SESSION III-A: Sub-National Competitiveness – Measuring Performance

Regional Conference in South East Europe

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SESSION III-A: Sub-National Competitiveness – Measuring Performance

The Doing Business report has assumed an important role as a tool for measuring and communicating business environment reform. The 2008 Doing Business in South East Europe evaluated how 22 localities in the region perform in four select administrative areas which are part of starting and operating a business. The indicators measure time and/or cost the investors need to start a business, transfer property, deal with construction licenses, and enforce contracts in the select localities.
The report gives an incentive to municipalities to improve their administrative procedures by identifying issues and promoting competition as well as peer-to-peer learning among localities. It also serves as a diagnostic tool which can put reforms on the political agenda and link the national and local reform efforts. The high media appeal of the report reinforces its role as a reform instrument.
Representatives of Kruševac, Serbia, Osijek, Croatia and Shkoder, Albania talked about positive experiences in implementing projects aimed at reducing administrative burdens and thereby reducing cost of doing business, but also emphasized the need for better coordination with the national government in areas where local government is influenced by national policies.
Marialissa Motta offered recommendations for priority areas the economies in South East Europe should focus on in order to improve their business environments. They include national-level legislation related to investor protection, access to credit and labor markets, and legal and administrative reforms in business registration, construction licensing, contract enforcement and property registration on both the national and the local level.


Sub-national Doing Business Study: Findings and Recommendations
Marialisa Motta
Manager, Doing Business Reform Unit, World Bank Group

Discussants:
Dragana Stepanović, Head, Local Economic Development Department, City of Kruševac, Serbia
Ridvan Troshani, Deputy Mayor, Shkodra Municipality, Albania
Ivan Vrdoljak, Deputy Mayor, City of Osijek, Croatia

Moderator
Philip Condon
Head, IFC Advisory Services, Southern Europe