l PROCEDURE SIMPLIFICATION PROGRAM, SIMTRA
Since 2000, FUNDES has been developing the Administrative Procedure Simplification Program (SIMTRA), whose general objective has been to promote competitiveness among the countries in the Region by improving the business climate with procedure simplification projects that work towards an institutional modernization at the municipal and national level. Entrepreneurs describe the procedures for businesses to register and operate as complex, costly and long, and they are listed among the most significant obstacles for MSMEs’ development.
This objective began with a pilot project in the Central Canton of the Alajuela Province (Costa Rica), under the auspice of the International Financial Corporation (IFC). In addition, a pilot project was implemented in the Municipality of Olavarría, Argentina.
As of 2003, the project relies on the financial support of the State Secretariat for Economic Affairs (SECO), which consequently has led to a second stage in the SIMTRA Program. In this stage, more than 40 municipalities in Costa Rica have benefited from this, along with 14 in El Salvador, 6 central government institutions in Guatemala and 7 municipalities in Bolivia.
The program has led to a reduction of 80% in the procedure completion time by reducing the requirements by 50%, reducing the number of steps in the business registry process by 60%, and reducing the number of visits to the institutions by 50%. Furthermore, in some cases this has led to an increase of 30% and 25% in the number of registered businesses and respective tax collections.
The Administrative Procedure Simplification Program (SIMTRA) of the FUNDES NETWORK provides the following services:
1. Procedure simplification for business registry and operation at the municipal level through different methodologies:
· Direct methodology: allows the diagnostic, design and implementation of solutions for simplifying procedures.
· Widespread implementation methodology: a methodological approach used to implement large scale administrative simplification procedures, starting by increasing the abilities and competencies of the human resource in the participating institutions.
2. Procedure simplification for business registry and operation at the national level:
The solutions at the national level are generally characterized by the collective participation of several different public institutions related to business registry and operation procedures.
3. Procedure simplification for credit Access:
FUNDES has developed work tools to simplify the procedures to access credit.
4. Foreign trade procedure simplification:
In regards to foreign trade procedures, a work base has been developed to identify the procedures businesses must complete in the process of exporting, and propose improvement opportunities to simplify those procedures.
5. Monitoring and following up on implemented solutions:
FUNDES has developed tools (“Monitoring and Follow-up Manual”) that allow for the monitoring and following up on implemented simplification solutions.
6. External Solution Evaluation:
FUNDES has developed tools that allow for the external evaluation of solutions implemented by other organizations, businesses or institutions.
Through the leadership of the International Management of Research and Allies (GIIA) with FUNDES International, the Administrative Procedure Simplification Program (SIMTRA) operates under the guise of a General Coordination (Central Team), which is responsible for the program’s strategic planning, its specific management in the entire FUNDES NETWORK, senior supervision of its methodological application, and control in meeting the defined goals of each project.
Procedure Simplification Program Team:
Merlyn Rojas
SIMTRA Coordinator
Elena Sancho
SIMTRA Consultant