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What is a regulatory reform review and why is it useful ? Experience of a peer-reviewer

Learn about the purpose and relevance of regulatory reform reviews, as experienced by peer reviewer Charles-Henri Montin, Chef du département Qualité Réglementaire at the Ministère des finances in France. Explore the key areas of investigation and available options for improving regulatory capacities.

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What is a regulatory reform review and why is it useful ? Experience of a peer-reviewer

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  1. What is a regulatory reform review and why is it useful ?Experience of a peer-reviewer Charles-Henri Montin Chef du département Qualité Réglementaire Ministère des finances, France charles-henri.montin@finances.gouv.fr http://regplus.free.fr OECD MENA 4 May 2007 C.H. MONTIN

  2. Regulatory Management Capacity • What does the review measure? • Why is it useful? • What is its relevance to • Your country • Other countries OECD MENA 4 May 2007 C.H. MONTIN

  3. References and definitions • Lisbon Agenda • EU policy on Better Regulation • OECD Reference check list for regulatory decision making • OECD Policy Recommendations for Regulatory Reform • Better Regulation • Regulatory management • Capacity • Policy OECD MENA 4 May 2007 C.H. MONTIN

  4. Why improve regulatory capacities • The quality of the regulatory framework is a determinant of economic growth, social welfare and the protection of the environment. • Even the well-managed countries / public services need to improve quality of output • It is now included as a criterion by international companies when selecting a location for a new investment. OECD MENA 4 May 2007 C.H. MONTIN

  5. The Better Regulation Approach BETTER REGULATION Increased relevance Options & alternatives Impact assessment Consultation Increased efficiency Measured burdens Monitoring of implem. No loss of intrinsic quality GOOD REGULATION Good process Formally clear and legally consistent Regulatory mangt Codification Intrinsic quality Legistics CAPACITIES = POLICIES + STRUCTURES + TOOLS OECD MENA 4 May 2007 C.H. MONTIN

  6. Getting from good to Better Regulation • Historically, laws (regulations) were handed down by monarchs or other powerful figures. Once a decision to regulate was taken, little attention was paid to the impact of the regulation or the extent to which it was enforced and the extent to which it should be repealed once it had no further validity. • Democratic governments used the same tools. By the middle of the twentieth century, it appeared that there were too many laws and government was involved in too many activities. • Hence the regulatory reform movement alongside a reflection on the role of Government. • Regulatory reform went through a number of phases including deregulation of network industries. Deregulation, however, led to re-regulation. • Now we focuson how regulations are made, i.e., how policies are formulated, legislation drafted, enacted and reviewed. We have developped the tools • Many countries adopted policies devoted to the concept of improving the quality of regulations as part of the quality of governance. In France it is a component of Réforme de l’Etat. OECD MENA 4 May 2007 C.H. MONTIN

  7. Tools of Better Regulation Alternatives Consultation FLOW RIA The Economy TheAdministration Stakeholders STOCK ABM Access Simplification OECD MENA 4 May 2007 C.H. MONTIN

  8. Goal and Objective of a review • The principal objective of a review is to assess the regulatory management capacities of the country, so as to contribute individually and collectively to their sustainable development. • Other objectives include the creation of internal and external dialogues in relation to regulatory issues and enabling experiences of these countries be shared with similarly situated countries and the wider international community including OECD Member States • The outcome is a report on each country, perhaps a synthesis report, dealing with regulatory issues in all of the countries and a greater understanding of regulatory governance issues through a study of these countries. OECD MENA 4 May 2007 C.H. MONTIN

  9. Available Options • Better regulation has been developed /achieved by different means in different countries. • There are a variety of options for regulatory management policies, a choice of institutional arrangements and a range of tools to be used in this process. • Understanding Better Regulation policies is integral to the policy making process not an additional burden. • Peer-reviewers bring along their national experiences when assisting colleagues develop their own national options OECD MENA 4 May 2007 C.H. MONTIN

  10. Peer-reviewers’ approach • Interaction between the members of the team: OECD guidance + national experiences • Wide range of contacts: government, parliament, trade –unions, indpt regulators, etc • Exchange of views rather than technology transfer. OECD MENA 4 May 2007 C.H. MONTIN

  11. Keys areas of investigation • Evidence based policy making (regulatory impact assessments) • Use of alternatives to traditional command and control regulations • Regulation should be simple, accessible and made in a transparent manner taking account of the views of those affected by it. OECD MENA 4 May 2007 C.H. MONTIN

  12. AND • Regulation should be enforceable and enforced • Regulatory policies should apply to • The flow of regulation (new legislation being made • The stock of regulation (regulations already made should be reviewed consistently to ensure that they are still relevant and achieve their intended purpose OECD MENA 4 May 2007 C.H. MONTIN

  13. Phases of review • Questionnaire • Peer visit • Report writing • Fact checking • Presentation of Report: dissemination in the country. Follow-up activities (conferences, training) OECD MENA 4 May 2007 C.H. MONTIN

  14. Contents of report • Institutional background • Regulatory Management Capacities (general) • Policy making, regulation drafting and regulatory quality assurance policies • Better Regulation: tools (their implementation) • Enactment issues • Enforcement and compliance OECD MENA 4 May 2007 C.H. MONTIN

  15. Conclusion • Better Regulation concern must be an integral part of the policy making process. • The economy, society and the environment are the beneficiaries of Better regulation policies. • Those who ignore Better Regulation do so at their peril. The peer-review is a good way to get things started. OECD MENA 4 May 2007 C.H. MONTIN

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