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 sector.
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.
About IFC
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
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