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192 International Trade in Services cost involved in dealing with construction in the business capitals of non-highincome OECD countries with populations of more than 4 million each. The discrepancy in administrative performance is remarkable even for countries with similar levels of economic standards. For example, Kenya has a seemingly effective administration of construction permits. It takes 100 days to go through the 10 procedures at a cost of 46 percent of annual income per capita. Only Singapore is noticeably more effective, with a shorter duration (38 days) and lower cost as a share of income per capita (21 percent). In South Africa, it takes six months to carry out the 17 procedures at a cost of 28 percent of income per capita. In Kenya’s neighbor, Tanzania, it takes 10 months, 21 procedures, and more than 2,000 percent of income per capita to obtain a construction permit. The countries that operate the slowest and most expensive construction permit bureaucracies are fragile states such as Afghanistan, Haiti, Niger, and Zimbabwe. However, among the largest emerging markets, China and, particularly, Russia administer relatively expensive and bureaucratic processes as well. Russians go through 54 procedures—currently the worst record—that take, on average, 23 months and cost 2,600 percent of Russian income per capita. The Chinese must wait 11 months for the completion of 37 procedures at a cost of 700 percent of income per capita. The Brazilian administration of construction permits is slower (411 days), but less expensive (47 percent), while the Indian administration is more rapid (224 days) and more expensive (400 percent). Tables 6.2 and 6.3 present a breakdown of the various procedures required to build a warehouse in Kenya and Russia. In Kenya, the most costly and timeconsuming procedure is the request for and issuance of a building permit (50 days). In Russia, particularly time-consuming procedures include (1) the request for and issuance of a conclusion on compliance form for a proposed building with appropriate city planning and territory use registrations (152 days), (2) the request for and issuance of a disposition of a prefect on the inception of a construction design (60 days), and (3) the request for and issuance of a project approval by the appropriate Moscow state expertise (60 days). In addition, the procedure for requesting and obtaining the proper technical conditions for an electricity connection with Mosenergo incurs an estimated cost of Rub 5.5 million. Overall, the most timeconsuming procedures in many countries relate to the issuance of building permits and zoning clearances, as well as electricity, water, and telecommunication connections. The list of obscure documents and permits that are required and the number of government agencies involved in the registration process can take on Kafkaesque proportions (see table 6.2). Thus, the data indicate that there are substantial differences across the world and that the administration of construction permits in some countries is prohibitively long and costly. Some of these differences occur because of legitimate
Building Empires Overseas 193 Table 6.2. Procedures, Time, and Costs Involved in Building a Warehouse, Russian Federation, 2008 Time to Cost to complete complete No. Procedure (days) (Rub) 1 Apply for act of permission for use to Department of City Planning Documentation Development at MoskomArchitektura 1 n.a. 2 Request and obtain situation plan of district and conclusion for a District Land Commission from Architecture Planning Department 15 43,680 3 Request and obtain a conclusion from Territorial Union of Land Use Regulation (TOP3) 15 4,330 4 Request and obtain a decision by the District Land Commission on land plot provision and city planning regulation 30 n.a. 5 Request and obtain clearance of draft disposition of Prefect with the Architecture Planning Department (APD) 7 n.a. 6 Request and obtain clearance of draft disposition of Prefect with the local government 7 n.a. 7 Request and obtain clearance of draft disposition with the Territorial Union of Land Use Regulation (TOP3) 7 n.a. 8 Request and obtain the disposition on preparation of an act of permission for use (AP ) by the Prefect 7 n.a. 9 Request and obtain a conclusion on compliance of proposed building with specified city planning and territory use regulations 152 4,500 10 a Request and obtain technical conditions from water and sewage services 45 17,673 11 a Request and obtain technical conditions for an electricity connection with MosEnergo 30 5,490,520 12 a Request and obtain technical conditions to connect to telephone line 30 3,000 13 a Request and obtain approval from MoskomArchitektura on engineering of the facility 14 4,500 14 Request and obtain an act of permission for use (AP ) from MoskomArchitectura 30 6,700 15 Request and obtain disposition of Prefect on the inception of construction design (decision on construction) 60 n.a. 16 Request and obtain approval of design conditions by the Department of Well-Being of MoskomArchitektura 7 53,300 17 a Request and obtain approval of design conditions by Department of Preparation of Project Approvals of MoskomArchitektura 14 12,100 18 a Request and obtain approval of design conditions by local government 7 n.a. 19 a Request and obtain approval of design conditions by the Prefect’s Office 14 n.a. 20 a Request and obtain approval of design conditions by the Emergency Situation and Civil Defense Department 14 14,728 N N (Table continues on the following pages.)
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Public Disclosure Authorized Public
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International Trade in Services New
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CONTENTS About the Editors and Cont
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Contents vii Boxes 2.1 Extent of Te
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Contents ix 1.4 Worker Remittances
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Contents xi 6.6 A Checklist of Ques
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xiv About the Editors and Contribut
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xvi Foreword Beyond describing the
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xviii Acknowledgments Finally, this
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1 Assessing the Potential of Servic
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Assessing the Potential of Services
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2 Increasing Labor Mobility: Option
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Increasing Labor Mobility 31 unders
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Table 2.2. Quantitative Estimates o
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Borjas, George “Heaven’s Doors:
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Increasing Labor Mobility 37 contri
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Increasing Labor Mobility 39 must h
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Worker categories covered Specifica
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Provisions on professionals Annex o
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Increasing Labor Mobility 45 The EU
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Table 2.7. Agreements between Austr
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Specified quotas n.a. Entry subject
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Increasing Labor Mobility 55 Figure
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Increasing Labor Mobility 57 Bilate
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Increasing Labor Mobility 59 Jamaic
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Increasing Labor Mobility 61 factor
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Increasing Labor Mobility 63 indivi
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Increasing Labor Mobility 65 that a
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3 Legal Services: Does More Trade R
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Legal Services: Does More Trade Rhy
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Table 3.3. Trade in Legal Services:
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Table 3.8. Uruguay Round Commitment
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100 International Trade in Services
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Exporting Information Technology Se
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Brunei Darussalam 48.2 2.9 2,954 66
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Honduras 6.0 — 4,081 10.1 3.3 —
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Norway 85.0 30.6 31,726 82.0 78.0 5
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Uganda 3.6 — 306 5.1 — 170.0 41
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8 Accounting Services: Ensuring Goo
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Accounting Services 265 exceeding 5
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Accounting Services 267 Links to la
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Accounting Services 269 The account
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Accounting Services 271 Box 8.3: Ex
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Accounting Services 273 service mar
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Accounting Services 275 Table 8.5.
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Accounting Services 277 Box 8.6: Re
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Accounting Services 279 Box 8.7: An
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Accounting Services 281 Table 8.6.
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Accounting Services 283 Restriction
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Accounting Services 285 Commercial
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Accounting Services 287 Colleges of
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Accounting Services 289 Administrat
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Accounting Services 291 IESBA (Inte
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350 Index Association of Certified
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352 Index Convention on Combating B
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354 Index Former Yugoslav Republic
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356 Index International Public Sect
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358 Index migrants. See labor mobil
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360 Index public-private partnershi
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362 Index Thailand construction ser
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ECO-AUDIT Environmental Benefits St
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