Regulatory Reform IRRC conference-BerlinGermany-15NOV2008-VA-4.1

www.senseconsulting.eu 1

II. International Regulatory Reform Conference

Enhancing Competitiveness in Western Balkans

Berlin, November 17, 2008.

Vedran Antoljak, Managing Director


Competitiveness is the key for growth

Comparative concept of the ability and performance of a firm, sub-sector or

country to sell and supply goods and/or services in a given market

Security Development

Export

EntrepreneurshipAdministration

Regulations

Innovation Education

Leadership

Technology


Regulatory adjustments are lagging behind the dynamic changes of the business environment and development of the society

Regulatory reform increases competitiveness

Regulatory dynamics

Socio-economic dynamics

COMPETITIVENESS


Private sector and business community

Public administration and regulators

Creating public-private-partnership is crucialto appropriately increase a competitiveness levels of a country

Good regulatory reform needs active private-public partnership


67 RegulatoryBodies

Businesses and citizens (citizens)

RECOMMENDATIONS

Business Advisory Council(business community)

Government of Croatia

Clear and equal stakeholders’ standards ensure transparency

(ministries & agencies)


Communication strategy is esential to manage expectations

Regulatorybodies

• Ministries• Agencies• Independent regulators •…

Special Unit for

Government

Media General Public

Members(companies)

Working groups

Reporting

InfoInformation,call-center

WEB

Stakeholders

Business Advisory Council(BAC)

Recommendations

Donorswww.hitrorez.h

r

meetings/consultations

web


SCM was used to project impacts of reform

KEEPCHANGE

CANCEL

SCM calculation projected EUR 200 million administrative cost sacings for enterpreneurs and companies

Adjusted Standard Cost Model (SCM) calculations were used to project (ex-ante) impacts and set baseline for measuring ex-post reform impacts


Timely implementation increases reform impacts

The “real” reform impact can be increased by timely implementation of regulatory reform changes

Impacts of implemented reforms

Projected impacts• Ex-ante 2007-2009

• Estimated before adaption by the GoC and implementation

• Administrative cost savings based on 30% of recommended changes

• Ex-post 2007-2008

• After 50% implementation

• Administrative cost savings by October

EUR 200 m

EUR 16.2 m


Monitoring and evaluation shall maximize reform impacts

Government monitoring

through weekly reporting

Private Sector monitoring and feedback system through Business

Advisory Council

Citizens monitoring and

complains through existing

mechanisms (e.g. web, media, etc,)

International and donormonitoring through

diverse reports


CHAMPION

TRANSPARENCY

GOOD PREPARATIONSPOLITICAL

COMMITTMENT

Reform is successful only if key success factors are activated


• Be aware about the effort-ratio for sucess – 70% preparation / 30% implementation – Set reform milestones and deadlines before start

• Ensure “real” commitment and strong support by the Government

• Do not start reform without highest level Champion for it

• Position Implementation Unit to be close to the Government

• Reform transparency will ensure high levels of business community/civil society active engagement:

‒ Use of e-government solution

‒ One standard for all stakeholders

• Use public relations and proactive communication to promote reform

• Ensure implementatation dynamic and gov’s intervention (if nedded)

• Use intermediate results to proactively promote further reform (e.g. IA)

Lessons learned – How to ensure maximum reform impacts


Lessons learned – Financial/project management perspective

Reform does pay-out!

Total project cost is around 0.5% of projected (ex-ante) administrative cost

savings to economy

Croatian case: break-even was reached with implementation of

10 averaged recommendations


Contact

Vedran AntoljakManaging Director

Information and contact:

E-mail: [email protected]

www.senseconsulting.eu

mailto:[email protected]