Here Is Your Money : Using the Standard Cost Model to Measure Regulatory Compliance Costs in Developing Countries
Over the last few years the Standard Cost Model (SCM) has become the regulatory reform tool of choice in European Union (EU) and Organization for Economic Co-operation and Development (OECD) countries for identifying and reducing regulatory complia...
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| Language: | English en_US |
| Published: |
Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/648191468331774700/Here-is-your-money-using-the-standard-cost-model-to-measure-regulatory-compliance-costs-in-developing-countries http://hdl.handle.net/10986/27829 |
| Summary: | Over the last few years the Standard
Cost Model (SCM) has become the regulatory reform tool of
choice in European Union (EU) and Organization for Economic
Co-operation and Development (OECD) countries for
identifying and reducing regulatory compliance costs. SCM
provides a relatively simple methodology to measure and
communicate businesses' paperwork obligations arising
from compliance with governments' regulations. More
recently the SCM has also been adapted and applied in a
number of developing countries, including Kenya, Zambia,
Vietnam, Burkina Faso, and Rwanda. It is still too early
days to conclude much on the SCM model's general
applicability in developing countries. However as part of a
broader reform package the SCM has proven capable of
strengthening momentum by providing new insights into
regulatory obligations, by quantifying the costs and time
associated with information obligations both at aggregate
and at a rule-specific level. It has hence proven useful
both as a tool to target specific interventions and to
monitor the impact of reform. This document provides a
number of lessons from the first few years of using SCM in
regulatory reforms, with a focus on business licensing, in
developing countries. These lessons are not intended to
provide a final account on how SCM is to be carried out in
developing countries. Along with its dissemination across
the globe, SCM has experienced a constant development. This
document aims to point out a number of important issues that
have been observed and tested during the initial
measurements in World Bank client countries to prevent
future practitioners from the need to re-invent the wheel. |
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