Celebrating Reform

Reforming business regulation takes leadership -- more than many other reforms, according to Celebrating Reforms, a joint publication of the World Bank and US Agency for International Development. In fact, the challenges can be daunting, as contributors Simeon Djankov and Caralee McLiesh explain: "In prosperous times, reformers are told not to rock the boat. In crisis times, they get the blame for not reforming sooner and averting the crisis.
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Featured Case Studies

Korea: Better business regulation and improved competitiveness

In Korea the Presidential Council on National Competitiveness, created in 2008, identified regulatory reform as 1 of 4 pillars to improve the economy’s competitiveness, along with public sector innovation, investment promotion, and legal and institutional advancement. Reviewing Korea’s business regulations, the council found that 15% had not been revised since 1998. The council applied sunset clauses to more than 600 regulations and 3,500 administrative rules.

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Macedonia FYR: Major changes spurred by regional integration

Regional integration efforts such as the accession process of the European Union can help drive reforms in business regulation. This has been the case in FYR Macedonia, which launched a comprehensive reform agenda after applying for EU membership. Its reform agenda has been driven largely by requirements to ensure that the country’s laws are in line with the EU legal framework. Equally important has been the desire to attract investment and develop business activity to create jobs and achieve economic growth.

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Mexico: Unleashing regulatory reform at the local level

Mexico’s 31 states and 2,441 municipalities, along with Mexico City, have extensive regulatory powers, allowing them to design, implement and enforce regulations. So regulatory reform has required not only horizontal coordination among ministries, agencies, and legislative and judicial bodies at the federal level, but vertical coordination with entities at the state and municipal levels. The regulatory reform initiative in Mexico has used an exercise of benchmarking business regulation in all 31 states and Mexico City to support this coordination and stimulate change.

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United Kingdom: Rethinking regulation

In the United Kingdom in 2005–10 a program reduced the burden of regulatory compliance on businesses by 25% according to the government. That amounted to savings for firms equivalent to £3.5 billion. New initiatives are under way, such as the "one in, one out" system and the Red Tape Challenge.

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