BETTER REGULATION FOR HIGHER GROWTH 23/11/2010 John Daniel Pollner The World Bank Sofia, Bulgaria
Jan 21, 2016
BETTER REGULATION FOR HIGHER GROWTH
23/11/2010
John Daniel Pollner
The World Bank
Sofia, Bulgaria
BETTER REGULATION FOR HIGHER GROWTH
23/11/2010
Sofia, Bulgaria
OUTLINE
Achievements
Challenges
Recommendations
Benefits
ACHIEVEMENTS
POLICY
REFORMER TRACK
RECORD
LEGISLATIONINSTITUTIONS
LARACEARIA
DB: Taxes, Start-upsTax Payments
Better Regulation Program
Doing Business 2011
UK
Denmark
Irelan
d
Finlan
d
Swed
en
Estonia
German
y
Lithuan
iaLat
via
Belgium
France
Netherl
ands
Portuga
l
Austria
Cypru
s
Slova
k R.
Slove
nia
Luxe
mbourg
Hungary
Spain
Bulgaria
Romania
Czech R.
Poland
Italy
Greece
0
20
40
60
80
100
120
4 6 913 14 17
22 23 24 25 2630 31 32
3741 42 45 46 49 51
5663
70
80
109
Time to deal with regulations …
Source: Bulgaria ARC Survey (2009).Note: In 2007, average time = 17% (WB Enterprise Survey, 2007).
…and uncertainty about the rules…
Source: Bulgaria ARC Survey (2009); World Bank Enterprise Survey (2007); BEEPS (2005).
Doing Business in
Municipalities
Law Enforcement
Time to deal with Rules
and Informal Practices
State Fees
Higher Regulatory
Burden Compared to
EU Peers
CHALLENGES
Additional requirements and duplication Sitting on information Lack of public registers Lack of electronic submission of
documents Duplicate registration regimes High local fees and taxes
Putting more on business’ plate:
MUNICIPALITIES
Still, a lot of time by firm’s senior managers
lost in dealing with regulations…
Still, firms reporting unfair competition
from informal business practices
Source: BEEPS (2008-09).
LARACEA Act
HAND OF THE STATE IN ECONOMIC ACTIVITY
Lack of control
unit
No admin. register
Sanctions
Limited scope of the Act
Limited use of “silent
consent”
Unfinished institutional
frame
Lack of RIA for
new regimes
State fees: not fair nor transparent
Lack of policy for state fees
Based on old
legal framework
Weak Institutional
framework for control
Wrong incentives and
lack of transparency
Administrative burden for
business
RECOMMENDATIONSPolicy
Improve business conditions in Municipalities Develop a policy on state fees and empower an “authority” Develop a cost calculation methodology for fees
Legislative
Amend the LARACEA Act Expand the use of RIA Revise legal framework for local administrative charges and
state fees
Institutional
Re-establish Better Regulation Unit authority within CoM Set-up an on-line Administrative Register
BENEFITS
Of time
LOWER COSTS
FAVORABLE BUSINESS CLIMATE
BETTER TRANSPARENCY
LOWER INFORMALITY
Of money
Improved competi-tiveness
Increased revenues
Less red
tape
Trust