Licensing can represent a significant burden for businesses, especially when governments use licensing as a revenue generating tool rather than an instrument securing public goods. When this happens, the private sector is arbitrarily subjected to myriad permits, approvals and fees affecting both business entry and operations. Licensing and inspections as a prerequisite for entry or operation should be reserved for a limited number of activities affecting safety, environment and health. This video outlines the World Bank’s approach to best practice licensing reform.
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