Setting up the RIA System in Turkey

1. Setting up the RIA System in Turkey Better Regulation Group İstanbul, OECD November20, 2007

2. Content • Studies paved the way for RIA in Turkey • Internal Efforts for implementation of RIA • Legal Framework • The Way Forward

3. Studies for RIA • OECD Review of Regulatory Reform • Conducted in 2001 addressing pillars of regulatory system and policy making in Turkey. • Provided an elaborate analysis of regulatory apparatus in the government. • Dwelled particularly on regulatory quality and regulatory agencies. • While confirming positive aspects, the assessment provided a list of recommendations including gradual implementation of RIA.

4. Studies for RIA (cont’d) • OECD Review of Regulatory Reform • Recomm—Regulatory Quality (5) • “Improve the quality of new regulations by implementing across the administration a step-by-step programme for regulatory impact assessment, based on OECD best practice recommendations, for all new and revised regulations.” • The Report has evidently been taken into account in streamlining further regulatory reform efforts.

5. Studies for RIA (cont’d) • Technical Assistance by REG and SIGMA • Training seminars to interdisciplinary participants on how to better develop and coordinate RIA policies. • General Legal Administrative Framework Assessment, 2006. • Peer collaboration on RIA implementation—under consideration.

6. Studies for RIA (cont’d) • Various EU Reports have highlighted the importance of RIA. • 2006 Progress Report: • “Turkey has made some progress regarding better regulation. The government adopted a Regulation in February 2006 which introduces regulatory impact assessments (RIA) into the Turkish legal system. The use of RIA should, amongst other things, support Turkey in the conduct of EU accession negotiations. (…) The institutional capacity for conducting regulatory impact assessment needs to be reinforced.”

7. Studies for RIA (cont’d) • 2007 Progress Report: • “Turkey has made some progress on better regulation: The government issued a circular in April 2007 on the implementation of the Regulatory Impact Assessment (RIA), and RIA guidelines were adopted to enhance the quality of regulations.Concerning the reduction of red tape and administrative burden, in November 2006 "one-stop" offices were established within governorates and district governorates to lessen the administrative burden on citizens requesting certain public services. Moreover, as part of a simplification drive, 1,085 outdated government circulars were cancelled in January 2007. The user-friendliness of e-government applications was markedly improved.”

8. Content • Studies paved the way for RIA in Turkey • Internal Efforts for implementation of RIA • Legal Framework • The Way Forward

9. Internal Efforts for RIA • Urgent Action Plan • 58th Government’s Program on prioritized reform areas. • Indicates importance of regulatory governance. • Suggests improving regulatory framework, enhancing simplification, and reducing red-tape. • The subsequent governments have also provided political support to regulatory governance programme.

10. Internal Efforts for RIA • Better Regulation Group • Formed in February 2005 involving a number of experts at the Prime Minister’s Office • Simplification • Complete list of laws, decree-laws, regulations and by-laws have been overhauled and codified. Significant part of them have been repealed or consolidated. • Reducing Red-tape • A series of projects have been conducted and coordinated by PMO • Administrative burdens on business and direct investments have been substantially lifted.

11. Internal Efforts for RIA (cont’d) • Law on Basic Principles of Public Administration • Includes an article on RIA application: • “Article 5/c: A regulatory impact assessment shall be conducted both for draft legislations and for proposals creating a new public department.” • The Law was adopted by the Parliament on July 15, 2004, however, was vetoed by the President for various reasons other than RIA. It is still pending at the Parliament.

12. Internal Efforts for RIA (cont’d) • By-Law on Principles and Procedures of Drafting Legislation • Issued as a Council of Ministers’ Decree on February 17, 2006—replaced the previous 1992 Principles. • Defines procedures and processes in drafting legislations i.e. laws, decree-laws, by-laws and regulations. • Also includes provisions on RIA application. • An appendix is attached to the By-Law clarifying the criteria when performing RIA. • Provisions related to RIA came into effect one year onward, February 17, 2007.

13. Internal Efforts for RIA (cont’d) • Prime Ministerial Circular on RIA, 2007/6 • Issued on April 3, 2007 in the Official Gazette. • In the form of guidelines. • Describes actors, roles, responsibilities and processes. • Reaffirms the role of Better Regulation Group in the RIA implementation.

14. Internal Efforts for RIA (cont’d) • Framework Contract • “Introducing Regulatory Impact Assessment into the Turkish Legal Framework” • Fully-funded by the European Commission. • Total cost is around € 199.000. • Contracted out to an international consultant. • Pilot project on public laboratories. • An inter-ministerial working group assembled. • Started in September 2006 and finalized in February 2007.

15. Content • Studies paved the way for RIA in Turkey • Internal Efforts for implementation of RIA • Legal Framework • The Way Forward

16. Legal Framework (cont’d) • By-Law on Principles and Procedures of Drafting Legislation • Draft laws and decree-laws whose effect is estimated to exceed 10 million TRY ($8m) are subject to RIA. • The Prime Ministry has the power to request implementation of RIA regardless of estimated impact or type of legislation. • Draft legislation related to national security and budget is excluded from RIA policy. • RIA is carried out by the proposing ministry or public agency.

17. Legal Framework (cont’d) • By-Law on Principles and Procedures of Drafting Legislation • RIA should include: • Raison d'être for drafting legislation and type. • Benefit-cost analysis, cost-effectiveness analysis (impact on budget). • Assessment of necessity for creating a new agency and cadres (if—). • Analysis of impact on economy, business, social life, environment, red-tape and administrative procedures • Participation and consultation. • Feasibility of the proposed legislation, etc.

18. Legal Framework (cont’d) • Prime Ministerial Circular on RIA, 2007/6 • Public agencies should assign a unit which would be responsible for developing administrative capacity, assuring quality and coordinating with the PM BRG in RIA implementation. • RIAs should be in line with the Guideline appended to the Circular. • Partial RIA whose value is under 10 m TRY and Full RIA above 10 m TRY. • Partial RIAs are not subject to impact analysis phase. • Draft RIAs are submitted to BRG for quality assurance. The RIAs which have passed the quality test are finalized by the relevant agency in line with the Guideline.

19. Legal Framework (cont’d) • RIA Guideline is aligned with the EC Impact Assessment Guidelines, SEC (2005)791 • Guidelines define key analytical steps of RIA: • What is the problem? • What are the objectives? • What are the policy options? • What are the likely economic, social and environmental impacts? • How do the options compare? • How do the consultation and participation take place? • Implementation, monitoring and evaluation • Template RIA report is also provided.

20. Content • Studies paved the way for RIA in Turkey • Internal Efforts for implementation of RIA • Legal Framework • The Way Forward

21. The Way Forward • BRG plays a central role in reinforcing RIA across the government. • Public agencies have a higher perception towards RIA in drafting legislation. • Negotiations with EU is a key factor in pushing the RIA process forward. • Public awareness is increasing, NGOs are actively involved • Yet, administrative capacity is crucial and needs to be strengthened at line ministries. • A new EC project worth €1 million is to be undertaken in order to improve capacity and enhance know-how on RIA.