Dialogue between the Government and stakeholders a crucial factor for improving Business Environment

Transcription

1 Dialogue between the Government and stakeholders a crucial factor for improving Business Environment Anrijs Matīss Deputy State Secretary Ministry of Economics of the Republic of Latvia Brivibas street 55, Rīga LV Tel: Fax pasts@em.gov.lv

2 CONTENT General information Structure of Dialogue between Government and Stakeholders Main Stakeholders, their contribution into policy-making concerning entrepreneurship sector System of Political Documents dealing with entrepreneurial issues Summary

3 COMPETITIVE ADVANTAGES Dynamic economic growth Macroeconomic stability Rapid and constant rise of investments (total amount of investments in years was equal almost to 25% of GDP) Low external debt (975 millions Ls 13,2% of GDP) Stable currency (pegged to euro since ) Skilled labour force

4 MACROECONOMIC DATA GDP growth (percentage against the preceding year) 10 2,2 3,8 8,3 4,7 3,3 6,9 8,0 6,4 7,5 8,5 0-0, ,6-11, ,

5 MACROECONOMIC DATA High GDP growth: between by 6% in the average per year (1995 = 100%) Latvia: average growth 6.4% Latvia EU new members EU-15 Source: Eurostat: : Structural Indicators

6 Statistics on Enterprises in Latvia Dynamics of registration of companies % 24.78%

7 Statistics on Enterprises in Latvia economically active enterprises in Latvia in 2004 Micro = 74,9% SMEs (99%) Small = 20,9% Medium = 4,2%

8 Ease of doing business Indicator Latvia Europe and Central Asia Region Average OECD Average Starting a Business Number of procedures Time (days) Protecting Investors Disclosure Index (min 0, max 7) Enforcing Contracts Number of procedures Time (days) Closing a Business Time of insolvency (years)

9 Structure of Dialogue between Government and Stakeholders Policy documents Legislation Single Strategy of the National Economy Laws Entrepreneurship policy documents Governmental orders Action Plan for Increase of Competitiveness Action Plan for Improvement of Business Environment proposals initiatives reconciliation impact assessment The National Economy Council Latvian Employers Confederation The Foreign Investors Council in Latvia Cooperation Council of the SMEs and Craft of Latvia

10 MAIN STAKEHOLDERS The National Economy Council Latvian Employers Confederation The Foreign Investors Council in Latvia Cooperation Council of the Small and Medium- Sized Enterprises and Craft of Latvia

11 The National Economy Council Advisory institution for Ministry of Economics Founded by Latvian Chamber of commerce and industry, Latvian Employers Confederation, Industry Confederation, Free Trade Union Confederation of Latvia and The Union of Local and Regional Governments of Latvia Consists of 23 experts entrepreneurs, governmental institutions and representatives from other organizations Discusses issues, prepares proposals, accepts permissive decisions Organizes dialog among enterprises, Ministry of Economics, Single Economic Strategy and Development Council and other governmental institutions and nongovernmental organizations

12 Latvian Employers Confederation The biggest organization representing employers interests in the Government, the Parliament and in negotiations with trade unions Enhances effectiveness of entrepreneurship and employment development Enhances the growth of Latvian employers, the development of enterprise culture and creation of favourable social conditions

13 The Foreign Investors Council in Latvia (FICIL) Forum uniting the largest companies from various countries and industries that have made significant investments in Latvia, as well as the American, British, Danish and Swedish Chambers of Commerce in Latvia, and the German Latvian Enterprise Association Improves the business environment in Latvia by an active dialogue between entrepreneurs and the government Organizes regular High Council Meetings between the highest Latvian government officials and the owners and chief executives of the members parent companies

14 Cooperation Council of the Small and Medium- Sized Enterprises and Craft of Latvia Consists of 29 Small and Medium-Sized Entrepreneurs representative legal entities (associations, organizations) delegated representatives Examines, makes suggestions and follows after implementation of issues directly influencing and being important for development of favourable and responsible SMEs entrepreneurship policy Organizes dialog among enterprises, Ministry of Economics, other governmental institutions, nongovernmental and international organizations which influence operation and development of SMEs

15 Common Strategy The Single Strategy of the National Economy The main goal of Latvia s long-term development to reach the level of the EU average GDP in years. Single Strategy: Ensures stable, long-term growth Provides unified policy planning Sets economic goals: long-term (up to 2030) medium-term (up to 2010) short-term (for 1-3 years) Basic directions of the economic policy defined by the Single Strategy are: Macro-economic stability Favourable business environment Competitive structure of sectors Lessening of socio-economic disproportion and risks

16 ENTREPRENEURSHIP POLICY DOCUMENTS Basic Guidelines of the SME Development Policy in Latvia Programme for Development of Small and Medium-Sized Enterprises ( ) National Innovation Programme ( ) Industrial Development Guidelines ( ) Latvian Export Promotion Programme ( ) Action Plan for Increase of Competitiveness Action Plan for Improvement of Business Environment

17 Programme for Development of Small and Medium-Sized Enterprises ( ) Goals: Ensure the SME development policy according to the best practice of EU countries: 1. Increase entrepreneurship activity, specially, in territories with low social-economical development index 2. Strengthen the SME competitiveness and promote added value growth 3. Create favourable entrepreneurship environment, especially, for SMEs

18 National Innovation Programme ( ) Goals: 1. Creation of a harmonized and coordinated innovationfriendly environment 2. Creation of a sustainable base for establishment of innovative enterprise and their growth promotion 3. Promotion of a unique and competitive economic structure

19 Industrial Development Guidelines ( ) Goals: 1. Provision with human resources and creation of the knowledge base 2. Development of science-intensive technologies and innovation 3. Perfection of business environment and the basic infrastructure of industry 4. Quality assurance 5. Sustainable development

20 Latvian Export Promotion Programme ( ) Goals: 1. Promote international competitiveness of Latvian enterprises 2. Facilitate new market acquiring 3. Consolidate in existing markets 4. Trade balance gradual equilibration

21 Action Plan for Improvement of Business Environment The Action Plan for Improvement of the Business Environment is implemented in Latvia since Every year it is newly elaborated on the basis of suggestions entrepreneurs have submitted. The Action Plan has assisted in reaching a substantial progress in business environment to decrease administrative barriers, to simplify tax administration, streamline administrative procedures of customs clearance and border crossing, to provide easier access to information and better protection of interests of entrepreneurs. From year 1999 till now almost 170 measures have been identified and successfully implemented in the framework of the Action Plan. At the moment approximately 90% of initially identified measures have been accomplished. It undeniably indicates to high level of effectiveness of the Action Plan. The economic reform model in Latvia based on the Action Plan has been recognised by the European Commission as good reform practise granting it Candidate Country Best (CC Best) status in 2001.

22 Action Plan for Improvement of Business Environment Concrete Spheres of Action Tax policy and administration 38 measures or 22% Border-crossing and custom administration 30 measures or 18% Improvement of regulatory environment of entrepreneurship 29 measures or 17% Improvement of support measures of entrepreneurship 7 measures or 4% Financial questions 2 measures or 1% Fight against corruption 6 measures or 3% Education 10 measures or 6% Public procurement procedures 1 measure or 1% Other 47 measures or 28%

23 SUMMARY 1. Involvement of Stakeholders into policy-making process substantial criteria for elaborating effective entrepreneurship policy 2. Necessity to avoid from situation when Dialogue between the Government and Stakeholders is just formal procedure 3. Thereby mechanisms providing mutual cooperation and exchange of views are important

24 THANK YOU FOR ATTENTION! Anrijs Matīss Deputy State Secretary Ministry of Economics of the Republic of Latvia Brivibas street 55, Rīga LV Tel: Fax