Many businesses around the world are facing strong headwinds as the global economy recovers from the pandemic and shock caused by the war in Ukraine. We heard serious concerns from politicians and business leaders throughout the Chambers. Global ForumOn May 10-11, 2022. Everywhere you look, governments are trying to find solutions to multiple overlapping problems and align their actions with longer-term trends such as the green transition or digital inclusion. These challenges are causing a worrying trend of global market fragmentation, which is preventing the cross-border flow capital, goods, and services. As countries form economic blocs, it is also creating barriers to cross-border capital, goods, ideas, or technologies.
The World Bank has a new tool called the “The Banker’s Toolbox”. Business Enabling Environment ReportIt will allow policymakers and investors to compare the performance of different governments in meeting recovery and competitiveness challenges. The new report will evaluate the business environment and focus on three factors: promoting economic growth via innovation and entrepreneurship; increasing equality among market participants; and ensuring long-term sustainability of the economy.
The World Bank has decades of experience in interpreting data from both emerging and mature markets. Importantly, the Bank’s practical involvement in projects in emerging market countries should enhance its credibility. We are encouraged at the Banks ambitions and the commitment of resources to make their assessments useful in the development of policy and execution of reforms.
The Bank concluded its online consultation regarding the Report’s methodology in March 2022. Numerous comments were submitted by NGOs, governments, and companies to reflect the extraordinary acceleration of digital adaptation caused by the pandemic. Companies that had hoped for a gradual transition to an online environment would be forced to make tough decisions. Millions of businesses did not survive the lockdown. Millions are now starting over. Value chains were disrupted, reimagined and stress tested. All of this is why it is important that the global survey includes a deep understanding the fluid enabling environment. The Bank has decided to move its Board discussion about the project to May 2022 or June 2022. A pilot questionnaire will be sent out to businesses this summer if the proposal is approved.
We are looking forward to the report. However, we urge Bank to take great care in designing the survey as well as vetting the methodology with practitioners – especially when it comes to fintech innovation and technological advancements. These issues were raised at the G20 level in the context of financial digital inclusion. These debates have revealed the complexity of their issues and the diversity of their experiences. It is ultimately businesses that are the key stakeholders, and the beneficiaries of the report. Therefore, it’s crucial that businesses are meaningfully engaged in the creation of the most useful tool.
Together with our colleagues around world, we are available to engage in a substantive discussion with the World Bank. We will be focusing on the dynamic disruption in business practices that is occurring in many markets. We offer to create a robust feedback loop so that the Bank can tap into the wealth of experiences of small and large companies in countries across the spectrum. The Chamber was among the first to join the Bank as a business partner to share business insights and network. SME Finance ForumThe World Bank
Dialog with business innovators is the best method to ensure that the Report is based upon indicators and criteria that will allow for regulatory choices that reflect local context. While creating a safe space to regulatory consultation at country level, where the rubber meets the road, it is important to keep the Report informed. This tool can really help to create a better business environment if it is used well.
About the authors
Gary Litman
Senior Vice President, Global Initiatives
Gary Litman, senior vice-president of Global Initiatives at U.S. Chamber of Commerce is responsible for policy advocacy for the Chambers economic reform agenda of G20, G7 international institutions and G20. He oversees the Chambers participation at a variety global business coalitions, and related business summits, that focus on sustainable economic policies.
