Regulatory Reforms for Improving the Business Environment in Selected Asian Economies - How Monitoring and Comparative Benchmarking Can Provide Incentive for Reform

The determinants of a business friendly environment that underpin rapid and sustained economic growth include the macroeconomic and financial market environments, infrastructure, labor market skills and efficiency, and governance and institutions. Obtaining licenses and credit to start a business, finding and managing labor, ensuring investor protection, enforcing contracts, paying taxes, trading across borders, and identifying the requirements for closing a business are all important factors in assessing the operating climate for doing business. By comparative benchmarking, this paper examines these determinants in six developing Asian economies—the People’s Republic of China, Indonesia, Malaysia, the Philippines, Thailand, and Viet Nam—and compares them with similar indicators for five benchmark economies—the newly industrialized economies (NIEs) of Hong Kong, China; the Republic of Korea; and Singapore; and the developed economies of Japan and the United States. This paper also identifies areas where reform has taken place and where further efforts are needed, such as addressing policy uncertainties, the quality of governance and legal and institutional frameworks, and inadequate regulatory capacity. Attending to these shortcomings will require policymakers to implement structural reforms that improve efficiency and competitiveness by (i) minimizing unnecessary regulatory barriers in business activities, (ii) encouraging private incentives and market discipline, (iii) creating a level playing field across all sectors, and (iv) fostering competition to upgrade institutional capacity. This paper argues that the regular monitoring of relevant indicators and comparative benchmarking can (i) provide important incentive structures that encourage the sharing and implementation of good practices through peer pressure mechanisms and (ii) serve as a starting point for dialogue between government and the private sector on reform priorities that can improve the business environment.Business environment; investment; Asia; benchmarking

Vertical separation of the energy-distribution industry; an assessment of several options for unbundling

The Dutch Minister of Economic Affairs has proposed to replace the currently implemented structure of legal unbundling of the energy distribution industry by ownership unbundling. In this study we analyse the costs and benefits of this proposal. We compare the proposal�to the current situation and to two alternative options that strengthen legal unbundling. We identify four mutually-related categories of benefits: better performance of networks, more efficient regulation, improved effectiveness of competition, and benefits of privatisation; and three categories of costs: one-off transaction costs, loss of economies of scope and the risk of less investment in generation. The analysis highlights that the benefits depend on the future development in small-scale generation and on allocation of the management of transmission networks. Mainly because of the uncertainty about the future role of small-scale generation and the uncertainty about the magnitude of the one-off transaction costs related to cross-border leases, the net welfare effect of ownership unbundling at the distribution level is ambiguous. We identify an alternative route for achieving some of the benefits considered.

Fighting Poverty, Profitably: Transforming the Economics of Payments to Build Sustainable, Inclusive Financial Systems

The Gates Foundation's Financial Services for the Poor program (FSP) believes that effective financial services are paramount in the fight against poverty. Nonetheless, today more than 2 billion people live outside the formal financial sector. Increasing their access to high quality, affordable financial services will accelerate the well-being of households, communities, and economies in the developing world. One of the most promising ways to deliver these financial services to the poor -- profitably and at scale -- is by using digital payment platforms.These are the conclusions we have reached as the result of extensive research in pursuit of one of the Foundation's primary missions: to give the world's poorest people the chance to lift themselves out of hunger and extreme poverty.FSP conducted this research because we believe that there is a gap in the fact base and understanding of how payment systems can extend digital services to low income consumers in developing markets. This is a complex topic, with fragmented information and a high degree of country-by-country variability. A complete view across the entire payment system has been missing, limiting how system providers, policy makers, and regulators (groups we refer to collectively as financial inclusion stakeholders) evaluate decisions and take actions. With a holistic view of the payment system, we believe that interventions can have higher impact, and stakeholders can better understand and address the ripple effects that changes to one part of the system can have. In this report, we focus on the economics of payment systems to understand how they can be transformed to serve poor people in a way that is profitable and sustainable in aggregate

On-Farm Benchmarking: How to Do It and How to Do It Better

Benchmarking is the practice of establishing the relative performance of a business or enterprise against an appropriate standard, generally industry standards derived from a survey of farms. The Policy Commission into the Future of Farming and Food (2002) highlighted a need to spread and improve benchmarking on farms. The requirements of effective benchmarking are illustrated in a ten step framework. The ten steps illustrate the range of expertise and resources a manager requires before being able to justify allocating resources to benchmarking. A comparison of alternative farm surveys and methodologies used to collect, analyse and report industry standards illustrates the difficulties farmers can have in identifying appropriate, robust and accurate industry standards. It is concluded that there needs to be a thorough rationalisation of farm surveys and agreement on methodologies to make benchmarking more effective and more efficient.benchmarking, comparative analysis, processes, industry standards, methodology, techniques, Farm Management,

How do supply chain management and information systems practices influence operational performance?:Evidence from emerging country SMEs

This study first provides a comparative analysis of the impact of supply chain management (SCM) and information systems (IS) practices on operational performance (OPER) of small- and medium-sized enterprises (SMEs) operating in two neighbouring emerging country markets of Turkey and Bulgaria. Then, we investigate moderating effects of both SCM–IS-linked enablers and inhibitors on the links between SCM and IS practices and OPER of SMEs. To this end, we first empirically identify the underlying dimensions of SCM and IS practices, and SCM–IS-related enabling and inhibiting factors. Second, a series of regression analyses are undertaken to estimate the impact of the study's constructs on OPER of SMEs. The results are discussed comparatively within the contexts of both Turkish and Bulgarian SMEs and beyond. The study makes a significant contribution to the extant literature through obtaining and analysing cross-national survey data of SCM and IS practices in emerging country markets

Port-City Development: The Spanish Case

[Abstract]: The objective of this paper is to try to evaluate the port-city relationship from its onset, taking into account the challenges of port 4.0. Indicators such as the percentage of employees participating in training programs, the percentage of female employees in Galician ports, the percentage of merchandise moved by private operators and the percentage of companies with quality certification in Galician ports are evaluated. The fourth revolution is based on the transition from current fossil fuel-based energy models to alternative energy sources, changes in the logistics and transport parameters and finally, on the elimination of intermediation. The key component of the third pillar of new Economy 4.0 is complete digitalization. The optimum port-city solution must address the need of both the urban planner and the port manager to evaluate potential measures that would alleviate the pressure of dedicated port facilities on the city and vice versa to the greatest extent possible

Co-operation as a response to a turbulent environment

The objective of this study was to find out 'how SMEs perceive and respond to a turbulent environment'. We define a turbulent environment as an environment in which customer needs are rapidly changing. Based on this interpretation, we are interested in to what extent SMEs perceive these changes in customer needs and how they respond to these changes - particularly focussing on strategy and cooperation. The main conclusion of our research is that SMEs co-operate mainly to reduce costs or improve the competitive position, not to meet customer needs more adequately. SMEs do not realise the advantages of seeking cooperation in order to share means and expertise in delivering a custom or tailor-made product or service to their customer. With respect to their suppliers, SMEs often lack countervailing power, which is an obstacle for co-operation. SMEs in the retail sectors are unable to convince their suppliers of the need to respond to changes quickly. Regarding co-operation with the clients, one might question whether existing customisation strategies are really demand-driven. This research does not support the impression that SMEs really know their customers' wishes and needs. On the contrary, some businesses intentionally do not adjust their products to changing customer needs.

The Importance of Benchmarking in the Innovative Activities of Tourism Enterprises: The Case Study of Lot S.A. Polish Airlines

The aim of this article is to identify the importance of benchmarking as a source of innovation in the activities of tourism enterprises through the case study of LOT S.A. Polish Airlines. To expand, the objective was to identify the departments within the company which used benchmarking as a stimulus to create a new or improve an existing offer. The subject was an airline belonging to Star Alliance and 27 employees from selected departments. The study used questionnaires and. with managers of selected departments only, open standardized interviews. Statistical inference methods, including a chi-square test, were applied to analyse the data. Although the introduction of benchmarking in the company’s structure allows for a quick escape route from a cycle of limitation in the company’s own culture and standard behaviour (and the acquisition of knowledge during the process gives rise to new and innovative ideas) the importance of this method in innovative activities did not result in any practical application. A lack of knowledge about benchmarking was noticeable, and an identification of this method with a simple competitive analysis resulted in failures in business activity as well as a lack of creativity in its application