Read these facts. Almost ten steps and 77 days are required for registering a business in India. In comparison, take the case of Sri Lanka, the period is short -- eight steps and 23 days. These vignettes of information are culled from World Development Report (WDR)-2001: Building Institutions for Markets.
Against this backdrop, the World Bank feels that the south Asian region needs to streamline institutions to complement those which already exist as well as promote open trade and information flows to help make the market work. Complex and inefficient institutions remain a common problem, especially for poor people, it says.
"Without effective institutions, poor people and poor countries are excluded from the benefits of markets," says World Bank chief economist and senior vice-president Nicholas Stern.
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However, things are changing. At least in India. Computerising land records led to more efficient land registration and greater access for small landholders to obtain titles quickly and transparently. Also, registration processing time was cut from 10 days to just an hour.
Despite the progress, many in south Asia are still excluded from formal institutions that enable access to markets and improved living standards.
The report finds that reforms and innovations have been most effective when they address these needs in ways that are compatible with country conditions and increase access to the poor.
The report points out that land titling procedures are often too costly and complex for the poor to access in developing countries. Without clear title to their land, poor farmers are unable to offer it as collateral and may be discouraged from investing in improvements, such as better drainage or irrigation.
In many countries, legal systems do not serve the needs of poor people, who are unable to pay legal fees or read complex judicial documents. Simplifying judicial procedures can increase efficiency without sacrificing fairness.
Alternative conflict resolution systems, such as those based on social norms, can also improve poor people's access to legal services. For example, the Maduripur Legal Aid Association, a Bangladeshi non-governmental organisation (NGO), offers women free mediation services that settle most village disputes in under two months, at a very low cost.
New technologies are often beyond the reach of small farmers in rural areas, who lack information on what agricultural innovations are available and how to access them. By recording and disseminating data on new inventions, information sharing networks such as the one from Indian NGO Sristi has had a tangible impact on easing the burden of poverty.
It also found that open information flows increased public demand for more effective institutions, thus improving governance and social and economic outcome.
Analysis of ownership structures in 97 countries found that state-owned media tend to be less effective than private media in monitoring government. Countries with more prevalent state ownership of print and broadcast news outlets tended to have fewer political rights, higher corruption, inferior economic governance, less developed financial markets, and worse education and health.
Although state ownership of broadcasting is high compared with other regions, the Press in most south Asian countries is predominately privately-owned and has a tradition of vibrant, active reporting. The Press has demanded more responsive governments throughout the region by reporting on issues such as corruption in India (defense bribery scandal) and public health and environmental concerns in Bangladesh (the arsenic contamination of water). Nevertheless, access to information remains a problem, constrained by laws such as official secrets acts, or by lack of capacity to collect and manage information. In Nepal, for example, access to information remains limited even though information disclosure is enshrined in the Constitution.