Parliament’s strong links with the private sector drive economic growth

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OPINION

Author: Ian Rumanyika

The relationship between the private sector and parliament is a non-negotiable link that binds policies, fosters innovation and drives economic prosperity. According to the World Bank, countries with strong public-private partnerships tend to have higher rates of economic growth and innovation.

Public-private partnerships (PPPs), if implemented well, can help overcome inadequate infrastructure that limits economic growth, especially in developing countries. Poor infrastructure is often a reflection of constraints faced by governments, for example lack of public funding, poor planning or poor analysis underpinning project preparation. PPPs can help overcome these constraints by mobilizing private sector financing and improving project preparation, implementation and management.

Such relationships are crucial because they create a collaborative environment in which businesses can thrive, innovate and make significant contributions to the national economy – which is also evident in the creation of effective regulations and transparent policymaking.

Recently, the Director General of Uganda Baati, George Arodi, led a team that paid a courtesy call on the Deputy Speaker of Parliament, Rt. Hon. Thomas Tayebwa. During the meeting, delegates discussed the most important stages of the company’s 60-year history and the formulation of policy in the steel sector. This commitment highlights the need for businesses to maintain a relationship with Parliament to ensure sustainable growth.

Hon. Amos Kankunda, chairman of the Finance, Planning and Economic Development Committee, was present at this meeting. His committee provides key oversight of the country’s financial management and economic planning. It reviews and analyzes budget proposals, as well as researching national economic policies and development plans – details of interest to any respected private sector player.

The use of PPPs has increased over the past two decades. PPPs are currently used in over 134 developing countries, generating approximately 15–20 percent of total infrastructure investment. PPP investments totaled $79 billion annually in FY07-11 and are now being deployed beyond traditional infrastructure sectors, including health and education.

In parallel with this development, the World Bank Group has expanded its support for PPPs through a wide range of instruments and services. Over the last 10 years, the Bank Group’s support for PPP has approximately tripled. Loans, investments and guarantees increased in both absolute and relative terms, from $0.9 billion to $2.9 billion and from 4 percent in 2002 to 7 percent in 2012.

Working with Parliament enables businesses to advocate for legislation that creates favorable conditions for industrial development and investment. For example, such engagement can lead to the development of policies that reduce regulatory burdens, making it easier for companies to do business and grow.

Collaboration between the private sector and parliament is essential to develop legislation that is fair, effective and supports business development, while responding to societal needs. By participating in legislative processes, businesses can ensure that regulations are not only practical, but also promote competitiveness and drive sustainable development. The result is a balanced regulatory environment that protects consumers without stifling business innovation.

The late Deputy Speaker, Hon. Jacob Oulanyah once said that the country’s economic policies, regulations and budget are geared towards a private sector-led economy, adding that it is necessary to enable the private sector to meet the demands. He pledged to leverage his office’s presence to expand private sector opportunities, which could spur the sector’s growth.

Favorable policies enable businesses to invest in new technologies and increase employment, thereby contributing to the national economy. Cooperation with Parliament thus ensures that policy development is transparent and that the needs of society and the economy are taken into account. This promotes trust and credibility, which are crucial for a stable business environment. Transparent policy-making processes help fight corruption and ensure that the interests of all stakeholders are taken into account, improving the business climate.

By working with Parliament, businesses can address social and environmental challenges, promoting sustainable practices and contributing to the well-being of society. This partnership can result in impactful initiatives such as environmental regulations that ensure businesses operate sustainably, benefiting both the business and the community at large.

As Uganda Baati celebrates its 60th anniversary, it is a beacon of successful collaboration between the private sector and government. Since its founding in 1964, the company’s commitment to the highest quality and recent partnership with Parliament demonstrate the importance of cultivating government relationships for long-term success.

Continued links between the private sector and Parliament have enormous potential to drive economic growth, innovation and sustainable development. By supporting these relationships, businesses and policymakers can unlock new opportunities for economic prosperity and social development, paving the way to a prosperous and sustainable future for all parties involved.

The author is the director of external and corporate affairs