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Effective Management of Regulatory Policy
CH MONTIN Senior regulatory experthttpsmartregulationnet
Regulatory reform as a factor in structural reform objectives
Unblock structural change hampered by norms Combat entrenched monopolistic interests and
limited market entry Modernise bureaucracies lacking a service
attitude defending status quo Give a voice to stakeholders end regulatory
capture
Regulatory reform as a factor instructural reform barriers
Ignorance about regulatory practices in competing jurisdictions
Political incentives favour short term interests over long term social policy goals
Regulators may not be equipped or have incentives to assess the cost of regulation and whether regulation is the right solution
Heavy volume of outdated and obsolete regulations (changing environments)
Regulation is exercised by many levels of government and may be duplicative or excessive low capacity at sub-national level
High levels of non-compliance Ineffective appeals process
Inter-relation between market openness and good regulatory
management International commitments anchor deregulation
ndash 1048633providing momentum and direction to domestic reformndash 1048633 shielding from pressures to backtrack
An improved regulatory frameworkndash 1048633 contributes to market efficiency and resiliencendash 1048633 reinforces foreign investment attractivenessndash 1048633 provides optimal conditions for developing export
capacityndash 1048633 reduces costs of adjustment following trade
liberalisation
Gains from reform 1998 to 2003
Greater homogeneity across OECD countries for laquo good raquo regulationndash Quality regulation not just de-regulationndash Incentive-based regulation in place of command-
andcontrol 1048633 Setting priorities on sectors where change will
do the most good 1048633 The countries that have made the most
progress had been the most restrictivendash Reducing high degree of state control (price controlsndash legal restrictionsndash Using multilateral agreements to open trade
investmentndash Removing barriers to entrepreneurship
OECD Regulatory Policy Concept
Regulatory quality is the driving principle behind reform todayndash 1048633Deregulation where markets work better than governmentsndash 1048633Re-regulation and new regulatory institutions where markets
cannot work without governments More efficient government and social regulations to achieve
high standards of health safety and environmental protection at lower economic cost
Boost economic development by encouraging market entry and competitiveness
Control of regulatory costs to improve productive efficiency particularly for small to medium sized enterprises
Improve the rule of law transparency and participative democracy
The OECD promotes Regulatory Reform as a dynamic long term process applying across government
Less emphasis on regulatory reform Economic and social objectives are mutually suportive Regulatory quality competition and market openness are
mutually supporting
OECD considers that a successful approach to regulatory governance focuses onbull regulatory policiesbull regulatory toolsbull regulatory institutions
OECD Guiding Principles for Regulatory Quality and Performance (2005)
Effective reform requires organised procedures with sustained political backing and adequate resources
bull Policies have two main elements improving rule making and keeping regulations up to date
bull The emphasis varies but the main objectives of regulatory policies tend to bebull Increasing social welfare through more effective social
and economic policybull Controlling regulatory costs for business developmentbull Improving public sector efficiency and performancebull Reducing regulatory discretion and opportunities for
corruption and improving access to regulation
Regulatory Policies are Necessary for Progress
The systematic use of tools is needed to promote regulatory quality efficiency and effectiveness These include
bull Regulatory Impact Analysis (RIA) to improve the evidence basis for regulatory decisions
bull Public consultation strategies to promote transparency accountability and improve regulatory design
bull The evaluation of alternatives to regulation to best address the policy problem
bull Red tape reduction programs to reduce administrative and compliance costs
Tools to Improve Regulatory Design
Regulatory oversight bodies with whole of government responsibility
bull Advocate benefits of reformbull Perform a gatekeeper role on quality of RIAbull Provide training and clear guidance to regulators
bull Ministerial regulatorsrsquoaccountability for regulatory policybull Integration of competition and market openness principles
in regulatory policybull Greater coherence across levels of governmentbull Measureable programs to reduce administrative burdensbull Careful design of independent regulators
Institutions to drive Regulatory Policies
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
Regulatory reform as a factor in structural reform objectives
Unblock structural change hampered by norms Combat entrenched monopolistic interests and
limited market entry Modernise bureaucracies lacking a service
attitude defending status quo Give a voice to stakeholders end regulatory
capture
Regulatory reform as a factor instructural reform barriers
Ignorance about regulatory practices in competing jurisdictions
Political incentives favour short term interests over long term social policy goals
Regulators may not be equipped or have incentives to assess the cost of regulation and whether regulation is the right solution
Heavy volume of outdated and obsolete regulations (changing environments)
Regulation is exercised by many levels of government and may be duplicative or excessive low capacity at sub-national level
High levels of non-compliance Ineffective appeals process
Inter-relation between market openness and good regulatory
management International commitments anchor deregulation
ndash 1048633providing momentum and direction to domestic reformndash 1048633 shielding from pressures to backtrack
An improved regulatory frameworkndash 1048633 contributes to market efficiency and resiliencendash 1048633 reinforces foreign investment attractivenessndash 1048633 provides optimal conditions for developing export
capacityndash 1048633 reduces costs of adjustment following trade
liberalisation
Gains from reform 1998 to 2003
Greater homogeneity across OECD countries for laquo good raquo regulationndash Quality regulation not just de-regulationndash Incentive-based regulation in place of command-
andcontrol 1048633 Setting priorities on sectors where change will
do the most good 1048633 The countries that have made the most
progress had been the most restrictivendash Reducing high degree of state control (price controlsndash legal restrictionsndash Using multilateral agreements to open trade
investmentndash Removing barriers to entrepreneurship
OECD Regulatory Policy Concept
Regulatory quality is the driving principle behind reform todayndash 1048633Deregulation where markets work better than governmentsndash 1048633Re-regulation and new regulatory institutions where markets
cannot work without governments More efficient government and social regulations to achieve
high standards of health safety and environmental protection at lower economic cost
Boost economic development by encouraging market entry and competitiveness
Control of regulatory costs to improve productive efficiency particularly for small to medium sized enterprises
Improve the rule of law transparency and participative democracy
The OECD promotes Regulatory Reform as a dynamic long term process applying across government
Less emphasis on regulatory reform Economic and social objectives are mutually suportive Regulatory quality competition and market openness are
mutually supporting
OECD considers that a successful approach to regulatory governance focuses onbull regulatory policiesbull regulatory toolsbull regulatory institutions
OECD Guiding Principles for Regulatory Quality and Performance (2005)
Effective reform requires organised procedures with sustained political backing and adequate resources
bull Policies have two main elements improving rule making and keeping regulations up to date
bull The emphasis varies but the main objectives of regulatory policies tend to bebull Increasing social welfare through more effective social
and economic policybull Controlling regulatory costs for business developmentbull Improving public sector efficiency and performancebull Reducing regulatory discretion and opportunities for
corruption and improving access to regulation
Regulatory Policies are Necessary for Progress
The systematic use of tools is needed to promote regulatory quality efficiency and effectiveness These include
bull Regulatory Impact Analysis (RIA) to improve the evidence basis for regulatory decisions
bull Public consultation strategies to promote transparency accountability and improve regulatory design
bull The evaluation of alternatives to regulation to best address the policy problem
bull Red tape reduction programs to reduce administrative and compliance costs
Tools to Improve Regulatory Design
Regulatory oversight bodies with whole of government responsibility
bull Advocate benefits of reformbull Perform a gatekeeper role on quality of RIAbull Provide training and clear guidance to regulators
bull Ministerial regulatorsrsquoaccountability for regulatory policybull Integration of competition and market openness principles
in regulatory policybull Greater coherence across levels of governmentbull Measureable programs to reduce administrative burdensbull Careful design of independent regulators
Institutions to drive Regulatory Policies
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
Regulatory reform as a factor instructural reform barriers
Ignorance about regulatory practices in competing jurisdictions
Political incentives favour short term interests over long term social policy goals
Regulators may not be equipped or have incentives to assess the cost of regulation and whether regulation is the right solution
Heavy volume of outdated and obsolete regulations (changing environments)
Regulation is exercised by many levels of government and may be duplicative or excessive low capacity at sub-national level
High levels of non-compliance Ineffective appeals process
Inter-relation between market openness and good regulatory
management International commitments anchor deregulation
ndash 1048633providing momentum and direction to domestic reformndash 1048633 shielding from pressures to backtrack
An improved regulatory frameworkndash 1048633 contributes to market efficiency and resiliencendash 1048633 reinforces foreign investment attractivenessndash 1048633 provides optimal conditions for developing export
capacityndash 1048633 reduces costs of adjustment following trade
liberalisation
Gains from reform 1998 to 2003
Greater homogeneity across OECD countries for laquo good raquo regulationndash Quality regulation not just de-regulationndash Incentive-based regulation in place of command-
andcontrol 1048633 Setting priorities on sectors where change will
do the most good 1048633 The countries that have made the most
progress had been the most restrictivendash Reducing high degree of state control (price controlsndash legal restrictionsndash Using multilateral agreements to open trade
investmentndash Removing barriers to entrepreneurship
OECD Regulatory Policy Concept
Regulatory quality is the driving principle behind reform todayndash 1048633Deregulation where markets work better than governmentsndash 1048633Re-regulation and new regulatory institutions where markets
cannot work without governments More efficient government and social regulations to achieve
high standards of health safety and environmental protection at lower economic cost
Boost economic development by encouraging market entry and competitiveness
Control of regulatory costs to improve productive efficiency particularly for small to medium sized enterprises
Improve the rule of law transparency and participative democracy
The OECD promotes Regulatory Reform as a dynamic long term process applying across government
Less emphasis on regulatory reform Economic and social objectives are mutually suportive Regulatory quality competition and market openness are
mutually supporting
OECD considers that a successful approach to regulatory governance focuses onbull regulatory policiesbull regulatory toolsbull regulatory institutions
OECD Guiding Principles for Regulatory Quality and Performance (2005)
Effective reform requires organised procedures with sustained political backing and adequate resources
bull Policies have two main elements improving rule making and keeping regulations up to date
bull The emphasis varies but the main objectives of regulatory policies tend to bebull Increasing social welfare through more effective social
and economic policybull Controlling regulatory costs for business developmentbull Improving public sector efficiency and performancebull Reducing regulatory discretion and opportunities for
corruption and improving access to regulation
Regulatory Policies are Necessary for Progress
The systematic use of tools is needed to promote regulatory quality efficiency and effectiveness These include
bull Regulatory Impact Analysis (RIA) to improve the evidence basis for regulatory decisions
bull Public consultation strategies to promote transparency accountability and improve regulatory design
bull The evaluation of alternatives to regulation to best address the policy problem
bull Red tape reduction programs to reduce administrative and compliance costs
Tools to Improve Regulatory Design
Regulatory oversight bodies with whole of government responsibility
bull Advocate benefits of reformbull Perform a gatekeeper role on quality of RIAbull Provide training and clear guidance to regulators
bull Ministerial regulatorsrsquoaccountability for regulatory policybull Integration of competition and market openness principles
in regulatory policybull Greater coherence across levels of governmentbull Measureable programs to reduce administrative burdensbull Careful design of independent regulators
Institutions to drive Regulatory Policies
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
Inter-relation between market openness and good regulatory
management International commitments anchor deregulation
ndash 1048633providing momentum and direction to domestic reformndash 1048633 shielding from pressures to backtrack
An improved regulatory frameworkndash 1048633 contributes to market efficiency and resiliencendash 1048633 reinforces foreign investment attractivenessndash 1048633 provides optimal conditions for developing export
capacityndash 1048633 reduces costs of adjustment following trade
liberalisation
Gains from reform 1998 to 2003
Greater homogeneity across OECD countries for laquo good raquo regulationndash Quality regulation not just de-regulationndash Incentive-based regulation in place of command-
andcontrol 1048633 Setting priorities on sectors where change will
do the most good 1048633 The countries that have made the most
progress had been the most restrictivendash Reducing high degree of state control (price controlsndash legal restrictionsndash Using multilateral agreements to open trade
investmentndash Removing barriers to entrepreneurship
OECD Regulatory Policy Concept
Regulatory quality is the driving principle behind reform todayndash 1048633Deregulation where markets work better than governmentsndash 1048633Re-regulation and new regulatory institutions where markets
cannot work without governments More efficient government and social regulations to achieve
high standards of health safety and environmental protection at lower economic cost
Boost economic development by encouraging market entry and competitiveness
Control of regulatory costs to improve productive efficiency particularly for small to medium sized enterprises
Improve the rule of law transparency and participative democracy
The OECD promotes Regulatory Reform as a dynamic long term process applying across government
Less emphasis on regulatory reform Economic and social objectives are mutually suportive Regulatory quality competition and market openness are
mutually supporting
OECD considers that a successful approach to regulatory governance focuses onbull regulatory policiesbull regulatory toolsbull regulatory institutions
OECD Guiding Principles for Regulatory Quality and Performance (2005)
Effective reform requires organised procedures with sustained political backing and adequate resources
bull Policies have two main elements improving rule making and keeping regulations up to date
bull The emphasis varies but the main objectives of regulatory policies tend to bebull Increasing social welfare through more effective social
and economic policybull Controlling regulatory costs for business developmentbull Improving public sector efficiency and performancebull Reducing regulatory discretion and opportunities for
corruption and improving access to regulation
Regulatory Policies are Necessary for Progress
The systematic use of tools is needed to promote regulatory quality efficiency and effectiveness These include
bull Regulatory Impact Analysis (RIA) to improve the evidence basis for regulatory decisions
bull Public consultation strategies to promote transparency accountability and improve regulatory design
bull The evaluation of alternatives to regulation to best address the policy problem
bull Red tape reduction programs to reduce administrative and compliance costs
Tools to Improve Regulatory Design
Regulatory oversight bodies with whole of government responsibility
bull Advocate benefits of reformbull Perform a gatekeeper role on quality of RIAbull Provide training and clear guidance to regulators
bull Ministerial regulatorsrsquoaccountability for regulatory policybull Integration of competition and market openness principles
in regulatory policybull Greater coherence across levels of governmentbull Measureable programs to reduce administrative burdensbull Careful design of independent regulators
Institutions to drive Regulatory Policies
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
Gains from reform 1998 to 2003
Greater homogeneity across OECD countries for laquo good raquo regulationndash Quality regulation not just de-regulationndash Incentive-based regulation in place of command-
andcontrol 1048633 Setting priorities on sectors where change will
do the most good 1048633 The countries that have made the most
progress had been the most restrictivendash Reducing high degree of state control (price controlsndash legal restrictionsndash Using multilateral agreements to open trade
investmentndash Removing barriers to entrepreneurship
OECD Regulatory Policy Concept
Regulatory quality is the driving principle behind reform todayndash 1048633Deregulation where markets work better than governmentsndash 1048633Re-regulation and new regulatory institutions where markets
cannot work without governments More efficient government and social regulations to achieve
high standards of health safety and environmental protection at lower economic cost
Boost economic development by encouraging market entry and competitiveness
Control of regulatory costs to improve productive efficiency particularly for small to medium sized enterprises
Improve the rule of law transparency and participative democracy
The OECD promotes Regulatory Reform as a dynamic long term process applying across government
Less emphasis on regulatory reform Economic and social objectives are mutually suportive Regulatory quality competition and market openness are
mutually supporting
OECD considers that a successful approach to regulatory governance focuses onbull regulatory policiesbull regulatory toolsbull regulatory institutions
OECD Guiding Principles for Regulatory Quality and Performance (2005)
Effective reform requires organised procedures with sustained political backing and adequate resources
bull Policies have two main elements improving rule making and keeping regulations up to date
bull The emphasis varies but the main objectives of regulatory policies tend to bebull Increasing social welfare through more effective social
and economic policybull Controlling regulatory costs for business developmentbull Improving public sector efficiency and performancebull Reducing regulatory discretion and opportunities for
corruption and improving access to regulation
Regulatory Policies are Necessary for Progress
The systematic use of tools is needed to promote regulatory quality efficiency and effectiveness These include
bull Regulatory Impact Analysis (RIA) to improve the evidence basis for regulatory decisions
bull Public consultation strategies to promote transparency accountability and improve regulatory design
bull The evaluation of alternatives to regulation to best address the policy problem
bull Red tape reduction programs to reduce administrative and compliance costs
Tools to Improve Regulatory Design
Regulatory oversight bodies with whole of government responsibility
bull Advocate benefits of reformbull Perform a gatekeeper role on quality of RIAbull Provide training and clear guidance to regulators
bull Ministerial regulatorsrsquoaccountability for regulatory policybull Integration of competition and market openness principles
in regulatory policybull Greater coherence across levels of governmentbull Measureable programs to reduce administrative burdensbull Careful design of independent regulators
Institutions to drive Regulatory Policies
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
OECD Regulatory Policy Concept
Regulatory quality is the driving principle behind reform todayndash 1048633Deregulation where markets work better than governmentsndash 1048633Re-regulation and new regulatory institutions where markets
cannot work without governments More efficient government and social regulations to achieve
high standards of health safety and environmental protection at lower economic cost
Boost economic development by encouraging market entry and competitiveness
Control of regulatory costs to improve productive efficiency particularly for small to medium sized enterprises
Improve the rule of law transparency and participative democracy
The OECD promotes Regulatory Reform as a dynamic long term process applying across government
Less emphasis on regulatory reform Economic and social objectives are mutually suportive Regulatory quality competition and market openness are
mutually supporting
OECD considers that a successful approach to regulatory governance focuses onbull regulatory policiesbull regulatory toolsbull regulatory institutions
OECD Guiding Principles for Regulatory Quality and Performance (2005)
Effective reform requires organised procedures with sustained political backing and adequate resources
bull Policies have two main elements improving rule making and keeping regulations up to date
bull The emphasis varies but the main objectives of regulatory policies tend to bebull Increasing social welfare through more effective social
and economic policybull Controlling regulatory costs for business developmentbull Improving public sector efficiency and performancebull Reducing regulatory discretion and opportunities for
corruption and improving access to regulation
Regulatory Policies are Necessary for Progress
The systematic use of tools is needed to promote regulatory quality efficiency and effectiveness These include
bull Regulatory Impact Analysis (RIA) to improve the evidence basis for regulatory decisions
bull Public consultation strategies to promote transparency accountability and improve regulatory design
bull The evaluation of alternatives to regulation to best address the policy problem
bull Red tape reduction programs to reduce administrative and compliance costs
Tools to Improve Regulatory Design
Regulatory oversight bodies with whole of government responsibility
bull Advocate benefits of reformbull Perform a gatekeeper role on quality of RIAbull Provide training and clear guidance to regulators
bull Ministerial regulatorsrsquoaccountability for regulatory policybull Integration of competition and market openness principles
in regulatory policybull Greater coherence across levels of governmentbull Measureable programs to reduce administrative burdensbull Careful design of independent regulators
Institutions to drive Regulatory Policies
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
The OECD promotes Regulatory Reform as a dynamic long term process applying across government
Less emphasis on regulatory reform Economic and social objectives are mutually suportive Regulatory quality competition and market openness are
mutually supporting
OECD considers that a successful approach to regulatory governance focuses onbull regulatory policiesbull regulatory toolsbull regulatory institutions
OECD Guiding Principles for Regulatory Quality and Performance (2005)
Effective reform requires organised procedures with sustained political backing and adequate resources
bull Policies have two main elements improving rule making and keeping regulations up to date
bull The emphasis varies but the main objectives of regulatory policies tend to bebull Increasing social welfare through more effective social
and economic policybull Controlling regulatory costs for business developmentbull Improving public sector efficiency and performancebull Reducing regulatory discretion and opportunities for
corruption and improving access to regulation
Regulatory Policies are Necessary for Progress
The systematic use of tools is needed to promote regulatory quality efficiency and effectiveness These include
bull Regulatory Impact Analysis (RIA) to improve the evidence basis for regulatory decisions
bull Public consultation strategies to promote transparency accountability and improve regulatory design
bull The evaluation of alternatives to regulation to best address the policy problem
bull Red tape reduction programs to reduce administrative and compliance costs
Tools to Improve Regulatory Design
Regulatory oversight bodies with whole of government responsibility
bull Advocate benefits of reformbull Perform a gatekeeper role on quality of RIAbull Provide training and clear guidance to regulators
bull Ministerial regulatorsrsquoaccountability for regulatory policybull Integration of competition and market openness principles
in regulatory policybull Greater coherence across levels of governmentbull Measureable programs to reduce administrative burdensbull Careful design of independent regulators
Institutions to drive Regulatory Policies
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
Effective reform requires organised procedures with sustained political backing and adequate resources
bull Policies have two main elements improving rule making and keeping regulations up to date
bull The emphasis varies but the main objectives of regulatory policies tend to bebull Increasing social welfare through more effective social
and economic policybull Controlling regulatory costs for business developmentbull Improving public sector efficiency and performancebull Reducing regulatory discretion and opportunities for
corruption and improving access to regulation
Regulatory Policies are Necessary for Progress
The systematic use of tools is needed to promote regulatory quality efficiency and effectiveness These include
bull Regulatory Impact Analysis (RIA) to improve the evidence basis for regulatory decisions
bull Public consultation strategies to promote transparency accountability and improve regulatory design
bull The evaluation of alternatives to regulation to best address the policy problem
bull Red tape reduction programs to reduce administrative and compliance costs
Tools to Improve Regulatory Design
Regulatory oversight bodies with whole of government responsibility
bull Advocate benefits of reformbull Perform a gatekeeper role on quality of RIAbull Provide training and clear guidance to regulators
bull Ministerial regulatorsrsquoaccountability for regulatory policybull Integration of competition and market openness principles
in regulatory policybull Greater coherence across levels of governmentbull Measureable programs to reduce administrative burdensbull Careful design of independent regulators
Institutions to drive Regulatory Policies
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
The systematic use of tools is needed to promote regulatory quality efficiency and effectiveness These include
bull Regulatory Impact Analysis (RIA) to improve the evidence basis for regulatory decisions
bull Public consultation strategies to promote transparency accountability and improve regulatory design
bull The evaluation of alternatives to regulation to best address the policy problem
bull Red tape reduction programs to reduce administrative and compliance costs
Tools to Improve Regulatory Design
Regulatory oversight bodies with whole of government responsibility
bull Advocate benefits of reformbull Perform a gatekeeper role on quality of RIAbull Provide training and clear guidance to regulators
bull Ministerial regulatorsrsquoaccountability for regulatory policybull Integration of competition and market openness principles
in regulatory policybull Greater coherence across levels of governmentbull Measureable programs to reduce administrative burdensbull Careful design of independent regulators
Institutions to drive Regulatory Policies
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
Regulatory oversight bodies with whole of government responsibility
bull Advocate benefits of reformbull Perform a gatekeeper role on quality of RIAbull Provide training and clear guidance to regulators
bull Ministerial regulatorsrsquoaccountability for regulatory policybull Integration of competition and market openness principles
in regulatory policybull Greater coherence across levels of governmentbull Measureable programs to reduce administrative burdensbull Careful design of independent regulators
Institutions to drive Regulatory Policies
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
0 5 10 15 20 25 30
Minister required to report to Parliament onregulatory reform progress ()
Specific Minister accountable for promoting government-wide progress
on regulatory reform
Advisory body whith reference from governmentto review broad areas of regulation ()
Body conducts its own analysis of regulatory impacts
Body entrusted with the authority of reviewing and monitoring regulatory impacts conducted in
individual ministries
Body reports on progress by individual ministries
Regulatory policy body consulted when developing new regulation
Dedicated body responsible for promoting regulatory policy and monitoring
on regulatory reform
Number of jurisdictions
199820052008
31
Notes The sample includes 31 jurisdictions for 2008 and 2005 For 1998 27 jurisdictions are included as no data were available for the EU Luxembourg Poland and Slovak Republic
() Questions only relevant for the years 2008 and 2005Source Question 14 2008 OECD Regulatory Indicators Questionnaire
Institutional arrangements to promote regulatory policy (1998 2005 and 2008)
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
The lsquochallengersquo function of the OB
Stock of Regulation
Line Ministries Oversight Body
Rejected
Reviewed
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
Institutional Design OB within the executive
Executive
Legislative
Primary Legislation
Secondary Legislation
Regulation
Oversight Body
2 Independency amp Authority3 High level political support4 Whole-of-Government5 Multidisciplinary6 Broad concept of reform
1 Centre of Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
Lessons of experience
Leadership as most important ingredient for success
Crises as catalyst for change Harmful effects of a short-term perspective Role of central regulatory bodies to change
administrative culture Need for communication strategy to build
constituency for reform Getting the level of intervention right
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
Conclusion
Engines of reform NO ONE SIZE FITS ALL MODEL
Each system decides its own institutional setting The goal is to satisfy common needs
bull Co-ordination
bull High Regulatory Quality
bull Regulatory Innovation and Improvement
bull Technical capacities within Government
