IDFC Institute's Resident Senior Fellow, Vivek Dehejia recently spoke in Sri Lanka at the Institute of Policy Studies about improving Ease of Doing Business. As this Daily FT article, titled 'Good economic policy is good politics: Top Indian economist', explained:
"A top Indian economist last week emphasised that good economic policy is good politics and urged Sri Lanka to look beyond the World Bank-IFC index to improve the country’s ease of doing business... Dr. Dehejia recounted how India’s relatively small growth in manufacturing, which makes up about a fifth of the fastest growing economy in the world, had promoted the Indian Government to see ways to increase labour incentive investment. 'India’s growth has not created a lot of jobs but on average a million new people enter India’s job market every month and there is an increasing need to establish new ways of creating employment. One of the key elements of this is to encourage States to become competitive, especially by establishing progressive policies on labour, land and infrastructure,' he said. In contrast Sri Lanka’s model is markedly different. The Central Government makes all crucial economic decisions and provinces are not held accountable for attracting investment... A survey on how different provinces perform on encouraging business would provide the Government with crucial information on how to reform the system to make it more company friendly."