You are on page 1of 2

Karina Alifa Khairunisa Indra

19017022
2F

Throughout the time, globalization is getting serious and the barriers between one place and
another is starting to fall apart. In this kind of phase, law has important role in business development
process, both general and private role in the growth of private business. Law also playing significant
role in guiding and legitimizing the process of change. Regulatory is needed to protect the environment,
which is stated in UN Global Compact that the business must be responsible for the environment. As
the business development is growing, most of the time, many countries or companies drain the natural
resources. To achieve the business-friendly legal framework, there are two crucial process. The first
one is review the legal rules and the other is the implementation of the rule itself. If the rule has a flaw,
it will give an impact into the business environment.
However, the law is not just about represent the current situation, but also encourage
development and changes to provoke the ideal environment. The legal framework of the law is made to
achieve the good situation both for short and long term. The framework consist of three system based
pillars. The first one is the legally binding rules. The rules are implemented to all relevant parties by
the state. The second one is about the right process of how the rule is made. The rule will succeed if it
is made in the right way and implemented in the right way also. The definition of right can be different
depends on the situation of each places. And the last pillar is talking about the institution. The right
institution is playing important role. It is crucial that the institution need the best and the right staff
inside of it. Trained, motivated, transparent, an obey the role is the characteristic that crucial to maintain
the quality of the institution. The good institution will keep track of how the rule is implemented in the
right track. The best staff inside the institution could make a huge impact to prevent corruption,
following principle of UN Global Compact about how the business and all the relevant parties must
work against corruption. It is important to know that law is not just full of written rules, but it is include
the manner that necessary to follow by all the parties.
Besides making sure there is a free competition, in order to developing the private business, the
prices for goods, wages, must be regulated by the law based on rational economic criteria. It is important
to protect the labour, especially the poor one, which is stated in the principle of the UN Global Impact
which is to protect the labour’s rights. These legislative policies are important to make sure the
investment market is steady. These regulation is crucial for small business to protect their enterprise
within this cruel market situation. Legislative policy must suit with the economic and social policy. The
principle can make a good effect such as respect human dignity, prevent corruption, and protect the
poor, which is also stated in the principle of the UN Global Impact about supporting and protecting the
human rights.
World Bank is doing significant for developing the private business, both for the business itself
for the capital and for making the regulation for the business, in form of loans. Throughout the
experience, this is can be called succeed for businessman, investor, society, also for the government.