Robert Swope

M&E Final Project

14 DEC 2012

Project: Enabling New Business Registration in Baghdad, Iraq.

A key component of generating economic growth is the creation of a business enabling environment.
One element of a business enabling environment is making it easier for entrepreneurs to license new
businesses. Unfortunately, many countries set up complicated and bureaucratic business licensing
regimes with multiple offices in separate locations and onerous regulations that entrepreneurs must
navigate just to register their companies so they can do business legally. The cost and difficultly of such
systems inhibits small and medium sized firm development and encourages corruption. This is true in
Baghdad, Iraq, where additional complications related to political stability, the rule of law, and violent
conflict are part of the enabling environment. Registration offices also have their own issues impeding
effective service delivery, including an organizational culture that lacks a customer service mentality, as
well as capacity deficits related to leadership, staff skill levels, and technological infrastructure, which if
improved, could be leveraged to support firm creation.
This intervention seeks to work with the city government of Baghdad to streamline business
licensing by reducing costs, diffusing knowledge, and increasing the speed at which businesses licenses
are approved. The project will last one calendar year and it will involve:

Efforts to reduce cost burdens (both official and non-official) on entrepreneurs.

The development of one stop shop locations where business licensing may be completed.
The publication, online and in written form at neighborhood governance centers, of the steps,
official fees, and expected time frame required to license a business, along with an increase in
the number of government experts available to assist entrepreneurs with questions, so as to
diffuse and increase knowledge of licensing procedures and costs.
The leveraging of technology to improve data sharing among relevant government stakeholders
involved in registering new businesses and the publication of data regarding processing times
and employee performance (such as throughput and allegations of corruption).

The project is coherent because it links the intervention (streamlining business licensing
procedures) with the predicted outcome (more firms created) and the expected impact (economic
growth).
This project is also plausible because it adheres to a program theory in which the intervention
activities taken reasonably add up to observable change in the identified problem, namely, that by
making it easier to license a business there will be more created, meaning higher levels of investment
(both foreign and domestic) and more jobs produced, leading to greater circulation of money and a
more robust economy. The need for a business enabling environment has long been recognized as a
driver of economic growth, which is correlated with greater levels of development.
Finally, the project is measurable because we can determine ahead of time the average number
of days it takes to register a business, as well as costs and the number of registered businesses in
Baghdad (including how many have been registered in the last few years). After the intervention we can
determine changes in the average number of days it takes to register a business, the costs of doing so,
and the growth in the number of new businesses before comparing them with historical data. We can
also measure (though not precisely) the previous gross domestic product for the city of Baghdad and
future domestic product after the intervention. These are all objective (statistical) and observable
measurements.

Part A

Robert Swope

M&E Final Project

14 DEC 2012

Explaining the Results Framework

The peak result for this project is a decrease in the barriers to entry for business entrepreneurs in
Baghdad. This is achieved through interventions targeted at improving the business licensing regime.
The overarching result is connected to subsidiary results and subresults through causal links. Taken
together, the subresults add up to the higher level results, which themselves add up to the peak result.
Result #1: This result is focused on achieving a reduction in the total cost of starting a business in
Baghdad. It does so through a program intervention that leads to a reduction of the fee burden on
entrepreneurs (Subordinate Result 1.1). It logically follows that if you reduce a fee related to an activity,
then, ceteris paribus, the ultimate cost of that activity is also lowered.
Subordinate Result 1.2, which also leads to Result 1, is the expected effect of steps taken to
reduce and eliminate corruption. Anti-corruption efforts related to business registration will reduce
costs on entrepreneurs as they will no longer be saddled with extra, illegal fees given to officials who
extort payments. The removal of this additional cost on top of official fees will have the concomitant
effect of reducing total costs.
Result #2: Entrepreneurs need sufficient access to information to develop business plans, particularly
when it comes to estimating the costs required to start a business. These include knowing about official
fees, but also the required steps and time frames involved with the business licensing process. By laying
the requirements and costs out clearly, and by publishing the data in a wide variety of ways, would-be
entrepreneurs are more likely to have sufficient information and can engage in accurate planning which
will result in less waste of time and money, and hence, lower the barriers to entry for them.
Through a program intervention that results in the diffusion and streamlining of access to
information related to business registration (Subordinate Result 2.1), Result 2 of increasing the
knowledge among entrepreneurs is achieved. If knowledge is widely available and easy to access, it
follows that those who seek it out will attain it. Subordinate Result 2.2 of providing increased access to
government registration experts provides entrepreneurs another avenue for understanding business
registration procedures, especially if they have trouble understanding published information.
Government registration experts who explain policy to entrepreneurs will also increase knowledge
among them, therefore decreasing another barrier to entry, that of insufficient information.
Result #3: Speeds at which business registration occurs impacts the decision calculus of entrepreneurs
regarding whether or not to start a business or join the official economy. And it affects total costs as
entrepreneurs are waiting around and not creating value or receiving revenue while waiting for
registration to be completed.
Subordinate Results 3.1 and 3.2 come about by the leveraging of technology to increase the
improve registration process via the sharing of information between relevant offices and by tracking
worker throughput. The former reduces transaction times, while the latter creates an incentive for
workers to perform, in addition to data that managers may act on to improve the productivity of specific
employees. By doing both processing times will be decreased when it comes to business registration,
resulting in Result 3, the speed of the business licensing process being increased.
Speed is also improved by reducing the number of offices entrepreneurs must visit to attain a
license, as listed in Subordinate Result 3.3. By co-locating all offices in a one stop shop, entrepreneurs
can cut down on transportation costs and time since they only need to go to one place. This leads to a
speeding up of the whole process, which feeds into reducing a barrier to entry.
Part B

Robert Swope

M&E Final Project

14 DEC 2012

Result 1 Indicators
Indicator 1.1: Total aggregated government fees that are official, published, and associated with
registering a business, and which are reported at the beginning, halfway point, and one month after the
end of the intervention.
Indicator 1.2: Average of total aggregated non-official costs, as reported by those who have gained
business licenses, exclusive of official registration fees, and which are reported at the beginning, halfway
point, and one month after the end of the intervention.

Inclusive of transportation costs

Inclusive of aggregate of time spent filling out forms and dealing with government registration
offices to secure a license, estimated at a per hour standard rate equal to Iraqi minimum wage
Inclusive of any reported bribes paid to government employees or their representatives

Indicator 1.3: Total official and average non-official costs (the sum of Indicator 1.1 and Indicator 1.2),
and which are reported at the beginning, halfway point, and one month after the end of the
intervention.
Result 1 looks at reducing the costs associated with business registration. These include not only official
costs that entrepreneurs pay to the government, but additional costs spent attempting to attain a
license, such as time and/or money spent on transportation, form preparation, and bribes.
Taken together, the full set of indicators show whether or not the total cost burden on
entrepreneurs has been reduced and in what ways specifically, as they allow assessors to determine
where the cost reductions actually occurred. This information provides the opportunity for intervention
activities to be more precisely targeted.
Indicator 1.1 on its own shows official costs and the reason it was chosen is so that evaluators
can see whether or not the government has taken steps to reduce official fees to spur business
development. It may be compared with other localities as well. Indicator 1.2, meanwhile, looks at
supplementary costs, and by collecting the various amounts spent on transportation, costs of time spent
filling out forms, and bribe payments, assessors can tell which are most burdensome to the
entrepreneur. For example, if at the end of the intervention we see that time spent filling out forms and
transportation costs are minimal, but bribes are large, then dealing with corruption issue may be where
government officials and external interveners will want to focus future efforts. Finally, Indicator 1.3
allows for an understanding of the total costs associated with registering the business. While the other
two indicators are decompositions that allow for us to examine where cost reductions occurred,
Indicator 1.3 allows us to see whether or not the overall result has been achieved.
In order to see whether or not the intervention is working data will have to be collected
regarding existing official costs, and a survey completed as to non-official costs, for later comparison.

Part C-1

Robert Swope

M&E Final Project

14 DEC 2012

Subordinate Result 3.3 Indicators

Indicator 3.1: Number of different locations entrepreneurs must go to in order to attain a business
license, checked at the beginning of the intervention, halfway through, and one month after it is
completed.
There is only one indicator for Subordinate Result 3.3. This is because the goal of this result is very
simple: a decrease in the number of different locations entrepreneurs need to visit to register their
businesses. As described in Part B, Explaining the Results Framework, a reduction in the number of
different government offices that need visiting reduces time and transportation costs on the part of the
entrepreneur. This indicator is directly tied to the result because it quantitatively measures whether or
not a decrease in the number of locations that must be visited has occurred.
A current count of the number of different locations entrepreneurs must visit will have to be
attained. This will data will then be compared to the number of locations entrepreneurs must visit at
the end of the intervention to see whether or not the number has decreased, which would indicate
result has been achieved.

Part C-2

Robert Swope

M&E Final Project

14 DEC 2012

Subordinate Result 2.1 Indicators

Indicator 2.1: % of local government offices with correct & comprehensive data on business registration
procedures and costs, and which are reported monthly throughout the intervention and concluding one
month afterwards.
Indicator 2.2: % of local government offices with correct & comprehensive data on business registration
procedures and costs and who have that information publicly posted or otherwise available (i.e.
pamphlets), and which are reported monthly throughout the intervention and concluding one month
afterwards.
Indicator 2.3: Existence of website with correct & comprehensive data on business registration
procedures and costs, as reported at the beginning, halfway point, and one month after the end of the
intervention.
Subordinate Result 2.1 is on increasing the amount of data sources on business registration that is
available to the population. These three indicators were chose because together they can cover the
whole population, as not everyone may have access to the internet. Collectively they address the issue
of information availability, which feeds into the higher level result of increased knowledge among
entrepreneurs about the required steps and official costs to register a business. This of course feeds
into the peak result of decreasing barriers to entry, one of which is an accurate understanding of the
steps required to license a business.
Indicator 2.1 lets us know how many LGOs actually have correct and comprehensive
information. This is not enough, however, as that information needs to be available, hence, Indicator
2.2 which asks whether they have it publicly available. Increases and decrease in percentages allow
evaluators to see whether or not knowledge is being diffused, in addition to determining whether or not
an LGO needs the information, or simply needs to make it available via pamphlets or signs.
Indicator 2.3 looks at whether or not an official online resource exists listing the information.
One might think this is the only indicator needed, but home-based internet penetration is not
widespread in Iraq like it is in the U.S. and would-be entrepreneurs may prefer to visit an LGO as
opposed to spending money in an internet caf. Having a 24/7 resource such as a website available
helps with the diffusion of knowledge, which Subordinate Result 2.1 feeds into.

Part C-3

Indicator Sheet - M&E System

Peak Result: Decreased barriers to entry for business entrepreneurs in Baghdad.
Result 1: Reduction in costs associated with starting a business.
Sub-Result 1.1: Registration fee burden on entrepreneurs lowered.

I. Indicator Specifications
i. Indicator Phrase: Total aggregated government fees that are official, published, and associated with
registering a business, and which are reported at the beginning, halfway point, and one month after the end
date of the intervention.
ii. Precise Definitions of All Key Terms:
Total aggregated government fees are the costs entrepreneurs must pay directly to the government to
register a business in Baghdad.
Official means as authorized by the proper government authority.
Published means available online at a government controlled website or at local government centers.
Start point means as of day one of the project intervention.
nd
Halfway point means as of the 182 day of the project intervention.
iii. Calculation / Formula:
Sum of all official fees paid to the government to attain a business license.
iv. Data Collection Method and Sources:
Total aggregated government fees come directly from government reporting in official publications.

II. M&E Use

v. Indicator Significance, Interpretation/Links, and Use:
Indicator is a quantitative look at costs related to registering a business in Baghdad. It is perhaps as
objective as one can get when it comes to measuring government fees for entrepreneurs. The indicator is
a proxy for how easy/difficult it is to start businesses. Increases or decreases in government fees can show
improvement or the lack thereof when it comes to assessing the business enabling environment and
government support for it. The project activity of reducing government fees is directly tied to this indicator.
vi. Data Quality, Population/Sample, and Related Issues:
Data regarding aggregate total cost is taken from official government publications about business
registration fees. To ensure this information is valid the fee totals will be cross-checked by interviews with
registration officials and entrepreneurs who have successfully completed the business registration process.
Official government fees will have to be distinguished from any bribes so it is possible that in interviews
entrepreneurs will have to be made aware about what was considered official and non-official in their
payments to registration officials. This will serve as an aid to data validity.
Finding government registration officials willing to talk to evaluators may be difficult so an incentive may be
needed, such as buy-in for the project from higher level business registration officials. This will make the
data more reliable. Similarly, there may be difficulty with finding or getting entrepreneurs to report what
they paid in official fees, so a mechanism needs to be put in place to assist with this data, such as
contacting local business associations or receiving a list of recent licensees from the registration office.
In Baghdad, licensing fees are the same for all businesses, and are not based on size or type. Ergo, fee
totals will be the same for all entrepreneurs, so no additional work needs to be done clarifying the fee data.
What is simply needed is government reported fees and confirmation by business registration employees
and entrepreneurs.

Indicator Sheet - M&E System

Peak Result: Decreased barriers to entry for business entrepreneurs in Baghdad.
Result 1: Reduction in costs associated with starting a business.
Sub-Result 1.1: Registration fee burden on entrepreneurs lowered.

I. Indicator Specifications
i. Indicator Phrase: Average of total aggregated non-official costs, as reported by those who have gained
business licenses, exclusive of official registration fees, and which are reported at the beginning, halfway
point, and one month after the end of the intervention.
ii. Precise Definitions of All Key Terms:
Non-official costs include reported 1) transportation costs, 2) time spent filling out forms and dealing with
government registration offices to secure a license, estimated at a per hour standard rate equal to Iraqi
minimum wage, and 3) bribe payments.
Aggregated total means that adding up of non-official costs into one amount.
Average of the sample means that total costs is divided by the number of respondents.
Start point means as of day one of the project intervention.
nd
Halfway point means as of the 182 day of the project intervention.
iii. Calculation / Formula:
Total aggregated non-official costs / sample size of respondents.
iv. Data Collection Method and Sources:
Data comes directly from survey respondents who remain anonymous.

II. M&E Use

v. Indicator Significance, Interpretation/Links, and Use:
Indicator is a quantitative determination of the average amount of non-official costs paid by those who
received business licenses. The indicator provides an idea of how much entrepreneurs pay in costs above
and beyond what is required by the government. These costs are influenced by the government, however,
by how easy it makes the business registration process. If non-official costs lower over time, we can see it
as the results of steps being taken to reduce bribes, or time having to be spent navigating the registration
process, or less costs related to transportation. The end result is also only an average, or mean. It is not
the median cost or the mode. The full data set with the range of response, mode determination and
median amount should be available as supplementary statistics.
vi. Data Quality, Population/Sample, and Related Issues:
This data all comes directly from those who have received business licenses. Ideally, we can survey the
entire population, though this may not be feasible due to budgeting issues or time constraints, so a sample
may need to be taken. In the interest of data validity, it is best in-depth interviews be done with the
targeted sample as self-reporting may not allow for accurate data and any online survey may be tainted by
government officials. Interviews may have to be repeated with the same respondent in case they need to
collect information regarding how much transportation costs and time was spent filling out forms and
dealing with registration offices. The data should be reliable as it simply involves finding entrepreneurs who
have just completed the process and interviewing them. As the project progresses, the skill with which is
done should increase as project staff have more and more practice. There may be an issue with getting
reporting on bribes as some respondents may be fearful. Steps will need to be taken to overcome this,
such as recording respondents by numbers instead of names, promising anonymity, and developing trust
with the respondent.

Indicator Sheet - M&E System

Peak Result: Decreased barriers to entry for business entrepreneurs in Baghdad.
Result 1: Knowledge among entrepreneurs of required steps and official costs to register a business
increased.
Sub-Result 2.2: Increased access to GOV business registration experts to assist entrepreneurs with
questions

I. Indicator Specifications
i. Indicator Phrase: # of available GOV business registration experts, as are reported at the beginning,
halfway point, and one month after the end date of the intervention.
ii. Precise Definitions of All Key Terms:
Business registration experts are Baghdad City employees who are qualified to assist entrepreneurs as
they navigate through the registration process.
Availability means working at least 35 hours of a standard 40 hour week at a business registration office
where entrepreneurs have access to experts either as walk-ins or by appointment.
Start point means as of day one of the project intervention.
nd
Halfway point means as of the 182 day of the project intervention.
iii. Calculation / Formula:
Sum of the number of GOV business registration experts at each business registration office.
iv. Data Collection Method and Sources:
1) Baghdad City business licensing officials provide initial data about the number of business
registration experts and their locations.
2) Time cards will be checked to verify worker hours at these locations.
3) Surprise inspection will be conducted at these locations to verify these workers are present.
4) Interviews will be conducted with registration office staff to ensure these experts are present for the
appointed number of work hours and that they make themselves available.

II. M&E Use

v. Indicator Significance, Interpretation/Links, and Use:
Indicator is one data point on sources of data available to entrepreneurs to register new businesses. It
signals availability but not necessary diffusion of knowledge. The indicator is one part of business-enabling
environment and government support for new businesses.
vi. Data Quality, Population/Sample, and Related Issues:
Data collection should be relatively easy since population size is easy to examine. As noted, the existence
of experts does not necessarily mean they are doing a good job. The data will have to be checked for
validity, which is why in addition to checking time cards, surprise inspections will have to take place to
ensure business registration experts are on the job. Validity will be further increased by discussions with
office staff who can let us know whether those experts are working the same number of hours reported on
their time cards. Reliability when it comes to gathering the data shouldnt be a problem as it simply
requires inspector visits to known work places to check up on known individuals.

Indicator Sheet - M&E System

Peak Result: Decreased barriers to entry for business entrepreneurs in Baghdad.
Result 1: Knowledge among entrepreneurs of required steps and official costs to register a business
increased
Sub-Result 2.2: Amount of data sources on business registration procedures and costs increased among
population.

I. Indicator Specifications
i. Indicator Phrase: % of local government offices with correct & comprehensive data on business
registration procedures and costs and who have that information publicly posted or otherwise available and
which are reported monthly throughout the intervention and concluding one month afterwards.
ii. Precise Definitions of All Key Terms:
Local governance offices (LGOs) are present in each of Baghdad citys neighborhoods. They serve as
information and constituent service centers in addition to primary points of contact between citizens and
their neighborhood and city-level government representatives.
Correct and comprehensive data means accurate and detailed information on ALL official costs as well as
ALL business registration processes.
Publicly posted means data is visible on a wall where members of the public can see it.
Otherwise available means members of the public can access the information with no trouble, such as
having pamphlets available that they can read or take with them.
iii. Calculation / Formula:
% of LGOs with appropriate information = # of LGOs with appropriate information / total # of LGOs
iv. Data Collection Method and Sources:
Intervention personnel will visit LGOs monthly posing as would-be entrepreneurs to ensure each LGO has
posted or printed data and that the data is both accurate and comprehensive.

II. M&E Use

v. Indicator Significance, Interpretation/Links, and Use:
Indicator is a quantitative measure of % of LGOs with comprehensive and accurate data available on
business registration procedures and costs. The indicator is an objective look at the availability of
information on business registration data throughout Baghdad. Increases in % show greater diffusion and
availability of knowledge regarding business registration.
vi. Data Quality, Population/Sample, and Related Issues:
Data quality should be sound. The number of LGOs is small so a sample need not be taken. This will help
ensure the data is valid. Inspectors will be project staff and the will be asked to bring back documentary
evidence in the form of a picture or copy of the pamphlet, a further aid to data validity. Inspectors will also
be rotated among LGOs and will receive assignments the day of so as to avoid the chance of being found
out and bribed or threatened with skewing the results. The data will be reliable as it involves inspectors
going out and doing their jobs on a monthly basis. Data for this indicator in a sense is existing, it just needs
to be looked at.

Indicator Sheet - M&E System

Peak Result: Decreased barriers to entry for business entrepreneurs in Baghdad.
Result 3: Speed of business licensing process increased.
Sub-Result 3.3: Number of different locations entrepreneur must go to for registration decreased.

I. Indicator Specifications
i. Indicator Phrase: Number of different locations entrepreneurs must go to in order to attain a business
license, checked at the beginning of the intervention, halfway through, and one month after it is completed.
ii. Precise Definitions of All Key Terms:
Location is a place where part of the business licensing process occurs.
iii. Calculation / Formula:
Sum of the number of places entrepreneur must go to in order to register their business.
iv. Data Collection Method and Sources:
One data source is official government reporting as outlined in their published data. This can be cross
checked with survey interviews with those who recently completed the registration process and reporting
costs. Information can be collected at the same time regarding the number of different locations they had
to go to. Finally, project staff can embark on the business registration process and develop and verify the
number of locations.

II. M&E Use

v. Indicator Significance, Interpretation/Links, and Use:
Indicator is a quantitative look at the number of locations entrepreneurs must visit to register their business.
It is simply a matter of counting locations and is objective in nature. The indicator matters because the
number of locations entrepreneurs must go to increases transportation costs and the time frames required
on the part of entrepreneurs who want to get licensed. The indicator also serves as an aid when it comes
to assessing the business enabling environment, particularly when it comes to viewing how organized the
government is and how easy they make the business registration process.
vi. Data Quality, Population/Sample, and Related Issues:
This data on the number of locations is not controversial so it is unlikely anyone will try and skew the
results. Even so, validity is given its due by having three sources (government, entrepreneurs, and project
staff) reporting on the number of locations required. Reliability is not much of a concern since the data isnt
difficult to access. After all, the government publishes such information, and project staff can go through
the process to gauge the number of locations. Unlike with bribery payments, recently licensed
entrepreneurs would not be in fear for giving an honest answer about the number of different offices.

Strategic Results Framework

Peak Result:
Peak
Decreased barriers to entry for business entrepreneurs in Baghdad

Result 1: Reduction in costs

associated with starting a
business

SubResult 1.1:
Registration fee burden
on entrepreneurs
lowered

SubResult 1.3:
Strengthened anticorruption efforts in the
business registration
process to prevent extra
costs

Result 2: Knowledge among entrepreneurs of

required steps and official costs to register a
business increased

SubResult 2.1:
Amount of data sources
on business registration
procedures and costs
increased among
population
SubResult 2.2
Increased access to GOV
business registration
experts to assist
entrepreneurs with
questions
SubResult 3.3:
Number of different
locations entrepreneurs
must go to for
registration decreased

Result 3: Speed of business

licensing process increased

SubResult 3.1:
Increase in use of
network technology at
registration center for
various offices to share
information on
applications

SubResult 3.2:
Increase in use of a
tracking system to
monitor worker
throughput

Program Theory
Entrepreneurs

Centralized location easy access

Costs to register a businesses

are reduced

Process to register a
businesses made clearer to
would-be entrepreneurs

Increase in amount
of businesses
created and
registered

Business licensing officials able

to simplify registration
procedures by leveraging
technology

Business licensing officials able

to increase worker
productivity by leveraging
technology

Technology-enabled workflow
and data sharing

Technology-enabled employee
accountability mechanism

Registration officials

Government managers

Technological system upgrades

Government education/training to
increase skills/productivity

Theory of Change
Clear & reasonable
construction permitting
procedures
Reasonable regulations

Access to credit

Getting electricity

Sufficient & knowledgeable staff

Productivity incentives

Economic Growth
Increased circulation
of money in economy

Trading across borders

Corruption
Investor protection

Increase in # of new
jobs available

Business-enabling
environment

Registration officials support

firm creation

Technological system upgrades

Good
governance

Contract enforcement

Entrepreneurs/investors start
new firms
Peace

Improved Livelihoods

Political
stability

Increase in # of new
businesses created

Rule of law

Macroeconomic
stability

Technological system upgrades

Decreased barriers to
entry for businesses

Staff w/customer service mentality

Disincentives for corruption

Better managerial leadership

Government registration office

enabling environment

Adequate resources for

licensing officials