What it is
Confronted with a lacklustre global recovery from the 2008-09 financial and economic crises, in which the world economy is now on a path to lower potential growth in the long-term, the challenge facing policymakers is to unlock greater growth that is both sustainable and inclusive. In order to meet this objective, BIAC calls for structural reforms that facilitate the ability of businesses to invest, trade, innovate and hire.
The 2014 BIAC Economic Policy Survey provides business views from 23 countries around the world on their top priorities for reform in their respective countries. The survey is an effort to spur policy actions to restore growth and boost global investment and trade flows, which still are below their pre-crisis trends.
Why it matters
While business priorities vary across countries, the majority of respondents called for reforming product market regulation, specifically to reduce regulatory burdens through improved transparency, reduced state intervention and streamlining of licensing and permit systems. Other reform priorities include increasing public sector efficiency, improving the efficiency of general taxation, strengthening human capital, and stepping-up labour utilisation.
How it impacts
The survey reveals perceived shortcomings in governments’ implementation of previous OECD reform priorities. It finds significant deficiencies in regulatory policy consultations and regulatory impact assessments in many countries, and suggests ways forward to boost implementation. Business respondents also emphasized international regulatory consistency as a vital element for company success in international markets.
The survey offers valuable input to two major OECD publications planned for 2015 – the flagship Going for Growth report and the inaugural Regulatory Policy Outlook.