On the occasion of the 24thth edition of “Days of Enterprise 2009”, Najy Benhassine, Senior Economist at the World Bank granted us his views on the theme of this year, and the role of government in the post crisis. Interview.
Firstly, what about the theme for this year?
Personally I think that the choice of this topic is justified by the impact of the global financial crisis on the definition of the roles of states and companies, as this crisis has revealed the limits of unchecked liberalization . In fact, the relationship between The State and the enterprise should be revised in order to accelerate an economic recovery worldwide.
Why laws and regulations have no impact on the development of the economy and the private sector?
As I explained in the first panel, the enactment of advanced laws and regulations or the implementation of reforms cannot have impact on economic development and private sector if their implementation is not equally effective. In other words, the State must also open itself up to employers’ organizations that are not very representative of whole private sector in the Maghreb countries. On the other hand, the performance of the private sector in the Maghreb region remains insufficient due to companies themselves which do not believe that laws and regulations will be applied to them equally.
What could be the solutions?
To make private sector comply with laws and regulations, invest more and participate in developing and strengthening the economy, confidence in the institutions is crucial .That requires a more important representation in the employers’ organizations and greater participation in the designing of economic regulations.
Is it true that the crisis has shown that even the largest states cannot alone ensure a regulation of the economy of their countries?
Excellent question. Except perhaps the United State, major countries are now forced to design and implement new regulations on an international scale. The time is coming to an end when a State could alone regulate and supervise the development of national economy. Furthermore, the Maghreb states, like the Asian ones should account for their decisions to neutral bodies whose role is to carry out independent evaluations.
What could be the effects of international regulations?
These regulations may not have the same effect in view of their application in places having different political, economic, ideological and social characteristics. Therefore, the restoration of investors’ confidence in the soundness of state regulation remains quite urgent.