10 things governments Can do 

to help create an enabling environment for 
transition to democracy and market economy 

Governments are typically challenged by limited 
budgets, containing public expectations, enforcing 

the rule of law, responding to the short-term challenges 
and working through inefficient bureaucracies. Since the 
late 1980s, Central and Eastern European governments 

– created anew at the national, regional and local levels 
– have had to tackle all these challenges. Free elections 
brought new faces to power, generated new energy 
for reform, and raised public expectations. Leaders in 
government introduced new legislation and created 
new public institutions. They can continue to create an 
‘enabling environment’ for cross-sector collaboration by: 
1. 
Providing leadership and moral persuasion – 
appointing a Minister with specific responsibility 6. Integrating social and environmental requirements 
for promoting responsible business practice; hosting into all procurement and tendering processes. 
Ministerial / Presidential dialogues; meeting with 
private sector leaders and encouraging them to 7. Exploring the potential of fiscal policies to address 
contribute actively to economic reform and growth. corporate social and environmental impacts 
– consulting with business, civil society and other 
2. 
Carrying out awareness raising activities on the stakeholders in their design and implementation. 
business benefits from social investment and the 
social benefits from business investment; publicise 8. Legislating for disclosure requirements on corporate 
good stories; create Award schemes, especially to social and environmental performance, in 
showcase ‘home-grown’ examples. consultation with business organisations, 
international agencies and civil society. 

3. 
Convening and / or catalysing voluntary initiatives 
and guidelines that promote good practice principles 9. Identifying and promoting a core level of minimum 
and practice in business engagement with civil social, ethical and environmental standards, in line 
society and local government. with international agreements and corporate policies 
of market leaders. 

4. 
Providing technical advice and input into the 
development of standards and / or creating 10. Increasing dialogue, learning and co-operation 
voluntary initiatives on self-regulation in specific with other governments – on a bilateral and 
industrial sectors. multilateral basis. 
5. 
Using public funds to leverage private sector funds 
and other resources mobilized through the civil 
society sector and from international sources. 
The National Assembly of Hungary