Presentation doing-business
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Radical transformation of public administration in Georgia followed five critical levers: streamlined and simplified regulation, re-engineering of processes, transparency and accountability, performance management and impact orientation, and leveraging IT/technology. This resulted in fast GDP growth, an effective public sector, a world-class business environment, and low corruption. Key lessons included having high-level political commitment, focusing on quick wins, applying the same rules to all, creating a one-stop shop, and installing a new team to drive delivery.
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Presentation doing-business
- 1. Radical transformation ofRadical transformation ofRadical transformation ofRadical transformation of PublicPublicPublicPublic AdministrationAdministrationAdministrationAdministration
- 2. A transformation journey : reinventing Georgia Key learning from the best reformers I II
- 3. Starting conditions similar to some countries in Africa today1 Low income (GDP p.c., USD) Ineffective public sector (tax collection rate in %) Unfavorable business environment (EODB rank) High corruption (CPI rank) SOURCE: WDI; Heritage Foundation; World Bank; Transparency International Africa today (2013) 920 Senegal Zimbabwe Mali Tanzania 7 Rwanda Madagascar Central African Republic Republic of Congo Ethiopia Mozambique Zambia Georgia Georgia in 2003 Namibia88 111 112 122 132 Uganda Cote d'Ivoire Mauretania Georgia Niger113 123 124 130 130 Georgia in 2003 2003
- 4. Outcome putting Georgia at par with new EU-members1 Fast GDP growth (GDP p.c. as multiple of 2003) Effective public sector (tax collection rate in %) World-class business environment (EODB rank) Low corruption (CPI rank) SOURCE: WDI; Heritage Foundation; World Bank; Transparency International EU-member countries 4.6 Croatia Bulgaria Estonia Latvia 23.5 x3 Slovakia Ireland Latvia Romania Sweden Finland UK Georgia Georgia Denmark5 7 9 11 13 Slovakia Latvia Czech Republic Georgia Poland41 51 54 54 62 +103 Georgia 2003112 +73 Georgia 2003124 Georgia 2012
- 5. Reform engine structural reform of Public Administration Superior economic growth and macroeconomic environment Structural reform of Public Administration Redesigned processes Streamlined regulation Changed mindsets Quantum leap in Business climate ("Doing Business) Quantum leap in Citizen Services Economics dividends Confidence shock Simplifica- tion shock Competitive- ness shock 1
- 6. Example Georgias public service hall1 Average waiting time ~5 min / average servicing time 6-7 min All public service in one space Citizen satisfaction from 10% to 92%: Totally free and fair "Fast and accessible "Consumers receive clear and high- quality service "Friendly and pleasant staff"
- 7. A transformation journey : reinventing Georgia Key learning from the best reformers I II
- 8. Successful radical reforms A common base for change SOURCE: McKinsey analysis Rwanda Estonia Poland Malaysia Case studies of best performers II Great reformers outperform with respect to growth and stability Every situation is different but there is common DNA in many of the reforms Best reforms are radical, deep and fast Assessment of each transformation journey Understanding of the interventions used and learnings N. Zealand
- 9. Five critical levers traversing all areasII L3Functional areas Enterprises 15-20 areas Citizens 15-20 areas L2 Streamlined and simplified regulation L4 L5 Leveraging IT/ technology Re-engineering of processes Transparency and accountability (anti-corruption) Performance management and Impact orientation Political leadership and commitment L1 Executive fire power and delivery focus
- 10. 10 key learnings (1/2) LEARNING FROM THE BEST Every country is different, but 7 Ensure system leaders at the highest level, such as PMs, publicly announce and reinforce their commitment to the transformation1 Adopt trial-and-error mentality : it is a journey where success brings success and you learn as you go3 Focus on set of reforms prioritized for radicality of impact and speed, ensuring visible quick wins4 Start with a rigorous self-assessment of performance and root-causes (health diagnostics)2 Develop a high standards mentality for government services and reward on performance (KPIs, bonuses)5 successful reforms share important features II
- 11. 7 10 key learnings (2/2) Important ingredients for successful reforms Ruthlessly apply the same rules for everyone, including highest levels, while allowing for customer segmentation with differentiated levels of services and fees6 Create a one government principal including one stop shop/public service hall so that interface with businesses and citizen customers is limited to one window8 Dare to install a new ,clean team of high-performing individuals to drive delivery, monitor progress, and intervene as necessary9 Apply the silence is consent rule, which consists in granting automatic approval after defined number of days7 Advertise successes worldwide to attract FDI and talented workers10 II Every country is different, but LEARNING FROM THE BEST