linkages between competition policy, trade policy and the productivity and competitiveness of firms. Our Associates have significant experience and expertise in desigining and reforming competition and anti monopoly policy in over 30 countries including competition law, regulations and institutions. We understand the conundrum of competition and trade policy as it effects domestic and foreign direct investment and have experience in designing solutions for this problem in many countries which have successfully begun to address this issue.