SME promoter pushes reform of officials' role

Policymakers are calling for government officials to change their attitudes and focus on being facilitators rather than controllers, as part of efforts to encourage more people to set up businesses.

Small and Medium Size Enterprise Promotion and Development Office (SMEPDO) Deputy Director Manohak Rajchak yesterday said one of the obligations of his organisation was to create a better business environment in the country.

“One of the steps we intend to take to improve the business climate in Laos is to change the attitude of government officials, so they do more to facilitate business rather than put up obstacles,” he told Vientiane Times.

Most officials working in the sector see themselves in a controlling role with power to grant permission for people to set up a business or create difficulties for them in accessing state services. Because of the difficulties they encounter, many business operators have been unable to obtain a business licence, he said.

Mr Manohak said his organisation would encourage officials to change their attitudes by launching a number of campaigns, with high-ranking officials playing an important role in the campaign.

“We will hold workshops and advertise the campaign in the media. Leaders can discuss the campaign with officials when they meet,” he said, adding that it was the duty of officials to serve people.

He said officials should not allow the people they serve to break the law, but should help them to comply with the law.

“Officials must enforce the laws relating to business operation and must encourage people in the business world to follow them,” he said.

He said the government had compiled a list of business categories it needed to control because most of them were relevant to the country's security, such as the production of explosive material.

Business operators can obtain a licence without having to seek permission from high-ranking officials if their business is not on the list of controlled categories, he said.

Mr Manohak said all Lao people had the right to obtain a business licence, which was a different matter from seeking special permission to do something the law did not permit.
It was therefore the duty of government officials to help people obtain a licence.

People often say that to open a shop they have to seek help from high-ranking officials to get a business licence, while others say they have to pay extra money to officials otherwise they won't be able to carry out their work legally.

Some people, especially those who own small shops along the roadside, give up trying to get a licence when their application runs into difficulties.

Mr Manohak said unless more business operators obtained a licence the government would lose a large amount of money because it would not be able to generate revenue from this business.

He also said tax officials would have no have legal grounds for imposing taxes on businesses if they did not have a licence.



By Ekaphone Phouthonesy
Vientianetimes