Public services are fundamental to creating a favorable business environment that promotes sustainable growth of the private sector and enhances competitiveness.
The “Business Ready 2024” report provides an in-depth analysis of this aspect, assessing the quality of services, their impact on the private sector, and identifying the key challenges faced by countries. Let’s take a closer look at how public services affect the economy and what conclusions can be drawn from this report.
The second pillar “Public Services” has an average score of 41.48, making it the weakest among the three pillars, which also include “Regulatory Framework” and “Operational Efficiency.” This score indicates significant differences in the level of services provided among the studied economies. Estonia leads this pillar with a score of 73.31, while the Central African Republic occupies the last position with 18.35. Such a wide range shows that the quality of services varies not only based on a country’s income level but also on the effectiveness of public institutions.
One of the key aspects considered in the report is the level of digitalization of public services.
This indicator is crucial because the availability and efficiency of online services greatly simplify compliance and the interaction between businesses and government bodies. In 92% of the surveyed countries, there are online portals for taxpayers, enabling entrepreneurs to file declarations and pay taxes online. However, only 4% of economies offer all three types of electronic tools—chats, forums, and training materials. These figures indicate that even with basic digital infrastructure, the availability of comprehensive solutions remains an issue.
Singapore is an example of successful digitalization, where online services have become an integral part of the interaction between businesses and government structures. This minimizes time costs and simplifies compliance with regulatory requirements.
One of the significant obstacles for businesses is the accessibility of essential public services. In some countries, the process of registering a new company can take from three to 80 days.
Moreover, if it involves obtaining building permits, this period can extend up to 120 days. Securing environmental permits sometimes takes more than two years. This creates additional costs for businesses and can significantly slow down the development of new projects.
These data clearly demonstrate that without efficient public services, businesses face unjustified delays and administrative barriers. This is especially relevant for countries where infrastructure is still underdeveloped.
The effectiveness of public services is also determined by the level of interaction between various government institutions. In countries with high scores in this pillar, data exchange systems are in place, which significantly reduces bureaucratic procedures and increases transparency.
For example, Estonia, recognized as a leader in this criterion, has implemented digital solutions that enable real-time data exchange between agencies. This allows entrepreneurs to spend less time collecting and submitting documents, as government structures already have access to the necessary information.
Insufficient support from public services affects not only businesses but the entire economy.
Countries with service quality issues often face slow growth in the private sector. For instance, in countries where frequent power outages are the norm, companies may lose up to four working days a month. This reduces productivity and increases costs, ultimately impacting the economy’s competitiveness.
Comparing the results of countries with different income levels shows that high income does not always correlate with better public service indicators.
Among the top-ranked countries in this pillar are not only high-income economies. Colombia and Rwanda are also among the leaders due to their innovative approaches in public administration and digitalization of processes. This proves that success does not solely depend on income level but requires a comprehensive approach and effective planning.
The report highlights a significant gap between the regulatory framework and the level of public services provided. This “public services gap” indicates that many economies excel at creating regulations but fail to provide adequate support for them. As a result, companies face difficulties in implementing their business processes.
One of the main obstacles to improving the quality of services is the lack of coordination between government structures.
Even in countries with a high level of digitalization, issues with interagency interaction are common, leading to duplication of procedures and increased time costs. Solving these problems requires the introduction of new approaches and a review of existing management methods.
Ways to Improve Efficiency
To achieve a high level of public services, countries should focus on the following measures:
• Active development and implementation of digital technologies.
• Training of personnel and improving coordination between various institutions.
• Creating data exchange platforms and enhancing transparency.
These measures will help not only improve the quality of services but also create conditions for sustainable economic growth.
An analysis of the data from the “Business Ready 2024” report shows the crucial role of public services in ensuring stable and efficient business operations. Improving these services requires a comprehensive approach, including digitalization, training, and interagency cooperation. This will enable countries to enhance their positions and create a sustainable foundation for the development of the private sector and the improvement of the living standards of their citizens.
