Introduction
Each CEI industrial and agricultural mission
introduces participants to one or more trade
associations in the U.S. As a direct result of that
experience, several groups have returned and
established their own associations. Most participants
had not previously worked with others in their own
industry and thus had not gained the benefits an
association can bring to its members. Most CEI study
tour participants now enjoy the benefits that working
together can bring.
Background
In
most countries, most of the national legislative acts
concern the regulation of economic relations.
Specifically, a great number of them regulate
entrepreneurial activity. Businesspeople attempt to
influence the law-making process so that legal
regulations support and stimulate development of their
businesses as well as the economic development of the
country.
Success in Ukraine
A
number of associations have been established as a
direct result of the CEI study tour program. These
include: architects, construction companies,
aquaculture, and agriculture organizations. CEI has
provided training and guidance on such points as
organizational structure, leadership, lobbying,
industry standards, and dues assessment. In the case
of construction, entire industry practices have been
changed to allow for the issuance of public requests
for proposals and competitive bids. As a result, all
companies are able to get a fair share of the
available work.
Objective of Associations
Businesspeople form business associations whose main
objective is to represent and protect their common
interests. The services most business associations
offer are similar – providing information, training
services, advice, organizing meetings to exchange
views, assisting members in conflict situations, and
representing members' interests to the authorities at
all levels. The goals and services of business
associations depend mostly on their members' needs and
on external conditions. However, more and more
business associations are beginning to realize that in
order to effectively develop a favorable economic
environment, associations need to influence the
law-making process.
How can CEI help?
CEI can provide technical assistance to selected
business associations to help develop
self-certification programs for personnel, processes,
and products in the industries they represent. As the
state reduces its regulation of the economy, there
will be an increasing need for private-sector-led
organizations to establish market-oriented quality
standards and certification.
Assistance in self-certification will strengthen the
capacity of business associations to align the
competencies of the local workforce to the real market
demand for skills. Self certification also can and
assist businesses to participate in the international
marketplace by demonstrating that services and
products meet international industry standards of
competence and quality and that systems to certify
services and products conform with international
standards for certification, such as the
International Standardization Organization (ISO).
Targeted technical assistance to associations will
educate them on how to develop certification programs
and concurrently help them identify existing
industry-specific certification standards, trainings
and assessment programs that might be utilized and/or
adapted for use at home.
CEI can assist business associations to explore the
feasibility of:
-
using a uniform international certification
standards
-
licensing agreements between foreign and local
associations
-
exporting certification from other countries
-
mutual recognition
-
reciprocal agreements
-
implementing steps to establish international
partnerships that are mutually beneficial for all
parties
Assistance to develop advocacy skills
CEI will help business associations develop advocacy
skills. Business associations will be shown how to
engage government at various levels (to work together
on local and national development strategies, tax
regimes, administrative reforms, and any other point
of interaction between government and business) to
ensure that the business environment meets the needs
of the business community. For example, business
associations can gauge the economic damage and tax
revenue leakage created by illicit activities and
recommend regulatory, legislative and enforcement
measures that contribute to increased transparency and
legal compliance. As a result, revenue enhancement
will occur in the respective sectors.
Assistance to business associations
CEI can support business associations and other
institutions to transfer skills to SMEs and stimulate
adoption of good business practices and a culture of
entrepreneurship. Through technical assistance and
grants, business associations will be supported to
undertake export promotion and investment promotion
activities and to promote fiduciary standards and
regulations, thereby building valuable SME skills
while generating an immediate return. CEI activity
will also provide technical assistance to business
associations and other institutions that train SMEs to
apply for credit and provide accurate and reliable
information to lenders.
Business associations aware of the downside of not
being involved in the legislative process are
beginning to address the problem professionally and
create mechanisms within their organization that can
function effectively at any time. This includes, above
all, the appointment of persons from among the group
whose immediate responsibilities are to protect the
rights and represent the interests of the members of
their organization, using a certain set of tools. The
appointed persons become representatives that work on
behalf of their organizations, speaking out for their
interests during the development of regulatory acts
and other activities in order to influence the
attitude of decision makers.
There is quite a long list of tools that business
associations and their representatives may use to
exert influence upon decision-makers. This extensive
list can be divided into two parts; tools that involve
direct influence and those that rely on indirect
influence. Direct influence is exerted with the help
of the following tools:
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