Cancun, Mexico, 21 June 2016
The OECD anticipates savings of up to 66% for citizens and businesses with the digitalisation of municipal procedures
On 21 June 2016, the OECD released the report “Savings in administrative burdens in Colima and Jalisco by the National One-Stop Shop”. The study estimates that by digitalising municipal procedures and processes for starting a business and construction permits, users could save up to 66% in administrative burdens in the State of Jalisco and up to 44% in the State of Colima. Administrative burdens represent the monetary value of the time citizens and entrepreneurs spend in complying with government formalities, including filling out forms, gathering requirements, visiting government offices to enquire about formalities, and the time required to make the corresponding payments.
According to the report, users of formalities to start a business or apply for a construction permit in the municipalities of the states of Colima and Jalisco would benefit from having formalities online. It would save them a visit to government premises, waiting time. Time dedicated to payments would be eliminated, and requirements would be simplified. The initiative to digitalise formalities is part of the programme of the National Digital Strategy and the National One-Stop Shop for Formalities and Services, implemented by the Office of the President of the Republic of Mexico and by the Ministry of Public Administration.
The municipalities that were part of the report for the State of Colima are Armeria, Colima, Comala, Coquimatlan, Cuauhtemoc, Ixtlahuacan, Manzanillo, Minatitlan, Tecoman, and Villa de Alvarez. In the case of Jalisco, the municipalities are Ameca, Autlan de Navarro, Chapala, Colotlan, El Salto, Guadalajara, Ixtlahuacan de los Membrillos, Juanacatlan, La Barca, Lagos de Moreno, Ocotlan, Puerto Vallarta, San Juan de los Lagos, San Pedro Tlaquepaque, Tepatitlan de Morelos, Tlajomulco de Zuniga, Tonala, Zapopan, and Zapotlan el Grande.
The report was presented by the Secretary General of the OECD, Jose Angel Gurria, who stressed the importance of intensifying the steps of digitalisation for citizens and entrepreneurs. The report estimates that the administrative burdens of the formalities for starting businesses and construction permits totalled 8.9 million pesos in the state of Colima, and 346 million pesos in the state of Jalisco. The digitalisation of these formalities by the National One-Stop Shop would represent savings of 3.9 million in Colima (44%) and 228 million in Jalisco (66%). The report used an adaptation of Standard Cost Model, which is a tool used by OECD member countries to measure the administrative burdens generated by government formalities. This methodology was created in the Netherlands, and has been widely used in the United Kingdom, Canada and the European Commission.
The report was launched in the framework of the 20th Anniversary of the OECD Centre in Mexico for Latin America, and the OECD Ministerial Meeting on the Digital Economy, held in Cancun from 20 to 23 of June 2016.
The presentation was attended by the Secretary of Public Administration, Virgilio Andrade Martinez; the Vice-Ministry of Competitiveness and Business Standards of the Ministry of Economy, Rocio Ruiz Chavez; the Parliamentary Under-Secretary of State and Minister for Intellectual Property in the UK, Baroness Lucy Neville-Rolfe; the Governor of the state of Colima, Ignacio Peralta Sanchez; the Commissioner of the Federal Telecommunications Institute, Adriana Labardini; the President of the Industrial sector of Information Technologies and Knowledge Economics of CANACINTRA, Nicolas Torres; the Representative Director of CAF in Mexico, Moira Paz Estenssoro; the Minister of Science, Technology and Telecommunications of the Government of Costa Rica, Marcelo Jenkins Coronas; the Ambassador of Mexico to the OECD, Dionisio Perez-Jacome; and the Senior Economist of the Regulatory Policy Division of the OECD, Manuel Gerardo Flores; among other important representatives of the public, private and academic sectors.
For more information, please contact:
OECD Regulatory Policy Division in Mexico @OCDE_RegMx
Andres Blancas Martinez, Economist, OECD @andresblancasm