economic society

8/14/2019 Economic Society

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Governance Issues in

Economic Society

how transparent rules are, how

reliable they are, and what results

they encourage make a lot of

difference to investment as well as

other related indicators of economicDevelopment


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Economic Society

Economic society refers to

state-market relations.

This arena is constituted bythe rules that apply to these

relations.


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It is different from civil society in that

economic society is made up of actors

engaged in the pursuit of monetary

gain.

Thus, a private corporation or a small,one-person business is part of this

arena.

Any organization that speaks on behalf

of businesspersons, e.g. a Chamber of

Commerce, carries out its activities incivil societ .


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Economic Functions by the State

Formulating economic policyRegulating the economy

Providing economicinfrastructure and services

Providing public goodsRevenue generationDealing with other market

failures


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The rules that apply to

economic society are oftenreferred to as the economic

regime of a country.

Economic Regime


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Factors shaping

Economic RegimeLiberalization (economic and

financial markets)Political democratization

Globalization


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Specific Issues relevant to

Economic Society andGovernance

(1)information sharing

(2)property rights

(3)competition, regulation

and corruption(4) global influences


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AssessmentIndicators relevant

to Governance andEconomic Society


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Respect for Property Rights

Those in positions of public authority

have a vital role in ensuring that property

rights, whether private, common orpublic, are respected and enforced.

These rules are very important for

material progress, both at micro and

macro levels.


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Equal Application of Regulations

The extent economic regulations

are applied equally to firms in the

economy.

Applying and enforcing

regulations equally is importantin providing a positive business

climate.


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Wherever regulations are

applied in an ad hoc manneror where special treatment is

given to cronies of those inpower, the credibility of the

rules governing economic

society is very much in doubt.

Cost of doing business


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Corrupt Transactions

Whether a business license can be

obtained in a straightforward and

transparent manner or it involves a

number of other transactions that go

contrary to the stated rules and

regulations. This gives us a sense of the

extent to which respondents seecorruption prevailing in state-market

relations.


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State-Private Sector Consultation

The extent to which there is

consultation on policy issues between

public and private sector actors.Such consultation is a measure of the

trust and cooperation that exists

between state and market actors.

What do the rules allow in terms of

such consultation?


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New Global Economic Rules

International economic interactions(trade, finance and technology flows)

have become an increasingly significant

factor in national development.

The challenge is how to manage these

processes so as to enhance the benefitsand reduce the negative effects upon

people.


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How well do state and

market actors respond to

this challenge by

establishing and enforcing

rules that are perceived as

helpful to their country?


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Triple BottomLine

Any idea?

(John Elkington, co-founder of the business consultancy

SustainAbility, in his 1998 book 'Cannibals with Forks: theTriple Bottom Line of 21st Century Business'.)


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FACTOR 4

It refers to a hypothetical fourfoldincrease in 'resource productivity',brought about by simultaneouslydoubling wealth and halving resourceconsumption.

(1998L. Hunter Lovins and Amory Lovins of the RockyMountain Institute, and Ernst von Weizscker, founder ofthe Wuppertal Institute for Climate, Environment &Energy)


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FACTOR 10

In the long term, resource use indeveloped countries needs to beslashed tenfold if we are to

approach sustainability.


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COMMENTS/REACTIONS:

How can we enhance the role

of economic society ingovernance at the same time

assuring equity of benefits toall sectors or public?

economic society

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