ECONOMIC EVALUATION OF ADMINISTRATIVE BURDEN FOR CONSTRUCTION IN JELGAVA MUNICIPALITY

Abstract

The aim of this research is to make an economic assessment of the administrative burden, which is created by the construction regulation, on enterprises of Jelgava municipality in Latvia and to find solutions of how to reduce the administrative burden on enterprises by having no negative impact on the construction process. The research was carried out in the period 2009-2011. To evaluate the administrative burden, the Standard Cost Model with some modifications and adaptations was used. It was concluded that 9 legislative acts related to construction are creating a notable bureaucratic burden (EUR 2.94 million annually) on enterprises in Jelgava municipality. The authors have developed 37 recommendations to reduce the administrative burden and by implementing these recommendations, the administrative burden on enterprises could be reduced by 45% or EUR 1.33 million annually

Keywords

• administrative burden, construction, Jelgava municipality, Latvia

References

1. David, Sislen, Taimur Samad, Sarah Anthony, Luke Haggarty, Igor Artemiev, (2007), Cutting Red Tape in Lima. How Municipal Simplification Improves Investment Climate, http://siteresources.worldbank.org/INTENBREVE/Newsletters/21243488/Jan07_99
2. _Lima_Red_Tape_EN_V6.pdf [Accessed 14.11.2010.]
3. EC (2007), Action Programme for Reducing Administrative Burdens in the EU,  http://ec.europa.eu/enterprise/policies/better-regulation/administrative- burdens/action-programme/index_en.htm [Accessed 15.12.2010.]
4. EC (2009), Commission Working Document COM (2009) 16 final. Third strategic review of Better Regulation in the European Union, http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri= COM:2009:0015:FIN:EN:PDF Accessed 23.11.2010.]
5. EC (2010), Action Programme for Reducing Administrative Burdens in the EU:
6. Delivering on promises, Luxembourg: Ofice for Oficial Publications of the European Communities, 11 p., ISBN 978-92-79-13948-2.
7. Ernst&Young (2010), Ziņojums „Baltijas jūras reģiona valstu pieredzes analīze un priekšlikumu sagatavošana pašvaldību administratīvā sloga mazināšanai uzņēmējiem” http://www.vraa.gov.lv/uploads/documents/petnieciba/- 02.02_BSRInnoreg.pdf [Accessed 11.12.2010.]
8. Laboratory of Analytical and Strategic Studies Ltd. (2009), Administrative

9. Procedures and Business Environment in Latvia 2001-2009: Report on the Results of the Enterpreneurs Survey, http://www.em.gov.lv/em/2nd/?cat=30111 [Accessed 01.2011.]
10. Laura, Cavallo, Giuseppe Coco, Mario Martelli (2007), Evaluating administrative burdens through SCM: some indications from the Italian experience, http://www.administrative- burdens.com/filesystem/2008/05/evaluating_admin_burdens_through_scm_italian_ experience_may_2008_483.pdf [Accessed 05.02.2011.]
11. Ministry of Economics (2009), Latvijas uzņēmējdarbības vides izvērtējuma un reformu ziņojums, http://www.em.gov.lv/em/2nd/?cat=30111 [Accessed 02.2011.]
12. OECD (2009), Overcoming Barriers to Administrative Simplification Strategies:
13. Guidance for Policy Makers, ISBN 978-92-64-05972-6, http://www.oecd.org/dataoecd/38/11/42112628.pdf [Accessed 29.01.2011.]
14. Standard Cost Model Network (2005),International Standart Cost Model Manual, http://www.administrative- burdens.com/filesystem/2005/11/international_scm_manual_final_178.doc Accessed 17.12.2010.]
15. State Government of Victoria (2010), Victorian Regulatory Change Measurement Manual, regulatory-burden