BY GETACHEW MINAS
There is a consensus that ensuring good governance for the private sector is a key for the economic development of a country. Studies identified corruption and lack of transparency and accountability in public institutions as impeding factors.
Also the absence of responsiveness of public institutions to the demands of the private sector continues to have negative impacts on the operation and development of the private sector in Ethiopia.
Socio-economic reports clearly indicate that lack of good governance is one of the most outstanding challenges to growth. It continues to significantly constrain the potential contribution of the private sector to the national economy.
Though good governance includes broader issues related to the operations of government and the private sector, Mesenbet and Samuel identify crucial factors that impede it. Studies on governance in public sector and its implications on private sector development in Ethiopia identified issues and “indicators” of good governance that have particular relevance to private sector development in Ethiopia.
These indicators are: accountability, effectiveness and efficiency, regulatory quality, rule of law, control of corruption, participation, identifying and examining problems, political commitment, and private sector participation. Based on these indicators the level of good governance may be ascertained objectively. Accountability implies legal responsibility for corrupt practices.
Those bureaucrats who are corrupt beyond reasonable doubt have to be charged in the court of law for failing to discharge their responsibility with honor.
However, all civil servants are “not” assumed to be engaged in unfair practice, failing the citizens whom they are supposed to serve with honesty. Some of them discharge their duty with great honor and retire with mental peace for serving their country honestly and in accordance with the law of the country.
A government is effective and efficient only in guaranteeing public services to the citizens. This is reflected in the quality of public service provision that is client satisfaction. Any inkling of dissatisfaction with the service delivery at any level is good indicator of failure.
Clients, as tax payers, are the sovereign of the bureaucracy, which should serve them as efficiently and effectively as possible with the shortest possible of time.
Normally, incompetent civil servants demand directly or indirectly bribes from clients. If the clients are businessmen, they happily transfer it to the consumer through increased prices of goods and services.
Red tape: This refers to regulations or conformity to formal rules or standards which are claimed to be excessive, rigid or redundant bureaucracy. It hinders or prevents actions or decision-making processes. It is usually applied to governments, corporations, and other large organizations.
Things often described as “red tape” include filling out paperwork, obtaining licenses, having “multiple” people or committees approve a decision and various low-level rules that make conducting one’s affairs slower, more difficult, or both.
Red tape has been found to hamper organizational performance and employee wellbeing by a recent analysis of research work. Ethiopia has been condemned to suffer from excessive bureaucratic regulations, organizations and decision making processes in the past.
The regulatory quality is measured in terms of appropriateness, fairness of laws and existing gaps in the business regulatory framework. Studies show that the regulatory quality in Ethiopia is good by all standards, except that it is “not” fully practiced.
It is appropriate at theoretical level, but fails to meet practical tests. The existing laws are fair, just and impartial, but they lack highly qualified and sincerely dedicated personnel to implement them.
The existing gaps in the business regulatory framework are testimony to the fair treatment of business people by the bureaucrats. A survey of the opinion of the business community on this issue is of the essence whether one can conduct business as usual, freely and fairly without corruption.
The effectiveness of government in developing and “implementing” policies, laws, regulations and directives is a test of its commitment to serve the people. Policies are devised to remove obstacles to economic and social development of the country in order to raise the living standard of the people. A good policy is one that is “easy” to implement and meet its objectives.
Ethiopia had in the past designed plenty of policies, programs and projects though their intended beneficiaries or the poor people are still suffering from poverty.
They are deprived of basic social and economic services, such as food, shelter, clothing, education and health. Some reasons that contribute to and exacerbate these problems are lack of peace and unemployment in the country.
Red tape blurs the rule of law. It “reduces” the effectiveness of the justice system. Corruption thrives when justice becomes blind, unintentionally harming the aggrieved citizens. It is believed that “both” the aggressor and the injured should be treated equally before the court of law.
This standard is a measure of the depth of corruption in a country. In Ethiopia, several measures have been designed to eliminate corruption, but the executor of this principle himself is exposed, by virtue of his post, to bribery, fraud and venality.
To clear all this confusion, it is important to involve the private sector, which is the victim of corruption, to have a role in the design and implementation of government policy and regulatory framework. The overall participation of the private sector in government especially on issues that affects its interests is very crucial in minimizing corruption.
Difficulty of ensuring good governance: Measures that should be taken to ensure good governance could be identified by researchers. These include the establishing of decision making procedures that ensure objectivity, accountability and professionalism in the civil service operations. Clear and “objective” procedures reveal to the stakeholders the officials and subordinates responsible for certain operations.
These stakeholders should be entitled to identify details of the operations, including individuals responsible for certain sequential activities. Professionals should be able to display their creativity in the service of stakeholders. All civil servants are not expected to be professionals, but they have certain duties they perform in serving clients of the institutions they are employed in.
Another factor that ensures good governance is the creation of business friendly system in the government service provision. Mesenbet and Samuel pointed out that clients of institutions should be treated with great efficiency and respect as they are the taxpayers who finance these establishments.
To enhance efficiency of service delivery, automation of services is advantageous.
It enables decentralization of service provision. This provides tech conducting high level inspection on transgression of rules and regulations. The tech should be accompanied with commensurate incentives and penalties for technical staff in the service delivery structure.
Studies indicate that various forms of rent seeking behaviors continue to significantly constrain business competitiveness and private sector development. Research findings indicate that key issues of good governance should be addressed in order to ensure a robust private sector development in Ethiopia.
One issue is lack of a strong and high-level political “commitment” to alleviate the problem of good governance. This made it difficult to root out the problem despite repeated attempts by the government. This is particularly significant given the “direct correlation” of strong political commitments and improved performance.
Working to alleviate the problem of good governance at a “micro” level cannot achieve the desired result. It will only lead to a vicious circle which cannot solve the root cause of the problem. Prosecuting and cracking down on corrupt “officials” may have a deterrent effect on corruption in the country.
This may be enhanced by increased participation of the private sector. Despite the various attempts to involve the private sector in the process of designing law and policy that affects the interests of the private sector, there has not been adequate consultation as desired.
The general state of participation of the private sector in the design and implementation of government law and policy is generally poor.
It is reported that often consultation between the government and the private sector takes place at the “final stages” of the process.
This makes it very difficult to have a meaningful participation of the private sector. Given its significant importance to economic development, there should be meaningful participation of the private sector at all stages of the process of developing a policy.
Also, the involvement of the private sector in the design and implementation of laws, rules and regulation that affects it is critical. This helps in tackling corruption and various forms of rent seeking behaviors.
The Ethiopian Herald January 29/2021
