Posi%oning services reforms & nego%a%ons for development [Intercon%nental Hotel, Nairobi, 14-16 November, 2011] Discussant for Session III: Regula%ons, Regulatory reforms & Services development
OUTLINE 1. Premises for services reforms 2. Situa%on and developments in SSA 3. Perspec%ves: Regulatory reforms vs deregula%on / priva%sa%on 4. Reforms and the life- cycle of a business en%ty 5. Observa%ons: posi%ve impact of reforms on services nego%a%ons 6. Conclusion
1. Premises for services reforms (1) (a) Issues from presenta%ons in perspec%ve of development challenge Efficient services a key driver to shared growth Efficient services require efficient ins%tu%ons & systems. Room for change prior to huge investments in infrastructure development through focus on: Assessment, harmoniza%on, & simplifica%on of regula%ons Capacity to handle and process massive informa%on Extensive infrastructure development (including ICT) (b) Sector specific reforms now the in- thing. Everyone in SSA doing reforms at na%onal level
Premises for reforms (2) (c) Essence of Regula8ons Instruments and tools for implemen%ng sector policies Guiding firm and economic agent s behavior in produc%on processes while balancing conflic%ng goals Economic goals (investment & produc%on) for growth and percep%ons of liberaliza%on Protec%ng na%onal and social interests (health, consumers, the environment, security/strategic interests etc) Pressures for economic opening up and misconcep%ons about good regula%ons vs deregula%on/liberaliza%on Resistance to liberaliza%on can harm necessary domes%c engagement in cri%cal be_er regula%on (e.g. in land administra%on for formaliza%on of property rights)
2. Regulatory Developments in SSA (a) Regulatory reforms a huge challenge for SSA Change required in every area of govt service for that touches on private sector performance Evidence in business (and trade policy) as a mul%- sector func%on: 100 laws (some redundant; and 1,000 licenses many for revenue collec%on rather than effec%ve regula%on) Cumbersome admin procedures and manual processes (b) Every country doing major sectoral reforms at na%onal level (c) Regional coordina%on of sectoral reforms minimal
3. Perspec8ves: Regulatory reforms vs liberaliza8on/priva8za8on Target of regulatory reforms: (a) Focus on key sectors with maximum impact on poverty eradica%on (b) Focus on measures that really support informal and micro enterprises (address the challenges of economic formaliza%on) (c) Focus on key stages of business en%ty s life- cycle (firm or individual): business start- up; business opera%ons; trade (import/export procedures); and business wind- up (d) Essen%al to give services liberaliza%on a posi%ve face as a wider dimension of domes%c regula%on (What is good for the micro enterprise is even be_er for the MNCs/TNCs)
4. Reforms and the life- cycle of a business en8ty (a) Start- up: access to premises; access to land; business registra%on; access to finance; business regulatory licensing regimes (b) Opera8ons: access to finance; paying taxes; labor & skills; access to u%li%es; dispute resolu%on (c) Trade: import/export procedures (d) Winding up: dispute resolu%on; liquida%on & orderly wind- up in the courts. (e) Priori8zing quick- wins: In (a) to (d) room for tremendous improvement based on addressing the sogware (informa%on handling and processing procedures as low lying fruits or quick- wins)
5. Observa8on: Impact of reforms on nego8a8ons Sector reforms dynamic and deep at na%onal level but low coordina%on at regional level: more regional coordina%on cri%cal Focus on business environment (informa%on) while investment climate (high infrastructure takes second place more %me, high costs) Higher regional coopera%on good for improving pace and quality of change and transi%on to compa%bility and easy interface Economies of addressing infrastructure development challenge at regional level Be_er understanding of domes%c regula%on can and will support more posi%ve engagement in trade in services nego%a%ons Both are fundamental to crea%ng new momentum for growth: na%onal /regional integra%on & economic formaliza%on.
6. Conclusion (a) Emerging experience shows that be_er understanding of need for be_er (vs impeding) and simple regula%ons is cri%cal for growth; (b) Be_er understanding of essence of regulatory reforms is a necessary prelude to more pro- ac%ve par%cipa%on in posi%ve nego%a%ons in trade in services; (c) Regional coopera%on and coordina%on of regulatory reforms is of fundamental importance; and (d) Enhanced regional coopera%on and coordina%on of regulatory reforms is necessary for more effec%ve regulatory regimes and improved par%cipa%on in services nego%a%ons first at the regional and eventually at mul%lateral / global levels. THANK YOU