USAID’s Business Enabling Project Quarterly Report: Second Quarter 2015

The project aims to improve the competitiveness of the Serbian economy and its private sector businesses by providing technical assistance, training, and other support to improve the business enabling environment, maintain macroeconomic stability, and further develop financial markets. The project consists of three major components: Component 1, Business Regulation and Economic Governance, streamlines laws, regulations, and institutions; improves regulators' capacity to implement laws; and improves analysis and public-private dialogue. Component 2, Macroeconomic Policy and Public Financial Management, helps the Government implement new budget and fiscal responsibility laws, improve budgeting, increase public disclosure and transparency, strengthen public debt management, and improve economic analysis and forecasting. Component 3, Financial Market Development, improves regulatory frameworks for non-bank institutions, develops capacity to strengthen and expand capital markets, and improves conditions for debt market development. During the second quarter of 2015, the Serbian Parliament adopted the Law on Inspection Oversight, which was developed with BEP's assistance. The new Law requires coordination and greater efficiency, and will reduce the extent of the shadow economy and decrease corruption. BEP and the Ministry of State Administration and Local Government reviewed more than 110 amendments submitted by MPs, and endorsed 38, which were incorporated into the Law as enacted. Implementation of construction permitting reforms proceeded as planned. BEP helped the GoS finish and adopt key bylaws, including the Decree on Location Conditions and the Joint Instruction for Application of One-Stop-Shop Procedure, which governs fire safety standards. BEP also established a call center and website to support implementation of construction permitting one-stop-shops. The call center and website provide support to local authorities, other public entities, and investors to properly interpret and implement the Law on Planning and Construction and its bylaws. BEP also started development of the new Budget Management Information System (BMIS). BEP agreed with the MoF Budget Department on the resources and actions each will commit in developing and operating the system. With MoF input, BEP developed and released a Request for Proposals for software development under a grant to the MoF. The new system will provide the Ministry of Finance with an appropriate tool for centralized collection, administration, and analysis of financial proposals and medium-term plans submitted by budget beneficiaries. The project's approach to achieving reforms is to help the GoS work closely with the private sector and outside experts to make reforms that improve business competitiveness. The reforms reduce the time and money spent by Serbian businesses to comply with laws and regulations and help the GoS to be more efficient. The reforms also enable businesses to attract necessary investment at an appropriate cost. As a result, Serbian businesses have a better chance to be competitive in the global economy, leading to export-led economic growth and increased employment.