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As part of this project, the JC&A team is working to simplify and re-engineer 15 high-impact municipal regulations using BPR tools. The highest regulatory compliance burden is concentrated among a handful of complex high-impact regulations that lack transparency and have a high degree of administrative discretion. JC&A will select 15 e of these regulatory requirements in close consultation with the municipalities and the private sector. Other components of the project are:

  • Modernization of local regulatory, permitting, and inspection processes: advancing the modernization and streamlining of the local regulatory framework and associated procedures are primarily digital, including effective compliance and appeal systems, and sustainably reduce undue administrative discretion; and
  • Strengthening private sector regulatory compliance and advocacy capabilities: providing technical assistance and accompaniment to MSMEs to better deal with the regulatory environment and provide them with the necessary tools to influence and be part of local regulatory processes and practices.

JC&A services are framed within the first component of the project (see above) and cover the following areas:

  1. Run a VECS certification process with municipal officials of target municipalities. VECS is CONAMER’s (National Commission on Regulatory Improvement) simplified one-stop building permit model. It has successfully streamlined permitting for commercial buildings under 10,000 square meters. However, it is a complex program that requires long implementation periods and intense work by municipalities. Hence, CONAMER has only been able to implement between 5 and 8 a year. The Activity will double that capacity by training municipal officials, launching the certification process, and advising them on implementing VECS in the target municipalities.
  2. Assess the current municipal inspection system in 10-15 municipalities and implement a new inspection system for each municipality. The inspection system is one of the most problematic aspects of municipal governance, and it has been used as a tool for extortionary tactics on businesses. This is one of the reasons CONAMER established the new registries of inspections and inspectors. However, revamping how inspections are conceived, planned, and executed is necessary to improve their transparency, predictability, and effectiveness. JC&A will develop a new inspection model, learn from international best practices, and pilot it in target municipalities to be adopted.

Mexico, USAID through Centro de Estudios Económicos del Sector Privado (CEESP) from the Consejo Coordinador Empresarial (CCE), 2021-2024