Be Smart, Be On Top

The widely used phrase “getting to the top is hard, staying there is harder” is apparently what authorities in Hong Kong-China had in mind when they conceived the “Be a Smart Regulator Programme” in mid-2007.The program is a large scale improvement plan for granting business licenses across multiple business sectors.

Under this initiative, several procedures to obtain a construction license were either eliminated or expedited. This was achieved not by creating new agencies or structures, but instead by creating working groups with the agencies and bureaus involved in the construction area. These groups found redundant procedures, improved communication and coordination schemes, and identified regulatory “easy fix” changes that could be implemented in order to foster a more efficient construction process in Hong Kong-China.

One big change was the elimination of several preliminary inspections. Utility companies agreed that with the technical information already provided during the application process, they could easily review the information required by law without an on-site visit. Another important reform was consolidating the notification of construction completion under one form. The Buildings Department, the Highways Department and the utility companies found out that construction companies – unnecessarily - were required to notify them separately.

Other economies could learn from Hong Kong-China and find out for themselves how communication and coordination among authorities can be a surprisingly smart and efficient way to improve regulations. The best part is that the changes can easily be made without major expenditures or legal reforms. Furthermore, since this economy was the top 4 performer in Doing Business 2008, this effort clearly shows their dedication to staying on top of the ranking - something other outstanding performers should take note of.