Transcript Approaches to developing and reforming the national

Hüseyin Uğur
Consultant, ECA
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
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Technical conditions for the free movement of
goods in EU and WTO agreements.
Problems in the existing legal systems and
infrastructure
Major problems for the development of Quality
Infrastructures.
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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Key Elements in Market
Non-Technical
Semi-Technical
Technical
Finance/Capital
Infrastructure
Taxes
Trade Infrastructure
Production
Business Regulations
Business Starting
Bankruptcy
Intellectual Property
and Trade Marking
Stock Market
Quality Infrastructure
Technical Regulations
Consumer Protection
Quotas
R&D, Innovation
MSTQ
Conformity Assessment
Customs
(mostly political)
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(mostly technical)
Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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Main elements of Technical Barriers in Trade
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Products must comply with the rules and
regulations of the country it is marketed in.
Compliance is demonstrated by tests. Products
should be tested once according to these
requirements, and the tests performed by the
producer should be recognized by the purchaser.
Imported and locally produced goods should be
treated equally.
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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How is it implemented in ECA area?
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EU has the most advance system and is using New
and Global Approach Directives more and Old
Approach Directives less.
Countries with plans and programs for EU
membership are following EU practices. However,
some of them have to make radical changes (both
legally and technically).
Others are guided by WTO guidelines as well as
EU practices.
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Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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Need for “Quality Infrastructure” and its main tools
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Full compliance requires a fully functioning Quality
Infrastructure.
Technical regulations are the main tools of the Quality
Infrastructure.
Technical Regulations use standards (and tests required by
the standards), as references.
Most (almost all) of the tests are standardized.
Metrology assures the correctness of the tests by referencing
all measurements to national standards.
Inspection (market surveillance) is used to supervise the
implementation.
Conformity of all the elements used in the system is verified
by the accreditation.
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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Main elements of Technical Regulations
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Refers to the standards that will be used to manufacture the
product.
Refers to the standards that will be used for the tests used
during and after manufacturing the product.
Refers authorized organizations for supervising the
production.
Refers authorized organizations for tests performed during
and after production.
Refers who will perform the inspections before the product
is put in the market (type approval).
Refers who will perform inspections (regular or random)
while the product is in the market.
Refers how complaints will be handled.
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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MSTQ and MAS Systems, Conformity Assessment
Schemes
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MSTQ (Metrology, Standardization, Testing and
Quality), MAS (Metrology, Accreditation,
Standardization) are subsets of the Quality
Infrastructures and are used in various activities. These
concepts are used mostly for referring individual
elements and institutions of the system.
Conformity Assessment Systems are accreditation
centered operations of the Quality Infrastructures.
Generally, this concept is used for the processes not for
the institutions.
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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Compatibility of existing systems with the required systems.
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Legal systems.
 Most of the time, legal systems are not in compliance with contemporary
implementations and requirements. We observe major problems in :
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Standardization (mandatory versus voluntary usage of standards),
Technical Regulations (authorization, industrial interest groups),
Accreditation (coverage, authorization),
Metrology (designation of national measurement reference standards).
 Preparation and
implementation of Technical Regulations.
 Contents, who prepares, who supervises the implementation, reference
to existing physical infrastructure especially the tests.
 Participation of private sector in inspections.
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Physical infrastructures.
 Insufficient Metrology Institute for national measurement reference
standards, insufficient accredited calibration laboratories, lack of
accredited laboratories for product testing, material analysis, and health.
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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Implementation, market surveillance problems
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Major problems in
 Coordination among demand (market), service providers
(standardization, metrology, accreditation), regulatory
authorities, inspection and supervision mechanisms.
 Coordination with universities for preparation of standards,
pool of assessors for accreditation, various tests that can be
performed at university laboratories.
 Insufficient information, documentation for the system.
 Multiple inspections, overlap between various organizations.
 Inspections without tests, measurements.
 Insufficient level of training for inspectors.
 Inspections without feedback.
 Abuse, corruption.
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Dr. Hüseyin Uğur
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Awareness, perception of needs (1).
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In industrially developed states, producers, especially the
private sector, is the driving force in the Quality
Infrastructures.
Needs generally are first recognized in the market, then
proposals are prepared by the industry to solve the
problems.
State regulates the market, and establishes the key
elements of the Quality Infrastructures, such as regulators,
metrology, standardization and accreditation
organizations.
Needs are apparent, and there are not much problems
regarding awareness. People are also rather
knowledgeable due to dissemination of information
during various marketing processes.
Knowledge Economy Forum, VIII
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Dr. Hüseyin Uğur
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Awareness, perception of needs (2).
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However, if the industry is not developed sufficiently,
state has to “do everything”, namely, determine the needs,
provide solutions to problems and create public
awareness.
In such environments, industry waits for the state “to act”.
State is the main driving force.
The needs are mostly originated in the “problem solving”
processes.
On the other hand, state can’t establish, manage and
maintain the whole system since it lacks the necessary
know-how and experience.
The problem is in the perception of the needs. In real cases
the needs are much more than they appear to be, or top
decision makers are informed.
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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Awareness, perception of needs (3).
State
(Regulator)
Driving force.
Identification of needs.
Weights in decision making.
Sources of know-how.
Usage of available people.
Usage of available infrastructure.
Development of Strategy
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Industry
(Provider)
Public
(Consumer)
Dr. Hüseyin Uğur
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Funding
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Generally local funds are not sufficient.
Even if local funds are sufficient, there are too many
restrictions.
Local funds don’t have the continuity (lack of long
term commitment).
Funds needed mostly for:
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Metrology Institute (5-200 million €, 5-25 year development).
Secondary laboratories for calibration and/or testing (2-500
million €, 2-15 year development).
Accreditation (0-2 million €, 1-5 year development).
Standardization (0-2 million €, 1-5 year development).
Regulatory infrastructure, including inspection/market
surveillance (0-2 million €, 1-5 year development).
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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Know-how gap
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Lack of know-how on Quality Infrastructures.
Lack of experience in the operations of MSTQ
organizations, conformity assessment schemes.
Lack of trained staff for using delicate and sensitive
measurement equipment.
Lack of experience for standard preparation
committees.
Lack of experience for the pool of assessors in
accreditation.
Lack of trainers for the trainees.
Lack of long-term consultants with proper knowledge.
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Dr. Hüseyin Uğur
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Coordination among key players, transparency
Regulators
Coordinator
Ministries
Core Service Providers
Technical Regulation
Preparation Department
Control/Inspection
Department
Laboratories
• Standardization
• Metrology/Measurement
• Accreditation
Private Service
Providers
Other authorized
Organizations
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Service Providers
• Laboratories
• Inspection
• Certification
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Dr. Hüseyin Uğur
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Economic benefits to borrowers
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Metrology related activities amount to 5-13% GDP for a typical economy.
In metrology, Return of Investment is between 2,1 and 51 in the lifetime of
investments (approximately 15-20 years).
So borrower “recovers” the resources used for investments in metrology in
couple of years.
As an example, for Turkey, in ITP Project (World Bank), Return of Investment
for metrology was calculated to be 42 by international consultants (SG/NPL of
UK). 45 million USD total investment in metrology generates more than 100
million USD per year additional income for the state.
2-5% of this figure is the direct income by the metrology institute.
3-15% is the tax revenues generated by direct customers of the metrology
institute (secondary laboratories, testing facilities, military etc.).
Remaining amount (80-95%) is from revenues due to increased industrial
exports by the existence of a functional Quality Infrastructure.
So, investments in the Quality Infrastructure is one of the best investments a
state can make.
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Hüseyin Uğur
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Thank You for Your Attention
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Hüseyin Uğur
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