Review of Costa Rica’s One‑Stop Shop for Investment

2. Comparative analysis on best regulatory practices

Abstract

This section focuses on developing a comparative analysis of the main elements that have shaped the way that Costa Rica's One-Stop Shop for Investments operates as a public policy, based on the OECD Best Practice Principles for Regulatory Policy: One-Stop Shops for Citizens and Business. This section presents a summary of each principle, and analyses to what extent one-stop shop practices, policies and operational processes comply with each of them.

This chapter presents a comparative analysis of the procedures carried out by Costa Rica's VUI with the OECD principles outlined in its One-Stop Shops for Citizens and Business (OECD, 2020[1]). The OECD refers to two general and 10 specific principles, which are briefly presented in Box 2.1.

The OECD principles on One-Stop Shops for citizens and business are intended to be a point of reference for OECD member and partner countries and to provide guidance on implementing digital windows. Some of these principles represent very ambitious goals, and meeting all of them would be a challenge for any country. However, each principle is supported by actual experiences in different countries, so individually, they should not be considered unrealistic. The following sources provide some of the most relevant examples of implementing One-Stop Shops for citizens and business at an international level: https://www.gov.uk in the United Kingdom; https://www.canada.ca in Canada; and https://www.informationsportal.de/ in Germany.

Box 2.1. Principles on best practices for one-stop shops models for citizen and business procedures

The principles on best practices for one-stop shops used for procedures for citizens and business provide a real insight into the difficulties encountered in designing and operating them in OECD member countries. The principles are designed to achieve an adequate level of public governance, based on the experiences of countries such as Canada, Germany, Portugal and the United Kingdom. In particular, the principles were constructed based on an analysis of the following:

Canada

Service Canada, currently operating as Canada.ca, serves as a single point of access for citizens to a wide range of government services, offering the most important government programmes and services.

BizPaL was launched as a pilot project bringing together a set of participating governments, and allows Canadian businesses to easily identify the permits and licences required at all levels of government to set up and operate a business.

Germany

The Informations Portal für Arbeitgeber was established as part of a strategy to reduce bureaucracy. It provides first-time employers with information on their social security rights and obligations.

Norway

Altinn serves as the single point of contact in Norway and is responsible for implementing the EU Services Directive. This single point of contact is the government's electronic portal that allows service providers to obtain information on the lifecycle of a business, from setting up to winding up. The portal can be used to manage administrative procedures online.

Portugal

The ePortugal.gov.pt portal is the starting point for 1 000 government services, providing information, guidance and services to citizens and businesses. The portal serves as a detailed guide for managing procedures for professionals, employees, migrants or other individuals that need to interact with the government. The portal is organised using a life events approach and services are provided by 590 entities representing central government, local government and private entities.

United Kingdom

The GOV.UK website is the starting point for 152 essential government services. As a UK government website, GOV.UK has a very broad scope that includes many policy areas related to both citizens and business. The UK's Primary Authority provides legally assured advice that is tailored to the specific needs of companies to give them a better understanding of what they need to do to comply with the law. Advice is given by local authority regulators, in consultation with businesses or representatives of relevant trade associations or franchises.

One-stop shops for procedures should be part of broader strategies to streamline administrative processes. They are a critical component of regulatory implementation and can help maximise the potential gains from programmes to streamline administrative processes. One-stop shops for procedures should be user-centred and based on life events. In this way, they can help bring government closer to citizens and businesses as swiftly as possible.

The general principles for digital windows are summarised as follows.

General principles

One-stop shops for procedures should be part of broader strategies to streamline administrative processes.

One-stop shops for procedures should be user-centred and based on life events.

Specific principles

• Political commitment

• Ensure strong, long-term political support.

• Establish continuous communication between the political and administrative levels when developing, implementing and improving one-stop shops for procedures.

Leadership

• Managers need to be committed to the objectives of one-stop shops for procedures and be flexible if goals change.

• Develop realistic plans.

• Ensure that good project management practices are followed.

• Ensure that one-stop shops for procedures are appropriately staffed and resourced.

Legal framework

• Make the necessary adjustments to the legal framework to ensure co-operation with other agencies and to ensure that one-stop shops for procedures can maximise their potential net benefit to society.

Co-operation and co-ordination

• The entities responsible for planning one-stop shops for procedures need to have strong communication and feedback channels with those responsible for implementing them.

• Focus on building strong relationships and permanent communication channels between all participating agencies and other actors.

Clarity of functions

• Establish clear objectives and expectations about what one-stop shops for procedures can achieve.

• Focus the design and structure of one-stop shops for procedures on user needs and requirements, based on focus groups, surveys and pilot tests to identify the needs and expectations of potential users.

Governance

• Design a governance structure for one-stop shops for procedures in which all agencies participate at an executive level and high-level political commitment can be obtained.

• Develop governance mechanisms that allow one agency to run a one-stop shop for procedures to make operational decisions.

Public consultation

• Conduct public consultations to determine whether or not one-stop shops for procedures are the best solution from the users' perspective.

• Plan and execute a pilot phase to test services before they go live, making sure they meet user expectations.

• Follow a phased approach when implementing one-stop shops for procedures, ensuring that lessons from one phase are taken into consideration before implementing subsequent phases.

Communication and technological considerations

• Use communication methods that are most beneficial to users and take into account any potential accessibility issues.

• If information or assistance is provided through multiple channels, customise content to help users.

Human capital

• Allocate sufficient resources to changing management and designing customised programmes to train staff that use one-stop shops for procedures.

• Focus training on interpersonal and social skills as well as on technical competencies.

Monitoring and evaluation

• Establish quantitative and qualitative indicators and evaluation methods to test the success and quality of the service provided to users.

• Implement continuous improvement processes.

Source: (OECD, 2021[2]).

The chapter explains how each OECD principle is represented in the one-stop shop, and analyses the practices used that would have an impact on the window's effectiveness and/or efficiency, according to each principle.

General principles

Costa Rica's VUI should be part of a broader national strategy to streamline administrative processes. While one-stop shops are tools that promote the reduction of administrative burdens and the increase of governmental efficiency, streamlining administrative processes is a broader strategy that encompasses a diverse field of action (Box 2.2).

Box 2.2. One-stop shops as part of a broader strategy to streamline administrative processes

Traditionally, strategies to streamline administrative processes have focused on estimating administrative burdens and subsequently eliminating them. The most widely used tool for estimating administrative burdens is the Standard Cost Model (SCM), which calculates the administrative costs of regulations. The estimate can be used to establish a simplification plan with well-defined priorities for reducing bureaucracy or eliminating regulatory barriers in economic or social processes or activities.

One-stop shops have been launched as a means of reducing administrative burdens in different countries. However, one-stop shops have little impact on improving the effectiveness of laws, or solving duplication or implementation problems, or regulatory gaps.

In summary, one-stop shops should be used as a means to improve service delivery, reduce transaction costs and improve social welfare, but they only address some of the problems that may arise from an ineffective regulatory framework. Moreover, streamlining administrative processes is merely a tool to improve regulatory management and quality.

Source: (OECD, 2020[1]).

Costa Rica's VUI is one element of what might be a comprehensive strategy for regulatory improvement policy in the country. However, the different elements, projects or lines of action that contribute to improving the country's regulatory quality are not necessarily working together as part of an integrated strategy.

On the one hand, the MEIC is the institution in charge of regulatory policy at the national level. This ministry is responsible for promoting and supervising the design and implementation of regulatory improvement policy tools, such as those to streamline procedures in the country. For the MEIC, one of the main action areas for streamlining procedures and processes in government entities is the design and monitoring of regulatory improvement plans (PMR in Spanish). The regulatory improvement plans are updated annually by all executive branch agencies. When designing these plans, the agencies draw up an initial proposal that is submitted for public consultation to identify the procedures for inclusion in this working plan. On the other hand, PROCOMER is the institution responsible for promoting investment in the country and Costa Rican exports. The VUI, which was developed as an initiative of PROCOMER, carries out and promotes actions that are aligned with a regulatory policy agenda, such as streamlining procedures for securing investments.

In this regard, although the MEIC and PROCOMER both introduced a number of streamlining processes at the municipal and health levels, and both agencies established and achieved shared goals under the National Development Plan 2018–2022, it has not been possible to leverage potential synergies due to a lack of effective and systematic co-ordination between the two institutions. For example, although the regulatory improvement plans are an important simplification tool for the MEIC, a lack of systematic co-ordination with PROCOMER prevents the agencies from identifying areas of joint interest or leveraging possible synergies and complementarities to simplify procedures for the VUI.

In 2022, the MEIC and the Ministry of the Presidency launched a cross-cutting streamlining strategy called “Le dejamos trabajar” ["We Let You Work"]. The objective of this policy is to identify the main bottlenecks or barriers to the growth of productive sectors and the generation of employment, which would not necessarily fall under the window's scope. The strategy for identifying the main barriers was based on consultation with several business sector representatives. As a result of work undertaken to date, 140 bottlenecks have been eliminated (or processes have been streamlined), with those that do not require legal reforms for primary laws given priority. Although this strategy has had considerable success with regard to streamlining administrative processes, it is not systematically co-ordinated with PROCOMER so as to identify other areas of possible overlap in addition to those already identified, or to leverage resources or synergies. Of the 140 bottlenecks, only one overlaps with the VUI. This type of strategy could provide a different approach to identifying barriers to investment and to identify areas where opportunities exist in addition to those that PROCOMER is currently pursuing (MEIC, n.d.[3]).

Although the MEIC and PROCOMER are part of the VUI Steering Committee, which is the body that makes decisions about procedures that are to be streamlined, co-ordination is not limited to this forum and these actors. The MEIC, for example, recognises that one of the main reasons for the lack of institutional co-ordination is the lack of resources and institutional capacities.

The one-stop shop as a citizen-centred strategy organised by life events

In order for the one-stop shop to achieve the highest levels of efficiency and effectiveness, it must adopt a life event approach to both the management of government procedures and services, and to communication with citizens and businesses (Box 2.3).

Box 2.3. Life events on government portals

A life event is the end or final goal that a citizen (or a company) has in the various roles or areas of their life, such as going to college, having children or starting a business.1 Web portals based on life events are developed, organised and managed based on an assumption that faced with a defined objective, most individuals or companies do not know what public services they need or what obligations they must fulfil. The user only knows what they want to achieve; for example, build a house or start a business. Thus, the construction of a web portal based on life events must be able to determine which services and administrative procedures must be resolved in order for each person to achieve their goal. In this sense, a life events portal is a map of processes based on tangible needs, but unlike traditional portals, the procedures are management units that are completely separated from citizens' needs.

Usually, in order to achieve an objective, the individual or company must visit a series of agencies that have different information requirements. For example, to set up a company, an entrepreneur must comply with environmental, health and tax permit requirements, among others, each issued by different government offices. A portal based on life events reduces information asymmetries and manages procedures in digital formats, thereby avoiding duplication of information requirements.

In this regard, the aim of a portal for procedures and services should be to offer an integrated experience through various communication channels (e.g. the possibility of starting a process by telephone, continuing it online and completing it in person). These portals collect information in a more logical and useful way for users, although at the beginning they may generate some costs for governments. Fundamentally, these portals do not require users to understand the inner workings of the government to be able to complete the required transactions.

Life-event-based portals should contain all the knowledge about the services (or procedures) that are needed to assist a user in a particular situation. Normally, a life event may involve several procedures, processes and local or national authorities. The main characteristics of a life event portal are as follows:

• The portals are organised according to real objectives and needs.

• Users do not need to know the steps, procedures or authorities required to perform an action.

• Procedures are part of a process to perform an action.

• The focus is on the result, not the process.

• They are integrated, customised, user-friendly systems.

Most countries in the world are implementing projects to manage procedures and services electronically. One of the main objectives is to streamline their operations by promoting accountability and transparency, reducing opportunities for corruption and improving communication between citizens and government entities.

Adopting a life events approach to service delivery places the citizen at the centre of public policy. Therefore, for the portal to be a success, effective communication is essential. For example, using everyday language and avoiding unnecessary technicalities. Internationally recognised examples of life event portals that have been adopted are www.gov.uk and www.canada.ca.

Finally, it is important to mention the following recommendations for successfully implementing a life events portal: standardise the definition of “procedures” and adopt terminology that is shared by different users.

1The one-stop shop's work focuses on a macro life event, namely setting up a company. However, this specialised approach does not mean that there are other life events that are part of the macro process of setting up a company.

Source: (Thorogood, 2020[4]) (Vintar and Leben, 2002[5]).

The published version of the VUI does not present a system that is organised by life events. Currently, on the portal https://vui.cr/ there are 11 different procedures that are classified as "Pre-Business Start-up" or "Business Start-up", with no information on the possible sequence or order in which someone should approach the various procedures associated with starting up a business. The VUI has updated its definition of a life event by condensing all the information requirements (procedures) for setting up a company into a single procedure for citizens. However, this does not mean that, in the future, different company profiles will require specialised information (and therefore permits) that will require a separate process. Furthermore, depending on the company profile, sector or other characteristics, the time required to complete the same procedure may be different (risk-based regulation) if it involves a procedure that differs from the standard process.

The VUI is working on simplifying a series of procedures, steps and processes (125) at the national and subnational levels, as well as on internal processes for their management. PROCOMER has already categorised these procedures, steps and processes, but they are not classified according to a life event approach in which potential investors are guided on the different processes they can follow, depending on their aims and needs. Although PROCOMER has published the Investor's Guide on its institutional portal to provide information to users on how procedures are managed, it is important to design technological solutions that minimise the need for external assistance to manage the procedures.

On the other hand, the definition of a procedure used by the VUI does not necessarily match the definition provided by the MEIC, which uses more standardised definitions in the field of regulatory improvement. PROCOMER's definition includes procedures and internal processes. This difference in the definition of a “procedure” has implications for developing a portal organised by life events.

The procedures to be simplified and published are grouped as follows, by order of priority:

• free trade zone

• setting up a company

• migration procedures

• environmental procedures

• construction procedures

• preliminary procedures for setting up a company

• registration procedures

• inspection procedures

• renewal procedures

• laws and decrees.

As part of its differentiated approach, Costa Rica's VUI is working on consolidating procedures within a single event in order to manage them simultaneously. In other words, the system is designed to collect the information required by the different procedures for a life event (for example, setting up a company), and once the user has completed this information, it is sent to all agencies simultaneously, thereby merging the different procedures into one (corresponding to the life event).

Specific principles

Political commitment

The OECD's experience suggests that initial and ongoing political commitment at the highest level is a key element for the development and sustainability of digital one-stop shops (Box 2.4). High-level political commitment ensures that public policy is a priority on the jurisdiction's public agenda, and ensures that it receives the necessary resources (human, physical or financial) to implement the policy. Likewise, political commitment raises visibility about developing one-stop shops and facilitates inter-institutional co-ordination.

Box 2.4. The relevance of political commitment for a successful one-stop shop.

Political commitment is one of the main factors behind the regulatory quality policy and is a key factor in ensuring the success of one-stop shops. In this sense, it is very important to have a permanent communication channel for decision-making at the highest level. This channel should be used to provide updates on the windows' progress and to obtain assistance in overcoming any problems or difficulties during implementation.

Source: (OECD, 2020[1]).

As the VUI is a fundamental element of PROCOMER's public agenda, it has high-level political support both from the institution itself and from the Costa Rican Presidency. The high level of political commitment can be seen in the amount of work achieved by the VUI, which was originally planned to deal with free trade zone procedures, but has managed to spread transversally (between different institutions) and vertically (between levels of government). Currently, the VUI works with 38 institutions from different levels of government; this would not be possible without national political support.

The PROCOMER 2023–2026 Strategy states the following actions that are part of the VUI:

• re-engineering VUI procedures

• process automation through the VUIʼs platform

• the VUI tariff. Currently, the platform is available free of charge.

The windowʼs work with institutions at other levels of government (municipalities) also requires the political commitment of respective partners. In this regard, the steadfast commitment of the heads of government has been observed in the various meetings that the OECD has held with a group of participating municipalities. Although it was not possible to confirm each municipality's commitment, several representatives from the municipalities that participated in the working meetings expressed the support of the head of government. PROCOMER reports that it has held working sessions with 74 municipalities, of which 56 have collaboration agreements in place and 51 are working on implementation.

Leadership

The heads of institutions, managers, directors and decision makers at the different levels of government must be committed to the objectives and goals established for developing one-stop shops, and to adapting to changes in public policy that have an impact on such tools. In addition, establishing realistic working plans and goals is essential to ensure good project management practices. Sufficient resources, whether human, financial or material, are needed to achieve this objective (Box 2.5).

Box 2.5. One-stop shop planning and leadership

The following are essential in managing one-stop shops: realistic planning, establishing clear and practical objectives for each stage, and assigning adequate deadlines for each task. A critical path must also be established which includes any obstacles that may impede implementation of the window. It is important to mention that unrealistic plans may lead to problems in executing them, and goals and commitments not being met. This situation may negatively affect the provision of services and users' perception.

It is not uncommon for working plans to implement public policies to be subject to change. This is often the case with one-stop shops, and managers must adjust plans to conduct a realistic process. In fact, in the OECD's experience, the growth of windows follows an organic trend, rather than a planned or anticipated one. It is important to take this factor into account when planning the budget for a one-stop shop.

Source: (OECD, 2020[1]).

PROCOMER is counting on the leadership of its managers to position the VUI for investment as a vital business facilitation strategy. In fact, the success of the VUI and its work team is clear from its expansion from a system that only deals with free trade zone procedures to one that manages all procedures related to setting up a company. Moreover, its success is apparent from the new institutions incorporated at the national level, as well as municipalities that incorporate new procedures so that the VUI team can simplify and digitise them in the medium term. It is important to mention that the window was created to exclusively manage free trade zone procedures. In practice, however, it was clear that the results had cross-cutting benefits for all types of companies.

One of the issues with the window's success within the government is the potential to underestimate the work required to achieve the commitments that have been made. This may have resulted in further responsibilities being added due to a number of procedures, steps and processes that will be incorporated into the window. This may generate a problem of trust in the medium term, not only among government institutions, but also with the window's end users, by creating expectations that are not fulfilled within the expected timeframe. The window currently has 46 procedures, steps or processes in operation on the portal that have been improved with digital technology; however, there are a total of 125 procedures, steps or processes on the waiting list. Seven years into the VUI project that began in 2016, it may be delayed in fulfilling its objectives due to its increased workload.

The window became operational in 2016 using resources allocated by PROCOMER from the free trade zone fee, but in 2021 specific resources were allocated to the project. Furthermore, to enable the VUI to achieve specific objectives, the Inter-American Development Bank (IDB) provided an initial contribution through the Border Integration Program, starting in 2021. PROCOMER has stated that it has sufficient resources to develop the window over the next five years if the current procedures are maintained. However, the window has experienced a rise in the number of procedures it manages in recent years.

Legal framework

A legal framework is fundamental to ensuring a public policy is applied correctly and implemented effectively (Box 2.6). The VUI is governed by Law No. 7210 on the free trade zone regime (Asamblea Legislativa de la República de Costa Rica, 1990[6]). Article 15 of the Law sets out the procedures outside Costa Rica's Greater Metropolitan Area related to setting up and operating a company in the VUI. Article 15 states that the deadlines for free zone projects outside the Greater Metropolitan Area will be reduced to 28 procedures or groups of procedures.

The VUI Regulation No. 40103-MP-COMEX-H-S-MINAE-MAG- MGP-MEIC (Ministerio de Presidencia et al., 2016[7]) was published in 2016. This regulation lists the windowʼs objectives and functions and puts PROCOMER in charge of managing the windowʼs system. In addition, the regulation outlines the functions of the VUI Steering Committee, which are summarised as follows:

• Lead the process to implement systems to promote trade and setting up and operating a company, and to attract local and foreign investment.

• Analyse the regulatory framework for setting up, operating and running a company in order to identify obstacles or barriers, including measures to streamline procedures to set up, operate and run a company.

• Evaluate proposals to simplify and streamline procedures and regulations associated with setting up and operating a company.

• Promote training plans on the use of information technologies and data exchange.

• Collaborate in the search for financial resources to finance and implement projects to attract local and foreign investment, including by eliminating obstacles and introducing automated procedures.

The VUI Steering Committee is made up of representatives from public and private institutions. Among them is the Minister or Vice-Minister of the MEIC, who participates as Vice-Chairman of the Committee. As the MEIC is in charge of regulatory improvement functions in the country, including simplification actions, it can play a prominent role in the VUI Steering Committee's decision-making process.

The regulation also provides for the establishment of working groups on various topics such as regulatory improvement, whose participants include the institutions that need it to simplify procedures. As part of its objectives, the VUI supports this process of improvement and digitalisation, specifically for the procedures to set up and operate a company. The VUI's competence is established by Law 7210 and by the Regulation on the VUI System. However, it does not specify any explicit collaboration with the MEIC to simplify procedures, which may be appropriate to avoid duplications or omissions when handling the issue. As previously mentioned, there is limited co-ordination between the MEIC and PROCOMER to establish plans for streamlining administrative processes.

Box 2.6. The role of the regulatory framework for operating one-stop shops

The legal framework is key to promoting and defining the scope of one-stop shops. In particular, there are legal considerations that may affect the scope and operation of one-stop shops. For example, institutional agreements may encourage or limit the use of shared data, information reference layers or electronic signatures, and any other elements that are fundamental to operating digital procedures. In addition, regulation can encourage co-ordination between different levels of government to facilitate the establishment of one-stop shops.

For these reasons, it is important to identify potential obstacles that may arise from the current regulatory framework and determine whether it is possible to amend them, and if not, to analyse how this situation might affect the viability of one-stop shops.

Source: (OECD, 2020[1]).

Co-operation and co-ordination

The entities responsible for planning one-stop shops must have effective communication channels that provide input to make their implementation more effective. All institutions involved in developing the windows, as well as other interested parties, must put these communication channels in place (Box 2.7).

PROCOMER maintains formal and informal communication channels with the main actors responsible for the VUI, i.e. with government institutions at the national and municipal levels. One of the formal channels is the VUI Steering Committee, whose members comprise representatives from national government ministries (vice-ministers), as well as officials from various chambers of commerce and other private sector actors. However, municipalities, which are important actors within the current VUI strategy as they incorporate layers of municipal procedures, are not represented directly. On the other hand, municipalities participate through IFAM and the President of the National Union of Local Governments. Moreover, although there are representatives from chambers of commerce, it is not clear whether any entrepreneurs or citizens participate who have experience of using the windowʼs procedures. Although some chambers of commerce may have small and medium-sized companies among their members, it is essential that an association from this sector participates in the Steering Committee systematically, as well as entrepreneurs.

During the working meetings with the representatives for each of the procedures to be incorporated into the VUI, they confirmed that they regularly co-ordinate and co-operate with PROCOMER on an ongoing basis. These channels, although informal, have enabled PROCOMER to implement the strategy it has designed for developing the VUI. The representatives from the various chambers of commerce have also stated that co-ordination is fluid and constant. In spite of this, very few representatives of chambers of commerce were found to have had direct experience with the procedures, or to have businesspeople among their affiliates who have recently managed procedures in the VUI.

On the other hand, there are significant areas that present an opportunity to co-ordinate with the MEIC's Regulatory Improvement Department on streamlining administrative processes. An example of this is the plans for streamlining administrative processes administered by the MEIC, which are not aligned with the work carried out by PROCOMER to simplify procedures. In fact, given the need to simplify a series of procedures to be incorporated into the VUI associated with setting up and operating a company, the MEIC has not designed an ad hoc plan to collaborate with PROCOMER. This lack of co-ordination is also evident in the lack of ad hoc training programmes organised by the MEIC on streamlining administrative processes, specifically designed for institutions whose procedures will be incorporated into the VUI. In this regard, although the MEIC has an annual training programme with the agencies, it is far removed from the needs of the VUI and participating institutions.

To meet training needs, PROCOMER has adopted a series of methodologies to simplify procedures and has designed a training plan with the institutions. PROCOMER has used the FENIX strategy and Lean Six Sigma, among other methodologies, to provide training.

Box 2.7. The importance of institutional co-operation and co-ordination

A core element of a One-Stop shop is to give the perception of a co-ordinated government entity, particularly when this tool spans different government agencies or multiple levels of government. From the users' point of view, the main concern is easy, fast and accurate guidance to meet regulatory requirements. This is especially important when designing a user-centric window based on life events.

In practice, it is common for different levels of government to co-ordinate tasks to develop a one-stop shop under the same leadership, which requires a great degree of formal and informal co-ordination and co-operation. For this reason, public policy makers should bear in mind that all government systems (including one-stop shop systems) are long-term projects and require considerable time to implement.

It is also important to create communication channels between management and the staff responsible for designing and operating one-stop shops, as this facilitates the early identification of technical, operational or design problems. Finally, the participation of all stakeholders involved in designing and operating the window promotes a sense of ownership.

Source: (OECD, 2020[1]).

PROCOMER is the institution in charge of managing the databases that feed into the VUI for investment. It has confirmed that there is indeed institutional co-operation between the different government actors concerning the operation of the window. With regard to disseminating the VUI strategy, the various actors have also stated that they promote the window's benefits (as well as the various challenges), and provide information or participate as requested.

In terms of end-user experience, the VUI does not have any online communication channels for real-time provision of feedback, complaints or recommendations about the platform experience. Instead, the window conducts an exercise (Net Promoter Score) to rate internal and external users' overall satisfaction (ex-post communication). However, it is important to implement real-time solutions that support internal and external users.

Role clarity

One-stop shops should have clear objectives before they are designed and implemented. Role clarity is also fundamental in a communication strategy. This helps to align user expectations with achieving goals. Role clarity also helps in establishing and monitoring an accountability mechanism to review its performance (Box 2.8).

Box 2.8. How to establish role clarity in one-stop shops

The objectives of one-stop shops can be established by various means, such as manuals and operating guidelines, or more formally through legislation. However, in some countries (for example, those with legal systems based on Roman law), in order for institutions to implement one-stop shops, their objectives must be established within a regulatory framework.

There are several models for one-stop shops, and they should be considered from the outset: one-stop shops designed as information portals that send users to other locations for more detailed information; and portals where various services are provided or that provide integrated services. Regardless of the format, the final design should reflect the needs of users and be based on end-to-end service delivery as much as possible. A goal-based design helps ensure a clear understanding between one-stop shops owners and their customers in terms of what can and cannot be offered.

To understand user expectations, a variety of research approaches can be adopted, such as focus groups, surveys and in-depth interviews, as well as other more in-depth methodologies. Platform development should also be accompanied by pilot testing to ensure that expectations have been met.

Source: (OECD, 2020[1]).

The VUI bases its operation on the Free Trade Zone Regime Law and Regulation 43940-MP-COMEX-H-MAG-MEIC-MICITT-MGP-MINAE-JP-S-MIVAH (Ministerio de Presidencia et al., 2016[7]). In particular, the objectives and functions of the window include:

• Centralise, simplify and streamline the procedures that companies must complete to set up and operate in Costa Rica.

• Promote the existence of regional offices outside the expanded Greater Metropolitan Area, as defined in the Free Trade Zone Regime Law.

• Implement the necessary mechanisms to manage the procedures to formally set up and operate a company in Costa Rica.

• Disseminate the procedures and requirements that are carried out through the VUI for investment.

• Include sectors in the system that are linked to attracting investment.

• Simplify the migration procedures required as part of the process to formally set up and operate a company in Costa Rica.

PROCOMER complies with the regulations by making proposals to simplify the procedures associated with setting up and operating a company, before they are incorporated into the digital platform, by promoting the use of digital media and by expanding its area of operation outside the Greater Metropolitan Area. However, as already mentioned, when carrying out these actions it does not necessarily fully co-ordinate with the MEIC and its Regulatory Improvement Department, whose functions include “recommending to the executive branch amendments, simplifications or the elimination of unnecessary, duplicated or unfounded legal procedures”.

Governance

It is important to develop governance mechanisms that allow strategic and operational decisions to be made by a single body leading the VUI. It is therefore advisable to design a governance structure where all agencies participate at the executive level and high-level political commitment is possible (Box 2.9).

Box 2.9. Considerations when designing a governance structure.

Those in charge with designing the one-stop shop should consider which governance principles are best suited to the purposes of public policy, regardless of the breadth of services offered to users. In this case, it is important to recognise the potential institutional problems of each window design. For example, governance issues that arise in a system with a small number of government agencies are likely to be less complex than those that arise in windows with a large number of agencies. However, OECD experience shows that organisational problems are often more complex, and more difficult to solve, than technical ones.

Another element to be taken into consideration during governance design is the levels of government involved. For example, when there are several levels of government participating in the one-stop shop, there may be situations in which the central government's need for standardisation limits the need for adaptation and flexibility required by subnational governments. One possible solution is to adopt different participation models between national and subnational entities, or to adopt the model that allows for longer-term graduality in subnational governments.

Source: (OECD, 2020[1]).

As previously mentioned, the window's governance model includes a VUI Steering Committee whose participants include a large number of national entities with an interest in the window (including a representative from the Presidency at the vice-ministerial level), as well as private sector actors. However, civic associations, entrepreneurs and municipal government are not directly represented. As previously mentioned, local governments are indirectly represented through IFAM and the President of the National Union of Local Governments, whose current president is the Mayor of the Municipality of Buenos Aires.

PROCOMER acts as technical secretariat of the VUI ( (Ministerio de Presidencia et al., 2016[7])). The technical secretariat’s main purpose is to follow up on resolutions, recommendations and actions arising from the VUI Steering Committee. Finally, the VUI Steering Committee may integrate working groups made up of officials from the public sector (including participating entities) or the private sector. The working groups include topics such as free trade zones, information technology, regulatory improvement, agri-food and environmental matters, health, migration, customs and special regimes. As can be seen, the governing body of the VUI follows good governance practices by establishing the VUI Steering Committee with representatives from all the sectors involved; however, it is important to ensure that the body establishes a planning system, in line with achievable goals in the short and medium term.

Public consultation

One of the most important practices of any public policy for effective implementation is public consultation. Public consultations help determine whether one-stop shops are the best possible alternative from the users' perspective. Public consultations can even help find out whether people value simplified or digitised processes more. This is a key factor for defining the scope of each task (Box 2.10). It is important to mention that the consultation process favours decision-making, based on an informed process. However, it is important to avoid falling into a bureaucratic process in which only one requirement is fulfilled without considering the opinion of the interested parties.

Box 2.10. The importance of public consultation

Actively involving all stakeholders during public policy (and regulation) design processes helps maximise the quality of the information received and its effectiveness (OECD, 2012[8]). Consultation also aids acceptance and adaptation by interested parties and helps foster a sense of shared ownership.

In the case of one-stop shops, public consultation is essential for:

• carrying out feasibility studies

• identifying the most effective means of communication with end users

• evaluating performance.

Public consultation can keep administrative burdens to the strict minimum necessary, which for many countries is an iterative process.

It is very important to recognise that one-stop shops are not a panacea for institutional, political or technical problems, nor are they an infallible tool. For this reason, decision makers should consider whether a one-stop shop is the best option to reduce transaction costs for the target audience, as there may be a number of plausible alternatives that should be publicly analysed.

Feasibility studies should analyse the scope of the one-stop shop; the level and nature of the service provided; the associated costs; as well as the potential risks; and include an overall management assessment and strategy.

Regarding the media used, consultations with users can help design the most effective means of providing information on the window's actual effectiveness. For example, they can help decide between electronic means, such as chatbox, online surveys or a personalised service.

Finally, public consultation is one of the most valuable, cost-effective means of carrying out periodic evaluations, or when statistical information is not available.

Source: (OECD, 2020[1]).

PROCOMER and COMEX have indicated that consultations and workshops have been and continue to be held that include "the client's voice" to analyse user needs and integrate them into the VUI. In fact, PROCOMER highlights that it holds sessions with the country's most important chambers of commerce to define the window's direction and growth. On this subject, several company representatives have mentioned that PROCOMER has indeed approached them to learn about their needs and opinions, as well as to make them aware of the VUI. However, some representatives consider that although the idea is very relevant in theory, the VUI has not had the expected outcome. One cause for concern is that PROCOMER has the capacity to develop and digitise all the processes it is working on. PROCOMER has outlined its service strategy based on the sources of information it uses to identify the priority order of its procedures, as well as its institutional capacities. However, it is important to establish a plan communicating the window's progress in order to align expectations with the window's users.

Other challenges that have been mentioned include:

• the lack of a clear and transparent schedule for stakeholders to report on goals around the release of procedures

• the relevance and completeness of procedures to be incorporated in the short term

• the lack of a clear communication strategy on the window's progress

• the lack of information on the procedures already enabled in the window

• the lack of awareness and dissemination of the window among citizens

• the need to include other sectors that are not a priority for the window

• the need for a phased strategy to achieve clear goals.

Although PROCOMER has mentioned that the VUI Steering Committee addresses and discusses these issues, it is important to ensure that the information reaches the platform's end users, rather than just the decision makers or the representatives of the different associations. For example, the VUIʼs team has noted that the Communication and Marketing Directorate has a dissemination strategy that includes printed materials aimed at the public. However, it is important to identify the effectiveness of communication.

Communication and technology

One of the main communication challenges is accessibility. Accessibility is a concept that focuses on ensuring that the target user of a good or service is not only able to access or obtain it, but also has relevant information to make decisions, and can provide feedback on their experience. Technology has made public services more accessible by providing more and better communication. However, it is important to acknowledge that technology can create inequality for those lacking technological infrastructure or for those who do not have the skills to interact through digital means. For this reason, one-stop shops should utilise the methods of communication with the greatest benefits for users, while being mindful of potential accessibility issues. Additionally, relevant information from the VUI should be provided through various communication channels. The content of the platform should also be customised to the extent possible, based on the different user profiles identified (Box 2.11).

Box 2.11. The importance of communication strategies in a one-stop shop.

No one communication approach fits all countries, regions or the different levels of government. The design of communication processes must take the national context into consideration and be fit for purpose. In this regard, one-stop shops are a means of distributing government services. It is therefore essential to specify the purpose of the one-stop shop, and to use this to select the most appropriate methods to best achieve this objective.

The one-stop shop design managers should analyse the platform format. They should consider the best way to facilitate communication and deliver government services. For example, they should consider the use of physical space, informative webpages or a combination of media types, depending on user preferences. In this respect, information channels that are inappropriate due to not being based on users' needs may cause communication problems.

OECD case study experience suggests that services should be delivered through multiple communication channels. Generally, this has involved a combination of physical spaces, call centres and online platforms. In fact, some communication methods are specifically designed for certain user groups.

Source: (OECD, 2020[1]).

The VUI is designed as a virtual platform, its key elements being simplification and digitalisation. For this reason, digital media is one of the main means of communication and dissemination. In addition, PROCOMER utilises various in-person forums to communicate information related to the VUI. However, there is no evidence that the VUI has a communication plan in line with the platform's different users. Furthermore, although the platform has a help centre with relevant questions, and provides a space to contact the VUI, there is no evidence that users were taken into account to design effective communication spaces. Nor is there any explicit evidence that a communication strategy based on everyday language was used when setting up the VUI. On this point, PROCOMER says that it considered the citizens’ perspective when drafting regulations on the VUI, but not necessarily for re-engineering procedures.

The communication strategy used by the VUI to disseminate its goals found that although PROCOMER has a work programme, the various stakeholders with an interest in the window are generally not familiar with it. For example, some of the business chambers representatives stated that they were not aware of an explicit work programme regarding dates to release procedures or to incorporate municipalities or functionalities.

As previously mentioned, the VUI is a platform designed to use digital technology and improve processes for delivering public services. However, simplification efforts have been beneficial for carrying out procedures both digitally (for procedures that are already incorporated into the platform) and face-to-face at public offices.

Human capital

One-stop shops need to allocate sufficient resources to achieve their anticipated goals. In particular, human resources for change management, and for creating training programmes on simplification, digitalisation, user service, problem solving, etc. should be considered (Box 2.12).

Box 2.12. The key to one-stop shops' success: human capital

One of the key elements for the operation of one-stop shops is their staff. It is therefore very important to ensure that the project has sufficient resources and staff at every stage, from design to operation.

However, for a one-stop shop to be successful, the design of tailored programmes to train the staff who will be involved in the one-stop shop, and the need for people with change management skills, must also be considered. For this reason, training should go beyond technical skills. Physical one-stop shops (or a personalised service in digital services) should also include training on interpersonal skills.

Human resources for change management are an element that requires special attention. Change management involves motivating window managers, operational staff and users to embrace change in order to improve the delivery of public services. For this reason, it is necessary to overcome resistance to change within government and ensure that staff adopt a service-centred culture.

One-stop shops must focus on a citizen- (or business-) centred culture, as this helps generate performance indicators related to satisfaction. Ultimately, this requires operational staff to understand customers' experiences of using one-stop shops. This ability of staff to understand the user experience should be reflected in training plans and programmes.

Source: (OECD, 2020[1]).

Staff from participating public institutions effectively supporting PROCOMER to carry out the simplification and digitalisation efforts, thus complementing the project's core staff, is one of the greatest successes of the VUIʼs work strategy. In this regard, PROCOMER has been observed to be very successful in designing training programmes for officials from institutions with an interest in the window on the main methodologies selected to improve processes in managing procedures. Thus, the human capital that supports the window does not solely consist of PROCOMER staff, but staff from all participating institutions. The windowʼs human resources include technical staff working in legal, IT, communications, etc. For participating agencies, human resources are usually temporary to handle different phases of the implementation process and manage procedures.

The VUIʼs training programmes are regarded as having been very successful because they have helped public officials from the participating government institutions to improve service and adopt the procedural management processes as part of the institutional culture.

On the other hand, PROCOMER has also been very successful in change management around the way in which government services are delivered, moving from them being delivered physically to electronically or in-person in order to improve efficiency and effectiveness.

Monitoring and evaluation

To ensure the success and quality of the service provided to users of government procedures, it is important to establish quantitative and qualitative indicators for monitoring tasks and evaluating public policies such as the window. Monitoring and evaluation are processes of continuous improvement and ensure that future reforms are based on evidence and public consultation processes (Box 2.13). The monitoring and evaluation system must be a transparent mechanism that effectively communicates the results among the various actors, based on a strategic communication plan.

Box 2.13. Evaluation in the context of regulatory policy

In the context of regulatory policy, monitoring and evaluation are key to ensuring the quality of regulation (OECD, 2012[8]). These tools are essential because they make it possible to identify whether the regulation’s objectives are being met in the most efficient way possible. One-stop shops, as tools for simplifying procedures and improving government processes, should be monitored and their performance evaluated to ensure that they meet the needs and expectations of users and governments.

Performance indicators should be related to the desired objectives. For example, one-stop shops associated with business procedures tend to focus on improving service delivery for micro, small and medium-sized enterprises (MSMEs), as transaction costs tend to be disproportionately higher for them, adversely impacting business creation, competition and social welfare. For this reason, the factors considered most important relate to the ease with which users can fulfil regulatory requirements.

The set of indicators can encompass three approaches:

• a results evaluation approach that takes into account performance and quality at the end of the service delivery cycle and not just during the course of the service delivery process

• an approach focused on the concepts of performance and quality, from e-government service providers and end users' points of view

• a parameterised questioning approach that includes defining targets to achieve key benefits.

As previously mentioned, the indicators must be aligned with one-stop shop's objectives. Some of the objectives may be related to the following benefits for end users and institutions.

Benefits for one-stop shop users include:

• easier services in terms of the effort required to locate and obtain a service

• faster services in terms of the time required to provide the service

• improved services in terms of quality and value-added features of service delivery (e.g. transparency of the service delivery process).

Benefits for public officials include:

• reduced cost in relation to the life cycle of service delivery

• reduced operating costs due to reduced costs for paper and human resources performing manual tasks

• reduced tasks associated with researching information, managing paper files, and sending and processing incorrect forms as a result of providing electronic services

• increase in the number of services delivered

• increased number of administrative transactions due to greater visibility and accessibility of services.

Source: (OECD, 2020[1]).

The windowʼs supporting regulation sets out its objectives. These include simplification, digitalisation and streamlining of business procedures. PROCOMER keeps these objectives at the forefront of its operation, but there is no evidence of a systematic monitoring and evaluation plan to review the results achieved by the window.

Although the VUI has an integral management matrix with indicators that it pursues annually, it is necessary to implement a system of indicators that will not only indicate opportunity areas in internal processes, but also in the interaction with end users. Currently, the matrix mainly comprises efficiency indicators. However, a monitoring and evaluation system should include indicators relating to quality, economy, efficiency, effectiveness, etc.: all of them focused on an indicator that captures effectiveness in achieving the windowʼs objective.

Likewise, PROCOMER does not have performance indicators based on a monitoring and evaluation plan that is designed to reform the window. In this regard, it is important to recognise that, while developing the window, changes have been made to its implementation, based on user feedback in various forums. However, these exercises are not considered part of a systematic monitoring and evaluation process in which establishing indicators plays a fundamental role.

There is also no evidence that the information generated by the window is used for strategic decision-making, or alternatively, that there is a plan to collect categories of information and data based on defined indicators for decision-making and a possible evaluation of the platform. As previously mentioned, PROCOMER conducts a survey to identify internal and external users' level of satisfaction, through a question with reference to a scale, in addition to collecting comments on their experience of the window. For this survey, there is no evidence of a plan or strategy to address the main issues with users, and satisfaction goals were not identified.

References

[6] Asamblea Legislativa de la República de Costa Rica (1990), Ley de Régimen de Zonas Francas.

[3] MEIC (n.d.), Le dejamos trabajar, MEIC, https://www.meic.go.cr/web/122/mejora-regulatoria/le-dejamos-trabajar.php (accessed on 7 May 2024).

[7] Ministerio de Presidencia, I. et al. (2016), Reglamento del sistema de Ventanilla única de Inversión.

[2] OECD (2021), OECD Regulatory Policy Outlook 2021, OECD Publishing, Paris, https://doi.org/10.1787/38b0fdb1-en.

[1] OECD (2020), “One‑Stop Shops for Citizens and Business”, https://doi.org/10.1787/b0b0924e-en (accessed on 14 October 2023).

[8] OECD (2012), Recommendation of the Council on Regulatory Policy and Governance, OECD Publishing, Paris, https://doi.org/10.1787/9789264209022-en.

[4] Thorogood, A. (2020), A life events approach to policymaking. Digital transformation gives us a unique opportunity to minimise hassle in our service delivery, https://apolitical.co/solution-articles/en/life-events-approach-policymaking (accessed on 1 February 2024).

[5] Vintar, M. and A. Leben (2002), “The Concepts of an Active Life-Event Public Portal”, University of Ljubljana, Ljubljana, https://www.researchgate.net/publication/221561290 (accessed on 1 February 2024).