Download the file - United Nations Rule of Law

step toward this kind of structure. They do not,however, fully protect transactions from distortionswithin the national judicial systems, andthey have not yet generated the transparencythey are designed to provide as neither the decisionsnor the filings have yet been systematicallycomputerized. The laws also do not address whocontrols the military. They do, however, create avocabulary and a virtual forum for discussion oflegal predictability and, generally, of the rule oflaw; in this way the laws have facilitated discussionsamong actors in the formal economy,including business people as well as lawyers,academics and judges. The same vocabularyand forum allow social norms underlying formallaws to influence the informal economy, too, forexample when business people with one foot ineach economy are vectors for transfer of information.The appearance in the informal economy ofrelationships and documents mimicking those inthe formal economy suggests the power of suchtransfers from the formal economy.Innovations which DemonstrateBusiness Rights and LegalEmpowermentWhile business regulations vary from country tocountry, and from municipality to municipality,they usually include most of the features bulletedbelow. Responses to the obligations thatfollow from such regulations are appropriate tothe circumstances of the informal entrepreneursand may be termed ‘empowering’. Most countrieswould expect the following from a formally recognisedbusiness:• Incorporation of the business as a legalentity.• Inclusion in a business registry at the national,regional, or municipal level.• Registration with the national tax authority.• Registration of employees in pension/health/other national social security schemes.• Acquisition of building permits, at the municipallevel.• Acquisition of operating and other licenses,at the municipal level.• Approval of health officials upon inspection(especially for sales of food), at the nationaland/or municipal levels.• Safety approval from local fire officials.Starting a BusinessSome of the best practices 92 adopted across theworld to simplify business start-up formalitiesand registration are as follows:1. Diagnose the problem:Australia: A taskforce was created to measure theadministrative burden, resulting in the establishmentof a Business License Information Systems(BLIS) as a one-stop-shop service designed to deliverpertinent governmental information to smallbusinesses regarding licenses, application formsand contact details. The results of BLIS are veryimpressive. They have reduced the administrativeburden for business by reducing the informationsearch cost incurred in trying to establish theirregulatory compliance obligations. Furthermore,15,000 people use this system every year; and inthe nine months between September 1999 andMay 1999, BLIS generated more than 13,500fact sheets and reports for new and existing businessvia the Internet alone.Mexico: a special deregulation unit was set upunder the Ministry of Industry and Commerce toreview all existing business formalities, includingstart-up requirements. The comprehensiveness ofthe approach led to a more fundamental reformthan if the government had sought fast results.2. Provide adequate training and resources to244