Building an Effective One-Stop Shop Key Issues

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1 2016/SOM1/EC/WKSP2/007 Session 3.1 Building an Effective One-Stop Shop Key Issues Submitted by: World Bank Group Ease of Doing Business Workshop: One-Stop Shops to Improve the Business Environment Lima, Peru February 2016

2 Building an effective One-Stop Shop Key Issues February 26, 2016 Dobromir Christow Senior Private Sector Development Specialist What is the Benefit of Having Services under One Roof or under a OSS? The Tale of the 3 Little Pigs The mother send the 3 little pigs to seek their fortune They became regulators They created 3 separate agencies based on the principle 1 pig -1 agency 1 1

3 Client and Document Overload will Blow away 3 Separate Agencies One client (who happened to be the Big Bad Wolf) decided to register for a Tax Number (TIN) The service was bad and the BBW blew away the tax agency 2 Every bad service provider will be blown away by the demanding big bad client After the BBW blew away the Tax Agency, he went to the Statistics to get a Stat Number Again the service was poor and he blew away the Statistics He went to the Company Registry, didn t get a good service and did the same 3 2

4 It s Just a Tale there are no Big Bad Wolfs or 3 Little Pigs, it s all about Poor Services The 3 little pigs learned their lesson and decided to create a One-Stop Shop so that they can handle all BBWs They put together the Registry, the Tax, and all licenses and permits in one place One Database, One Fee, Unique Number and Common Forms 4 One-Stop Shop, Single Window, Single Point, One Roof, One Table 1. They all mean the same all done in one place, save your time, save your money! 2. The notion could be employed in aver aspect of human activity hospital, food court, shopping mall, supermarket, casino. Las Vegas is a OSS! 3. In our discussion in used mostly in the context of Government-to-Business (G2B) or Government-to-Citizens (G2C) services 4. It is NOT an institution/agency, but rather a function or a service 5. The 3 S principle: Single Interface, Single Interaction, Single Database - sometimes single application form - single fee, but only for specialized OSS, (for example OSS for customs clearance or business registration) 5 3

5 Types of One-Stop Shop, Distinctions 1. G2B vs. G2C OSS 2. Physical vs. Virtual OSS office vs. website/online portal - Centralized Online Portal Altinn in Norway - Decentralized one pass - multiple websites Singpass in Singapore 3. Transactional vs. Informational OSS 4. Hybrids combinations of the of the above, very common case 5. Most Common Types of OSS per function or service provided to the public (often related to Public Registries or Public Records): - Business Registration and Licensing OSS (BR OSS); Investment Promotion OSS (IPA OSS); Tax Registry OSS; Customs and Border Clearance OSS; SME Support OSS (training, funding, procurement info, etc.); Special Economic Zone OSS; Property Registry OSS Land Registry; Secured Transactions Registry; Citizens Status OSS ID, birth, marriage, etc. 5. In reality many are hybrid types of OSS combination of the above and others 6 7 Considerations/Prior Requisites Your Starting Point 1. Once upon a time there was a life before the OSS 2. map it out well, before thinking of OSS: - Existing services - Existing agencies - Existing documents and fees - Existing laws and secondary legislation - Your Vision do you need an OSS - Does it add value to already existing G2B services? 3. Legal vs. Functional Mandate: who provides the service, how and why? Where office/website, capital/countryside, HQ - branches; 4. Participating Agencies at least 2 or more 5. Centralization and Delegation of Authority 4

6 Authority vs. Authority, who has the mandate 1. Function of the most common or the easiest service 2. Merger/integration of services under one roof or within one website - Linear/parallel approach existing agencies keep their authority - Integration approach some agencies give up their authority, others gain/absorb authority 4. Evolution of the OSS, phased approach start small, minimum 2 agencies and see how it goes 5. Staffing, funding, reporting lines 8 1. Have a vision How to Implement a OSS. What Type of OSS? 2. Determine the OSS function G2B OSS, G2C OSS, Tax OSS, Customs OSS, Business Registration OSS, Licensing OSS, Municipal OSS; IPA OSS or a hybrid 3. Check the existing legal mandates of agencies 4. Check who issues papers 5. Check who collects fees and why regulation or revenue collection 6. Check who has money and staff (capacity) to host the OSS 7. Who is ICT savvy? 8. Phased-out approach considering your own capacity 9. Avoid ideas affecting other agencies without discussing with them 10. Do not overdo, be realistic because it might get worse slower and more costly 11. Don t fix it if it ain t broken One More Stop Shop (Germany, France, West Africa) 12. Technology does not override the laws 9 5

7 Plan a OSS FORGET about it! 1. Forget about one-stop shops 2. Work out why you want to reform 3. Get support from the top the very top 4. Build a team 5. Ask for help, WBG, other experts 6. Prepare a plan 7. Find out what is happening now 8. Don t be afraid of the law 9. Simplify payment and procedures 10. Don t computerise 10 Plan a one-stop shop ONLY when ready! 11. Don t set up a new agency 12. Don t relocate staff 13. Simplify the documentation 14. Use a single number 15. Establish one point of contact 16. Handle information electronically, e-filing 18. Specify a computer system 19. Establish M&E 20. Set clear targets 21. Train the staff 22. Educate the public Plan the launch 6

8 International best practice: Designing a One-Stop Shop - Streamlining procedures through process automation The Investment Climate team surveyed business registrars or their advisers in 34 economies to find their approach to implementing ICT applications, the results achieved, and lessons learned. The following key considerations reflect their responses: 1. Reform before you Automate complete legal, regulatory, and procedural reforms before instituting business process software to fully realize the potential benefits of technology. 2. Critically assess the agency s ICT capacity, both staff and infrastructure if internal capacity is inadequate, identify hosting alternatives within government or the private sector. 3. Fully document the business and functionality requirements before procuring a technology solution this will also inform decisions concerning packaged versus custom-developed software. 4. Identify and build data linkages with other government agencies both to simplify the overall business entry process and ensure company data is fully leveraged to improve regulatory oversight. 5. Leverage the technology platform to produce new revenue streams including information products for financial institutions, credit bureaus, and other firms seeking company data. 6. Address change management and communications in the implementation plan to ensure all stakeholders are fully invested in the new solution. Source: Adapted from Wille, John; Belayachi, Karim; de Magalhaes, Numa; Meunier Frederic. Leveraging Technology to Support Business Registration Reform. IFC Investment Climate In Practice Notes. World Bank Group. Washington, DC. July Legal Foundation of OSS More Lessons from WBG experience Key instruments for coordination / delegation: - OSS Law - OSS Cabinet Decree or another form - MOU or Regulation which formalizes the limits of authority of line agencies against the central "shell" body example Single Window BR Agency for all business registrations, permits and licenses or Investment Promotion Agency (IPA) OSS - Terms of Reference (TOR) for the BR/IPA OSS and some form of acknowledgment that the line agencies recognize the primacy of IPA over themselves in case of a strategic foreign investor. The new EU members like the Czech Republic or Bulgaria implemented IPA OSSs with special laws, while Rwanda and Jordan went the way of MOU. In our experience, the MOU approach is realistic in short-time situations, the law/decree is not. 13 7

9 Key World Bank Group research on OSS: Do One-Stop Shops Work? Source: How Many Stops in a One-Stop Shop? Establishing a Successful One Stop Shop: The Case of Egypt 14 Thank you APEC! February 26, 2016 Dobromir Christow, Senior Private Sector Development Specialist 8

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