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JC&A Reinvents Rules

Central Asia:  Enterprises, Employment, and Enabling Environments

The goal of the USAID Central Asia Future Growth Initiative (FGI) Project is to increase employment and jobs through increased private productivity and competitiveness in Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.

As one of the three components of this 5-year multi-country the Project, Jacobs, Cordova & Associates is providing support to Palladium to strengthening the business enabling environment to enable business growth and job creation in target sectors. its role and responsibilities include:

  • Furnish LTTA and/or STTA both international and regional in accordance with program demand as specified by the COP and Program Director
  • Technical assistance to support initial and ongoing political economy analysis and understanding of political and institutional factors that impact business expansion to inform program activities
  • Work with key stakeholders, public entities and related parties to identify opportunities for regulatory reform, streamlining, and advocacy that target constraints to growth that can be addressed to increase competitiveness and job creation in target sectors
  • Provide country-specific and regional guidance and expertise pertaining to above identified opportunities related to regulatory streamlining and policy advocacy approaches as well as best international practices in regulatory streamlining and best practices particularly related to WTO and post-accession implementation, negotiation and implementation of trade facilitation agreements, and participation in other international agreements that will have a positive impact on job growth.

As the first deliverable, JC&A prepared between September 2019 and January 2020, five Political Economy Analysis (PEA) of the five countries based on extensive data collection including more than 40 meetings and interviews with relevant business and government stakeholders in the participating countries. Each PEA report provided stakeholders mapping and specific recommendations for work on key sectors such as information and communication technology, tourism, food and beverages, textile and garments sectors.

In 2020, JC&A has been working on regulatory reform to promote the Light Industry sector in Kazakhstan and e-Commerce regulatory framework for Uzbekistan.

Funded by USAID, under contract to Palladium, 2019-2024.

Indonesia:  Risk-based Approach for Business Licensing

On 22 November 2019, the newly reelected President launched a massive reform program to accelerate the review, reform and streamlining of the licensing system under the leadership of the Investment Coordinating Board (BKPM) and the Coordinating Ministry for Economic Affairs (CMEA). A central element of this reform consists in the review and reform of licenses and permits considered unfavorable for investors and businesses and more particularly to integrated into all licenses a risk-based approach. The new policy was embedded in the Investment Act (previously known as “Omnibus Act”) presented to Parliament in February 2020.

The Asian Development Bank has hired JC&A to develop executable recommendations and and prepare an implementation action plan to undertake the review of all businesses licenses according to risk-based criteria.

The project will be based on three interrelated activities:

  1. Undertake a general appraisal of government capacities to design and implement good quality licenses and permits based on international good practices
  2. Participate in a series of meetings with key decision makers to design a Policy Concept for risk-based licensing program based on recommendations and policy options adjusted to Indonesia.
  3. Prepare a Policy Proposal and an implementation Action Plan to present and discuss the report and building a political constituency for reform.

Asian Development Bank, 2020.