Argüden Governance Academy Foundation

Governments, Businesses, and Civil Society: Transparency Builds Trust

After Brisbane, Helsinki, and Antalya

The need for consistent and effective regulatory regimes has never been more obvious. In 2014, in response to the G20 commitment to put emphasis on implementing structural reforms, the B20 made concrete recommendations to facilitate reforms and their implementation. The Business and Industry Advisory Committee to the OECD (BIAC) furthermore released an Economic Policy Survey which provided the perspectives of national business organizations as to which measures are needed, in which fields, and how they can be achieved. In fact, the vast majority of respondents called for product market reforms, including a meaningful reduction of regulatory burden.

Nonetheless, the pace of reforms for growth across both product and labour markets in OECD countries has slowed and has been largely piecemeal over the past years. According to the BIAC Survey, only 4 percent of the OECD’s 2013 Going for Growth country-specific recommendations were fully implemented a year later, and 35 percent not implemented at all. Consequently in 2015, the Turkish presidency of the G20 put inclusiveness, investments, and implementation (3Is) as the top priorities.

Businesses need stable, transparent, predictable, and efficient policy environments and legal frameworks, as well as consistent implementation.  The elimination of unnecessary legislative, regulatory, and administrative barriers represents the right and most cost-efficient economic stimulus available to governments today. With the launch of the first OECD Regulatory Policy Outlook at the OECD Ministerial meeting on Public Governance, which took place in Helsinki on 28 October, the OECD is fulfilling an important mission on good regulatory practice, further promoting the full benefits of good regulatory practices. The indicators of good regulatory practices developed by the OECD constitute a fundamental basis for trust and an indispensable condition for businesses to operate and increase investment. Hence, consistent implementation of policies and regulations is critical for improving investments and growth.

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