Using the PCI Index to Improve the Provincial Business Environment

The PCI index can provide information to provincial and city leaders about the business community's assessment of the quality of economic management in their localities, helping them to identify more clearly the strengths and weaknesses of the locality. Provinces and cities can improve the performance of the private economic sector and develop the economy through initiatives to improve scores on the weakest component indicators, or by adopting good practices that have been successful in other provinces and cities. Reforms aimed at removing barriers to market entry, reducing the time taken to complete administrative procedures, increasing transparency, and encouraging government leaders to be proactive and flexible in responding to investor needs will be particularly important. These efforts to improve the business environment need to be sustained and substantive in order to yield positive results in terms of increased investment, job creation, and positive assessments from the business community. The PCI can be used as a policy tool for monitoring and diagnosing the economic management performance of each province.