Amman, Jordan, May 21, 2009—IFC,
a member of the World Bank Group, and Jordan’s Ministry of Industry and
Trade launched the country’s first national inspection reform strategy,
which will make government inspections of businesses for regulations like
health, safety, and environment more effective and less costly.
The first phase of the inspection reform
project involved analyzing, mapping, and assessing the legal framework
for inspecting private sector businesses in Jordan, and working with select
ministries on reform. The goal of the project is to increase the effectiveness
of government inspections, and reduce the cost of these inspections for
the private sector, which will encourage some businesses to enter the formal
IFC and Jordan’s Ministry of Industry
of Trade launched this national reform strategy at a conference where participants
from government and the private sector discussed local and international
experience with inspection reforms, and the role and expectations of the
private sector in this process.
The conference also presented recommendations
for the next steps needed to push the initiative forward and increase inspection
efficiency and effectiveness. IFC has supported Jordan’s efforts to reform
its inspection processes since 2006.
Jordan’s Minister of Industry and Trade,
Amer Al-Hadidi, said: “The government aspires to have a modern, rational,
and comprehensive system to protect health, environment, safety,
and labor rights in a way that increases private sector compliance in a
more efficient and effective manner.”
Senior Operations Manager for IFC Advisory
Services MENA, Frank Sader, said: “IFC is glad to see the progress made
to bring such an extensive national strategy off the ground. The project
has made great progress in streamlining the inspection process, increasing
transparency and coordination, and introducing risk-based processes.”
Jordan’s Ministry of Labor and Ministry
of Environment are working with IFC to help strengthen their inspection
systems. These ministries presented their experiences during the conference.
A Dutch example of national inspection reform and a British example of
environmental inspection reform were shared to provide guidance for Jordan’s
inspection reform process going forward.
In many developing countries, inspections
can be a heavy burden for businesses in terms of time and cost. If performed
in an unplanned and costly manner, inspections can affect a firm’s productivity
and deter its owners from joining the formal economy.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous
year. For more information, visit www.ifc.org.