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Download the file - United Nations Rule of Law

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<strong>of</strong> <strong>the</strong> provision <strong>of</strong> adequate infrastructure, healthservices and education, market forces alone canaccomplish little. Existence <strong>of</strong> markets is a prerequisitefor survival and sustainability <strong>of</strong> businessesand entrepreneurs. While <strong>the</strong> freedom toenter a market 22 is a vital constituent <strong>of</strong> development,<strong>the</strong> level <strong>of</strong> access and representation inthose markets determines <strong>the</strong> formal or informalcharacter <strong>of</strong> an enterprise and what it can accomplish.Again, <strong>the</strong> markets cannot functionin <strong>the</strong> absence <strong>of</strong> effective and equitable publicpolicy, rule <strong>of</strong> law, regulation, social support andpolitical freedoms. In principle, <strong>the</strong> markets, inaddition to creating economic efficiency, can alsoencourage greater economic equity. This would,however, depend on <strong>the</strong> structure <strong>of</strong> markets,<strong>the</strong>ir governance and associated legal rights, and<strong>the</strong> nature and extent <strong>of</strong> <strong>the</strong>ir inclusiveness asreflected through active business enterprises.Private institutions are willing to develop innovativepartnership models to provide greater accessto goods and services by <strong>the</strong> poor. But <strong>the</strong>y requireassistance through appropriate policies andstreng<strong>the</strong>ned capacities to remove barriers to <strong>the</strong>market creation and provide greater market accessto <strong>the</strong> entrepreneurs in <strong>the</strong> informal economies.At <strong>the</strong> same time, governments shouldnot hesitate to step in, possibly in <strong>the</strong> form <strong>of</strong>public-private partnerships, that would encourageprivate institutions to meet <strong>the</strong> demands <strong>of</strong><strong>the</strong> poor and enhance market access in rural andunderserved areas 23 .Economic success requires getting <strong>the</strong> balanceright between <strong>the</strong> government and <strong>the</strong> market,in terms <strong>of</strong> who should provide <strong>the</strong> goods andservices and how <strong>the</strong>y should be provided. Anysuccessful development strategy demands <strong>the</strong>existence <strong>of</strong> equitable access to markets by alland requires involvement <strong>of</strong> government, marketsand <strong>the</strong> private sector, and <strong>the</strong> civil society.Voice, Representation and EffectiveEconomic GovernanceIt is essential to build upon and refine <strong>the</strong> aboveissues in <strong>the</strong> context <strong>of</strong> <strong>the</strong> work <strong>of</strong> <strong>the</strong> Commissionon Legal Empowerment <strong>of</strong> <strong>the</strong> Poor (CLEP)and reform <strong>the</strong> development agenda by broadening<strong>the</strong> discussion <strong>of</strong> business rights and <strong>the</strong> informaleconomy in a comprehensive manner thatgoes beyond formalisation per se. It will emphasisethat <strong>the</strong> Legal Empowerment <strong>of</strong> <strong>the</strong> Poor tocreate and operate <strong>the</strong>ir enterprises and generatesustainable livelihoods sustainably requires <strong>the</strong>mto have a voice in all aspects <strong>of</strong> policymaking,implementation and enforcement, and to have<strong>the</strong> ability to work with governments and o<strong>the</strong>rstakeholders to create new rights, capacities, andopportunities.The adverse effects <strong>of</strong> unequal opportunities<strong>of</strong> representation and political voice andpower for <strong>the</strong> poorer people on human developmentare particularly harmful because economic,political, and social inequalities tend to reproduce<strong>the</strong>mselves over time and across generations,setting into motion a poverty trap that doesnot allow for improvements in <strong>the</strong> quality <strong>of</strong> <strong>the</strong>irlives.Business rights should result in <strong>the</strong> creation <strong>of</strong>an efficient and inclusive private sector with asound domestic macro environment, having tradepolicies, institutional foundations and adequatecapacity for maximising benefits from <strong>the</strong> macroglobal environment and promoting distributionalequity.There is evidence, we believe, to argue <strong>the</strong> casefor an effective and enabling environment, for aregulatory regime and for commercial law, as wellas good economic governance that would allowbusiness to operate with equitable economicrights and guarantee greater accountability in206

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