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Simple, Effective, Transparent Regulation: Best Practices in OECD countries

Simple, Effective, Transparent Regulation: Best Practices in OECD countries. Cesar Cordova-Novion Deputy Head of Programme Regulatory Reform, OECD. Regulation and Regulatory Management. Regulation is the most widely used policy instrument of governments

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Simple, Effective, Transparent Regulation: Best Practices in OECD countries

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  1. Simple, Effective, Transparent Regulation: Best Practices in OECD countries Cesar Cordova-Novion Deputy Head of Programme Regulatory Reform, OECD

  2. Regulation and Regulatory Management • Regulation is the most widely used policy instrument of governments • Regulation creates benefits and costs for society • Ensuring high quality regulation has become a key priority for OECD governments

  3. Development of the OECD regulatory quality concept • A decade of experience and analysis, in terms of • Economic structural adjustments • Social cohesion • Good governance

  4. REGULATORY MANAGEMENT REGULATORY QUALITY IMPROVEMENT - Elimination, - Reduction, - Simplification of regulations Three Stages of Regulatory Reform Policy Objectives of Reform Characteristics of Reform - - Managing aggregate System-based regulatory effects - Pro-active - Setting frameworks - Improving flexibility in regulatory regimes - - Producing effective and Instrument-based Low cost quality regulations - Pro-active, - Improving regulatory - Focus on quality, but one instrument at the time processes - Improving access to regulations - Instrument-based DEREGULATION - Reactive

  5. Strategies for Assuring Regulatory Quality I. Building a regulatory management system • Regulate the regulators through transparency and accountability mechanisms II. Improving the quality of new regulations • Control of the flow III. Upgrading the quality of existing regulations • Control of the stock

  6. I. Building a Regulatory Management System 1. Adopt regulatory reform policy at the highest political levels • 22 countries have published a quality regulation policy 2. Establish explicit standards for regulatory quality and principles of regulatory decision-making • 18 countries have explicit principles of good regulation 3. Build regulatory management capacities • 20 countries have a dedicated body (or bodies) consulted when developing new regulation • 12 of them assess RIAs • 9 dedicated bodies annually report progress of individual ministries

  7. The OECD Reference Checklist for Regulatory Decision Making • Is the problem correctly defined? • Is the government action justified? • Is regulation the best form of government action? • Is there a legal basis for regulation? • What is the appropriate level (or levels) of government for this action? • Do the benefits of regulation justify the costs? • Is the distribution of effects across society transparent? • Is the regulation clear, consistent, comprehensible and accessible to users? • Have all interested parties had the opportunity to present their views? • How will compliance be achieved?

  8. II. Improving the Quality of New Regulations 4. Regulatory Impact Analysis • In 12 countries RIA is required before adopting a regulation 5. Systematic public consultation procedures with affected interests • In 14 countries consultation with affected parties when preparing subordinated regulations is mandatory • 14 countries publish draft laws under a system of ´notice and comments´ (13 in the case of draft regulations) • 8 countries(7 through the Internet) mandatory publish a list of draft subordinated regulations 6. Using alternatives to regulation • Specific guidance to assess alternatives has been implemented in 11 countries 7. Improving regulatory co-ordination • In 14 countries the competition authority is usually consulted

  9. Aspects of RIAs 14 13 12 11 11 11 11 11 1998 2000 10 9 8 8 7 7 Number of countries 6 4 4 4 2 0 RIA for draft bills RIA for subordinated regulations RIA quantifies costs RIA quantifies benefits RIA shows benefits higher than costs RIA publicly consulted

  10. III. Upgrading the Quality of Existing Regulations (in addition to the strategies listed above) 8. Reviewing and updating exiting regulations • Automatic review requirements of specific laws are used in 18 countries. • Only in 5 countries a periodic evaluation of existing regulations is mandatory for all laws. 9. Reducing red tape and formalities Initiatives to improve business licences and permits • ‘silence is consent’ rule in 8 countries • one-stop shops in 13 countries • ongoing review programme in 13 countries

  11. In sum • Regulatory Reform means • Improving the quality regulation through a mix of regulation, deregulation and re-regulation • Implementing and enforcing a regulatory management and reform programme based on: • Principles and Policies • Institutions (i.e. budget and resources for control unit) • Incentives (i.e. positive and negative) • Tools (RIA, consultation, communication, alternatives, periodic reviews etc.)

  12. To know more on OECD Regulatory Reform Programme http://www.oecd.org/subject/regreform/

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