The Guillotine of Administrative Regulations and the Nine The Guillotine of Administrative Regulations and the Nine Administrative Handbooks of General Application to promote Administrative Handbooks of General Application to promote efficiency of Mexican Federal Governmentefficiency of Mexican Federal Government

Mr. Uriel MARQUEZMr. Uriel MARQUEZHead of UnitHead of UnitPolicies for the Improvement of Public ManagementPolicies for the Improvement of Public Management

The Ministry of Public Administration of MexicoThe Ministry of Public Administration of Mexico

Winning project in the category of “Preventing and combating corruption in the Winning project in the category of “Preventing and combating corruption in the public service”.public service”.

2011 United Nations and Africa Public Service Day and Forum2011 United Nations and Africa Public Service Day and Forum

20-23 June 2011, Tanzania 20-23 June 2011, Tanzania

To enable Mexican families to live better To enable Mexican families to live better

To have a government that is efficient and effectiveTo have a government that is efficient and effective

A government organized around the citizens A government organized around the citizens

Our visionOur vision

Economic and Social Environment

The late-2000s global financial crisis.

Deadly AH1N1 swine flu outbreak.

Floods affect the south and east of the country.

In the five years leading to 2009 oil production decreased by more than 20%.

A third of tax revenue depends on oil production.

Mexico cannot afford to waste public resources and needs to improve government capacity to solve problems.

2009

Competitivennes of a country limited by corruption Competitivennes of a country limited by corruption

Comparación entre corrupción y competitividadPreparado con datos del Reporte Global de competitividad del Foro Económico Mundial 2010-2011

Factor de correlación 0.91

0.00 0.10 0.20 0.50 0.60 2.805.80 5.90

14.20

28 10

1612

4

48

22

66

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

Suecia Holanda Canadá Australia Reino Unido EstadosUnidos

Italia Corea México

Corrupción Lugar en el índice de competitividad 2010

Correlation coefficient 0.91 0.91 between competitivennes and corruption

Bureocracy generates red tapeBureocracy generates red tape

Comparativo entre carga normativa e ineficiencia de la burocraciaPreparado con datos del reporte Global de Competitividad 2010-11del Foro Económico

MundialFactor de correlación 0.9

1.6

4.14.9

6.0

7.78.9

10.811.6

13.3

5.70

13.20 13.30

11.50

15.00

12.80

15.3016.00

19.30

0.0

5.0

10.0

15.0

20.0

25.0

Suecia Canadá Estados Unidos Australia Holanda Reino Unido Corea México Italia

Carga administrativa generada al ciudadano (No. en el mundo) Ineficiencia de la Burocracia Gubernamental

Correlation factor 0.90 between innefficiency of bureocracy and Correlation factor 0.90 between innefficiency of bureocracy and red tape to citizens and businesses.red tape to citizens and businesses.

On September 2nd, 2009, within the framework of the Third State of the Union, On September 2nd, 2009, within the framework of the Third State of the Union, President Felipe Calderón committed to undertake a wide-ranging regulatory President Felipe Calderón committed to undertake a wide-ranging regulatory reform in order to:reform in order to:

• Make citizens´ life easier.Make citizens´ life easier.• Promote growth and economic developmentPromote growth and economic development..• Better public governanceBetter public governance..

With this strategy, the government was seeking to:With this strategy, the government was seeking to:

• Fight the paralysis generated by excessive regulation.Fight the paralysis generated by excessive regulation.• Close the door to the discretionary creation andClose the door to the discretionary creation and implementation of provisions that cause opacityimplementation of provisions that cause opacity and unnecessary costs for the government and forand unnecessary costs for the government and for the citizens.the citizens.• Eradicate corrupt practices.Eradicate corrupt practices.• Diminish the Public Administration costs in order toDiminish the Public Administration costs in order to apply these resources in priority tasks of the country.apply these resources in priority tasks of the country.

The purposeThe purpose

First step: creation of an inventory of the governmental rules in force.First step: creation of an inventory of the governmental rules in force.

Second step: all the agencies comprising the Federal Public Administration Second step: all the agencies comprising the Federal Public Administration identified duplicated rules, processes and inefficient activities, excessive costs identified duplicated rules, processes and inefficient activities, excessive costs and bureaucratic procedures that were generating unnecessary costs to citizens.and bureaucratic procedures that were generating unnecessary costs to citizens.

Third step: Base Zero Regulation.Third step: Base Zero Regulation.

• Standardize processes in order to simplify internal administration and toStandardize processes in order to simplify internal administration and to reduce costs of government (Guillotine of Administrative Regulations).reduce costs of government (Guillotine of Administrative Regulations).

• Facilitate governmental procedures and services in orderFacilitate governmental procedures and services in order to serve citizens in a better manner (Guillotine of Substantive Regulations).to serve citizens in a better manner (Guillotine of Substantive Regulations).

• Eliminate administrative burden to businessesEliminate administrative burden to businesses (The economic regulatory reform).(The economic regulatory reform).

The taskThe task

The Guillotine of Administrative Regulations consisted in the elaboration and The Guillotine of Administrative Regulations consisted in the elaboration and publication of nine Handbooks of General Application, which aim to optimize publication of nine Handbooks of General Application, which aim to optimize the governmental operation in the areas of:the governmental operation in the areas of:

1. Governmental Acquisitions.1. Governmental Acquisitions.2. Auditing.2. Auditing.3. Internal Control.3. Internal Control.4. Public Works.4. Public Works.5. Financial Resources.5. Financial Resources.6. Human Resources.6. Human Resources.7. Material Resources.7. Material Resources.8. Information and Communication Technologies.8. Information and Communication Technologies.9. Transparency.9. Transparency.

To achieve this end, nine working teams were created with representatives of To achieve this end, nine working teams were created with representatives of various entities and agencies who were responsible of researching the leading various entities and agencies who were responsible of researching the leading management practices in these subjects. Using this research as a starting point, management practices in these subjects. Using this research as a starting point, nine Handbooks were elaborated to standardize the application of all the nine Handbooks were elaborated to standardize the application of all the processes in the Federal Public Administration.processes in the Federal Public Administration.

The outputsThe outputs

As a strategy to review the first draft of the handbooks, a consultation with 147 As a strategy to review the first draft of the handbooks, a consultation with 147 leader agencies of the Federal Public Administration was carried out, in order to leader agencies of the Federal Public Administration was carried out, in order to receive comments and contributions from public officials responsible for receive comments and contributions from public officials responsible for operating the administrative processes in the matters regulated by each operating the administrative processes in the matters regulated by each handbook.handbook.

In the nine Handbooks, a total of 17,759 commentsIn the nine Handbooks, a total of 17,759 commentswere addressed:were addressed:

51.24% were on technical-administrative issues.51.24% were on technical-administrative issues.22.47% on legal-normative.22.47% on legal-normative.26.29% on edition.26.29% on edition.

Once the consultation period finished, the analysis and classification of the Once the consultation period finished, the analysis and classification of the comments received during the consultation was carried out, followed by the comments received during the consultation was carried out, followed by the incorporation of the appropriate comments to the adequate draft handbook, incorporation of the appropriate comments to the adequate draft handbook, and finally the drafts of the handbooks were refined and edited.and finally the drafts of the handbooks were refined and edited.

The processThe process

To strengthen the Guillotine of Administrative Regulations, on August 10, 2010 To strengthen the Guillotine of Administrative Regulations, on August 10, 2010 President Calderón issued an Agreement instructing the agencies and entities of President Calderón issued an Agreement instructing the agencies and entities of the Federal Government to restrain from issuing regulations in the areas the Federal Government to restrain from issuing regulations in the areas covering the administrative handbooks.covering the administrative handbooks.

This agreement also included provisions designed to establish exceptions for This agreement also included provisions designed to establish exceptions for the issuance of new regulations, ordering the removal of all the rules that are the issuance of new regulations, ordering the removal of all the rules that are opposed to the handbooks, and requiring agencies to define their inventory of opposed to the handbooks, and requiring agencies to define their inventory of internal rules.internal rules.

The agreement also enabled the Ministry of Public Administration to carry out The agreement also enabled the Ministry of Public Administration to carry out surveillance to ensure compliance with the provisionssurveillance to ensure compliance with the provisionsof the presidential agreement.of the presidential agreement.

The supporting toolsThe supporting tools

Results on regulation inside the government (RIG) and regulation applied to businesses and citizens (RABC) guillotine

31 % reduction of procedures and services

Fewer rules will promote structural changes within the government, fostering a Fewer rules will promote structural changes within the government, fostering a cultural change in public servants minds which will encourage the performance cultural change in public servants minds which will encourage the performance and achievement of objectives over any bureaucratic requisite.and achievement of objectives over any bureaucratic requisite.

The outcomesThe outcomes

Likewise, the Regulation Inside Government (RIG) reform of Mexico promotes:Likewise, the Regulation Inside Government (RIG) reform of Mexico promotes:

• Implementation of public policies and the achievement of objectives at theImplementation of public policies and the achievement of objectives at the lowest cost.lowest cost.

• Set standards and promote a culture of resource savings and efficency.Set standards and promote a culture of resource savings and efficency.

• Transparency and accountability at the Mexican Federal Government.Transparency and accountability at the Mexican Federal Government.

The success of this project was The success of this project was based upon the open participation based upon the open participation of all stakeholders.of all stakeholders.

1.1. Political commitment at the highest level.Political commitment at the highest level.2.2. Objectives to achieve.Objectives to achieve.3.3. Organisation of the stages.Organisation of the stages.4.4. Collaboration with regulators.Collaboration with regulators.5.5. Participation of involved agents and society.Participation of involved agents and society.6.6. Cost-benefit analysis and Risk assessment.Cost-benefit analysis and Risk assessment.7.7. Training and support for implementation.Training and support for implementation.8.8. Communication to the general public and Periodic reviews of the regulatory Communication to the general public and Periodic reviews of the regulatory

stock.stock.9.9. Controlling the flow of new regulations.Controlling the flow of new regulations.10.10.Measuring of results.Measuring of results.

The best practiceThe best practice

Activities undertaken by the Mexican government on the simplification of Activities undertaken by the Mexican government on the simplification of regulation inside the government:regulation inside the government:

A methodical way which can be adopted by other countries to implement a A methodical way which can be adopted by other countries to implement a similar simplification effort.similar simplification effort.

“…“….the review of Mexico’s experience is one of the first and most .the review of Mexico’s experience is one of the first and most comprehensive contributions to the evaluation of these practices”.comprehensive contributions to the evaluation of these practices”.

All in all, the actions of the Ministry of Public Administration were largely All in all, the actions of the Ministry of Public Administration were largely comparable in depth and sophistication to the international experience of comparable in depth and sophistication to the international experience of review of RIG, and were consistent with the international experience of review review of RIG, and were consistent with the international experience of review of RABC, with some exceptions.of RABC, with some exceptions.

• Stop the flow of new regulation. Stop the flow of new regulation.

• Implement periodic reviews of RIG to keep the handbooks updated. Implement periodic reviews of RIG to keep the handbooks updated.

• Measure the economic benefits and saving. Measure the economic benefits and saving.

• Promote among states and municipalities similar exercises. Promote among states and municipalities similar exercises.

The best practiceThe best practice

Next steps: integrate processes with technology

Next step: link the objectives and processes associated to the regulation inside the government (RIG) and those of the regulation applied to businesses and citizens (RABC)

1,931 saving actions have been reported, grouped into 26 models of administrative 1,931 saving actions have been reported, grouped into 26 models of administrative efficiency.efficiency.

Best Management PracticesBest Management Practices

11 Warehouse administrationWarehouse administration 1414 Water savingWater saving

22 Insurance administrationInsurance administration 1515 AutomatizationAutomatization

33 Travel & subsistence allowances administrationTravel & subsistence allowances administration 1616 Banking to support citizen´s transactionsBanking to support citizen´s transactions

44 Vehicle, fuel & lubricants administrationVehicle, fuel & lubricants administration 1717 Electronic logbookElectronic logbook

55 Acquisitions categoriesAcquisitions categories 1818 Energy efficiencyEnergy efficiency

66 AcquisitionsAcquisitions, , consolidated purchasingconsolidated purchasing 1919 Virtual officeVirtual office

77 AcquisitionsAcquisitions, market knowledge, market knowledge 2020 Resources optimizationResources optimization

88 AcquisitionsAcquisitions, open contracts, open contracts 2121 Telephony & communications optimizationTelephony & communications optimization

99 AcquisitionsAcquisitions, multi-annual contracts, multi-annual contracts 2222 Real Estate rationalisationReal Estate rationalisation

1010 AcquisitionsAcquisitions, negotiation of contracts for travel & , negotiation of contracts for travel & subsistence allowances subsistence allowances 2323 Rationalisation of paper consumptionRationalisation of paper consumption

1111 AcquisitionsAcquisitions, purchasing planning, purchasing planning 2424 Organizational redesignOrganizational redesign

1212 AcquisitionsAcquisitions, IT services, IT services 2525 Outsourcing servicesOutsourcing services

1313 AcquisitionsAcquisitions, IT use, IT use 2626 Electronic invoice & paymentElectronic invoice & payment

Next steps: The updating of the handbooksNext steps: The updating of the handbooks

““Fewer rules, better results”Fewer rules, better results”

The conclusionThe conclusion

Rationalise government spending, transfering savings to:Rationalise government spending, transfering savings to:

• The intensification of social programs with proven effectiveness in combatingThe intensification of social programs with proven effectiveness in combating poverty. poverty. • Expand Mexicans' access to health and education services. Expand Mexicans' access to health and education services. • Increase resources for infrastructure projects.Increase resources for infrastructure projects.

Austerity measures have produced significant savings:Austerity measures have produced significant savings:

20092009 $4,500 million dollars$4,500 million dollars20102010 $2,500 million dollars$2,500 million dollars

Savings account to 10 % of administrative costSavings account to 10 % of administrative cost

The economic benefits of austerity and The economic benefits of austerity and regulation base zeroregulation base zero

2012 target2012 target: 20 percent reduction in administrative & operating costs: 20 percent reduction in administrative & operating costs.These expected savings account to current social benefits and These expected savings account to current social benefits and agricultural support programsagricultural support programs

Mr. Uriel MARQUEZMr. Uriel MARQUEZHead of UnitHead of UnitPolicies for the Improvement of Public ManagementPolicies for the Improvement of Public Management

The Ministry of Public Administration of MexicoThe Ministry of Public Administration of Mexico

2011 United Nations and Africa Public Service Day and Forum2011 United Nations and Africa Public Service Day and Forum

20-23 June 2011, Tanzania 20-23 June 2011, Tanzania

THANK YOU!!