The document summarizes a presentation on regulatory reform and increasing competitiveness in Western Balkan countries. It discusses how regulatory adjustments have lagged behind business and social changes, reducing competitiveness. It also notes that public-private partnerships, transparency, communication strategies, impact monitoring, political commitment, and preparation are key factors for successful regulatory reform. Lessons learned emphasize the importance of preparation over implementation, ensuring high-level government support, positioning implementation units close to government, and using results to promote further reforms.

1. II. International Regulatory Reform
Conference
Enhancing Competitiveness in
Western Balkans
Berlin, November 17, 2008.
Vedran Antoljak, Managing Director

2. 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
Leadership
Innovation
Education
Regulations
Export
Administration
Security
Entrepreneurship
Development
Technology

3. Regulatory reform increases competitiveness
Regulatory adjustments are lagging behind the dynamic changes of the
business environment and development of the society
Socio-economic dynamics
Regulatory dynamics
COMPETITIVENESS

4. Good regulatory reform needs active private-public partnership
Creating public-private-partnership is crucial
to appropriately increase a competitiveness levels of a country
Public
administration
and regulators
Private sector
and business
community

5. Clear and equal stakeholders’ standards ensure transparency
Businesses and citizens (citizens)
67 Regulatory
Bodies
Business Advisory Council
(ministries & agencies)
(business community)
RECOMMENDATIONS
Government of Croatia

6. Communication strategy is esential to manage expectations
Government
Reporting
Recommendations
Special Unit for
Regulatory
bodies
Stakeholders
meetings/consultations
• Ministries
• Agencies
• Independent
regulators
•…
Working
groups
Business
Advisory
Council
(BAC)
Information,
call-center
WEB
Members
(companies)
Info
web
Media
Donors
www.hitrorez.h
r
General Public

7. SCM was used to project impacts of reform
Adjusted Standard Cost Model (SCM) calculations were used to project
(ex-ante) impacts and set baseline for measuring ex-post reform impacts
CA
NC
E
L
KE
EP
CH
AN
GE
SCM calculation projected EUR 200 million administrative cost
sacings for enterpreneurs and companies

8. 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-post 2007-2008
• Ex-ante 2007-2009
• After 50% implementation
• Estimated before adaption by the GoC and implementation
• Administrative cost savings by October
• Administrative cost savings based on 30% of recommended changes
EUR 16.2 m
EUR 200 m

9. 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 donor
monitoring through
diverse reports

10. Reform is successful only if key success factors are activated
TRANSPARENCY
CHAMPION
POLITICAL
COMMITTMENT
GOOD
PREPARATIONS
10

11. Lessons learned – How to ensure maximum reform impacts
• 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)
11

12. 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
12

13. Contact
Vedran Antoljak
Managing Director
Information and contact:
E-mail: vedran.antoljak@senseconsulting.eu
www.senseconsulting.eu