WHAT IS SRR?
WHAT IS SRR?
Systematic Regulatory Review: what is it and what for?
Kyrgyzstan has launched a global regulatory reform aimed at identifying and eliminating barriers to doing
business in Kyrgyzstan, and boosting the economic growth - "Systematic Regulatory Review" (SRR). The
project is implemented by the Government of the Kyrgyz Republic together with the support from OSCE
Centre in Bishkek.
Background
The reform has become a logical continuation of the Decree of the President of the Kyrgyz Republic No. 215
dated 12.11.13 "On measures to eliminate the causes of the political and systemic corruption in state
bodies", which calls on the Government of the Kyrgyz Republic to reduce the administrative and regulatory
burden on entrepreneurs by applying "the guillotine principle".
Pursuant to this decree on 19 March 2014 a Memorandum of Understanding between the Government of
the Kyrgyz Republic and the OSCE Centre in Bishkek there was signed to implement the "Systematic
Regulatory Review" Project (hereinafter SRR). On 12 January 2015 by the Decree of the Kyrgyz Government
No. 4 "On the implementation of the project "Systematic Regulatory Review"project a Regulatory Reform
Council has been set up. The decree also approved a list of 34 state bodies participating in the
implementation of projcet.
The Council is an advisory body and coordinating body responsible for supervising the implementation of
the SRR project, development of recommendations and suggestionsto improve the legal acts regulating the
business activities. The council is supervised by the Prime Minister. The Ministry of Economy of the Kyrgyz
Republic is the Secretariat of the Council and the Regulatory Reform Unit is responsible for implemention of
SRR. Other participants are the ministerial working groups and the business community.
Public bodies participating in the implemention of SRR, shall during 2014-2016 conduct an inventory and
self assessment of the regulatory framework in coopearation with the Regulatory Reform Unit. The results
will be discussed and consulted with the business community and the last phase by taking into account the
interests of the parties RRU will make recommendations regarding the reform, simplification or abolishment
of particular legal acts or their parts which are not in line with the reform principles. Upon approval by the
Councill all recommendations will be passed to the Government for final decision.
Benefits
The objective of the reform – to simplify the regulatory framework in business sector, improve the
investment climate in Kyrgyzstan, minimize corruption and create favorable conditions for domestic and
foreign investors so that their activities contribute to the dynamic development of economy and
improvement of social conditions. In addition, accession to the EEU binds Kyrgyz Republic to find new
opportunities for development and stimulate the activity of the real economy by reducing the costs of the
private sector from state regulation. The business environment, the investment climate must country’s
competitive advantage.
The essence of the reform is to get rid of redundant, meaningless and most problematic legal acts governing
business in Kyrgyzstan.
The main benefits for Kyrgyzstan as a result of the reform:
• simplified regulatory framework governing private enterprises leading to a better environment for
business, foreign and local investment;
• stimulating real economic activity by reducing the costs and risks of the private sector related to
government regulation of business;
• creating a simpler and more efficient system of public administration (recommendations for the
review and cancellation of unnecessary functions are possible);
• reduced opportunities for corruption by simplifying unduly complex regulations and curtailing
excessive discretion given to officials;
• in 34 paricipating state bodies creation of a pool of experts trained and experienced in conducting
regulatory reform in line with modern principles of “better rergulation”;
• strenghtened capacity in 34 state bodies to employ modern methods of legal in-depth analysis to
formulate and implement proper regulatory policy;
• improvement of Regulatory Impact Anlysis in the public administration system;
• strengthened public-private dialogue;
• supporting the implementation of the National Sustainable Development Strategy of the Kyrgyz
Republic for 2013-2017.
There is a great plus in it for the statebodies experiencing a shortage of resources - financial and human: in-
depth inventory and assessment of the legislation will simplify their work, eliminate various conflicts and
duplication that will help in the future to effectively use methods of analysis in their work. Our
entrepreneurs, primarily,will benefit in the form of reducing the time and financial costs.
Process
The reform process consists of three stages: 1) inventory of legal acts, 2) their review and assessment, and
3) development of recommendations to the Government as to which particular legal acts should be
cancelled, amended or upheld.
In March 2015 state bodies have begun the first stage of reform - the inventory of legal acts, each of which
will be reviewed for the legality, justification, existence of corruption mechanisms, business friendliness.
Superfluous and ineffective legal acts will be recommended for cancellation. The inventory and
development of relevant recommendations will involve state bodies and the private sector which shall
consider recommendations proposed by state bodies, take part in the inventory, participate in the review
and assessment of legal acts , and participate in the formulation of recommendations for the Government.
These are joint actions of the State and business, which will take into account the interests of both parties.
Heads of ministries and agencies shall bear personal responsibility for the outcome, so it is in their interest
to study each regulatory document in a meticulous way. A detailed comprehensive inventory of legal acts is
carried out for the first time in Kyrgyzstan.
The "e-Guillotine"software is the core of the reform. Its developer, "Jacobs, Cordova & Associates” is a
global leader in area of regulatory reform and better regulation policies. The “Regulatory Guillotine” is
today the most efficient and advanced tool for fast review of legislation. It allows for fast inventory of legal
acts their asessment against review criteria (legality, need, business friendliness, corruptibility, etc.),
assessment of the economic impact, including related regulatory costs, etc. Jacobs Cordova and Associates
successfully applied the “Regulatory Guilllotine” in 12 countries, helping to reduce and simplify more than
25 thousand legal acts that allowed businesses to save more than 7.8 billion dollars a year.
The OSCE Centre has given most technical and expert support to this comprehensive project.
