Competitive Municipalities Project: Smart Regulation/Business Engagement

Duration: 2020

Client: USAID

Problem: The Competitive Municipalities Project addresses the need to improve the municipal regulatory framework and business participation and compliance in 15 municipalities across seven states in Mexico. The problems include inefficient regulatory design and implementation practices by local governments and insufficient private sector participation in regulatory compliance.

Solution: The project proposes several interventions to address these problems. First, the "Model Regulation for Municipal Regulatory Improvement" was developed and has already been adopted by several municipalities. This regulation aims to align municipal practices with the General Law of Regulatory Improvement, thereby improving the local regulatory framework.

Additionally, a "Municipal Regulatory Impact Analysis (RIA) Operating Manual" was created, providing a comprehensive guide to ensure that the benefits of new regulations outweigh the costs. This manual is fundamental for efficient and effective regulatory design.

Another important intervention is the implementation of a "Regulatory Reengineering Methodology" that promotes the simplification and transparency of municipal regulations. This methodology seeks to make regulatory processes more efficient, reducing the administrative burden on both local governments and businesses.

The project also includes the design of a "New Municipal Inspections Model" based on risk criteria. This new model aims to make inspections more effective and focused on higher-risk areas, thus improving regulatory compliance.

Finally, technical assistance has been provided for the integration of municipal catalogs into CNARTyS, optimizing the available technological structure. This integration allows for better management and access to regulatory information, facilitating compliance by businesses.

Additionally, technical assistance and training have been provided to municipal officials and representatives of small and medium-sized enterprises and business chambers. This has been crucial in promoting the improvement of regulatory practices and compliance by the private sector.