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REFORMING THE INSPECTION CLIMATE FOR SUSTAINABLE GROWTH

Oleg Pankratov Ministry of Economy of the Kyrgyz Republic. REFORMING THE INSPECTION CLIMATE FOR SUSTAINABLE GROWTH. Laws on Inspections of Economic Entities passed by the Kyrgyz Republic.

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REFORMING THE INSPECTION CLIMATE FOR SUSTAINABLE GROWTH

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  1. Oleg Pankratov Ministry of Economy of the Kyrgyz Republic REFORMING THE INSPECTION CLIMATE FOR SUSTAINABLE GROWTH

  2. Laws on Inspections of Economic Entities passed by the Kyrgyz Republic In order to improve the effectiveness of inspections of activities of economic entities, and to avoid unreasonable and excessive interference of public authorities in the activity of economic entities, the Kyrgyz Republic passed the Law on the Amendments and Supplements to the Law of the of Kyrgyz Republic on the Procedure for Conducting Inspections of Economic Entities of 22 July 2012 providing the implementation of a new approach to inspections on the basis of risk criteria, inspection checklists and acceleration of inspections.

  3. A new approach to inspections on the basis of risk analysis Risk: thepossibility of negative consequences due to the performance of economic activities and the extent of possible damages. Risk criteria:the totality of quantitative and quality indicators related to activities of economic entities allowing to assign them to different types of risk: high, medium, or low.

  4. Standard Pyramid • Once a year Once in three years Once in five years

  5. Amendments to the Law on Inspections: Inspection checklists Inspection checklist • Includes a list of mandatory requirements for the activities of economic entities provided by the legislation of the Kyrgyz Republic in certain areas.

  6. Inspection checklists Improvement of the national monitoring system: • Information source • Control instrument • Risk management instruments Simplification of inspection procedures: • Fast but comprehensive process • High-quality inspections • Increases the knowledge of legislation • Systematisation of legal requirements • Transparency of inspections

  7. An example of reform

  8. Due to the Public Authority Reform, the Government of the Republic of Kyrgyzstan reduced the number of control bodies from 21 to 12

  9. Amendments to the Law on Inspections: Inspections Database Will provide SCB with the possibility to have a complete picture of facilities under its control Database of accounting of inspection facilities under the control of SCB Will provide relationship and exchange of information between departments Will allow SCB to plan inspections on the basis of risk assessments

  10. Proverka.kg: purpose and functions Information system proverka.kg is intended to automate the procedure for conducting and coordinating facility inspections of SCB based on the risk assessment system, and also to monitor and analyse inspection data of economic entities. IS proverka.kg is implemented as a web-based application functioning on the central server and having the Internet access. User access to the system are implemented over the Internet through a web-browser. IS proverka.kg functions as a web-portal too on which information blocks like laws on inspections of the of Kyrgyz Republic, plans of inspections, risk assessment criteria, data on the risk level of enterprises, inspection checklists, inspection news and other information are provided.

  11. Proverka.kg: data streams ME: South subdivision ME: Center ME: North subdivision ME:Center has access to all data Economic entities Regional subdivisions of ME have access to data of affiliated regional SCB Portal Proverka.kg Economic entities receive general information on inspections: the access to normative legal acts, inspection checklists, and data on the level of business risk, inclusion in the Plans of Inspections according to their own TINS Center SCB1 Center SCB2 SCBuses its own data available on the central server SCB1: Subdivision 1 SCB2: Subdivision 1 Central subdivision of SCB has access to data of its subdivisions available on the server SCB1: Subdivision 2 SCB2: Subdivision2

  12. Questions. Calls • Drawing-up of Inspection Checklists: the tendency to include the whole block of existing mandatory requirements persists – a focus on risk disappears • To work on so that to achieve A Standard Pyramid with the minimum number of high-risk facilities • Improve knowledge and skills of inspectors • To use ITC in the inspection management to its full extent (implementation and improvement of the system proverka.kg)

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