© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Simplification of Administrative Procedures for

Egypt

Results of the ERRADA/SIGMA project activities

September 2015 – April 2016

Cairo, 2 June 2016

Tarek Hamza and Mohammed Eissa, ERRADA Wolfgang Rusch, OECD/SIGMA

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Administrative simplification

Egypt is seeking to build a more competitive and sustained economy.

The government aimes at ensuring regulations that are more effective and efficient.

Regulatory reform reduces regulatory complexity and uncertainty and cuts red tape.

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Administrative simplification

Simplification of procedures requires

Review of legal acts

Restructuring of administrative practices/procedures

Cutting red tape to ensure efficiency, effectiveness and good quality services to citizens and businesses

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Administrative simplification

Simplification of procedures aims at

Improving the competitiveness of Egyptian economy

Creating a simpler regulatory environment for citizens/ investors

Improving the efficiency of working environment of state personnel thus increasing their motivation

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Administrative simplification

Methods available for simplifying administrative procedures

One-stop shop (physical/electronic)

Process re-engineering

Time limits for administrative decision-making

Methods to measure administrative burden

The use of IT driven mechanisms

Administrative simplification bodies such as ERRADA

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Administrative simplification

ERRADA

Legislative reformRegulatory Impact

Assessment (RIA)

Simplification of

administrative proceduresConsultation

E-Registry

Services Regulations

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Areas of project activities

• Design of the project methodology

• Analysis of a concrete administrative procedure and recommendations for simplifications

• General rules for good administrative procedures

Objective of the ERRADA/SIGMA project

Further developing theERRADA Draft Manual on Simplification of

Administrative Procedures

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

The work programme included:

Case studies on examples of Egyptian administrative cases discussed in light of EU principles of Good Administration

Selection of the object of analysis: IDA procedure

Detailed analysis (“process mapping”) of the IDA procedure “Renewal of an Industrial Licence”

From every-day reality to general rulesSeven-step approach of the ERRADA/SIGMA project

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Assessing this process in light of “Principles of Good Administration” applicable in the EU

Recommendations for the IDA procedure focussing on citizen-/investor-orientation

General rules for administrative procedures inEgypt derived from analysis and EU principles

From every-day reality to general rulesSeven-step approach of the ERRADA/SIGMA project

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Investor - orientationRecommendations for the IDA procedure

9 recommendations to change administrative practice and behaviour vis-à-vis investors

In total 37 detailed sub-recommendations for implementation

Assessment of feasibility of implementation for each recommendation

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU Recommendations

IDA as a true point of single contact (“one-stop shop”)

The applicant able to undergo the whole procedure without multiple personal appearance at the IDA office

IDA’s responsibility for following up of the correspondence bodies’ approvals

Investor - orientationRecommendations for the IDA procedure

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Investor - orientationRecommendations for the IDA procedure

Recommendations

Effective system of IDA inspection

IDA keeps investor informed (customer-oriented practice)

IDA Executive Commission representing all administrative correspondence bodies

As a rule: a permanent licence issued without limitation of its duration.

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Citizen at the heart of Good Administration General rules for good administrative procedures

9 general rules on procedures relevant for the whole public administration in Egypt

Derived from the concept of “Good Administration” and related legislation applicable in the EU and its Member States

Good Administrative procedures are imperative for a favourable environment of investment

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Citizen at the heart of Good Administration General rules for good administrative procedures

General rules for good administrative procedures provide:

Legal certainty and predictability of administrative decisions

Clearly defined competences and responsibilities of administrative authorities

Pre-defined decision-making processes

Efficient, simple, speedy procedures

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Citizen at the heart of Good Administration General rules for good administrative procedures

General rules for good administrative procedures provide:

Assistance and advice to the citizen/investor involved in a procedure

The citizen’s opportunity to make a statementon facts and circumstances relevant to the administrative decision

Point of single contact (“one-stop shop”) approach

Cooperation between administrative bodies

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Citizen at the heart of Good Administration General rules for good administrative procedures

General rules for good administrative procedures provide:

The administrative body’s compliance with the proportionality principle

Limitation of discretionary power

Explanation of the grounds of an administrative decision

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Citizen at the heart of Good Administration General rules for good administrative procedures

In this way good administrative procedures:

reduce transaction costs for citizen/investor and state budget,

promote social trust in the executive power and thus contribute to political stability,

foster economic development and social wealth.

In contrast, a malfunctioning and non-transparent administration is an obstacle to productive investments and

can lead to citizen’s distrust of the state.

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Conclusive remarks

9

Do

CheckAct

Plan

© OECD

A j

oin

t i

nit

iati

ve o

f th

e O

EC

D a

nd

th

e E

uro

pean

Un

ion

,

pri

nc

ipall

y f

ina

nced

by t

he

EU

Conclusive remarks

Do

CheckAct

Plan