Licensing and Permit System Reform Approach ZERO PLUS

A Brief Story About The Reform

The Zero Plus© approach builds an effective licensing and permit system free of excessive regulations. Instead of interminable reform procedure, this instrument facilitates the process though rapidly eliminating the entire set of regulations, shifting the responsibility for justification and proving the need for each regulation to the regulatory agencies, and ultimately establishing a well-coordinated and efficiently-functioning system within 6-18 months.

PMCG offers support to countries seeking to convert their regulatory frameworks in a way that focuses on the well-being of individuals and societies. It employs this instrument to transform public service culture through the replacement of burdening and often corruptible regulations into a streamlined system exclusively comprising essential regulations.

Delivering Progress On Four Dimensions

Institutional arrangementsLegal groundsPublic Administration & StructureExternal Outreach
strengthening ownership to lead and coordinate reform processmaking clear definitions and principles of regulationenhancing capacity of public servants to take over the responsibility for each regulationbuilding public trust

Unique Features

Reduced requirements and actors to lower corruption

Reduced time and cost of compliance with licenses and
permits regulations

Single governing legislation for each license and permit with minimized references to other legislative acts

Transparent and reasonable process of adding/removing
(new) licenses/ permits

Improved intergovernmental communications and policy making process

Foundation for establishment and/ or enhancement of the one-stop shop agency for a consistent approach to licensing and permitting

Reform Milestones Delivering Progress On Four Dimensions Within 6-18 Months

1. Establish reform coordination body and define scope of the reform
2. Identify the key principles of the regulatory framework
3. Draft regulatory framework
4. Request for justification
5. Finalizing the draft list
6. Parliamentary review
7. Approval and Enforcement

Impacts and Outcomes: Georgia, Kosovo, Mongolia

The Zero Plus© approach was piloted in Georgia in 2006 and proved to be enormously successful. Before that, Georgia had a complicated licensing system, where the responsible agencies lacked the technical means to assess applications and many simply sold licenses and pocketed the proceeds. This reform reduced the total number of licenses and permits by 84%, and streamlined procedures. Georgia went from 282 days and 29 procedures necessary to receive a construction permit in 2005 down to 29 and 11 as of 2019.

This reform reduced the total number of licenses and permits by 84%

BeforeAfter
Procedures29 11
Days28229

In 2011, PMCG started advising on applying this methodology in Mongolia and Kosovo. Although the draft laws are still being discussed, during the process both countries recorded improvement in different directions.

Simplified Doing Business

Georgia rose from 132nd place to 18th in the World Bank’s Doing Business ranking between 2004-2007. In 2005-2010, it was ranked by the World Bank Top country. In 2012-2016, Mongolia progressed from 97th to 36th and Kosovo climbed from 117th to 66th in the Starting a Business indicator. Under Trading
Across Borders Indicator, Mongolia jumped from 159th to 74th place, while Kosovo rose from 131st to 71st. Under the Dealing with Construction Permits indicator, Mongolia soared from 119th to 25th, while Kosovo progressed from 171st to 136th.

Reduced Corruption

Between 2012 and 2015, Mongolia’s score on the Corruption Perceptions Index (CPI) improved by 3 points, while Kosovo’s increased by 5 points over the same period.

Boosted FDIs

Georgia’s foreign direct investments (FDIs) increased from USD 492 mil in 2004 to USD 1.8 bil in 2007.

Download Licensing and Permit System Reform Approach ZERO PLUS Brochure

Our Team

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    Aleksi Aleksishvili

     CEO and Chairman

    Aleksi Aleksishvili has 20 years of working experience in the public finance and economic development policy sector as a high-level government official and the government adviser responsible for budget and financial policy, tax and customs policy reform, business climate improvement and doing business environment.<br />

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    Olin McGill

     Senior Consultant

    Olin McGill helped to refine and implement a revolutionary approach to regulatory reform in Georgia. He has since assisted many nations in adopting this transformative approach, bringing large, quantifiable benefits to citizens, businesses, and governments.

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    Mikheil Janelidze

     Sector Lead, Trade Policy

    Mr. Mikheil Janelidze is a Sector Lead in Trade Policy at PMCG. He has a proven history of success in the field of international affairs and economic development with an exceptional mix of public and private sector experience. <br />

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    Nino Javakhadze

     Senior Consultant

    Ms. Javakhadze has around 20 years of professional experience, including 15 years of experience as a public servant working on the central government level, including Prime Minister's Office and line ministries. Nino’s work is focused on complex economic reforms.

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    George Khabelashvili

     Senior Consultant

    George Khabelashvili’s impressive background in the public and private sectors includes extensive experience in diplomacy, investment promotion, reforms, project management, energy, construction, and hospitality.

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    Tinatin Chachanidze

    Senior Consultant

    With over a decade of public sector experience as a lawyer, Tinatin Chachanidze specializes in privatization of state property and state-owned enterprises. She has accumulated practical knowledge of industrial zones, transportation, energy, and water supply.

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