BASIC PRINCIPLES OF DOING BUSINESS REFORM
Underlying the Doing Business methodology are 5 key principles of governance. While these principles are implicit in the Doing Business assumptions, to fully realize the benefits of a Doing Business reform agenda, these principles should be applied, not only in the Doing Business reform process, but to all policy decisions across all bodies of government and internalized in all levels of government operations. Doing Business reforms apply these principles and address issues in the governance framework that creates the environment in which private sector decisions are made and activities occur, thereby leading to positive economic outcomes, including, but not limited to, increased economic activity, increased trade, dynamic allocation of resources, increased demand for labor, increased domestic and foreign investment, removal of barriers to inclusive economic participation, increased government revenue, formalization of economic activity, reduced opportunities for corruption, and improved government efficiency and internal management. These 5 principles are:
1. SIMPLICITY: Through Streamlining Legal and Regulatory Requirements, Eliminating Unjustified Requirements and Reducing Contacts. Complex requirements and procedures encourage seeking alternatives to expeditious resolution and imposed unnecessary and wasteful burdens on government operations. This can include duplicative and unnecessary requirements, high fees, discretionary interventions, subjective regulatory compliance assessment, and other activities. Dramatic streamlining based on clear policy objectives and using objectively verifiable conformity mechanisms increase 2 efficiency and reduce private sector burdens and opportunities for corruption. Corruption thrives when contacts between government agents and citizens occur frequently or in private locations, such as during “visits” or other interventions.
2. TRANSPARENCY: Through Increasing Publication and Quality of Government Information and Performance Data Publicizing laws, regulations and government activities is a foundational requirement of any society. Knowing the law improves policy discussions and empowers citizens and supporting groups to identify and address misconduct or abuse of government power. This results in broader inclusion in policy making and improved dialogue. Further, proactive publication of legal requirements, clear compliance information, and processes reduces compliance costs for citizens and administrative costs of government. Finally, publication of government performance data, including application volume, processing times, compliance results, and other data help inform the public on government operations, build trust in institutions, tailor expectations, and provide relevant similar-body comparison data for continuous improvement.
3. ACCOUNTABILITY: Through Increasing Use and Publication of Government Operational Metrics, Supporting Internal and External Checks and Balances When the goals of an institution are unclear and the performance of agents left to subjective judgement, confusion, inefficiency, corruption and abuse of position can occur. Also, the activities, efficiency and effectiveness of a body are left to guess-work. Through increasing use of performance metrics, and the harmonization of metrics across institutions and vertically within Government, a common understanding of goals and actions as well as a clear and transparent mechanism for evaluation are developed. Use of operational data, much of which is already in existing systems, also helps managers and government political leaders evaluate and manage government operations with a shared understanding of outcomes. Many of the points above feed into increasing accountability. When there is more transparency, objective criteria, reduced contacts, and opportunities for engagement, systems to hold government accountable for actions are stronger. This can also include use of increasing administrative oversight and review of determinations by other government bodies.
4. REPRESENTATIVE GOVERNANCE: Through Effective Public Engagement, Intragovernmental Coordination, Utilizing Feedback Mechanisms A representative government is responsive to citizens, but also guided by underlying market based approaches so as not to be captured by individual interests and agendas. When government is closed to the public, policy outcomes and misconduct are hidden. Without effective intragovernmental coordination and utilizing feedback tools, initiatives are costly, ad hoc and government bodies risk working at contradictory purposes. Through promoting and incorporating citizen participation in metrics feedback, policy dialogue and coordination bodies, and simplified feedback mechanisms, continuous improvement and responsiveness becomes part of the citizen-government relationship. This also includes incorporation of 3rd party assessments and other tools.
5. SERVICE ORIENTED GOVERNANCE: Through Government Operations that Provide Value to Citizens in the Most Efficient and Effective Manner All government activities should be evaluated and executed with a clear understanding that government serves citizens. Contacts should be conducted with consideration of customer 3 services principles, of minimal interference, and focused on meeting the needs of the individual citizen in all interactions. Customer services metrics and other tools should be used to continually evaluate performance, and all decisions, activities and operations be considered from the perspective and reality of the citizen encountering the process.