Less Burden, More Transparency, and Higher Quality : Electronic System for Business Safety Inspections in Peru
Business safety inspections are commonly cited as one of the most important bureaucratic barriers to doing business around the developing world (World Bank 2019, 2020). In Peru, the business safety inspection system is characterized by low complian...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/718401595482835441/Less-Burden-More-Transparency-and-Higher-Quality-Electronic-System-for-Business-Safety-Inspections-in-Peru http://hdl.handle.net/10986/34227 |
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okr-10986-342272021-05-25T10:54:38Z Less Burden, More Transparency, and Higher Quality : Electronic System for Business Safety Inspections in Peru Barron, Manuel Bedoya, Guadalupe Garcia Montufar, Diego Goicoechea, Ana INFORMATION AND COMMUNICATION TECHNOLOGY ACCOUNTABILITY INSPECTION COMPLIANCE SAFETY INSPECTION Business safety inspections are commonly cited as one of the most important bureaucratic barriers to doing business around the developing world (World Bank 2019, 2020). In Peru, the business safety inspection system is characterized by low compliance with established norms, misaligned incentives and high transaction costs. These inefficiencies affect micro, small, and medium enterprises (MSMEs) disproportionally, as they do not have the resources or know-how to navigate the inspection procedures. MSMEs constitute 99.5 percent of firms, employ up to 89 percent of the population, and contribute up to 31 percent of gross domestic product (GDP) in the country (Ministry of Production 2017). Thus, the inefficiencies in the inspection system hamper the business environment, adversely affecting shared prosperity and economic growth. The World Bank Group is conducting a rigorous impact evaluation study in collaboration with the Ministry of Housing of Peru.1 Specifically, it will assess how the deployment of an electronic system for inspections, in combination with the improved monitoring of inspector performance and optimized firm auditing, can be used to address key constraints in the inspection system. This work will shed light on whether these mechanisms can reduce the compliance burden on firms by improving regulatory efficiency while also ensuring safety. In addition, it will provide evidence about how such systems could operate when implemented at scale. This note provides an overview of the policy problem that Peru faces, and describes the solutions to be tested. It then focuses on lessons from developing and implementing the electronic system to solve the policy problem, with an emphasis on those lessons related to the constraints and inputs to improving regulatory efficiency and accountability. 2020-07-28T18:41:02Z 2020-07-28T18:41:02Z 2020-07-21 Brief http://documents.worldbank.org/curated/en/718401595482835441/Less-Burden-More-Transparency-and-Higher-Quality-Electronic-System-for-Business-Safety-Inspections-in-Peru http://hdl.handle.net/10986/34227 English Finance, Competitiveness and Innovation in Focus; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief Latin America & Caribbean Peru |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
INFORMATION AND COMMUNICATION TECHNOLOGY ACCOUNTABILITY INSPECTION COMPLIANCE SAFETY INSPECTION |
| spellingShingle |
INFORMATION AND COMMUNICATION TECHNOLOGY ACCOUNTABILITY INSPECTION COMPLIANCE SAFETY INSPECTION Barron, Manuel Bedoya, Guadalupe Garcia Montufar, Diego Goicoechea, Ana Less Burden, More Transparency, and Higher Quality : Electronic System for Business Safety Inspections in Peru |
| geographic_facet |
Latin America & Caribbean Peru |
| relation |
Finance, Competitiveness and Innovation in Focus; |
| description |
Business safety inspections are commonly
cited as one of the most important bureaucratic barriers to
doing business around the developing world (World Bank 2019,
2020). In Peru, the business safety inspection system is
characterized by low compliance with established norms,
misaligned incentives and high transaction costs. These
inefficiencies affect micro, small, and medium enterprises
(MSMEs) disproportionally, as they do not have the resources
or know-how to navigate the inspection procedures. MSMEs
constitute 99.5 percent of firms, employ up to 89 percent of
the population, and contribute up to 31 percent of gross
domestic product (GDP) in the country (Ministry of
Production 2017). Thus, the inefficiencies in the inspection
system hamper the business environment, adversely affecting
shared prosperity and economic growth. The World Bank Group
is conducting a rigorous impact evaluation study in
collaboration with the Ministry of Housing of Peru.1
Specifically, it will assess how the deployment of an
electronic system for inspections, in combination with the
improved monitoring of inspector performance and optimized
firm auditing, can be used to address key constraints in the
inspection system. This work will shed light on whether
these mechanisms can reduce the compliance burden on firms
by improving regulatory efficiency while also ensuring
safety. In addition, it will provide evidence about how such
systems could operate when implemented at scale. This note
provides an overview of the policy problem that Peru faces,
and describes the solutions to be tested. It then focuses on
lessons from developing and implementing the electronic
system to solve the policy problem, with an emphasis on
those lessons related to the constraints and inputs to
improving regulatory efficiency and accountability. |
| format |
Brief |
| author |
Barron, Manuel Bedoya, Guadalupe Garcia Montufar, Diego Goicoechea, Ana |
| author_facet |
Barron, Manuel Bedoya, Guadalupe Garcia Montufar, Diego Goicoechea, Ana |
| author_sort |
Barron, Manuel |
| title |
Less Burden, More Transparency, and Higher Quality : Electronic System for Business Safety Inspections in Peru |
| title_short |
Less Burden, More Transparency, and Higher Quality : Electronic System for Business Safety Inspections in Peru |
| title_full |
Less Burden, More Transparency, and Higher Quality : Electronic System for Business Safety Inspections in Peru |
| title_fullStr |
Less Burden, More Transparency, and Higher Quality : Electronic System for Business Safety Inspections in Peru |
| title_full_unstemmed |
Less Burden, More Transparency, and Higher Quality : Electronic System for Business Safety Inspections in Peru |
| title_sort |
less burden, more transparency, and higher quality : electronic system for business safety inspections in peru |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/718401595482835441/Less-Burden-More-Transparency-and-Higher-Quality-Electronic-System-for-Business-Safety-Inspections-in-Peru http://hdl.handle.net/10986/34227 |
| _version_ |
1764480453534810112 |