Business Enabling Environment

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Business Enabling Environment
Pierre Guislain Investment Climate IFC
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Importance of Business Enabling Environment

• Fundamentals in place
• Political stability
• Macroeconomic stability
• Competitive infrastructure
• Effective capital markets
• Effective judiciary investor protection
  contract enforcement

• Low cost of Doing Business
• Business registration and licensing
• Hiring and firing
• Paying taxes
• Registering property
• Trading across borders

• Competitive industries
• Openness to trade and FDI
• Product standards and CSR
• Intellectual property rights and RD
• Competition policy
• Value Chain

More productive investments
More income, more jobs and less poverty
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WBG support to reform processes
Diagnostics
Solution Design
Implementation
Monitoring and Evaluation
World Bank Mostly through Bank loans and IDA
credits (policy, TA) also economic and sector
work IFC Mostly through multidonor regional fa
cilities (with emphasis on implementation), but
also through direct investment
MIGA Mostly through support on investment promo
tion, but also through guarantees of investments
FIAS Joint IFC-Bank multidonor service, with em
phasis on diagnostics and solution design
Coordination Joint Africa investment climate st
rategy (PEP-Africa, FIAS, MIGA)
joint management of PEP
Africa BEE program and FIAS Africa program
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WBG BEE Products and Approaches
Diagnostics
Solution Design
Implementation
Monitoring and Evaluation

• Systems
• Metrics / indicators
• Internal evaluation
• External audit
• Research with academia

• Mainstreaming into CASs and PRSCs
• Investment Climate Facility for Africa
• SEDF in Bangladesh
• More IFC investments in frontier countries

• Doing Business
• Enterprise Surveys
• Enterprise Benchmarking
• Industry Value Chain Analysis

• International good practices
• Toolkits
• Consultant database
• Research on reform process

Investment Climate Assessments
Tailored technical assistance - e.g. post conflic
t
Increased decentralization and donor coordination
Leap forward
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Some recent requests for Assistance on BEE Agenda

• South Asia
• Pakistan
• Bangladesh

• Latin America
• Brazil
• Guatemala
• Mexico
• Nicaragua
• ECA
• Azerbaijan
• Bosnia
• Georgia
• Macedonia
• Romania
• Serbia
• Tajikistan
• Turkey
• Ukraine

• Africa
• Benin
• Burkina Faso
• Ethiopia
• Kenya
• Liberia
• Madagascar
• Malawi
• Mali
• Niger
• Nigeria
• Rwanda
• Senegal
• Sierra Leone

• Middle East
• Algeria
• Egypt
• Morocco
• Yemen

• East Asia
• China (Western provinces)
• Fiji
• Indonesia
• Tonga
• Vietnam

Frontier Countries and Markets
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Some Major Trends

• From economywide BEE to
• sectoral BEE
• sub-national BEE
• multi-country / regional BEE
• From donor-government tandem to multi-stakeholder
  drivers
  
• private sector (existing and emerging) as
  catalyst for reform and reform agent
  
• associations, civil society
• From static and technocratic solutions to dynamic
  political economy processes
  
• From HQ to field-based support
• increased staffing at country level
• knowledge management challenge
• From delivering of TAAS to measurement of impact

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Issues for Discussion

• Globalisation
• Regional integration
• Democracy
• Benchmarking
• Crisis
• New governements

• Drivers of business enabling reforms?
• How to build the capacity of countries?
• What to do where government commitment is weak?
• How do we work better with private sector?
• Balancing demand and supply
• How to work better together?

• Identify key constraints
• Develop new institutional mechanisms and
  capacity
  
• Avoid risk of substitution

• Identify champions
• Awareness raising
• Test pilot approaches
• Be willing to stay on sidelines

• Public private dialoque
• Global, regional and national
• BEE or topical
• Embedded in reform processes

• Pricing and subsidies
• No market mechanism
• Coordination

• Global, regional and national
• Product and project level
• Monitoring and Evaluation