UNODC offers methodological support to the Business Ombudsman's Office in analyzing corruption risks in state business inspections in Uzbekistan

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This initiative reflects Uzbekistan's ongoing efforts since 2017 to bolster private entrepreneurship through a series of regulatory reforms. These reforms aim to reduce the burden of state control, digitalize administrative procedures, and simplify the licensing process, showcasing the country's commitment to fostering a favorable business environment.

However, despite these positive developments, challenges remain in the realm of government control. There is a significant need for further improvements due to the high corruption risks associated with state inspection processes. Preliminary analysis by UNODC experts highlights that the burden of state oversight not only encompasses inspection procedures but also includes substantial compliance costs with technical regulations and general legislation. These costs create a strong incentive for SMEs to engage in corrupt practices to ensure successful inspections.

In response to these challenges, UNODC ROCA organized a workshop on 26-27 April to assist the Office of the Business Ombudsman (BOO) in developing a methodological framework for anti-corruption screening of legal acts and assessing corruption risks in inspection practices.

During the workshop, 21 experts from the BOO developed survey protocols, guidelines for in-depth interviews, mapped risks at each stage of inspection, and practiced anti-corruption screening techniques. A research work plan was also established to enable BOO management to effectively monitor and facilitate the research process.

Building on this groundwork, the Business Ombudsman’s Office has established two expert groups: the Working Group on Anti-Corruption Screening of Legal Acts and the Corruption Risk Assessment Group, involving BOO personnel with aim is to produce a comprehensive set of policy analysis papers:

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  1. A report on the results of an anti-corruption examination of the regulatory framework (ACE) regulating state inspections of business activities in the Republic of Uzbekistan, with an appendix of an exhaustive list of identified corruption norms, as well as proposed changes to the norms of specific legal acts.
  2. A report on the results of the Corruption Risks Assessment (CRA) associated with the process of conducting government audits, with detailed recommendations attached to eliminate them.
  3. Analytical paper “On directions for improving the system of state control of business activities in the Republic of Uzbekistan”, containing proposals for areas of improving legal regulation and the practice of carrying out inspections of the activities of business entities in the Republic of Uzbekistan.
  4. Executive summary “On directions for improving the system of state control of business activities in the Republic of Uzbekistan.”

This package aims to initiate public sector discussions on state oversight issues and the long-term transformation of the system. It focuses on enhancing efficiency and effectiveness and reducing the administrative burden on businesses.

It is important to note that UNODC technical assistance focuses on enhancing the capabilities of the BOO personnel to conduct analytical work and develop policy papers, as well as to carry out surveys and assess corruption risks. This approach will empower the BOO to independently undertake complex studies and analytical projects in the future.  

UNODC experts will continue to provide advisory and methodological guidance to the BOO Working Groups to assist them in accomplishing the study and preparing feasible policy recommendations on further improvement of the national system for state inspection of business activities in Uzbekistan.

Technical assistance is being provided within the UNODC’s Global Action for Business Integrity Project.

 

Find out more about the workshop at:

UNODC ROCA Facebook page: www.facebook.com/UNODCCentralAsia for updates and posts.

 

For partnerships and further inquiries, please contact:

Vladimir Kozin, Regional Anti-corruption Adviser, Email: vladimir.kozin[at]un.org

Azat Irmanov, National Programme Officer on Anti-corruption, Email: azat.irmanov[at]un.org