The Donor Committee for Enterprise Development
www.Enterprise-Development.org
Reforming the Business Environment:
Current Thinking and Future Opportunities
Thematic Overview of the Papers presented at
the Cairo Conference,
29 November to 1 December 2005
15 March 2006
-2-
Table of Contents
A.
B.
Introduction .................................................................................................................... 3
Systemic approaches .................................................................................................... 3
B.1
Dimensions of the problem .................................................................................... 3
B.2
The Process of Reform .......................................................................................... 4
B.3
Public-Private Dialogue (PPD) ............................................................................... 5
B.4
Other systemic issues ............................................................................................ 5
C. Radical Treatments........................................................................................................ 5
C.1
The Regulatory Guillotine ....................................................................................... 5
C.2
The Bulldozer Initiative ........................................................................................... 6
D. Assessment Tools ......................................................................................................... 6
D.1
Overview ................................................................................................................ 6
D.2
Sectoral level, Value Chain Analysis ...................................................................... 7
D.3
Regulatory Impact Assessment (RIA) .................................................................... 8
E. Business registration and formalisation.......................................................................... 8
F. Tax Regimes for Small Business ................................................................................... 9
G. The Land Market and Investment .................................................................................10
H. Inspections ...................................................................................................................10
I.
Other outstanding issues ..............................................................................................11
J. Donor responses ..........................................................................................................11
K. Conclusion ....................................................................................................................12
Annex A: List of Papers and Presentations, with hyperlinks ..........................................13
Annex B: Papers and Presentations focusing on particular countries ...........................16
Annex C - Conference Communique ............................................................................17
-3-
A.
Introduction
Most of the poor will only be able to work their way out of poverty if they can start and 'grow'
their own businesses - or find employment in another, growing business. In many developing
countries, however, these businesses face enormous regulatory barriers. Development
agencies have therefore become interested in ways to reform the business environment, so
that businesses and economies can grow; while various terms are in use, this Paper uses
the term 'business environment' to refer to both the policies, law and regulations, and the
institutions, or 'rules of the game', that affect private sector development1.
Given the current interest in this theme, the Donor Committee for Enterprise Development
(www.enterprise-development.net) recently organised a Conference in Cairo, to review
current knowledge. The Conference featured about 60 peer-reviewed Papers, presented
mostly in break-out sessions. Since most speakers prepared both a presentation and a
Paper, there are about 110 documents in all; these were provided to the participants on a
CD-ROM, and have since been posted on www.businessenvironment.org.
Given the importance (and volume) of such a body of knowledge, this Paper has been
written to index some of the learning points arising from the Cairo Conference; it is designed
to enable the reader to find materials of most interest to the individual, as quickly as possible.
Each of the Cairo Papers and presentations have been referenced by the Session number in
which they were presented, so the Session number is also given as a reference throughout
this Paper (in parentheses), to enable readers to find the original material.
A complete list of Papers and presentations is included as Annex A, with hyperlinks - again
organised by Session number. Annex B lists the Papers that focus on particular countries.
Annex C reproduces in full the final version of the Conference Communique, synthesising the
messages coming out of the presentations and discussions in Cairo.
Papers giving practical experience are referred to more in the text below than those outlining
new projects or future plans; it is a personal selection, and is not intended to be either
comprehensive, or representative of any official viewpoint. Indeed, the Conference
essentially consisted of peer-reviewed submissions, so is not necessarily a comprehensive
overview of the current 'state of the art' - there may be gaps. Occasionally, therefore,
references are given to other publications that are relevant.
This report has been prepared by Jim Tanburn (Jim@Tanburn.com). Thanks go to the
Business Environment Working Group, including particularly Martin Clemensson and Simon
White, who were central to the Cairo Conference process; particular thanks also to SDC for
their support for this Paper.
B.
Systemic approaches
B.1
Dimensions of the problem
To quote from an earlier study, "modern
day business enterprises in Africa and
transition countries suffer regulatory
barriers which were largely absent in
18th and 19th Century Europe and North
America when these areas were
industrialising"2. A graphical illustration
of this point is shown in Figure 1; it was
1
Figure 1: Business Entry Costs as % of GDP/Capita
For a more detailed discussion of the term, see Emerging issues and debates in the reform of the business
environment for small enterprise development, by Simon White. Small Enterprise Development Journal Volume
16 Number 4, December 2005. P. 10-18.
2 Indigenous PSD and Regulation in Africa and Central Europe: A 10 Country Study, 2002, by Graham Bannock
et al for DFID
-4used by both Welch (2.1) and Waddington (3.4).
Shen (3.1) made a similar point by showing the cost of registering property, expressed both
in days and as a percentage of property value; at 14.4%, sub-Saharan Africa had by far the
highest registration cost, relative to property value, of any region. As a result, much capital
remains informal and illiquid; in his Opening Speech, for example, President Mkapa of the
United Republic of Tanzania noted that the informal, extra-legal economy in his country
"holds assets worth USD 29 billion, much more than what Tanzania has received over the
years in terms of FDI, aid or loans. In other words, what the poor of Tanzania own, if made
liquid, is much more than what the outside world can ever give them!!"
Many presentations singled out a
Messick (3.1) singled out the lack
source of economic stagnation and
Investment Climate reform that the
include:





particular aspect of the overall system; for example,
of means to enforce contracts, as the most important
under-development. Hallberg (5.1) listed the aspects of
World Bank Group gives most priority to: core themes
judicial and other dispute resolution mechanisms
legal institutions for a market economy
personal and property rights
corporate governance
regulation and competition policy
Non-core Investment Climate themes for the Bank include:





tax and policy administration
infrastructure services for private sector development
other financial and private sector development
export development and competitiveness
trade facilitation and market access
B.2
The Process of Reform
Some papers did consider the process of reform; Rodrigo (3.1) lists various types of
regulatory decision-making processes, and typical situations where they are commonly used:





expert (typically using tools such as Regulatory Impact Assessment, or RIA)
consensus (e.g. Netherlands)
political (most commonly in times of political crisis)
benchmarking ( popular in smaller countries)
empirical (often used in the United States - again with RIAs)
Court (4.3) gives an overview of the
literature and issues in political reform
processes, noting the 4 'I's in
influencing
policy:
Information,
Interests, Ideologies and Institutions.
He also includes the diagram shown
here as Figure 2 on the Policy Cycle. A
similar cycle is noted by Waddington
(3.4).
1. Problem Definition/
Agenda Setting
2. Constructing the Policy
Alternatives/ Policy Formulation
6. Evaluation
The Policy Cycle
5. Policy Implementation
and Monitoring
3.Choice of Solution/
Selection of Preferred Policy Option
4. Policy Design
Figure 2 from Young, E. and Quinn, L., 2002, Writing Effective Public
Policy Papers: A Guide To Policy Advisers in Central and Eastern
Europe, Budapest: LGI. (Court, 4.3)
Most presentations indicated that political will was of central importance, and some
presentations addressed the political economy aspects (especially Session 4.1, although the
presentations and Papers for that Session were not available at the time of writing). Indeed,
the question of demand for reform remains challenging, since the countries most in need of
-5reform are not always the ones that are most enthusiastic to do so. Also, whose demand is
most likely to lead to pro-poor growth in the longer term?
B.3
Public-Private Dialogue (PPD)
Public-private dialogue (PPD) can in principle enable the private sector and civil society to
generate pressure for reform, and several presentations focused on this theme; PPD was
presented as a structured consultation process between the public and private sectors, to
improve the business environment. Herzberg presented experiences from 40 countries, while
Gamser similarly presented DFID's experiences from many countries (both 2.4).
Both Papers give a wide range of experiences and insights, that allow readers to benefit from
achievements and lessons learned; for example, should partnerships should be restricted to
government and business, or should they also include other stakeholders, such as labour
unions, academics, NGOs and consumer groups? In general, a phased introduction of
additional stakeholder groups is suggested. Similarly, the issue of possible 'capture' of the
process by larger firms is discussed.
Session 4.4 included three additional presentations touching on the PPD theme; for example,
Lamotte considered how to ensure that the voice of entrepreneurs is heard, outlining a
number of cases from ILO's experience; this included partnering with radio stations in
Uganda to provide a forum for advocacy and feedback, leading to reform of several
regulations and policies that had discriminated against small business.
PPD, therefore, can generate demand for reform; anecdotally, the various benchmarking
exercises around the business environment have also generated some political will for
reform from countries that find themselves low in the rankings. Finally, a website has recently
been launched to develop the PPD theme further, at www.PublicPrivateDialogue.org; it
makes additional case study material available.
B.4
Other systemic issues
Reinprecht (1.3) touched on the influences of local cultures on the reform process; she
proposed a series of culturally-specific factors that can enhance business environment
reform, and others that can impede it. She also reviewed a range of tools and methodologies
for analysing cultural features, and for facilitating the cultural aspects of the reform process.
Other systemic issues, however, remain to be addressed more thoroughly in future. For
example, few presenters discussed the theme of corruption in any detail 3; one exception was
the presentation on the BEEPS survey findings in transition countries (Fankhauser, 1.1).
Similarly, little mention was made of other possible pre-requisites for good reform processes,
such as the need to attract and retain talented staff in the Ministries of reforming
governments.
It is generally easier to create new legislation, than to abolish or simplify existing legislation;
President Mkapa recommended in his opening speech, for example, that "if it is not
absolutely necessary to make a law, it is absolutely necessary not to". Similarly,
implementation of reformed legislation is often a challenge in developing countries. There
was some discussion, therefore, of alternatives to regulation, particularly for dispute
resolution (Messick, 3.1). In addition, some initiatives cut through the 'Gordian knot' of the
many regulations; these more radical treatments are outlined in the following Section.
C.
Radical Treatments
C.1
The Regulatory Guillotine
In 1984, the Government of Sweden found that it could not compile an official list of all the
regulations in force; there were too many, spread across multiple authorities. It therefore
3
For an interesting discussion of this theme, as it relates to the World Bank in particular, see The World's Banker,
by Sebastian Mallaby; Yale University Press, 2005. Chapter 7.
-6gave all of the relevant authorities one year in which to list the current regulations, after
which time any regulations not listed would not have any force. Some screening was also
applied, to ensure that those regulations which were listed met some basic quality standards.
In education alone, apparently, 90% of the rules were eliminated.
This experience in simplifying regulations was later disseminated by the OECD, and used
with success in Hungary,
Mexico and Korea.
Jacobs and Associates
(www.regulatoryreform.com) has trademarked the term Regulatory Guillotine, and helped to
implement the approach in Kenya, Moldova and Ukraine (Jacobs, 4.2). The reviews lasted
2-6 months, during which time many regulations were eliminated. For example, Moldova had
67 Inspectorates with over 1,100 regulations for business. After review, it was decided that:



426 formal acts met the criteria of review and should be included in the Registry
285 formal acts (or 35 % of those relevant to businesses) should be amended
99 formal acts (or 12 % of those relevant to businesses) should be discarded (many of
these had not been published or authorized by higher level laws)
Similarly, Kenya was found to have over 1,300 business licenses (including 600 by local
authorities) and fees imposed by 178 State bodies, with more being added all the time. 35
licenses were eliminated in 2005, and more reviews are now planned. In Ukraine, 15,000
regulations were identified, of which 4,900 were repealed during 2005.
C.2
The Bulldozer Initiative
A similar approach was adopted in the Bulldozer Initiative in
Bosnia and Herzegovina (Herzberg, 2.4). A commitment to
implement 50 reforms in 150 days created a sense of urgency
and momentum, leading to 'ignition'. Social marketing was
used extensively to reach out to people in all areas, who were
invited to propose specific reforms; the process was therefore
highly participatory, and an example of Public-Private
Dialogue. It did benefit from the rather special political
conditions prevailing at the time, though, including particularly
the support of the High Representative. Nonetheless, the
achievements of this initiative were impressive.
D.
Assessment Tools
D.1
Overview
Figure 3: Bulldozer Initiative logo
The Sections above have briefly addressed the political economy aspects of business
environment reform; development agencies, however, seek methodologies that can be
replicated in many countries. In particular, they generally prefer to start with assessment
tools, and so an overview of assessment tools was presented early in the Conference by
Silva Leander (1.1). She summarised 30 survey instruments, including both public and
private-sector organisations, and mostly available on the internet. The summary proposes
typologies of survey, based on the following categories:




quantitative (measurable) vs. qualitative (perceptions of business people)
aggregated at national-level to compare between countries vs. disaggregated to uncover
variations within countries, especially large ones (e.g. World Bank in India, IMD in China)
studies of specific features: regulation (Doing Business), corruption (Transparency
International), economic freedom / civil liberties (Heritage Foundation, Freedom House,
World Bank Governance)
studies of specific sectors (e.g. MIGA in Asia) or firm sizes (e.g. FIAS informal economy
studies in Rwanda and Sierra Leone)
"If readers are looking for studies that consider many aspects of the investment climate, and
then aggregate them to create a single index, then the World Economic Forum’s Global
-7Competitiveness Report [www.weforum.org] and the International Institute for Management
Development’s (IMD) World Competitiveness Scoreboard [www.imd.ch] are the ones to
consult."
"For country investment climate (IC) surveys, the [DFID] Team recommends The World
Bank’s Investment Climate Surveys [www.worldbank.org/research/PICS/]. Their
comprehensive and in-depth analysis makes them ideal for facilitating dialogue between
governments, the private sector and civil society. For a lighter comparative approach we
suggest the Commonwealth Business Council’s Business Environment Surveys (BES). Both
the ICAs and BESs are repeated at 4-yearly and 2-yearly intervals respectively, thereby
helping to shed light on how investment climates are changing over time."
The order in which countries are ranked varies, according to the methodology used; Krylova
(4.3) points out that Uganda scores more highly than China in economic freedom and
regulatory burden, yet attracts rather less FDI. Other Papers describing experiences with
assessment tools included Reissner in the SADC region (1.1), Anh and Baan using an ILO
methodology in Lao PDR (1.4) and Palmade at the sectoral level (1.1); the latter is outlined in
more detail in the next Section.
D.2
Sectoral level, Value Chain Analysis
Palmade (1.1) argued that many binding constraints on productivity are actually sectoral in
nature; he drew on evidence from many countries (particularly India) and on the work of
McKinseys in this area4. Taking the wax print textile sector in Nigeria as a specific example,
he showed that the inputs were twice as expensive as in China, and utility costs were three
times as much. Labour costs were 60% higher than in China.
The CD-ROM received by participants in the Conference also received a draft Paper by
Subramanian (who could not be at the Conference herself), outlining a more detailed manual
being prepared in FIAS for applying value chain analysis. Since it was marked as a draft, it
has not been posted on www.businessenvironment.org However, Figure 4 below
summarises the key steps envisaged in the methodology.
The Donor Committee for Enterprise Development has another Working Group devoted to
Linkages and Value Chains, and indeed there is a large body of knowledge already
developing
in
this
field
(see
for
example
www.sdc-valuechains.ch,
www.ids.ac.uk/globalvaluechains and www.mmw4p.org).
Figure 4: Elements of the Value Chain Analysis (FIAS)
4
http://mckinsey.com/mgi/rp/CSProductivity
-8D.3
Regulatory Impact Assessment (RIA)
Rodrigo (3.1) described the application of Regulatory Impact Assessment (RIA) in OECD
countries and several middle-income countries (e.g. Mexico, Czech Republic, Hungary). She
notes that RIA is technically demanding, since it looks at both costs and benefits of
regulations; quality control can be a challenge, even in wealthy countries. Pre-conditions for
successful RIA include a high level of expertise and good access to information; "many low
and middle-income countries do not yet meet these pre-conditions". She also notes that RIA
methods are not yet fully developed, and there is not yet full agreement on a number of
important points, such as establishing a social discount rate for benefit-cost analysis, valuing
intangible benefits and dealing with risk and uncertainty.
Nonetheless, other presenters did touch on the application of RIAs in transition and
developing countries, including Ladegaard (3.4). Drawing on experiences in Serbia,
Macedonia and the Slovak Republic, he concludes that two years are required, for the design
and launch of an RIA system. The methodology may still need adaptation by donors to be
more 'pro-poor'; training courses are also needed, with both local and international content,
to provide access to the necessary skills.
Waddington (3.4) reports on the use of RIA in Uganda, and Binh (5.3) in Vietnam; both
outline the experience and the application of the framework, rather than giving the results or
the tool in any detail. Waddington concludes that "core RIA frameworks systems need little
amendment for the developing country context ... resource constraints should not be a
barrier". However, the impact will be limited unless RIA is part of a wider reform process.
E.
Business registration and formalisation
The time required to register a new business is one of the most popular yardsticks among
development agencies, to quote when illustrating the urgent need for business environment
reform; this is partly because it illustrates the difficulty for people with small businesses who
would like to join the formal economy. While they stay in the informal economy, they cannot
enjoy the full benefits and protections that would normally be theirs; similarly, the government
cannot regulate and tax them in the way it would normally like to do. Welch (2.1) explores
these issues in some depth, in a study commissioned by USAID for the DAC Network on
Poverty Reduction; the Paper also includes some practical recommendations to reduce
barriers to formalisation.
Mikhnev (2.2) outlined a toolkit for building the capacity for business registration reform at the
sub-national level, which has since been placed on the web5. He illustrates the potential to
simplify reform processes with simplified flowchart reproduced as Figure 5, below. The
horizontal line illustrates a similar registration process, after streamlining. Mikhnev's Paper
includes Annexes with case studies from Canada, Kosovo and Turkey.
Vignjevic (2.4) described how a new Business Registration Law in Serbia had reduced
registration time from 105 days to 5 days, and introduced a 'silence is consent' rule. Haggerty
(4.2) presented reforms to the municipal operating license and construction permit
procedures in Peru and Nicaragua. He reported various improvements as a result of reform;
for example, the number of days to obtain an operating license in Lima had reduced from 60
to 1.6. Omran and Waly (2.3) reported on a reform that reduced registration time in Egypt
from 366 days to 15 days.
While reductions in the registration process can make it easier to formalise, there may still be
strong disincentives to do so. For example, Engelschalk (3.2) noted that small businesses in
the formal economy are subject to many different taxes; special tax regimes have generally
only considered a few of these taxes. Indeed 75% of sole traders in Ukraine were found to
have stayed outside the formal economy, one year after the introduction of a special tax
5
http://rru.worldbank.org/PapersLinks/Open.aspx?id=6749 (2.1 Mb)
-9regime. Another dis-incentive to formalisation relates to the ease of exit; bankruptcy law may
be as important as registration procedures.
A-B-C-D = Streamlined System
1-18 = Cumbersome System
Business entry is an administrative
process in most common law countries,
except Ethiopia, Sri Lanka and UK:
- Ex-post monitoring and enforcement
Notaries used in judicial
process. Can be most
expensive part.
Minimum capital deposit
can be an obstacle
3
2
1
A
BANK
POLICE
VITAL
RECORDS
OFFICE
14
Business Entry is a judicial process in
most French/Spanish law countries:
- Ex-ante monitoring and enforcement
4
13
5
STATISTICS
OFFICE
6
NOTARY
PUBLIC
B
12
7
11
C
HEALTH &
SAFETY
AUTHORITY
NATIONAL
RETIREMENT
FUND
15
ENVIRONMENTAL
AUTHORITY
LABOR
AUTHORITY
TAX
ADMINISTRATION
16
SEAL
MAKER
17
CHAMBER OF
COMMERCE
D
18
LOCAL
AUTHORITIES
(MUNICIPALITY)
Start
business!
REGISTRATION
REGISTRATION STATIONERY
LAND
BODY
BODY
AUTHORITY
SUPPLIER
C. Register
D. Obtain
A. Check for
for taxes;
B. File for
LOCAL
15. Register with
10
8
necessary
Uniqueness of
obtain ID
incorporation
PAPER
Environmental
licenses
Name
13. Register employees
4. Certify
Authority
2. Open
9
for
payroll
deduction
6.
Notarize
11.
Register
for
marital
1. Check for
account;
16.
Make
18. Obtain local trade
registration
taxes; obtain ID
8. Buy legal
status
Uniqueness of deposit
company
license and zoning &
5. File with documents
3. Certify
accounting books
14. Pass health &
Name
10. Obtain
start-up
seal
construction permits
12.
Register
for
Statistics
clean
7. File for
safety inspections
capital
labor, health and
9. Publish zoning
Office
criminal
incorporation
(risky
businesses)
approval
17. Register with
unemployment
by-laws
record
Chamber of Commerce
insurance
Figure 5: Simplified flowchart showing process of business registration (Mikhnev)
Finally, for many businesses, registration is seen as a problem that occurs only once; it may
therefore not be given priority, for example in PPD processes.
F.
Tax Regimes for Small Business
In Session 3.2, Coolidge presented experiences with tax regimes for small business in
Georgia, Ukraine, Russia and Albania; the Paper associated with her presentation was
written by Engelschalk. Stern presented experiences with tax regimes in South Africa,
Zambia and Zambia. Gondwe spoke from the perspective of a tax authority (in that case,
South Africa).
These Papers explore the advantages and disadvantages of the various formats for taxing
small businesses: a turnover tax, a presumptive tax or a patent (operating license). Stern
notes that a special tax regime must lower the Marginal Effective Tax rate (METR), but not
be so low as to create a growth trap; ease of compliance is as important as the rates and
instruments.
Engelschalk notes: "Taxpayers and tax administrations have different expectations regarding
the potential benefits of simplified systems. From a taxpayer point of view, stability and clarity
of the tax system and a reduction of the compliance as well as the tax burden should be the
most important outcome of presumptive systems. The main interest of tax administrations
lies in the revenue yield of the system ["negligible" from small businesses in "most cases"],
the reduction of administrative costs, and an increase in voluntary compliance."
In practice, special tax regimes have increased the number of small businesses registered,
but have not generally improved compliance substantially. This may be partly because, in
most countries, tax systems remain complex; the simplified regime only applies to certain
taxes. Also, these simplified systems have often been through frequent and fundamental
changes, in many transition countries; it has therefore been difficult to tell what the impacts
have actually been. The presenters concluded by recommending the improvement of the
regular business tax regime, before any special regimes for small business are
contemplated.
- 10 -
G.
The Land Market and Investment
Shen (3.1) presented a Paper on Improving Access to Land and Buildings by Investors,
noting the four main issues: Access, Security, Use, and Consistency of Treatment.
McKinseys has found that land market issues are major barriers to investment and
competition in more than half of all economic sectors, including retail, housing and tourism.
The World Bank estimates that 80% of the countries in its most recent Doing Business
survey prohibit or restrict foreign ownership of land.
"In a situation typical of much of Africa, less than 4 percent of the land in Mozambique has
been surveyed, and even less registered. Even where property is registered, investors may
still face big delays in recording land transactions. In Nigeria an entrepreneur seeking to buy
property free of dispute and officially recorded must complete 21 procedures—a process that
takes a staggering 274 days and requires official fees amounting to 27 percent of the
property value. It need not be so. In Norway the same process takes only a day and requires
payment only of a registration fee and 2.5 percent of the property value in stamp duty."
Similarly, Figure 6 illustrates the process of registering land for business use in one Russian
city.
Figure 6: Flowchart of the procedure for allocation of land plot for business use (Nizhny Novgorod)
There have been successes in reforming these hurdles; in Peru, for example, the title
registration process was reduced from 7 years to 45 days, with the cost of title coming down
from $2,156 to $49. This led to 1.3m titles being registered between 1996 and 2002. While
comprehensive land reforms seem to take 10-15 years, not enough experience has yet been
accumulated, for many firm conclusions to be drawn. There are relatively few cases at the
moment on each aspect of land reform, and these are mostly still pilot interventions.
Interesting questions remain, for example around how to ensure that the poor benefit (or at
least do not lose) during the formalisation process.
H.
Inspections
Many developing countries have thousands of regulations affecting business; often, there is
little knowledge about these regulations - which ones apply in which situations. This creates
an environment ripe for multiple inspections, and it may be tempting for those businesses
being inspected to pay off the inspectors, rather than face disciplinary proceedings. Many of
the Papers outlined above aim to reduce the number of regulations affecting business; some,
however, tackled the issue of inspections directly.
- 11 For example, Lozansky and Khashimov (4.2) outlined experiences to streamline inspections
in Uzbekistan. They found that inspectors were able to close operations down, or impose
high fines; they were allowed to keep part of the fines collected. Tax, sanitary and fire service
inspections were targeted for streamlining, and the average number of days being spent by
SMEs on inspections was brought down from 14 to 2. The estimated $21m p.a. savings
came mainly from reductions in shutdowns, as a result of the more enlightened inspection
regime.
On the other hand, unofficial payments were made during 36% of inspections after the
change, compared to only 9% before, with inspectors focusing on the largest and most
successful enterprises. One might speculate that some of the inspectors may have borrowed
money in order to purchase their position in the first place, and felt the need to continue to
generate revenue for themselves, in spite of the changes.
I.
Other outstanding issues
Ellis (1.2) presented findings of a survey in Uganda on the extent to which women in
business experience the business environment differently; for example, 43% of femaleheaded enterprises reported that government officials had interfered with their business,
relative to 25% for all enterprises. In general, though, there did not seem to be many
experiences (yet) on implementing reforms that benefit women in smaller and more rural
businesses.
Joshi (4.3) argued that labour laws were often too complex, and needed to be simplified
rather than abolished; deregulation was not necessarily the best solution. Many
presentations, however, focused on streamlining and reducing administrative burdens for
business - even though relatively little information was presented on what differences these
reforms had made, in practice, to the lives of the poor and under-privileged. Clearly, this is a
problematic field; some of the impacts are likely to appear only in the longer term. Besides,
one can intuitively conclude that reductions in administrative burdens, and increased access
to titles and rights, will benefit poor people - not least through enabling economic growth.
As an illustration of current thinking, Omran and Waly (2.3) presented the results of a survey
of the SME donor sub-group in Egypt; it found that the majority were interested in reform of
the business environment in order to increase international trade and support
competitiveness, rather than to alleviate poverty directly. Similarly, the most commonly-cited
future direction was related to modernisation (competitiveness, exports etc.) Presumably,
though, the pressure to demonstrate the links between modernisation and poverty alleviation
(or at least pro-poor growth) can only grow, so additional data in this area will be welcome.
J.
Donor responses
Laird (Plenary) presented a draft OECD Paper on "Using ODA to promote private investment
for development: Preliminary policy guidance for donors"6. It notes that "donors need to
change the way they do business. They need to have access, individually or collectively, to
an appropriate range of aid instruments. Their internal systems should not work against staff
pursuing longer-term and riskier interventions... efforts may not come to fruition within a
donor's typical 3 or 4-year programme cycle, or the period of one staff member's posting to a
developing country."
It also noted that "donors have focused too much on assisting specific types of firm...
experience has shown this can lead to market distortions and poor sustainability." Indeed,
there was a debate on this theme in the Conference, based on a Paper presented by
Vandenberg (Plenary); the Paper sets out the various arguments for and against a focus on
small businesses when reforming the business environment. The issue does, however,
6
The version on the CD provided to participants was a draft version; the final version has been published as
"Promoting Private Investment for Development: The Role of ODA" see: www.oecd.org/dac/investment
- 12 remain an open one; President Mkapa noted, for example, in his opening speech that "we
could and should do more to help the small investor".
Hallberg (5.1) outlined the work of the World Bank Group in reforming the investment climate
since 1993; this showed that 'regulation and competition policy' was the most popular subtheme. She also outlined the roles of the various organisations within the WBG relating to
business environment reform7. A recent evaluation of WBG activities had found that clients
would like more focus on investment climate reform, but that more attention was needed to
setting priorities and sequencing reforms.
There was also a need to know more about good practice in institutional design; institutional
issues ('the rules of the game') are the key challenge. Piecemeal efforts were found to be
less successful than a 'big push' of reforms; investment climate reform is a marathon, not a
sprint.
Preston (3.4) gave some recommendations for donors on implementing competition policy in
developing countries:



support empirical research on the impacts of competition policy and law
encourage culture of competition (eg support to consumer groups)
help to formulate competition policy and law, train staff in competition authority
He noted, however, that many cartels operate at the international level, and recommended
funding also for international programmes.
K.
Conclusion
The community of development agencies is inherently fragmented, in the sense that
individual organisations may not feel motivated to disseminate the full range of their
experiences. It can be difficult, therefore, for the industry as a whole to learn lessons quickly,
particularly those gained from experimental interventions. Indeed, the changes in approach
to developing business service markets ('Business Development Services' etc.) were largely
driven by an intensive exchange of information and experiences between agencies - an
exchange which continues even now.
The exchange of experiences in the Cairo Conference on business environment reform was
therefore particularly important, because so many presenters from different agencies worked
hard to synthesise experiences into relatively short Papers. In addition, the conference
Communique (Annex C) distilled the key messages into a general document; nonetheless,
great interest has been shown in a document that points people towards the individual
Papers and presentations that they are likely to find interesting, and hopefully this Paper can
contribute to filling that gap.
It does, however, represent an on-going exercise. Several events on this topic are planned
during 2006, to meet the demand for learning opportunities. Continued monitoring of relevant
websites, such as www.businessenvironment.org, www.enterprise-development.net and
rru.worldbank.org, is therefore strongly recommended.
7
Sader (2.3) showed the dramatic increase in IFC staff dedicated to TA since 1998
- 13 -
Annex A: List of Papers and Presentations, with hyperlinks
Link to Cairo Conference 'top page' for all Sessions
Plenary sessions
Opening Speech by the President of the United Republic of Tanzania, HE Benjamin Mkapa
Using ODA to Promote Private Investment for Development - Preliminary Policy Guidance for
Donors (OECD)
The Relevance of Firm Size When Reforming the Business Environment, by Vandenberg
Session 1.1: Assessing the Business Environment for Small Enterprises: Latest
Techniques
Making Sense of Investment Climate Surveys, by Silva Leander, DFID
Paper, Presentation
Regional Business Climate Survey for SADC Countries, by Reissner
Paper, Presentation
Doing Business in Transition Countries, by Fankhauser, EBRD: Paper, Presentation
Industry Level / Value Chain Analysis, by Palmade, FIAS: Paper, Presentation
Session 1.2: Assessing the Impact of the Business Environment on Women-Owned
Businesses
Paper: Gender and Growth Assessment for Uganda
Presentation: Gender Issues in Reforming the Investment Climate, by Ellis, IFC
Evaluation of DFID Development Assistance: Gender Equality and Women's Empowerment,
by Pinder for DFID: Paper, Presentation
Paper: A National Survey of Women Business Owners in Vietnam
Presentation: "Engendering" PSD - A Vietnam Case Study, by Trang Nguyen, IFC
Session 1.3: Improving the Business Environment at the National Level
How a Business Membership Organisation Can Contribute to Improving the Business
Environment in North-East Brazil, by Meier and Wahl: Paper, Presentation
The Experience of FUNDES in Latin America, by Elfid Torres: Paper, Presentation
Creating an Enabling Business Culture, by Karin Reinprecht: Paper, Presentation
Session 1.4: Improving the Business Environment at the Sub-National Level: What
Local and Provincial Governments Can Do
Case Study Philippines, by Macaranas and Valhaus: Paper, Presentation
Quick Scan of the Business Environment in Lao PDF, by Anh and Baan
Paper, Presentation
Session 2.1: Informal Enterprises - Informal, Unregistered, Untaxed and Critically
Important to National Economies
Removing Barriers to Formalisation, by Bannock Consulting for USAID:
Paper, Presentation
The Business Environment and the Informal Economy, by Chen
Paper, Paper Annex, Paper References, Presentation
Session 2.2: Building the Capacity for Reform
Paper: Reforming the Business Environment in Afghanistan, by Reinhard Palm, GTZ
Presentation: The Afghan Investment Support Agency, by Fatimie and Palm
The Wezesha PSD Programme, Lake Zone, Tanzania, by Sambua
Paper, Presentation
Building the Capacity for Business Registration Reform, by Mikhnev
- 14 Paper, Presentation
Session 2.3: How Donors Can Work Together
Donor Coordination in SME / Private Sector Development in Vietnam, by Nguyen HoaCuong: Paper, Presentation
How does the IFC deliver TA? by Sader: Paper, Presentation
Donors' Business Environment Reform Interventions in Egypt, by Omran and Waly: Paper,
Presentation
Session 2.4: Improving Public-Private Dialogue
Paper: Review of 40 Countries' Experiences, by Herzberg and Wright
Presentation: Engaging Stakeholders through Competitiveness Partnerships, by Herzberg
Mechanisms and Processes for Public-Private Sector Dialogue, by Gamser et al: Paper,
Presentation
Engaging the Private Sector in Business Environment Reforms: Experience from South East
Europe, by Vignjevic, IFC: Paper, Presentation
Session 3.1: Red Tape and Small Business - What Kind of Laws and Regulations Work
- and Don't Work
Regulatory Impact Assessment in OECD Countries: Challenges for Developing Countries, by
Rodrigo Enriquez, OECD: Paper, Presentation
What Governments can do to Facilitate the Enforcement of Contracts, by Messick, World
Bank Group: Paper, Presentation
Land Markets - Improving Access to Land and Buildings by Investors, by Muir and Shen,
FIAS: Paper, Presentation
Session 3.2: Taxing Small Businesses - How Some Governments are Improving their
Tax Laws
Paper: Designing a Small Business Tax System that Enhances Growth - Lessons from
Africa, by Stern and Barbour
Presentation: Taxation, Growth and Small Business Development - Experiences from Africa,
by Stern, FIAS
Paper: Small Business Taxation in Transition Countries, by Engelschalk, World Bank
Presentation: Small Business Taxation in Transition Countries, by Coolidge, FIAS
Presentation: A Tax Administration's Perspective on Small Business Tax Regimes, by
Gondwe
Session 3.3: Improving the Business Environment at the Sub-National Level - What
Local and Provincial Governments Can Do
e-Government to Improve the Local Business Environment - A Case Study from Latin
America by Karkowski and Buss: Paper, Presentation
Enabling Environment for the Private Sector - GTZ WIRAM Program Mozambique, by
Macarinque and Kaufmann: Paper, Presentation
Creating a Positive Business Environment for the Informal Economy in South Africa, by Lund
and Skinner: Executive Summary, Paper, Presentation
Session 3.4: Creating more Competitive Business Environments - Competition and
Regulation
Paper: Implementing Competition Policy in Developing Countries - The Role of Donors, by
Preston, DFID
Presentation: Promoting Competition Policy - The Role of Donors, by Preston, DFID
Improving Business Environments through Regulatory Impact Analysis, by Ladegaard, FIAS:
Paper, Presentation
Paper: Introducing Regulatory Impact Assessment in Developing Countries - The Case of
Uganda, by Welch and Waddington
- 15 Presentation: Regulatory Impact Assessment in Developing Countries: Some Lessons from
Uganda, by Waddington
Session 4.1: Why Some Countries Successfully Improve their Business Environments
and Others Do Not
Papers and presentations from this Session were not included in the CD-ROM or on the
website.
Session 4.2: Reducing the Regulatory Burden on Business
The Regulatory Guillotine in Three Transition and Developing Countries, by Jacobs
Paper
Reforming the Inspections System in Uzbekistan, by Lozansky and Khashimov: Paper,
Presentation
Paper: Simplifying Regulation at the Municipal Level in Peru and Nicaragua, by Haggarty,
IFC
Presentation: Cutting Red Tape - Simplification of Business Regulation at the Municipal
Level in LAC, by Haggarty, IFC
Session 4.3: The Role of Policies, Laws and Regulations for Small Business
A Case Study of the SMEPOL Project in Egypt, by Court and Osborne
Paper, Presentation
How to Build an Effective Policy Framework for SMEs, UNCTAD
Paper, Presentation
What Roles does Labour Law Play, by Joshi, ILO: Paper, Presentation
Session 4.4: Listening to Small Enterprises - Improving Public-Private Dialogue
Challenges and Opportunities to Giving Voice and Participation to Entrepreneurs in Business
Environment Reform, by Lamotte, ILO: Paper, Presentation
The Better Business Initiative in Nigeria, by Agboli, IFC: Paper, Presentation
Monitoring and Evaluation of Multi-Stakeholder Cooperation and Partnerships in LED, by van
Gerwen and Nedanoski: Paper, Presentation
Session 5.1: Methods to Improve Monitoring and Evaluation of Reform Programmes
An Evaluation of World Bank Investment Climate Activities, by Hallberg
Paper, Presentation
Assessing the Impact of Enabling Environment programmes, by Pinder
Guidelines, Handbook, Presentation
IFC Core Indicators for Technical Assistance Projects, by Bardini
Paper, Presentation
Session 5.2: An Example for Africa - Business Environment Reform in Tanzania
A Tanzanian Case Study, by van Gerwen and Olomi: Paper, Presentation
The Case of Best, by Tax-Bamwenda: Paper, Presentation
Reforming the Business Environment in Tanzania, by Musiba: Paper, Presentation
Session 5.3: A Case Study of Dramatic Change - Business Environment Reform in
Vietnam
Reform of the Enterprise and Investment Law in Vietnam, by Nguyen Dinh Cung and Le Duy
Binh: Paper, Presentation
A Case Study of the Unified Enterprise Law and Common Investment Law, by Trang
Nguyen: Paper, Presentation
A Private Sector Perspective on Business Environment Reform - The Case of Vietnam, by
Dr. Pham Thi Thu Hang: Paper, Presentation
The Final Draft SME Development Plan 2006-2010, by Pham Thi Thanh Ha
Paper, Presentation
- 16 -
Annex B: Papers and Presentations focusing on particular countries
Session number in parentheses - note that some Papers give substantive information on
many countries, including particularly:







Making Sense of Investment Climate Surveys (Silva Leander, 1.1)
Removing Barriers to Formalisation (Welch, 2.1)
Public-Private Dialogue: Experiences in 40 Countries (Herzberg, 2.4)
How to Promote Public-Private Dialogue (Gamser, 2.4)
RIA, Enforcement of Contracts, and Land Markets (all 3.1)
Improving Business Environments through RIA (Ladegaard, 3.4)
Evaluation of WB IC Activities (Hallberg, 5.1)
Papers with a specific country focus or information:
Afghanistan (2.2)
Albania (Engelschalk, 3.2)
Egypt (Omran, 2.3; Court, 4.3)
Georgia (Engelschalk, 3.2)
India (Palmade, 1.1)
Kosovo (Mikhnev, 2.2)
Laos PDR (SNV, 1.4)
Macedonia (4.4)
Mozambique (Macaringue, 3.3)
Nicaragua (Haggerty, 4.2)
Nigeria (Agboli, 4.4)
Peru (Haggerty, 4.2)
Philippines (GTZ, 1.4)
Russia (Engelschalk, 3.2)
Rwanda (Stern, 3.2)
Serbia (Vignjevic, 2.4)
South Africa (Gondwe, Stern, 3.2; Lund, 3.3)
Tanzania (2.2, 5.2)
Uganda (Ellis, 1.2; Waddington 3.4)
Ukraine (Gamser, 2.4; Engelschalk, 3.2)
Uzbekistan (Lozansky and Khashimov, 4.2)
Vietnam (2.3, 5.3)
Zambia (Gamser, 2.4; Stern, 3.2)
- 17 -
Annex C - Conference Communique
Committee of Donor Agencies for Small Enterprise Development
International Conference on Reforming the Business Environment
29 November to 1 December 2005, Cairo
Conference Outcomes
Incorporating comments made during the final conference plenary
Final version
For three days in November and December 2005, some 300 people representing 29 donor
agencies from field and headquarter structures, as well as representatives of developing
country governments and the private sector came to Cairo to discuss ways to reform the
business environment. To our knowledge, this is the first broad based multi-donor
conference to consider this issue. As a result, we considered a wide range of issues affecting
the assessment and reform of the business environment.
The conference considered three stages in the lifecycle of reform programmes: (a) assessing
the business environment and designing reforms; (b) the tools, techniques and frameworks
that can be used to successfully implement reform programmes; and (c) ways to measure
the impact of reforms and to monitor programmes. More than 65 presenters and panellists
participated in the programme and 56 papers were presented. These papers described
business environment reform experiences from all regions of the world; some focused on
reform programmes at the local level conducted with local government authorities and local
business membership organizations. Others examined the link between business
environments, the informal economy, value chains and gender. Reform programmes –
dealing with taxation, regulatory best practice, contract law, land administration and labour
law – at both national and local levels were discussed. Throughout these discussions we
tried to ensure that donor agencies learned from the perspectives of developing country
governments and the private sector.
General key messages
We have been able to reach a number of general agreements on business environment quite
quickly. While it is easy to agree on generalities, we have tried to agree on specific
messages wherever possible. These messages are informal and unofficial recommendations
for donor agencies engaged in providing support for business environment reforms in
developing countries.
1. We recognise that reforming the business environment is one of the most important
areas in the global development agenda for donors and governments. While there is a
need for more evidence in the long-term, we think that donor agencies would do well to
include business environment reform in their efforts to promote private sector
development, economic growth, equity and poverty reduction.
2. Business environment reform is a multidisciplinary field of work requiring a wide range of
competencies, programme partners, processes, tools and techniques. Private sector
must be an active player in the business environment reforms (as it was written before
we differentiate PSD programs and governance programs. In case of BE reforms they
should not be such difference, but rather be one program of reforms with the private
sector involved). Business environment reform can occur at regional, national and subnational levels and is the responsibility of developing country governments, the private
sector and civil society; these actors should own and manage reform processes, donor
agencies can only support and enhance their initiative.
- 18 3. While reforms often focus on policies, laws, regulations and their enforcement
mechanisms, success and sustainability in reform always comes down to cultural and
attitudinal change, including a reform-oriented mindset. This is a key ingredient.
4. Donor agencies can promote the creation of better business environments by supporting
the transformation systems away from those based on personal contacts and patronage
to those that are based on rules.
5. While it is recognised that governments play a key role in managing and reforming the
business environment, donor agencies should continue to be open and committed to
working with the private sector (at local, national and international levels) and
encouraging their public sector partners to do this as well.
6. Business environment reform is a political process. Donor agencies cannot ignore this.
While technical solutions have their place and can add-value to the quality and speed of
reform efforts, a key determinant to the desire for and success of reform is political will
and political leadership.
7. While much has been done in recent years with regard to assessing the business
environment – and more should be done – greater attention needs to be given to helping
governments and local agencies design solutions. Donor agencies need to broaden their
repertoire in the ways they can support reform of the business environment.
8. As donor agencies we should emphasise the importance of implementation – this
includes a commitment to the competencies and capacities of donors and their partners
to make reforms work.
9. While much can be learned from international experience, business environment reforms
work best when they are designed according to the specific national (and sub-national)
contexts (e.g., local cultures, institutions, as well as the political, economic and social
context).
10. Recognising local actors (private, public and civil) and building their capacity to
participate in business environment reform is critical for successful and sustainable
reforms.
11. Donor agencies should share responsibility for reforms they support. The donor funding
should support the reforms which utilize the international best practice and develop the
most efficient and realistic solutions. To ensure that donor agencies need to invest in
building the competencies of their own staff at field and headquarter levels to support
business environment reforms.
12. Impact assessment should be given more emphasis and should be included in business
environment reform programmes from the beginning.
13. Effective regulation and competition policy regimes are key components of a good
business environment for businesses of all sizes.
Key messages on the hot topics
The seven hot topics of the conference were considered throughout the 24 breakout
sessions and four plenary sessions. There is still much to be learned in each of these topics,
but we have achieved a greater clarity on a number of the challenges donors face within
these topics.
1
Relevance of enterprise size
1.1
Is this really an issue a debate can solve? Clearly it is not. Enterprise size is an
important dimension to business environment reform. Small enterprises (whether they
are called mini, micro, small or medium) do experience the business environment
differently than large firms. There seems to be agreement on this.
- 19 1.2
1.3
1.4
1.5
1.6
2
2.1
2.2
2.3
3
3.1
3.2
3.3
3.4
3.5
However, the concern is with possible reform measures that are used to respond to
this situation. There is great concern that size-based policy and legal instruments can
work against the interests of both small and large enterprises. (Indeed, we do not
wish to overlook or disregard the importance of large enterprises.) There are many
unintentional consequences from reform efforts that aim to support the small business
sector.
It is important to adopt a systemic approach to private sector development and the
creation of better business environments, which includes an understanding of the
dynamics of enterprise size and the dynamics of value chains.
We recognise that a disproportionate amount of women-owned enterprises are small
enterprises. Thus, there are gender-based barriers to small enterprise growth that
need to be addressed when reforming the business environment.
More needs to be done to understand the profile of the private sector, incorporating
better data on the size distribution of firms.
Small enterprises suffer more from the hostile business environment, while a better
business environment benefits the entire private sector – small and large businesses.
Role of the private sector
There is strong agreement that the private sector is a critical partner in business
environment reform. However, there are a number of challenges, debates and
difficulties donor agencies face when it comes to engaging the private sector.
Small enterprises and their organizations have a role to play in business environment
reform, but they require specific development programmes to support them in these
efforts, avoiding the dangers of donor dependency and minimising the risks of market
distortion. Thus, representation and capacity are critical issues for this sector.
Involving the private sector in the process of legal and regulatory reform from the very
beginning is crucial for quality and sustainability of the reform process.
Public-private dialogue
Everyone agrees this is important. It promotes social inclusion in the business
environment. Public-private dialogue is important for identifying reform priorities,
monitoring progress, and sustaining reform processes.
It is important to work with existing actors and structures first, before creating new
structures. Local champions play an important role in forging and facilitating new
opportunities for dialogue.
We need to invest in supporting business representative organizations and to
enhancing their participation in dialogue. It is particularly important for donor agencies
to help small and informal enterprises find a “voice” in the processes that support
public-private dialogue.
It is recognised that dialogue can take both formal and informal forms. What is
important is the quality of this dialogue, which is affected by the timeframes,
processes and representation for dialogue. It is important for dialogue to be linked to
specific reform agendas.
Donors can facilitate public-private dialogue by providing some finance for the
dialogue process (meetings, etc.), but should not drive the process; they should
promote good practices and approaches, but should not make business membership
organizations dependent on their financial support.
4
Build a demand for reform
4.1
There is strong agreement that donor agencies should respond to a domestic
demand for reform. The role of donor agencies is to add-value to reform processes
through technical assistance, training and other forms of skills transfer, information
and experience sharing.
However, what should donor agencies do when there is not a strong demand for
reform? Some people have said that nothing should be done in these situations.
4.2
- 20 However, others suggest that there are ways to appropriately stimulate domestic
debate on these issues that will lead to a greater demand for change. International,
regional and national assessments that benchmark business environments and
monitor change help to do this. So too does stronger support for public-private
dialogue.
5
Informal economy and the business environment
5.1
It is important to recognise, understand and assess the costs of compliance for
enterprises in the legal and regulatory framework – this includes the costs of
remaining informal and the costs of formalisation.
There are a number of opportunities to reform laws and regulations in the fields of tax
and labour to bring informal enterprises into the formal system. These reforms have a
developmental thrust and should maximise the long-term benefits of compliance and
formalisation.
Large and small enterprises operate in the informal economy. Indeed, there are many
large firms that benefit from this involvement. Most large firms are formally registered
and have all permissions to run their business in the formal way. However, unfriendly
regulations can entice large firms to hide a part of their business transactions outside
the formal regulatory requirements.
We have learned more about the barriers of informality, but the dynamics of
informality are less understood.
Access to information, skills and finance is vital to the process of formalization and
reducing poverty.
5.2
5.3
5.4
5.5
6
Local (sub-national) business environment reform
6.1
Donor agencies should invest more in supporting business environment reforms at
the sub-national level.
The reform of local business environments is a necessary systematic response to
increasing decentralized governance. There are local layers of policies, laws and
regulations that should be addressed, and there are local layers of decision-making
that should be engaged. Local democratic political process is a main driver for reform.
Local governments can exert significant pressure for reform on the national political
process, and vice versa.
6.2
6.3
7
Donor collaboration
7.1
National donor coordination is an important first-step in improving the traction that is
necessary for donors to support business environment reform.
However, other steps are required. The next step is the collaboration of donor efforts.
Donor agencies need to implement commitments made, including in the Paris
Declaration on Aid Effectiveness, to work more closely together. This can be a difficult
process requiring time and leadership.
Developing country governments can work with the donor community to support,
enhance and, where necessary, lead coordination and collaboration efforts.
7.2
7.3
Topics we want to know more about
1. The conference covered a wide range of issues, but it has become clear that there are a
handful of topics that we need to know more about. These are topics the donor
committee could examine more closely through future research, the production of
information products and the hosting of conferences and seminars.
2. Improving donor practices: principles that inform our work, guides that give us direction,
tools that we can use, training that improve our competencies and effectiveness. All of
this should also be shared with our programme partners (i.e., developing country
governments, the private sector, and civil society)
3. Improving the ways donors can work together
- 21 4. The links between business environment reform, economic growth and poverty reduction,
including pro-poor growth and gender issues
5. Informality: How business environment reforms can reduce informality and improve the
opportunities for pro-poor growth; better statistics on the informal economy, particularly
on informal enterprises and informal workers
6. Small business taxation: How to reform tax systems so that they broaden the tax base
across the private sector, while improving the benefits and support for small business
7. Regulatory best practice: How to tailor Regulatory Impact Assessment (RIA) systems to
the specific resource and institutional conditions of developing countries
8. Improving local business environments and improving sub-national competitiveness
9. Business environments and value chains: How can reform of the business environment
improve value chain performance.
10. Promoting a level playing field for business and poverty alleviation through well designed
competition policies
11. Responses to globalisation: How business environment reforms contribute to better trade
facilitation, the promotion of fair trade (i.e., the global business environment), and
international competitiveness
12. Understanding the political economy of reform: What this means to donor practice and
achieving development outcomes
13. How to work with the drivers of change
14. Evaluating and monitoring business environment reform programmes, and designing
indicators and frameworks that can measure the impact of change in the business
environment
15. Governance and institutional reform – this should include ways donor agencies can
support good governance and the reduction of corruption
16. Supporting business environment reform in post-conflict countries
17. Ways to raise awareness (and demand) for reform, including the use of the media and
social marketing strategies
18. Greater synthesis of business environment assessment tools and methods – helping
donor agencies to make better use of what exists at the moment