CURTIS S CHIN
When it comes to doing business, there are few places worse, it seems, than the likes of Myanmar, also known as Burma. That's at least according to the World Bank, which has Myanmar ranked as worst in Asia—at 182nd of 189 rated economies—on the ease of doing business. That's even worse than 105th-ranked Nepal.
Rounding out the "Top 5" for worst in Asia in The World Bank 2014 Doing Business report—the latest annual assessment of the ease of doing business in economies around the world—are Timor-Leste (179th), Afghanistan (164th), Laos (159th) and the Federated States of Micronesia (156th).
But Nepal should not take heart in being "better" than the likes of Myanmar or Timor-Leste. Nor should the nation see investment from a relatively more risk-tolerant India or China, as an alternative to taking actions to improve the enabling environment for business. Indeed, the much troubled Melamchi Water Supply Project supported by the Asian Development Bank (ADB)—and the recent replacement of the Chinese contractor on it—underscores yet again the challenges that even Nepal's development partners have in getting things done in the country.
As information is updated and Myanmar moves to draft, pass and then enforce new legislation as part of efforts to strengthen rule of law, that nation's ease-of-business ranking will surely improve, and may one day move past Nepal as the latest Southeast Asian tiger economy. Already, major western multinationals are rushing in, joining the ranks of Chinese, Thai and other Asian businesses and entrepreneurs who have long been active in that country despite western sanctions.
Clearly, investing in Myanmar or any of the places low on the World Bank's ease of doing business list is not for the faint-hearted.
But whether Myanmar or any of the Top 5 ranked economies for ease of doing business—Singapore, Hong Kong, New Zealand, the United States and Denmark—there are lessons for Nepal to be taken from each on how best to grow economies, create jobs and reduce poverty.
For nearly four years, I served as US Ambassador to and board member of the Asian Development Bank and had the opportunity to travel to Nepal on more than one occasion. During my time in the post, several points became clear, particularly as I saw many a troubled project or others that never got off the ground, whether in Melamchi Valley or West Seti.
That included: while development banks and aid agencies can provide incremental good, it is good governance and a strong rule of law that are critical to businesses and essential to job creation and long-term growth.
More than ever, given dwindling government budgets and reduced foreign assistance dollars, the private sector—whether brave entrepreneurs, small- and medium-sized enterprises or well-established and deep-pocketed corporations—can play a critical role in fighting poverty.
Business investments that can make money and simultaneously empower communities at the grassroots level are also key to economic growth and the reduction of poverty-related violence.
he private sector must be a critical partner if we are to sustainably lift people out of poverty. Indeed, whether in Asia or the US, it will be small businesses and entrepreneurs—regardless of nationality—who will drive long-term change and job creation. It is not sustainable to have most employment funded by aid money and government largesse.
With well-thought-through partnerships, public-private efforts can be done in a way that is good for business and more sustainable than aid packages subject to donor fatigue and annual budget cuts.
Yet, too often, inept bureaucracy, poor or poorly enforced regulation, interventions by government and endemic corruption get in the way. These challenges of the "little bric" may well be a longer-term constraint to growth and one of the biggest impediments to building better lives for people everywhere, including in Nepal and others of the world's smallest or land-locked states.
Fundamental changes in the nation's education system as well as in attitudes toward business may be required. The development community must also look into its own failings. All are difficult challenges, but they must happen if Nepal is to fully succeed.
The author has served as US Ambassador to the Asian Development Bank under Presidents Barack Obama and George W Bush
@CurtisSChin
http://www.information.myanmaronlinecentre.com/keys-to-growth/
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