Creating the right climate for business and investment is essential for the growth and modernisation of developing economies, and in today’s world it is almost universally accepted that the private sector is the “engine of growth” with the state’s direct involvement in business, commerce and industry being minimal. However, it is equally acceptable that the state must be the facilitator of the enabling business environment by implementing policies and measures that will be more conducive to business and investment.
And therefore it is imperative that governments continuously examine where the bottlenecks and the road blocks are and take the necessary action to remove them and therefore simplify business transactions.
For example in India in order to attract investment into the various sectors of the economy, the Government of Jharkhand has made several policy announcements. These policies have graphed a framework for accelerating the industrial development in the State. They envisage a set of incentives and schemes for the investors. Thus, the Government aims to create the right kind of business climate by removing the road blocks and thereby enhancing the inflow of capital in the State.
African leaders “have a duty to create the right climate for business” in Africa, Tanzanian President Jakaya Kikwete said September 28, 2009 in Washington. Kikwete described the private sector as the engine for economic growth and development across the continent and he called on his audience to “look forward,” not backward, toward a brighter economic future and a closer U.S.-Africa business and trade relationship.
Kikwete said now is the time for business to position itself strategically for future opportunities in Africa. He readily acknowledged, however, that now, as the world begins to emerge from the global financial crisis, “it is not easy to convince skeptics” to invest enthusiastically in Africa. (Source: African Leaders Need to Create the Right Climate for Business by Charles W. Corey).
In Guyana we face a similar challenge, and the government has been working persistently and systematically to enhance the business and investment climate.
And in this regard, it has been working in collaboration with stakeholders to address all the irritants and “road blocks” which are inimical to business and investment..
This year, various operational areas of the Guyana Revenue Authority (GRA) will continue to be modernised with the completion of a warehouse, and the operationalising of the container scanner, as well as expansion of regional tax offices.
These are expected to significantly improve operational efficiency and taxpayer satisfaction, while enhancing the revenue generation capability of the Authority. Meanwhile, consideration will continue to be given to options for tax reform and further strengthening of the tax administration.
Under the auspices of the National Competitiveness Council work advanced on a number of initiatives last year aimed at removing obstacles of competitiveness.
Progress was made with the Deeds Registry to digitalise business registration and incorporation records last year. This year, the networking of an information system with the Central Deeds Registry, its sub-Registries, the National Insurance Scheme and the GRA will be completed, facilitating online filing of registration, renewal of registration and same day registration of businesses.
A single window processing system for which $146.8 million has been allocated, will effect the linking of all licensing bodies with the GRA, with a view to reducing the time taken to process trade transactions. Taken together, these reforms will significantly reduce the time and cost of doing business in Guyana.
These and other measures will certainly reduce the bottlenecks and processing time involved in business transactions and thereby further enhance the business and investment climate here and is yet another tangible demonstration that the government has its fingers on the right buttons.