The phrase “creating an environment conducive to enterprise creation and development” is popular among employer negotiators at the International Labor Organization, and it is tucked away in the texts of several recent ILO recommendations and conventions. But what does it actually mean? What are the main ingredients of “conducive environment”?
This issue was discussed at a major international conference on reforming the business environment in Cairo, where the International Organisation of Employers (IOE) was the only international business organization present. The participants at the conference were primarily donor governments and donor agencies led by the World Bank and the International Labor Organization. Part of USCIB’s global network, IOE serves as the umbrella group for business participation in the International Labor Organization.
A number of development agencies are looking at the relationship between red tape, good governance and economic growth. The World Bank, in particular, has created an annual “Doing Business” review, looking at how easy governments make it to start, operate or close a business. The data shows that some governments make it very hard indeed. For instance, in some countries it may take nearly 200 days to open a business. In others, it can take nearly 1,500 days to resolve disputes in the courts. And still another country imposes taxes amounting to 164 percent of a company’s gross profit.
At the Cairo meeting, there were plenty of positive messages from the employers’ perspective. Speakers asserted that the private sector must act as a watchdog, monitoring the effectiveness of reforms while also helping disseminate and explain reforms once enacted. Others said intergovernmental bodies can only do so much, and that reforming the business environment is a political process that must be led by local actors, including business groups.
IOE has been working closely with the ILO in this area, and the conference usefully served to present their efforts to other institutions. IOE plans a handbook this year on how employers’ organizations can play a role in reforming the business environment. For more information, contact Adam Greene (212-703-5056 or agreene@uscib.org).
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Indian Employers Tackle HIV/AIDS – Leading national employers’ organizations in India, in a statement issued following an ILO national workshop, have committed themselves to the fight against HIV/AIDS in the workplace. Though India has a low prevalence rate, the country has the second-largest population of HIV/AIDS infected individuals in the world. The statement recognized that AIDS has emerged as a major threat to the workplace, since more than 90 percent of HIV infections in the country were reported from the most productive age group (15-49 years). The statement calls on all businesses in the country to take part in an urgent and proactive response against HIV/AIDS. More information is available from Adam Greene (212-703-5056 or agreene@uscib.org).
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