Tools to improve existing regulation

This section describes tools used for reviewing, simplifying and streamlining existing regulation. The tools aim at cleaning up the regulatory stock by weeding out excessive and unnecessary regulation and improving the remaining regulation.

General simplification methods
An important goal for any regulatory reformer is that regulation is clear, understandable, up-to-date and user-friendly.

From Red Tape to Smart Tape: Administrative Simplification in OECD Countries, OECD, 2003.
This report analyses proven approaches commonly adopted by governments to reduce and streamline administrative procedures such as one-stop shops (physical and electronic), simplification of permits and license procedures, time limits for decision-making, methods to measure administrative burdens, regulatory-compliance assistance for small and medium-size companies, and increasing reliance on IT-based solutions.

Cutting Red Tape: National Strategies for Administrative Simplification, OECD, 2006
This report looks at how governments have worked to cut red tape, in particular to the different government systems, differing priorities and different levels of development in reducing the administrative burden of regulatory policy. It identifies a number of overall trends in the development of administrative simplification and burden reduction policies across over 20 OECD countries.

EU: DG Enterprise and Industry

Additional Resources

Licensing reform
Business licenses are necessary to protect public interest (such as public safety, the environment and health) and can be an effective way to address specific problems. However, if business licensing is excessive or improperly implemented or abused, it poses a significant burden to enterprises by increasing the entry costs to the formal market. The real challenge for government is to find the right balance between the ease of doing business and protecting public interest. Licensing reform aims at weeding out unnecessary business licenses and streamlining those that are necessary.

Downsizing Administrative Licensing System and Private Sector Development in the PRC: A Preliminary Assessment, Bill K. P. Chou, Asian Development Bank Institute, 2006.

Streamlining Business Licensing in Vietnam, Jong Seok Kim, Jacobs and Associates, June 2006.

Regulation or Revenue? Implementing Local Government Business License Reform in Kenya, Roy Kelly and Nick Devas, “Development Discussion Paper No. 723, September 1999.

Local governments in most countries license businesses operating in their jurisdictions, whether for regulatory purposes or to generate revenue or both. These two objectives often conflict. Much regulatory activity by local governments, particularly in the developing world, imposes heavy cost burdens on local businesses. This paper examines the theoretical and practical issues relating to business licensing, in relation to both regulation, and revenue raising. It identifies some principles for reform aimed at increasing the revenue generated while reducing the cost burden on businesses. A case study of local business licensing reform in Kenya provides a practical application.

The South East Europe Compact for Reform, Investment, Integrity and Growth (“The Investment Compact”): “The Business Registration Process in South East Europe - A Peer Review”, April 2005.

Tor Jansson and Geoffrey Chalmers (2001), “The Case for Business Registration Reform in Latin America”, Sustainable Development Department Best Practices Series. Inter-American Development Bank, Washington, D.C., July 2001

Examples:
Denmark: The Central Business Register (CVR) is the central register containing primary data on all businesses in Denmark, regardless of economic and organizational structure. CVR also covers both public and private businesses.

Serbia's new business registry, designed by Jacobs and Associates (with World Bank and SIDA support), opened its doors on 2 January 2005. The new registry, the first in the Balkans to be moved out of the courts, will reduce registration delays from 31 to 5 days and create a national electronic registry.

In May 2005, Bulgaria's government, advised by Jacobs and Associates (with Bearing Point/USAID), announced that it, too, will shift business registration out of the judicial courts into a new agency by 2007.

4.1 Doing Business Indicators

4.2 Standard Cost Model (SCM)

4.3 Guillotine Approach

4.4 Other