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10-08-02 ERRADA Newsletter Jul 10 - English Newsletter Jul 10.pdf · Learning about Regulatory...

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In this Issue: ERRADA Consults Business on Vet Quarantine and Slaughter Houses 1 Learning about Regulatory Reform 8 Enhancing Government Policy-making Capacities Seminar 2 Cons. Waleed Hamza Appointed Political Director of Agriculture GMU 9 RIA Workshop 4 New Staff Joins the GRU 9 e-Registry Unit Established 6 Mr. Mohamed Negm Resigns 9 Formation of Working Group to Review Agricultural Land Allocation 7 Minister of Investment Honors Mr. Ibrahim Mostafa 10 Red Sea Completes Inventory 7 Mr. Mohamed Fouad Receives Master Degree in Economics 10 Review Status 8 Ms. Heba El-Shourbagy Receives Master Degree in International Business Law 10 ERRADA Launches English Version of Website 8 Consultation session ERRADA Newsletter Volume 2, No. 7, July 2010 ERRADA Consults Business on Slaughter Houses and Vet Quarantine The Business Advisory Council (BAC) in collaboration with ERRADA consulted the business community on the topics of slaughter houses and vet quarantine on 26 July 2010 in their continuous effort to engage business community in the review of regulations. The consultation session aimed to identify challenges facing businesses in their operations in these two areas. The session was attended by business community concerned with slaughter houses and vet quarantine, as well as senior officials from the Ministry of Agriculture, Agriculture GMU and GRU and Egyptian National Competitiveness Council (ENCC) staff. BAC is a mechanism that operates under the umbrella of ENCC and provides a framework for eliciting and representing the interests of the business sector in Egypt towards an efficient implementation of ERRADA.
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In this Issue:

ERRADA Consults Business on Vet Quarantine and

Slaughter Houses 1 Learning about Regulatory Reform 8

Enhancing Government Policy-making

Capacities Seminar 2

Cons. Waleed Hamza Appointed Political

Director of Agriculture GMU 9

RIA Workshop 4 New Staff Joins the GRU 9

e-Registry Unit Established 6 Mr. Mohamed Negm Resigns 9

Formation of Working Group to Review Agricultural

Land Allocation 7

Minister of Investment Honors

Mr. Ibrahim Mostafa 10

Red Sea Completes Inventory 7 Mr. Mohamed Fouad Receives Master

Degree in Economics 10

Review Status 8 Ms. Heba El-Shourbagy Receives Master

Degree in International Business Law 10

ERRADA Launches English Version of Website 8

Consultation session

ERRADA Newsletter

Volume 2, No. 7, July 2010

ERRADA Consults Business on Slaughter

Houses and Vet Quarantine

The Business Advisory Council (BAC) in

collaboration with ERRADA consulted the

business community on the topics of slaughter

houses and vet quarantine on 26 July 2010 in

their continuous effort to engage business

community in the review of regulations. The

consultation session aimed to identify

challenges facing businesses in their

operations in these two areas.

The session was attended by business

community concerned with slaughter houses

and vet quarantine, as well as senior officials

from the Ministry of Agriculture, Agriculture

GMU and GRU and Egyptian National

Competitiveness Council (ENCC) staff.

BAC is a mechanism that operates under the

umbrella of ENCC and provides a framework

for eliciting and representing the interests of

the business sector in Egypt towards an

efficient implementation of ERRADA.

ERRADA Newsletter – July 2010 2

Participants in consultation

The discussions in the consultation revealed

the following challenges:

• poor and costly logistics in Egypt;

• sudden rise in fees of some vet services;

• limited number of refrigerators at the

airport, most of which are used for

chocolate;

• limited number of refrigeration vehicles

and high customs on import of these

vehicles;

• technical committees of unqualified staff

that are sent to inspect slaughter houses

in exporting countries;

• short expiry period of imported chilled

meat;

• poor health and safety conditions of some

slaughter houses;

• commercial fraud of some chicken

slaughter houses, where producers melt

imported frozen chicken and repackage

and sell them;

• destruction of the poultry industry in the

aftermath of the bird flu and killing of a

large number of poultry.

The main recommendations that came out of

the consultation were as follows:

• Allow import of live calves from epidemic

free countries to be bred in Egypt.

• Provide incentives to refrigeration vehicles

manufacturing in Egypt.

• Reduce customs on refrigeration vehicles.

• Consider accepting certificates instead of

sending committees to exporting country

for inspection, and impose ban on

importer for one year in case of violation.

• Form permanent technical committees in

exporting countries.

• Issue a new regulation regarding stamping

meat to consider imported calves that are

bred in Egypt as local products.

• Reconsider age of imported meat.

• Reconsider the validity period of imported

meat.

• Reconsider conditions on slaughter

houses whilst offering transitional grace

period for incompliant slaughter houses to

adjust their conditions.

• Support local chicken industry either

through protectionist measures or by

offering subsidies to local producers.

• Ban handle of live poultry.

At the end of the event, the participants

requested to hold another session to further

discuss these topics.

Enhancing Government Policy-making

Capacities Seminar

ERRADA organized, in collaboration with

Information Decision Support Center (IDSC)

and SIGMA, a seminar entitled "Enhancing

Egyptian Government Policy Capacities in the

Light of EU Experiences” on 5 July 2010.

Participants included researchers, academics,

professionals and government officials.

Dr. Ziad Bahaa El-Din, Chair – ERRADA BOT,

in his opening speech referred to the role of

ERRADA Newsletter – July 2010 3

From left: Mr. Gamal Bayomi, Mr. Edward Donelan,

Dr. Magued Osman and Dr. Ziad Bahaa El-Din

Participants in seminar

ERRADA in the review of regulations in order

to create legal certainty and justice. He

pointed out that those targeted with

regulations should be aware of it. The way to

achieve this is to engage them in the

formulation of regulations

Dr. Magued Osman, Chair – IDSC, highlighted

the Center's role in monitoring and evaluating

government policies and programs to report to

policy makers the achievements made without

exaggeration and point out weaknesses in

performance with the aim of improvement.

This in turn should lead to further

development.

Ambassador Gamal Bayoumi – Head of

Support Association Agreement Program

(SAAP), highlighted the importance of the

cooperation between Egypt and the European

Union (EU) and the technical support provided

by the EU to Egypt through various activities,

such as this seminar.

Mr. Edward Donlen, Senior Advisor – SIGMA,

focused on the policy making process. He

explained that policies represent various

options made by governments and that the

success of these options depends on the

process through which they are reached

through examination and analysis of

alternatives.

Ms. Neveen Ahmed, who represented the EU

Delegation, expressed her pleasure with the

seminar that signified the cooperation

between OECD and SIGMA on one side and

Egypt on the other side, in the field of

institutional capacity building of the

government.

In his presentation, Mr. Lorenzo Allio

discussed impact assessment for policies and

strategies in the EU which includes monitoring

and evaluation (M&E) of policies through

identification of different alternatives and

measuring their benefits and costs.

Mr. Ian Davies highlighted the difference

between monitoring and evaluation of policies.

Whereas monitoring is conducted periodically,

evaluation is undertaken at the end of a

certain stage. For example, the government

could conduct a mid-term evaluation of a

program or project and make adjustments

based on the findings and conduct another

final evaluation upon completion of the

project. Mr. Davies noted that monitoring is

the responsibility of management in order to

ensure that desired objectives will be

achieved. He also emphasized that M&E do

not bring about change; it is management that

effects change based on M&E results.

ERRADA Newsletter – July 2010 4

From left: Dr.Karen Hill, Mr. Edward

Donelan and Mr. Thomas Ferris

He pointed out the growing interest in M&E at

the international level because of the Paris

Declaration, which was signed by many

countries and international organizations in

2005. The Declaration aims to harmonize

international aid in order to achieve better

results and maximize return from aid through

steps and indicators that could be monitored.

Accordingly, aid recipient countries started

establishing M&E systems. Finally, Mr. Davies

emphasized that the most important thing in

evaluation is the process itself, which allows

stakeholders to think about their work, and not

the methodology used in the evaluation.

At the end of the day, Mr. Donelan

summarized the conclusions of the day and

emphasized that the UK is one of the best

countries in the field of impact assessment in

terms of transparency and consultation with

stakeholders because of its concern with

continuous development of systems and

impact assessment practices.

RIA Workshop

ERRADA organized, in collaboration with

SIGMA, a workshop on regulatory impact

assessment on 6 July 2010. Participants

included members of the GRU and GMUs.

The workshop aimed at providing a detailed

explanation of impact assessment, the

challenges of introducing it and some good

examples in Organization for Economic

Cooperation and Development (OECD)

countries. It also included practical exercises

to raise the capacity of ERRADA staff in the

field of impact assessment.

Mr. Edward Donelan pointed out that

regulations have a cost and in order to issue

them the benefit should be higher than the

cost. This is the role of impact assessment,

which is a tool used by many OECD countries

to assess the economic and social impact of

any policy option before issuing a proposed

regulation because of policy makers’ desire to

improve the quality of policy-making.

Mr. Lorenzo Allio explained that impact

assessment is not just a report to be prepared

but is an integrated process. It is not

conducted to justify a decision already taken,

and does not exempt the decision maker from

responsibility. It contributes to reducing

regulatory failure.

Mr. Allio highlighted some of the challenges

related to the use of impact assessment,

namely: identification of the problem,

availability of data, proportionality of the

analysis to the size of the problem, and

quantification of the benefits, risk assessment

and complex costs. He stressed the

importance of: identifying the purpose of using

this tool and institutional capacity to undertake

this exercise and not only human capacity.

Although the process of impact assessment

does not vary according to the subject under

study (i.e. identification of the problem,

identification of alternatives, measurement of

benefits and costs, and assessment of

options), methods of calculation of benefits

and costs may differ from topic to topic.

ERRADA Newsletter – July 2010 5

Working group

Participants in workshop

Mr. Thomas Ferris emphasized that the lack

of data does not preclude an assessment of

impact and can be overcome through

innovation in finding data such as using data

from other countries. Mr. Ferris noted that

there is no single model for impact

assessment, but there are six key elements:

clear identification of objectives; examination

of impacts; consideration of alternatives to

regulation; consultation with relevant

stakeholders; estimation of implementation;

and measurement of compliance costs. Finally

he stressed the importance of dissemination

of results of impact assessment studies

through seminars and workshops.

Ms. Karen Hill focused on the experience of

the UK in regulatory reform. She pointed out

that the Better Regulation unit concerned with

regulatory reform has been moved around in

the government several times according to the

priorities of the government and message

intended to be conveyed to stakeholders

outside the government. She explained that

impact assessment constitutes a burden on

relevant authorities; this is why political

support is very important for the success of

this effort. The UK measured administrative

burden, relatively late compared to other

countries, and managed to reduce it by 25%

this year. Ms. Hill pointed out to the change of

name from “regulatory impact assessment” to

“impact assessment” as all mechanisms

available to public administration to address a

certain problem are assessed.

With time, the government became more

interested in consultation with relevant

stakeholders. Ms. Hill emphasized the

importance sending feedback to the business

community and consulted entities and

publishing this in impact assessment results to

create trust between them and the

government. She also referred to the

importance of use of checklists in impact

assessment because it is a logical tool that

helps in examining the impact in order to

reach a recommendation. She also noted that

the final recommendation could include

elements from several examined alternatives.

Participants undertook a practical exercise

about the use of plastic bags in society. They

were divided into five working groups, where

they identified the problem and different

alternatives and assessed the benefits and

costs of implementing each alternative. At the

end of the exercise, the groups reported the

group findings and the experts commented on

these findings. The main lessons learnt were:

1. The importance of transition period in

implementing alternatives.

2. Use of data wherever possible.

3. Considering research and development in

alternatives.

4. Examining existing practices.

ERRADA Newsletter – July 2010 6

e-Registry working group

5. Analyzing reasons for failure of current

mechanisms.

6. Possibility of proposing a package of

alternatives.

e-Registry Unit Established

The GRU established an e-Registry Unit

(ERU) by Executive Decision No. 3/1010 with

the aim of providing access to business

related regulations to all those affected by

them free of charge.

The Unit reports to the Executive Director of

the Initiative and is formed of Mr. Hassan El-

Lamie, Supervisor, and Mr. Hesham Abdel

Tawab, Assistant.

The e-Registry Unit has the following

functions:

1. Monitor, examine and classify regulations

issued thereafter.

2. Enter all regulations higher than

ministerial decree – that are issued after

the establishment of the Unit – on

ERRADA database.

3. Transfer all dosiers for the

abovementioned regulations to the Unit,

while GMUs and Governorate Units

continue to be responsible for the existing

ministerial and governors' decrees

respectively and those below them. They

will also continuue to enter these

regulations according to the authority of

GMU or Governorate Unit.

4. Ensure the quality of the database through

monitoring what has been entered by units

thereafter.

5. Coordinate among GMUs participating in

the database.

6. Present a weekly progress report to the

Executive Director.

A working group was also formed by the same

Decision including the following members in

addition to the Unit staff:

Mr. Ahmed Hassan Representing IT

Department

Ms. Emmy Mahdy Representing

Legal Department

Mr. Amr Youssef Representing

Operations

Department

Mr. Omar Tork Representing

GMUs

The working group has the following functions:

1. Formulate proposals to develop ERRADA

database continuously.

2. Examine international and local

experiences in the area of registry of

regulations with the aim of promoting the

role of the e-Registry Unit as a national

database and information system.

3. Work on making the database accessible

to several entities such as ministries,

monitoring bodies, legislative entities,

academic or research institutions,

government authorities, business

associations and citizens.

ERRADA Newsletter – July 2010 7

Mr. Sobhi Mohamed,

Red Sea Unit Manager

Agricultural land allocation working

group

The working group conducted its first meeting

on 14 July 2010 to discuss the next steps

especially laying down proposal for work flow

of the Unit.

Formation of Working Group to Review

Agricultural Land Allocation

ERRADA always seeks to play an active and

constructive role in contributing towards

enhancing the business environment in Egypt

through better and accessible regulations.

Therefore, it assigned the review of the topic

of land allocation high priority, upon the

recommendation of the Minister of Agriculture

and the BOT. This topic is significant for the

business community and citizens in general.

The reorganization of this issue, from a

regulatory and practical perspective, would

lead to the stability and legitimization of

acquired property through review and

streamline of the regulations governing the

topic.

In this context, ERRADA Executive Decision

No. 2/2010 was issued to form a working

group to review the topic of land allocation

from all aspects. The group comprises

members with diversified expertise from

different disciplines under the supervision of

Cons. Mohsen Mansour, Vice-Chairman of the

Council of State and Legal Counselor to

Agriculture GMU. It also includes

representatives from the Unit with expertise in

this area, as well as representatives from the

GRU.

The working group developed, in their first

meeting, an action plan that focused on

identifying relevant authorities. Then the group

will determine the laws that govern the work of

each authority, its mechanism and procedures

followed in land allocation. They will provide a

list of related decrees. Finally, they will identify

the regulatory challenges in this issue, as a

step towards issuing their recommendations.

The working group agreed to implement this

plan by initiating contact with the concerned

authorities in order to collect all relevant

regulations, and visit them whenever the need

arises; then they will review and streamline

these regulations.

The working group stressed the need to

highlight, during the review, the cases of

overlap between authorities. They drafted a

preliminary list of relevant authorities, namely

the General Authority for Rehabilitation

Projects and Agricultural Development, the

General Authority for Agrarian Reform, the

Department for Land Reclamation, and the

General Authority for Fish Resources.

Red Sea Unit Completes the Inventory

Red Sea Unit completed

inventory of 1,725

regulations (governors'

decrees) related to the

business environment in

the Governorate. The Unit

entered these

decrees on ERRADA

database. The Unit

inventoried governors' decrees according to

the Inventory Guidelines for Governorates

ERRADA Newsletter – July 2010 8

which identified 11 types of regulations to use

as a guide in the inventory, namely:

1. Environment, cleanliness and natural

reserves.

2. Services and public utilities.

3. Population and urban planning.

4. Organization and regulation of land

allocation and their pricing.

5. Agriculture and irrigation.

6. Tourism and tourist transport.

7. Maritime and desert activities.

8. Quarries, mines and mineral wealth.

9. Advertizing.

10. Transport.

11. Some preferential concessions related to

business environment within the cities

and towns of the governorate.

The Unit managed to complete the inventory

in six weeks, according to the set plan.

Review Status

To date GMUs reviewed and delivered to the

GRU 112 topics, comprising more than 10,500

regulations. This review resulted in more than

9,500 recommendations (of which 55% have

been implemented) and identification of 900

implicit repeals.

The GRU checked 35 out of these 112 topics

and submitted 12 topics to the Legal Task

Force (LTF).

ERRADA conducted consultation, in

collaboration with BAC, with relevant business

associations, on nine topics, namely: diving

and marine activities, bazaars, hotel

establishments, tourist companies (tourism);

safety of ships; practicing maritime

professions in ports (transport); outdoor

advertising (shared topic involving: housing,

local development and transport); slaughter

houses and vet quarantine (agriculture).

The GRU is leading the review of two topics,

namely, conditions for commercial and

industrial premises and licensing and

agricultural land allocation. It has formed two

working groups to review these topics. The

groups will draw on concerned GMU review

findings in issuing their final

recommendations.

Currently, 90 topics – comprising around

11,000 regulations, are being reviewed by

GMUs.

ERRADA Launches English Version of

Website

ERRADA launched the English version of the

website on 25 July 2010. The website is now

available in English at

http://www.errada.gov.eg/index_en.php.

We encourage you to visit the website and

send us your comments at

[email protected]

Learning about Regulatory Reform

Why regulatory reform?

It is agreed that governments undertake

regulatory reform programs to deal with "bad

and poor regulations". These are regulations

that constitute an obstacle to economic and

social goals and create unnecessary barriers

to trade, investment and economic efficiency.

Even a good regulation can become a bad

one if governments do not pay attention to

reviewing and updating it in order to make it

more efficient.1

1 OECD, Report on Regulatory Reform: Synthesis,

(Paris: OECD 1997).

ERRADA Newsletter – July 2010 9

Mr. Mohamed Negm

From left: Mr. Ahmed

Boussila and Mr. Mohamed

Cons. Waleed Hamza

The question remains why bad and poor

regulations are so common and universal

while governments always claim that they

seek to enhance business climate and

promote business?

There are four main reasons for this apparent

“paradox”:2

1. Developing countries suffer from

intervention in business decisions due to

legacies of state-led development and

economic strategies.

2. Most governments try to achieve many

objectives at the same time.

3. There is no accounting system for the

hidden costs of each regulation, which

means that governments treat regulations

as if they produce benefits and do not

involve any costs.

4. The lack of coordination among multiple

legal and bureaucratic jurisdictions leads to

overlapping demands imposed on

businesses which impair business

development.

Cons. Waleed Hamza Appointed Political

Director of Agriculture GMU

Cons. Waleed Hassan

Hamza, Legal Counselor to

the Minister of Agriculture,

was appointed as Political

Director for Agriculture GMU

as of 26 July 2010.

Cons. Hamza worked for the

General Attorney and

judiciary from 1991 to

2 Jacobs and Associates, Effective and Sustainable

Regulatory Reform, (Jacobs and Associates, January 2006).

2007.

He has also been working as a lawyer for the

Prosecution of Cassation affiliate of the Court

of Cassation since 2007.

He was appointed as a Legal Advisor at the

Ministry since November 2008.

New Staff Join the GRU

Mr. Ahmed Bousilla

and Mr. Mohamed

Helmy joined the

GRU in July 2010, as

Operations Officers.

Mr. Ahmed Bousilla:

graduated from the

Faculty of Commerce

– English Section in

2007, and worked at

Cable Network Egypt

(CNE) as a

Customer Service

Staff.

Mr. Mohamed Helmy: graduated from the

Faculty of Law in 2005, and worked as a tour

leader in the field of tourism.

ERRADA wishes them success in their

professional careers in the Initiative.

Mr. Mohamed Negm Resigns

Mr. Mohamed Negm, Legal

Expert at Local

Development GMU

resigned as end of June

2010. Mr. Negm joined

ERRADA in 2007. He has

been an active member of

the community since

the beginning of the

Initiative. He was a member of the

Acceptance User Group that worked on the

Arabization and modification of the application

ERRADA Newsletter – July 2010 10

GAFI annual meeting

Ms. Heba El-Shourbagy

Mr. Mohamed Fouad

procured from Croatia in accordance with the

Egyptian legal system.

ERRADA would like to thank Mr. Negm for his

valuable contribution and wish him good luck

in his new endeavors.

Minister of Investment Honors Mr. Ibrahim

Mostafa

Dr. Mahmoud Mohie El-Din, Minister of

Investment, honored Mr. Ibrahim Mustafa,

Economist at Investment GMU, in the annual

meeting of the General Authority for

Investment and Free Zones (GAFI).

The meeting was attended by Mr. Osama

Saleh, President of GAFI and a number of

GAFI and the Ministry’s staff. During this

meeting, Dr. Mahmoud Mohie El-Din honored

representatives from the ministries involved in

the Doing Business Report and those

considered as partners of the Ministry of

Investment in the process of enhancing

business climate.

Mr. Mohamed Fouad Receives Master

Degree in Economics

ERRADA would like to congratulate Mr.

Mohamed Fouad, Economist at Trade GMU,

on receiving his Master Degree in Economics

from Faculty of Commerce, Ain Shams

University.

Discussion of the

dissertation

(which is entitled

"the role of free

zones in

promoting

exports in Egypt:

a comparative

study between

Egypt, China and South Korea) took place on

7 July 2010.

Ms. Heba El-Shourbagy Receives Master

Degree in International Business Law

ERRADA would like to

congratulate Ms. Heba

El-Shourbagy, Legal

Coordinator at the

GRU, on receiving her

LL.M Degree in

International Business

Law, from the

School of Law,

Indiana

University, Indianapolis, on 10 July 2010.

It is worth mentioning that Ms. El-Shourbagy

is a graduate of the Faculty of Arts, English

Department, University of Cairo. She then

received a Master Degree in Teaching English

as a Foreign Language (TEFL) from the

American University in London.

Contact us

Address:

GRU, 5th

Floor, 106 Gameat Al-

Dowal Al-Arabia St., Mohandesseen

Giza – Egypt

Telephone:

Fax:

+202 37493920/1

+202 33370045

Website: www.errada.gov.eg

Email: [email protected]


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