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IFC Launches the Municipal Scorecard 2007


In Peru
Cecilia Lozada

Phone: 611-2521

E-mail:
clozada@ifc.org

In Washington, D.C.

Adriana Gomez

Phone: +1 (202) 458-5204

E-mail:
agomez@ifc.org


Lima, May 8, 2007—IFC, the private sector arm of the World Bank Group, has launched the Municipal Scorecard 2007 report, a tool that promotes municipal reform, helps reduce the regulatory burden, and makes recommendations to improve the business climate in Latin America. The report compares regulatory burdens that entrepreneurs face when obtaining operating licenses and construction permits in 65 municipalities in several countries, including Bolivia, Brazil, Honduras, Nicaragua, and Peru.

The report establishes benchmarking indicators to compare municipalities at the national and regional levels.  The indicators were developed with information obtained by surveying entrepreneurs who requested a license or a permit and municipal officers in charge of the processes.


The methodology for the scorecard was developed in collaboration with the Business Institute INCAE in Costa Rica. To obtain and process the information, IFC partnered with local academic institutions, including the Universidad Privada Boliviana in Bolivia, the Fundacion de Economia de Sao Paulo in Brazil, the Universidad José Cecilio del Valle en Honduras, the Universidad Americana en Nicaragua, and the Escuela de Administración de Negocios – ESAN in Peru.


The report concludes that population size and income levels are not barriers to reform, that municipalities that have implemented reforms consistently have performed better, and that good administrative practices can be replicated across and within countries.


Luke Haggarty, General Manager for IFC Advisory Services in Latin America and the Caribbean and co-author of the report, said, “The report is designed to help national and local governments and the private sector understand the regulatory structure and identify areas in need of municipal reforms.”


Kristian Rada, coordinator and co-author, noted, “Creating opportunities for local entrepreneurs is essential to ensure job creation and economic growth in Latin America. This report shows IFC’s commitment to work with municipalities and the private sector to improve the investment climate and economic prospects in the region.”


The report was developed with the support of Switzerland’s State Secretariat for Economic Affairs and several local institutions from the public and private sectors in the selected countries.


The Municipal Scorecard complements the annual Doing Business report, developed by IFC and the World Bank. For more information, please visit:
www.municipalscorecard.com.

About IFC

IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries.  IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org.