2. Customs Reform The experience of the World Bank

3. Essential: Cooperation and information Manage by objectives rather than by institution Delegation of powers Cross-designation of officials Single window Role of private sector Website

4. What is needed to do a project Diagnostic Baselines Ownership Objectives: Integration and/or accession Change management Measurement

5. Risk management Selectivity only addresses part of the problem Narrowly focused Too dependent on local systems Can be easily diverted Not always sustainable Interpreted as excluding security Risk management must apply to the entire logistics chain Must be shared Must include security Addresses all aspects of control Involves rewards for compliance

6. Integration Taskforce rather than administration IT can provide support (single window) Training must be entirely reshaped Reforms must be set in concrete

7. Regional User Survey First phase – strengthening baseline and methodology  Objectives: - supplementing performance measurements through survey, interviews and discussion groups to analyze improvement of border agencies’ performance in each country -drawing attention to decision makers on areas of priority improvements (strong tool)  Sample: 150 companies, with validation from international cities  Six dimensions: Customs law; Communication; Procedures; Personnel; Logistics; Integrity  Phasing methodology: refined after phase I to increase comparability of results (2002, 2003); transfer to Chambers of Commerce in phase II

8. User Survey Results Problem groups all problems above average communication the most acute Bulgaria closest to average Integrity Assessment covers petty/small corruption only main recipients Customs officers highest level of payments BiH highest frequency Macedonia Example

9. Pilot site concept Objective: To improve operational efficiency To promote cooperation among border agencies and across borders Concept Small scale operational approach Ownership by participants Incubator for new ideas and initiatives Monitoring

10. Change Management – Convince rather than impose List core functions affecting import, export, transiting, payments, suspense schemes, and cross border movements of individuals Identify the corresponding enabling legislation and associated secondary regulations and operational guidelines Prepare accordingly a matrix of interactions

11. The legislative critical path Agency Activity CustomsMoFMoIntMoTCommerceChamberInd Cargo control (x)X Transit X Valuation (x)X Passenger control X Standards X Petroleum X

12. Evaluate legislative and regulatory interactions Develop a best practice model in coordination with international donors, identify the gaps with the local model Recommend a reform path to optimize the business model and subsequently harmonize it with international standards Factor local strengths

13. Detect potential socio-institutional blockages vested interests corrupt and/or criminal practices traditional, religious and cultural standards administrative and organizational templates multi ethnic communities

14. Documented job process flowchart Monitoring indicators Avoidance strategy Remedial action consistent with the project achievement critical path

15. Identify relevant elements of the social pact List operations and processes which are thwarted Risk management: Identify the mechanisms with which officials carry out risk-managed activities Establish the relationships and mechanisms that ensure accountability and reporting

16. Prepare a communication strategy Disseminate within the administration new objectives and operations Feedback Priorities Field inputs

17. Some other requirements Legislation Intern-agency relations map Preventive and enforcement role is an issue and an example

18. Change management – Act 2 Act 1 was to work out the environment and make action recommendations Act 2: Assist in designing policies

19. Change management – Act 3 Act 1 was to work out the environment and make action recommendations Act 2: Assist in designing policies Sustainability Networking Training Gradual approximation

20. Results on the ground: Savings

21. Savings to the economy Each idle truck has a cost of US$ 15 per hour Multiply total number of trucks by time reduction RESULT: In SEE, approximately US$ 6.4 in 2003

22. Results Reports on corruption are very encouraging Transit times and costs are reducing Seizures are increasing Reasonable chances of sustainability But there is a lot we cannot do on our own

23. What are we doing now? South East Europe Russia Central Asia Afghanistan South East Asia Brazil …