Publication: Here Is Your Money: Using the Standard Cost Model to Measure Regulatory Compliance Costs in Developing Countries
Loading...
Published
2010
ISSN
Date
2017-08-15
Author(s)
Editor(s)
Abstract
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.
Link to Data Set
Citation
“International Finance Corporation; World Bank. 2010. Here Is Your Money: Using the Standard Cost Model to Measure Regulatory Compliance Costs in Developing Countries. © World Bank. http://hdl.handle.net/10986/27829 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Doing Business 2014 Regional Profile : Common Market for Eastern and Southern Africa(World Bank, Washington, DC, 2013-10-29)This regional profile presents the Doing Business indicators for economies in Common Market for Eastern and Southern Africa (COMESA). It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: Europe and Central Asia, Economic Community of West African States, Middle East and North Africa, Organization for the Harmonization of Business Law in Africa, and OECD High Income. The data in this report are current as of June 1, 2013, except for the paying taxes indicators, which cover the period January to December 2012. Regional Doing Business reports capture differences in business regulations and their enforcement across countries in a single region. They provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. The report sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and employing workers. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies, from Afghanistan to Zimbabwe, over time. The data set covers 47 economies in Sub-Saharan Africa, 33 in Latin America and the Caribbean, 25 in East Asia and the Pacific, 25 in Eastern Europe and Central Asia, 20 in the Middle East and North Africa and 8 in South Asia, as well as 31 OECD high-income economies. The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why.Publication Doing Business Regional Profile 2012(Washington, DC, 2012)Doing business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 10 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. In a series of annual reports doing business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time. This economy profile presents the doing business indicators for the Common Market for Eastern and Southern Africa (COMESA). To allow useful comparison, it also provides data for other selected economies (comparator economies) for each indicator. The data in this report are current as of June 1, 2011 (except for the paying taxes indicators, which cover the period January-December 2010).Publication Doing Business 2014 Regional Profile(Washington, DC: World Bank, 2013-10-29)This regional profile presents the Doing Business indicators for economies in The g7+. It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: Small island states, Asia-Pacific Economic Cooperation, European Union, and OECD high income. The data in this report are current as of June 1, 2013, except for the paying taxes indicators, which cover the period January to December 2012. Regional Doing Business reports capture differences in business regulations and their enforcement across countries in a single region. They provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. The report sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and employing workers. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies, from Afghanistan to Zimbabwe, over time. The data set covers 47 economies in Sub-Saharan Africa, 33 in Latin America and the Caribbean, 25 in East Asia and the Pacific, 25 in Eastern Europe and Central Asia, 20 in the Middle East and North Africa and 8 in South Asia, as well as 31 OECD high-income economies. The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why.Publication Tools and Approaches to Review Existing Regulations(World Bank, Washington, DC, 2010)This paper looks at the existing tools and approaches most commonly used in developed and developing countries to review the stock of regulations. The tools reviewed can generate benefits in the short term, but they are most effective as part of a longer-term sustained initiative. This paper has a particular focus on the challenges that arise from their use in emerging and developing countries. The objectives of this paper include: 1) explaining the rationale for the use of these tools and approaches; 2) discussing each one of them in a succinct way; 3) considering the extent to which these tools can support more systemic regulatory reforms in the medium and long terms; and 4) considering the particular challenges and opportunities regarding their use in developing and emerging economies. Section one is a brief description of the rationale and context for applying tools and approaches to review the stock of regulation. It includes a reference to benefits and preconditions to make use of these tools. It also presents a categorization of the most commonly used tools and a comparative table on the way these tools can be applied. Section two presents a description of each of the different tools and approaches available, and discusses the way they are used and their main components. It includes references to international experiences in which these tools have been integrated into the regulatory reform process. Section three presents preliminary commentary about some of the potential advantages, disadvantages, and impacts of using these tools and approaches in developing countries. Some particular cases are presented to illustrate these trends. The section also includes a short description of the sequence observed in the use of some of these tools. Moreover, this section illustrates how these tools can (or cannot) generate gains in the short term and also provide a basis for further and broader regulatory reform programs.Publication Doing Business Regional Profile 2012(World Bank, Washington, DC, 2012)Doing business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 10 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. In a series of annual reports doing business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time. This regional profile presents the doing business indicators for OECD high income. To allow useful comparison, it also provides data for other selected economies (comparator economies) for each indicator. The data in this report are current as of June 1, 2011 (except for the paying taxes indicators, which cover the period January-December 2010).
Users also downloaded
Showing related downloaded files
Publication State and Trends of Carbon Pricing 2024(Washington, DC: World Bank, 2024-05-21)This report provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including international, national, and subnational initiatives. It also investigates trends surrounding the development and implementation of carbon pricing instruments and some of the drivers seen over the past year. Specifically, this report covers carbon taxes, emissions trading systems (ETSs), and crediting mechanisms. Key topics covered in the 2024 report include uptake of ETSs and carbon taxes in low- and middle- income economies, sectoral coverage of ETSs and carbon taxes, and the use of crediting mechanisms as part of the policy mix.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.