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ENVIRONMENT
AND
GOOD BUSINESS
ENVIRONMENT
STAGE OF
DEMOCRATIZATION
1. Non-democracy
2. Minimalist democracy
(Electoral democracy)
3. Procedural minimum democracy
4. Expanded procedural minimum
democracy
5. Established industrial democracy
6. Maximalist democracy
(Liberal democracy)
(David Collier and Steven Levitsky)
GOOD ECONOMIC
ENVIRONMENT
1.
CLASSIFICATION OF ECONOMIC
SYSTEM
- Free market
- Managed market
- Command economy
2.
CLASSIFICATION OF COUNTRY
-
developed country
developing country
less developed country
least developed country
3.
CLASSIFICATION OF SECTOR
- Formal Sector
- Informal Sector
4.
Economic Growth
Privatization
Inflation
Balance of Payment
Debt-service ratio
5.
6.
Size of market
Educated work force
Wage labor
Property
Entrance
FDI, Port-folio
POLITICAL STABILITY
7.
GOVERNMENT SECTOR
(a) Socialization of production and consumption.
(Socialism)
(b) Socialization of Consumption
(Welfare State)
(c) Ideology based on John Maynard Kenyes
(d) Chaos
8.
LAW
- Common Law System
- Legal Code System
- Islamic Law
9.
CULTURE
GOOD BUSINESS
ENVIRONMENT
KEY FACTORS
1.
2.
3.
4.
Infrastructure
Regulatory institutions
Education
Culture
TO START A BUSINESS
- Australia - 2 days
- Haiti - 203 days
- Congo - 215 days
- Tunisia
- 7 days
- Netherlands - 39 days
- Guatemala - 1,500 days
TO GET CREDIT
BANKS
INCUBATOR
SEED CAPITAL
OTC
CORRUPTION
CORRUPTION EQUATION
C=R+DA
C = Corruption
R = Economic rent
D = Discretionary powers
A = Accountable