Supporting a Better Local Business and Investment Climate – AN OVERVIEW – SIMON WHITE Strategies and Practices Toward a More Enabling Business and Investment Climate in Africa

The context and relevance of sub-national reforms The context and relevance of sub-national reforms The main sub-national BIC actors The main sub-national BIC actors Common sub-national reform issues and strategies Common sub-national reform issues and strategies Challenges when working at sub-national levels Challenges when working at sub-national levels

Context and relevance of sub- national reforms

Globalisation Globalisation National trade boundaries have become more porous National trade boundaries have become more porous Protection and subsidisation of national industries is reduced Protection and subsidisation of national industries is reduced Growing importance of localities Growing importance of localities Decentralisation of government services and accountability Decentralisation of government services and accountability National governments have recognised the importance of sub-national authorities National governments have recognised the importance of sub-national authorities Regional development Regional development Measures taken by national government to balance development across urban and rural areas Measures taken by national government to balance development across urban and rural areas Growing urban centres, declining rural hinterlands Growing urban centres, declining rural hinterlands

LEVELS OF GOVERNMENT NATIONAL GOVERNMENT Creating the national policy and legal environment within a macroeconomic setting PROVINCIAL GOVERNMENT Creating provincial policies and laws within the national framework LOCAL GOVERNMENT Creating local policies and laws within national and provincial settings IMPLEMENTATION

‘The King’s rule always stops at the commune gate’ – Vietnamese proverb

Who are the main sub-national BIC actors

Sub-national government authorities Sub-national government authorities Local/village Local/village Provincial/regional Provincial/regional Elected officials and employed staff Elected officials and employed staff [Political interests and executive interests] Local business membership organizations Local business membership organizations Chambers of commerce, business associations, informal sector associations, sector associations Chambers of commerce, business associations, informal sector associations, sector associations Local development agencies Local development agencies NGOs, civil society organizations NGOs, civil society organizations Local educational institutions Local educational institutions Schools, universities, technical training agencies Schools, universities, technical training agencies Trade unions and other workers’ organizations Trade unions and other workers’ organizations Local media Local media

Common sub-national reform issues and strategies

Benchmarking local BICs Benchmarking local BICs Creating competition among sub-national authorities Creating competition among sub-national authorities Business regulation Business regulation Business registration and licensing Business registration and licensing Health and working conditions Health and working conditions Factories and industrial safety Factories and industrial safety Reducing local red tape Reducing local red tape Creating one-stop-shop facilities Creating one-stop-shop facilities

Land use planning and enforcement Land use planning and enforcement Industrial districts, residential areas Industrial districts, residential areas Home-based businesses Home-based businesses Street trading Street trading Environmental protection Environmental protection Spatial initiatives Spatial initiatives Economic zones Economic zones Addressing local informal economy Addressing local informal economy Reducing costs to formality Reducing costs to formality Improving benefits to formality Improving benefits to formality Enhancing organization and representation of informal operators Enhancing organization and representation of informal operators Creating managing agents and opportunities for self-regulation Creating managing agents and opportunities for self-regulation

Local and regional planning Local and regional planning Economic development planning Economic development planning Housing planning Housing planning Social development planning Social development planning Infrastructure planning Infrastructure planning Local and regional economic development Local and regional economic development Assessing local/regional economic opportunities and constraints Assessing local/regional economic opportunities and constraints Managing local/regional economic development projects and programs Managing local/regional economic development projects and programs Local economic development programs and processes Local economic development programs and processes Industry incentives and attraction Industry incentives and attraction Local enterprise development Local enterprise development

Promoting social dialogue at the local level Promoting social dialogue at the local level Business and government forum Business and government forum Participatory planning and development processes Participatory planning and development processes Creating and strengthening local institutions Creating and strengthening local institutions Public, private and community agencies Public, private and community agencies Creating and strengthening local-national linkages to improve: Creating and strengthening local-national linkages to improve: Information flows (top-down and bottom-up) Information flows (top-down and bottom-up) Coordinating initiatives Coordinating initiatives Harmonization of policies, programs, laws and regulations Harmonization of policies, programs, laws and regulations

An enterprise society

Challenges when working at sub-national levels

Limitations on political power at the local level Limitations on political power at the local level National interventions can undermine local innovation National interventions can undermine local innovation Limitations on political will at the local level Limitations on political will at the local level Engaging key stakeholders in a continuous process of reform Engaging key stakeholders in a continuous process of reform Going beyond formal procedures Going beyond formal procedures How sub-national authorities can operate in a strategic manner, facilitating the inputs of many local stakeholders How sub-national authorities can operate in a strategic manner, facilitating the inputs of many local stakeholders