As far as labor issues in India are concerned, labor regulation is the hot favorite among academics. Some policy makers also talk about an impending skill shortage that requires urgent attention. But discussion of other issues—for example, lack of trust between employers and employees—is virtually non-existent.
Exactly one year ago, the Financial Times gave a positive gloss on Uzbekistan’s economic prospects. One of the sources for the FT’s take on Uzbekistan was Alisher Ali Djumanov, a managing partner at Eurasia Capital Management and (as the article points out) the only alumnus of Insead in the country. He had this to say:
As I posted on the blog last week, the Doing Business 2010 report launched on September 9th. While the report itself always contains useful information, what is often equally interesting is the response in the countries and economies concerned.
In a previous post I discussed how the current global financial crisis seems to have forced policy makers in India to take another look at existing labor laws in the country. The Economic Survey (2008-09) of India released by the Ministry of Finance in early July this year clearly noted the imperative need to facilitate the growth of labor intensive industries, "especially by reviewing labor laws and labor market regulations."
Few would contest that the internet revolution has saved us a lot of time keeping in touch with others and conducting searches. For firms, time saved is labor saved and this is particularly attractive in countries that have stricter labor laws. What I’m suggesting here is that stricter labor laws may encourage firms to adopt modern labor-saving technologies such as the internet and computers. In theory this could magnify the adverse effect of stricter labor laws on employment and wages documented in the literature. So what does the data tell us?
Editor's Note: Peter Kusek is an Investment Policy Officer with the Investment Climate Advisory Services of the World Bank Group.
Microfinance has been getting its fair share of attention lately.
How do you get a small entrepreneur in northern Sicily to navigate through the maze of government bureaucracy, tap into the creative juices of an architect or a musician and submit a successful funding proposal for a government-funded development project?
The Enterprise Surveys team has introduced a new product called Country Notes. This series of notes provide a customized snapshot of a country’s business environment relative to other economies surveyed in the region. While the survey fieldwork itself is a complex task, the notes themselves provide succinct analyses and policy recommendations based on the collected data.