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The Center for Economic Initiatives is a not-for-profit business development organization devoted to providing assistance and training for organizations in the developing world.

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Improving the Investment Climate

Background

No development is possible without growth, without a good investment climate, and without a strong private sector.  There are a number of country-level issues concerning economic policy towards investment.  One is the issue of a country’s regulatory framework.  As far as firms are concerned, these relate to issues of entry, starting a business, labor relations and flexibility in labor use.  It is common in developing countries for the regulations to require an excessive amount of paperwork and time, with the result that new firms are not started at all or work in the informal economy until they eventually fail or are officially registered.  The pay-offs from reform are truly great. 

Objective

The objective of this program is to increase the productivity of the private sector, thereby improving the developing country’s competitiveness and economic growth, which will in turn increase employment and reduce poverty and inequality levels.  It will do this by demonstrating how to reduce administrative barriers to starting and operating a firm, improving the quality of infrastructure, supporting technology adoption by business, and improving firms’ ability to innovate. 

How this program can help

Economic development missions to the U.S. can expose key government officials in the developing country to more efficient and time-saving procedures as practiced in the United States.  Only by seeing for them-selves what works and the benefits of streamlined procedures can the investment climate in their country be improved. 

 What they will see

CEI programs are designed to acquaint the participants with the detailed procedures, forms, and practices used in the U.S.  They will visit government agencies at the local, state, and national level to meet and discuss with operational personnel in order to learn about current practices. 

Some topics to be covered     

  • Streamlined procedures for starting and registering a company

  • Obtaining a company identification

  • Licensing, subcontracting, outsourcing

  • Financing

  • Closing a company – bankruptcy

  • Productivity, competition, innovation, technology, the legal and regulatory framework

Expected Benefits

  • A reduction of the time to register a business, including days needed for mandatory registration and licensing procedures.

  • A reduction of the formal cost of starting a new business.

What the mission will see

The program will be centered in the Cincinnati, Ohio, area with trips to at least 3 other states in the Midwest. At least one week will be spent outside the Cincinnati area.  The selection of sites to be visited will be determined based on the needs of the participants.

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