Join the Reform Championship!

USAID regional partners implement the best practice in fighting bureaucracy and briberies– One Stop Shop Hincesti is the hero of the day
In this life one should plant a tree, raise a child and build a house. This is the saying Moldovans live with. The importance of building can also be understood by the difficulty one has in getting permission to build. It usually takes up to 18 months to receive an Authorization for Construction and the Urbanism Certificate, both delivered by the local authorities. These should be countersigned by the Mayoralty, the Police, the Fire Department, the Architecture Department, the Ecology Department, the Sanitary Center, the Electricity provider, the Gas Company, the Phone Company… Their number varies from town to town, but the smallest figure is 13. Building a house is easier than obtaining those papers!
The bureaucratic impediments produced a new popular practice – people start constructing and then seek permission to build which is haphazard to their nerves, finances, and the community! Unauthorized buildings disfigure the Moldovan localities but the biggest negative impact is still felt by the business community. Imagine what it takes to start repaying a loan when you can start building after a year or even more? The authorization problem generates economic losses, architectural chaos and bribes.
To stop this kind of delays the regulatory reform program implemented by the Moldovan Government with the support of USAID BIZPRO, stresses the need for One Stop Shop windows for public authorizations and permits. A One Stop Shop is a facility that connects institutions in a unique net to save customers time, worries and money. USAID BIZPRO trainings, technology and software helped the strategic partners from Cahul to open an On-line One Stop Shop for Business Licensing, earlier this year. The license delivery time was shortened from 100 days down to 10. But a new challenge came up – the huge necessity for this approach in construction permissions.
“When I spoke to the local authorities about setting a One Stop Shop in construction they laughed at me” remembers Valentin Dubceac, the manager of Agricultural Producers Association “Viitorul” (the Future), the USAID BIZPRO strategic partner in Hincesti, “after organizing a visit to the One Stop Shop in Cahul some of them lost their skepticism. But even now, when we established the One Stop Shop for Authorization for Construction and the Urbanism Certificate delivery that processes the first application, some of them can’t believe it’s possible”.
“The Regulatory Reform logo – “Join In!” was heard in Hincesti. The Hincesti community joined in and proved that things can improve. Everybody must join the Regulatory Reform, like the people from Hincesti did.”
Dorin Dumbraveanu, “UniAgroProtect” director.
The facility in Hincesti issues urbanism certificates and authorizations for construction activities. All processes, including circulation of information and decision making are performed electronically, based on a strict algorithm developed following the meetings and decisions of local public authorities involved in this process with USAID BIZPRO experts. With this system in place, urbanism certificates and authorizations for construction activities are issued based on a rigorous scheme and in strictly defined terms. If prior to establishing the one-stop-shop in Hincesti authorizations for construction activities were issued in as long as 12 to 18 months, now this process takes up to 30 days.
The impact of previous reform initiatives in Moldova has generated a “reform thirst” all over the country. The regulatory reform process is becoming a virtuous circle or a “success trap” where success breeds success that generates an irreversible process – institutions and mentalities desire to change and they are changing. Every USAID BIZPRO regional partner wants to be a reform champion! Today Hincesti is on top. But three other One Stop Shops – in Ungheni, Edinet and Soroca – will open this year and 10 more in 2006. This harsh competition has a lone definite winner – the Moldovan businessman. Praise the champion!


