Call in a bulldozer for growth

As the coalition considers how to develop a growth strategy, it would do well to call in Paddy Ashdown and hear about the ‘Bulldozer Initiative’ he launched while in Bosnia working for the United Nations. Not a highway programme, the Bulldozer Initiative was instead one of the smartest pro-business schemes I have seen. And something like it is now needed here.

The brainchild of a French businessmen and based on the ideas of Peruvian economist Hernando de Soto, it involved building a partnership between politicians and businessmen to identify specific legislation and regulations that prevented companies from expanding their businesses and creating more jobs. The steering committee, made up of businessmen, politicians and officials, set itself the task of having ’50 reforms enacted within 150 days’.

Through media outreach and a travelling roadshow, the steering committee ­ known as the Bulldozer Committee – invited entrepreneurs to submit suggestions for reform. They received about 250 submissions, on issues spanning all sectors of the economy: enterprise law, banking and finance, tax, exports, trade, labour, environment and so on. They included, for example, compulsory fees for professional associations, double taxation issues, cumbersome administrative procedures, and job-destroying labour practices. I even remember one regulation about a compulsory nuclear bunker fee.

Each proposal was studied in detail by a qualified group of lawyers and economists, who evaluated the proposals, developed legal solutions and assessed the likely consequences for the economy. Each reform was subjected to a rigorous cost/benefit analysis, and industry experts were invited to comment on ideas before they were taken to the next stage.

The initiative ensured that individual entrepreneurs could not exploit the process without rendering real economic benefits to a sector of the market. At the same time, it ensured that pressure remained constant on officials to reform and deregulate. By delivering fast results, the initiative won the confidence of entrepreneurs and empowered them to institutionalise permanent means to push for pro-business reform.

In Britain, there are plenty of ways in which businesses can make their voices heard. But there are still many obstacles to creating jobs, as the latest economic figures show. Creating a Bulldozer Initiative and putting people like Douglas Carswell and Matthew Hancock in charge may not change things as dramatically as they did in Bosnia, but would be very useful.