14 proposals of government's business advisory council implemented
Since March, business leaders have advised the government on boosting growth, first by cutting bureaucracy. They find monthly talks useful, though some are frustrated by the pace.
The Council for Efficiency and Economic Growth, operating under the Government Office, has received more than 600 proposals from companies, associations, unions, universities and private individuals. According to Hando Sutter, council member and CEO of the Estonian Employers' Confederation, the council has reviewed most of them. Of the proposals submitted to the government, 84 percent have been approved, but only 14 have actually taken effect.
"We only started this spring and then came summer when the Riigikogu wasn't working, so the proposals are waiting there. If the Riigikogu adopts them by the end of the year, then we can truly say this process has been worthwhile," Sutter said.
For now, he has faith in the council's work. So far, the effort has been substantive, with both council members and contributors making significant input. Civil servants have also participated in discussions and no opposition has emerged.
IT entrepreneur Taavi Kotka is optimistic about the council's work but admits frustration with the pace.
"We need to understand that any change, such as amending a law, takes quite a long time. First it goes through the government, then to the Riigikogu for the first, second and third readings. Rarely is this process faster than six months," Kotka explained. He recalled having spent four years working in the public sector and knowing firsthand how the machinery of change operates, but he still wishes to see reforms happen faster.
"Some of our laws, regulations and procedures are outdated and really should be amended more quickly. Estonia's economy would benefit much more if officials also asked themselves whether a specific condition, restriction or requirement is truly necessary — whether it helps the economy and entrepreneurship or whether it holds them back by adding reporting burdens and so on," Kotka said.
Toomas Luman, head of the Estonian Chamber of Commerce and Industry, is not a member of the council but acknowledges its work. However, he believes the approach is too slow for driving economic growth.
"This is the slowest and least effective way to achieve the goal. Maybe that's why politicians chose it. A faster option would be a sudden cut — laying off 20 percent of jobs in policymaking bodies such as ministries and central agencies as of January 1," Luman said. He added that this also applies to local governments' bureaucracy, noting that zoning and many other issues fall under municipal processes.
Sutter does not agree with such across-the-board cuts, though he admitted that reducing bureaucracy will also eliminate state jobs.
"We want to be more thoughtful. If we just say, let's cut 20 percent everywhere, that may not be very smart. Reducing bureaucracy inevitably leads to a leaner state apparatus, because if you have bad regulations, someone has to enforce them — and that is bureaucracy. If we make the state simpler and operations more automatic, then we can certainly reduce costs as well," he said.
Most proposals made by the council and implemented so far cover making sustainability-related reporting requirements non-obligatory and leaving them up to companies or member states, as well as proposals to limit which companies are covered by reporting obligations and cut down the amount of required data.
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Editor: Marcus Turovski, Urmet Kook
