Supporting a Better Local Supporting a Better Local Business and Investment Business and Investment

ClimateClimate– – AN OVERVIEW –AN OVERVIEW –

SIMON WHITESIMON WHITE

Strategies and Practices Toward a More Strategies and Practices Toward a More Enabling Business and Investment Enabling Business and Investment

Climate in AfricaClimate in Africa

The context and relevance of sub-The context and relevance of sub-national reformsnational reforms

The main sub-national BIC actorsThe main sub-national BIC actors Common sub-national reform issues and Common sub-national reform issues and strategiesstrategies

Challenges when working at sub-Challenges when working at sub-national levelsnational levels

Context and relevance Context and relevance of sub-national reformsof sub-national reforms

GlobalisationGlobalisation National trade boundaries have become more National trade boundaries have become more porousporous

Protection and subsidisation of national Protection and subsidisation of national industries is reducedindustries is reduced

Growing importance of localitiesGrowing importance of localities Decentralisation of government services Decentralisation of government services and accountabilityand accountability National governments have recognised the National governments have recognised the importance of sub-national authoritiesimportance of sub-national authorities

Regional developmentRegional development Measures taken by national government to Measures taken by national government to balance development across urban and rural balance development across urban and rural areasareas

Growing urban centres, declining rural Growing urban centres, declining rural hinterlandshinterlands

LEVELS OF GOVERNMENTLEVELS OF GOVERNMENT

NATIONAL GOVERNMENTCreating the national policy and legal environment within a macroeconomic setting

PROVINCIAL GOVERNMENTCreating provincial policies and laws within the national framework

LOCAL GOVERNMENTCreating local policies and laws within national and provincial settings

IMPLEMENTATION

IMPLEMENTATION

‘‘The King’s rule The King’s rule always stops at the always stops at the

commune gate’commune gate’

– – Vietnamese proverbVietnamese proverb

Who are the main sub-Who are the main sub-national BIC actorsnational BIC actors

Sub-national government authoritiesSub-national government authorities Local/villageLocal/village Provincial/regionalProvincial/regional Elected officials and employed staffElected officials and employed staff[Political interests and executive interests][Political interests and executive interests]

Local business membership organizationsLocal business membership organizations Chambers of commerce, business associations, Chambers of commerce, business associations, informal sector associations, sector informal sector associations, sector associationsassociations

Local development agenciesLocal development agencies NGOs, civil society organizationsNGOs, civil society organizations

Local educational institutionsLocal educational institutions Schools, universities, technical training Schools, universities, technical training agenciesagencies

Trade unions and other workers’ Trade unions and other workers’ organizationsorganizations

Local mediaLocal media

Common sub-national Common sub-national reform issues and reform issues and

strategiesstrategies

Common sub-national reform Common sub-national reform issues and strategiesissues and strategies

Benchmarking local BICsBenchmarking local BICs Creating competition among sub-Creating competition among sub-national authoritiesnational authorities

Business regulationBusiness regulation Business registration and licensingBusiness registration and licensing Health and working conditionsHealth and working conditions Factories and industrial safetyFactories and industrial safety

Reducing local red tapeReducing local red tape Creating one-stop-shop facilitiesCreating one-stop-shop facilities

Land use planning and Land use planning and enforcementenforcement

Industrial districts, residential Industrial districts, residential areasareas

Home-based businessesHome-based businesses Street tradingStreet trading Environmental protectionEnvironmental protection

Spatial initiativesSpatial initiatives Economic zonesEconomic zones

Addressing local informal Addressing local informal economyeconomy Reducing costs to formalityReducing costs to formality Improving benefits to formalityImproving benefits to formality Enhancing organization and Enhancing organization and representation of informal representation of informal operatorsoperators

Creating managing agents and Creating managing agents and opportunities for self-opportunities for self-regulationregulation

Local and regional planningLocal and regional planning Economic development planningEconomic development planning Housing planningHousing planning Social development planningSocial development planning Infrastructure planningInfrastructure planning

Local and regional economic Local and regional economic developmentdevelopment Assessing local/regional economic Assessing local/regional economic opportunities and constraintsopportunities and constraints

Managing local/regional economic Managing local/regional economic development projects and programsdevelopment projects and programs

Local economic development programs and Local economic development programs and processesprocesses

Industry incentives and attractionIndustry incentives and attraction Local enterprise developmentLocal enterprise development

Promoting social dialogue at the local Promoting social dialogue at the local levellevel Business and government forumBusiness and government forum Participatory planning and development Participatory planning and development processesprocesses

Creating and strengthening local Creating and strengthening local institutionsinstitutions Public, private and community agenciesPublic, private and community agencies

Creating and strengthening local-Creating and strengthening local-national linkages to improve:national linkages to improve: Information flows (top-down and bottom-up)Information flows (top-down and bottom-up) Coordinating initiativesCoordinating initiatives Harmonization of policies, programs, laws Harmonization of policies, programs, laws and regulationsand regulations

An An enterprise enterprise societysociety

Challenges when working Challenges when working at sub-national levelsat sub-national levels

Limitations on political power at the Limitations on political power at the local levellocal level

National interventions can undermine National interventions can undermine local innovationlocal innovation

Limitations on political will at the Limitations on political will at the local levellocal level

Engaging key stakeholders in a Engaging key stakeholders in a continuous process of reformcontinuous process of reform

Going beyond formal proceduresGoing beyond formal procedures How sub-national authorities can operate How sub-national authorities can operate in a strategic manner, facilitating the in a strategic manner, facilitating the inputs of many local stakeholdersinputs of many local stakeholders