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Law and Regulation

Collecting primary data in Afghanistan: Daunting but doable

Tommaso Rooms's picture

Afghanistan is not exactly an easy place to undertake a rigorous study on the ease of doing business. And collecting primary data for a micro-based study in Kabul and several Afghan provinces can be a daunting task. Just how daunting is underscored by the fact that the country conducted its most recent census almost 40 years ago, in 1979. Vast tracts of the country remain unsafe and many of its provinces are inaccessible.
 
Despite the security challenges, our experience from the recently launched Subnational Doing Business in Afghanistan report shows that the barriers to collecting micro data are not insurmountable. The data and related findings can help guide business reforms toward the kind of smart regulations that are imperative for attracting private sector investment to the capital city and beyond. A regulatory environment that enables private enterprise, especially small and medium firms, to function and be creative boosts job creation and is, therefore, good for the economy.

The report, the first of its kind in Afghanistan, benchmarks Kabul and the provinces of Balkh, Herat, Kandahar and Nangarhar across four Doing Business indicators: Starting a Business, Dealing with Construction Permits, Getting Electricity and Registering Property.

The key takeways?
  • Kabul leads in two of the areas measured, Starting a Business and Getting Electricity. Kandahar ranks first in Dealing with Construction Permits and Registering Property, while Balkh comes in second in all four areas measured by the report.
     
  • Regulatory quality and efficiency vary considerably among the five locations. Rolling out reforms already implemented in Kabul across all of Afghanistan would improve the business environment for entrepreneurs in the provinces.
     
  • By adopting all the good practices, Afghanistan could move up 11 places in the global Doing Business ranking, to 172.

Why law enforcement is essential to stopping illegal wildlife trade

Simon Robertson's picture

© Steve Slater, Flickr

Have you ever seen a rhino walking into the African sunset? It’s an unbelievable sight. Now let me ask you this- have you ever seen a carcass of a dead adult rhino with its horn sawn off and the body lying on the dusty ground? It is an unforgettable and tragic sight.

The world’s wildlife is under a grave threat of either being slaughtered or captured alive. The wildlife commodities -- whether an ivory tusk, a rhino horn, live birds or reptiles -- are illegally moved through well-organized transnational supply chains and sold in international markets where consumers are willing to pay a high price.

How much bang for how many bucks?

Jim Brumby's picture
Rubens Donizeti Valeriano - Panamericano de MTB XCO 2014 - Barbacena - MG - Brasil. Photo: Daniela Luna
Evidence-based rule-making for private sector development and service delivery

ANNOUNCEMENT OF THE GLOBAL RIA AWARD 2017


Any visitor to Armenia can testify that the country has delicious food. But diners need to be assured that the khorovats, dolma, or basturma on their plates will not make them sick. How can this be assured?

Some 65 percent of the 320,000 inhabitants of the Brazilian city of Rio Branco use bicycles as their primary mode of transportation, and the popularity of biking is increasing across the country. But Brazil’s 40,000 annual traffic related fatalities makes protective gear a necessity. What is appropriate protection?

What happens if you don’t pay your bill? Lessons from Central and Eastern Europe

Georgia Harley's picture


We all have regular bills to pay for the ubiquitous services we consume – whether they be for utilities (water, heating, electricity etc.), credit cards, memberships, or car payments.  But, not everyone pays.  

So why don’t people pay?  Why are some countries better at this than others?  And what can be done to improve systems for debt collection?

Peer Pressure: Tax competition and developing economies

Michael Keen's picture
A race to the bottom. Graphic by Nicholas Nam/World Bank

Economists tend to agree on the importance of competition for a sound market economy. So what’s the problem when it comes to governments competing to attract investors through the tax treatment they provide? The trouble is that by competing with one another and eroding each other’s revenues, countries end up having to rely on other—typically more distortive—sources of financing or reduce much-needed public spending, or both.

All this has serious implications for developing countries because they are especially reliant on the corporate income tax for revenues. The risk that tax competition will pressure them into tax policies that endanger this key revenue source is therefore particularly worrisome.

Tunisia: Improving local governments’ performance through annual performance reviews

Ede Ijjasz-Vasquez's picture
The story of Krib, the top-performing local government in Tunisia
 
Tunisia’s transformation in the wake of the Arab Spring has been remarkable, and can be seen through a shift in the role and performance of its cities.
 
[Download report: Tunisia Urbanization Review - Reclaiming the Glory of Carthage]
 
Prior to the Jasmine Revolution of 2011, the government of Tunisia was extremely centralized, and citizens had limited ways to hold it to account.  The revolution created a force to change the concentration of power and the ability of Tunisians to hold the government to account. Specifically, the government created a decentralization program supported by the World Bank’s Urban Development and Local Governance Program for Results (UDLGP), along with support programs from other partners including the European Union, Swiss Cooperation.

One dramatic shift the program has introduced is the development and execution of an annual local government performance assessment. Every year, Tunisian cities’ local governments each get assessed by a semi-autonomous agency on a range of areas, which are critical for their ability to effectively govern as well as to deliver services and infrastructure. In the inaugural assessment (2016), the local government of Krib, a town in one of the most lagging interior governorates called Siliana, outperformed all others and achieved the highest assessment score.

To learn more about the program, watch a video with World Bank Senior Director Ede Ijjasz-Vasquez (@Ede_WBG). Check out Tunisia’s first-ever local government website to track the performance of Tunisia’s local governments over time (the results of the 2017 assessment which will be posted soon).
 
 

Encouraging investment policy and promotion reform in times of uncertainty

Amira Karim's picture

Foreign direct investment (FDI) is often considered by economists and policymakers as integral to economic growth – a cornerstone of modernization, income growth and employment.

Yet for many countries, FDI can be elusive, and chasing it can lead policymakers to frustration.

Even economies built by FDI – for example, Singapore – are on this continuous chase, aware that attracting and retaining FDI is not an easy task. They also know that the benefits of FDI do not accrue automatically and evenly across all countries, sectors and local communities.

But first, there must be a realization of the importance of FDI. Singapore – a country once called a “political, economic and geographic absurdity” by its first Prime Minister, Lee Kuan Yew – never doubted the centrality of FDI, promoting it from the outset of its independence. Singapore saw in FDI an opportunity to develop a substantial industrial base, to create new jobs for its then-poor and low-skilled workforce, and to generate crucial tax revenues for its nascent government to spend on education and infrastructure.

Two decades after that initial strategic acceptance of FDI, Singapore emerged as a newly industrialized economy.

It is little surprise, then, that Singapore’s experience was highlighted at a recent World Bank Group peer-to-peer learning event here in the city-state. Responding to strong demand from client countries, two teams from the Trade & Competitiveness Global Practice – the Investment Policy and Promotion (IPP) team and the Singapore Hub team – co-hosted the learning forum entitled "Promoting Investment Policy and Promotion Reform in Times of Uncertainty."

Supported by SPIRA – the Support Program on Investment Policy and Related Areas – the forum enabled some 80 government officials from East Asia, South Asia and Africa to share their experiences in economic and export diversification; to discuss the role of international trade and investment agreements as leverage toward domestic reforms; and to discuss how to translate investment policy and promotion strategies into measurable results. SPIRA, implemented by the IPP team, supports client countries across all regions in attracting, facilitating and retaining different types of FDI.

Vietnam studies Malaysia’s experience with facilitating state relationships

Jana Kunicova's picture
Photo: Sasin Tipchai/bigstock



Vietnam has a vision. By 2035, it aspires to become a prosperous, creative, equitable and democratic nation. Achieving this ambitious goal has set Vietnam on a path of transformation on multiple fronts – economic, social, and political.

At the core of this transformation is the re-orientation of the state’s role in economic management.  This requires adapting Vietnam’s economic governance so that the state becomes a skilled facilitator of three types of relationships: among government agencies, between the state and market, and between the state and citizens. 

Not too long ago, Malaysia walked in Vietnam’s shoes, implementing its own wide-ranging transformation. In 2009, Malaysia embarked on the National Transformation Program (NTP) that included focus on both government and economic transformations.  Malaysia had also adopted good practices that simplified regulations, which made it easier for firms to interact with the state.

Afghanistan’s energy sector leads the way for gender equality

World Bank Afghanistan's picture
 Rumi Consultancy/ World Bank
Afghanistan's power utility (DABS) has recently taken steps necessary to ensure that women are involved in all business operations within the organization. Photo: Rumi Consultancy/ World Bank


In Afghanistan, decades of violence, common discriminatory practices, and cultural barriers, including restrictions on mobility, have denied women job opportunities and left them severely underrepresented in all sectors of society.
 
Despite considerable achievements in the last decade, such as the national Constitution guaranteeing equal rights as well as increased enrollment in public schools and universities, achieving gender equality will require widespread social changes.
 
Yet, change is happening and Da Afghanistan Breshna Sherkat (DABS), Afghanistan’s national power utility, is showing the way.
 
With a workforce of about 7,000, the company employs only 218 women, most of whom at a junior support level. However, under the leadership of its new CEO, DABS management has committed to promoting gender equality.
 
The Planning and Capacity Support Project of the Afghanistan Reconstruction Trust Fund (ARTF), managed by the World Bank, is helping DABS deliver on that commitment. The project organized awareness sessions for DABS staff on gender-related issues and provided specialized training to female employees. DABS has committed to providing internships to female university graduates to ensure women can find job opportunities and fully participate in the energy sector.
 
Realizing that the majority of its female staff lacked the confidence to compete with men, DABS is facilitating access to new job opportunities for women employees and has taken steps to ensure that women are involved in all business operations within the organization.

Nepal: Modest beginnings, big rewards

Taneem Ahad's picture
In recent years, Nepal has made the headlines for the wrong reasons. In April 2015, it was shaken by a huge earthquake that claimed thousands of lives and caused country-wide destruction.  In previous decades, it suffered political violence and chronic instability.

Yet despite these difficulties, the country rebounded strongly with growth at 7.5 percent in Fiscal Year 2017 and was able to achieve significant progress in business through a series of seemingly modest yet important steps.

Over the course of four years, Nepal’s Ministry of Industry, the country's Office of the Company Registrar (OCR) and IFC’s Investment Climate Team implemented a series of reforms to encourage business registration online. In 2013, a new mandatory online registration service was launched. Help desks in the Kathmandu OCR office, extensive training for business owners, a media campaign, and an enabling legal directive eased the speed and efficiency of the registration process for businesses.

Within a short period of time, almost 100 percent of companies – as opposed to 10 percent during the initial phase of launch – were registered online. Registration became simpler, saving money for both businesses and the government. Online registration also addressed the challenges of the government's limited capacity and poor technology readiness through extensive training and peer-to-peer learning. The processes became more transparent with online file tracking.

In the year following the launch of the online registration system, Nepal’s ranking for "Starting a Business" in the World Bank Group’s 2014 Doing Business Report rose by 6 places. The number of days it took to start a business dropped by 45 percent and led to a 24-percent increase in the number of new companies registered annually.



In Nepal, an employee of the Trade and Export Promotion Centre works on the Nepal Trade Information Portal. The portal, financed under the Nepal-India Regional Trade and Transport Project, provides information that traders need to import and export goods, including information on permits, laws and taxes. Photo Credit: Peter Kapuscinski / The World Bank

These successes produced broader lessons for Nepal and others facing similar challenges. These include:
  • Make change compulsory, easy and durable. People adapt to new circumstances only if they feel compelled to do so, and only if they fel that the change is not going to disrupt their businesses.
  • Ensure coordination between government offices in supporting initiatives. There must be "buy-in" from all government agencies involved at all levels. ICT changes must be fully coordinated with business staff. 
  • Nurture trust and cooperation between the WBG and government teams.  Study and learn about previous experiences, communicate how the current project will be carried out, and keep talking to partners in government. 

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