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Chapter 4 - Governance ... Government
4-2 Enabling Environment
There is dangerous assymetry in government and governance. Bad governance will always result in bad performance, but good governance on its own does not assure good performance. Many other elements are needed in order to have an effective enabling environment.
A good business environment is important
The private sector needs to be the driving force behind success of the Haiti economy and peace. This is probably a widely held belief in the business community in Haiti.
Though the oil industry is big in Iraq, and generates huge fund flows for the country and the government, the climate for business investment is not good because of the government's instability and widespread insecurity.
Legal Structure
The legal structure and the rules and regulations could be improved, and the rule of law is subject to a constitution that is a long way from being finalized. Foreign business people want clear and favorable rules and regulations, and want to be sure about the way they are enforced.
Fair Trade
Trade and investment promotion for the area should be initiated in neighboring countries as well as in other key centers around the world.
And even though the law, policies, rules and regulations may be written to encourage trade and investment, it is also important that the operating systems and processes at the bureaucratic level also function to encourage trade and investment.
Improved infrastructure and services
Sustained expansion of trade and investment requires that telephone, fax and Internet communications are improved. They need to be efficient and available at internationally acceptable prices.
In addition the transport services need to be efficient both in terms of frequency, reliability and cost. Logistics today has become one of the most important components of competitive advantage.
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