Proactivity refers to taking actions in advance of anticipated challenges. It contrasts with reactivity whereby actors respond only when action is required. A proactive government is one that takes the initiative to understand what problems might arise, understands how to prevent such problems from occurring, knows how to stop them from getting worse and, above all, knows how to prepare solutions to create and ensure a sustainable, equitable, and inclusive environment. In relation to economic governance, a proactive government would try to understand the dynamics of the economy, learn the challenges facing businesses, and prepare solutions to tackle them. Furthermore, it would anticipate the future needs of business growth and implement a course of action that would assist the economy to succeed and prosper in the face of global competition.
The Pro-active Government Sub-index aims to measure the effectiveness of federal, state, and local government programmes and of businesses’ awareness of major pro-economic development programs initiated by the federal government.
The higher overall index score along with the individual scores for sub-indices always refer to a better performance within the context of the BEI.