The solution is to cut through the bureaucracy. Obviously, there are a lot of vested economic interests at stake. Therefore, to instil confidence, the framework and execution must be clear and transparent.
The key to attracting fresh investments is clearly the ease of doing business itself. One of the major considerations when companies select the location of their investments is the level of red tape and the associated compliance costs.
It is almost inevitable that the number of rules, regulations and procedures drawn up by bureaucracy increases over time — unless there is a conscious effort on maintenance, such as discarding those that become irrelevant due to technology or process changes. And when you add the multiple layers of authorities, from federal to state governments to local district councils, the totality of red tape can be so daunting that it deters new investments altogether.
