Regulatory Impact Assessment: New Tools and Trends

Transcription

1 2016/SOM3/EC/CONF/017 Regulatory Impact Assessment: New Tools and Trends Submitted by: World Bank 9 th Conference on Good Regulatory Practices Lima, Peru August 2016

2 Session 5: Promoting inclusive growth Regulatory Impact Assessment: New Tools and Trends PETER LADEGAARD, GLOBAL LEAD, REGULATORY POLICY AND MANAGEMENT THE WORLD BANK August 17-18, 2016 CONTENTS 1. New Global Indicators of Regulatory Governance 2. Learning from failure: Indicative findings of an empirical study of unsuccessful RIA programs 3. Emerging frontier issues 4. The World Bank s Good Regulatory Practice Program 1

3 26/08/ Title 1. Global Indicators of Regulatory Governance A NEW SET OF INDICATORS PROVIDING DETAILED AND GLOBALLY COMPARATIVE GRP DATA Data for 185 economies and the European Union The data cover four aspects of good regulatory practices: Transparency of rulemaking. Public consultation in rulemaking. Impact assessments. Challenging regulations. For each area covered the project captures details on how the activity is conducted (not just the legal obligations); Latest dataset launched in June 2016, data presented was collected December 2015 April 2016; Data collected from 1,500 experts in public and private sectors. Global Indicators of Regulatory Governance (cont d) EXAMPLES FROM DATASET: SCORES PER REGION AND INCOME GROUP High income: OECD (5.08 of 6) Europe & Central Asia (4.05 of 6) East Asia & Pacific (2.13 of 6) Latin America & Caribbean (1.88 of 6) South Asia (1.54 of 6) Sub-Saharan Africa (1.13 of 6) Middle East & North Africa (1.08 of 6) (3.88 of 6) High income Upper middle income (2.37 of 6) Lower middle income (1.87 of 6) Low income (0.95 of 6) Publication of proposed text Report on results of the consultation results Specialized body for impact assessment Conduct consultation Conduct impact assessment Impact assessment made public 2

4 Global Indicators of Regulatory Governance (cont d) EXAMPLES FROM DATASET: CONSOLIDATED SCORE FOR APEC ECONOMIES (1-6) Australia, 6 Brunei Darussalam, 0 Canada, 6 Chile, 3.4 China, 2 Hong Kong SAR, China, 6 Indonesia, 2.6 Japan, 4 Korea, Rep., 6 Malaysia, 5.4 Mexico, 6 New Zealand, 5.4 Papua New Guinea, 1.4 Peru, 2.8 Philippines, 1.6 Russian Federation, 4 Singapore, 4 Taiwan, China, 5.6 Thailand, 3 United States, 6 Vietnam, 5 2. Learning from failure: Indicative findings of an empirical study of unsuccessful RIA programs Over the last 15 years, at least 63 developing and transition economies have initiated reforms aimed at introducing RIA systems We lack a comprehensive picture of this reform wave, both in terms of features, success/failure of the enacted reforms and functionality of RIA systems Emerging evidence increasingly suggests that RIA outside of OECD countries have often failed in delivering functioning and sustainable RIA systems 3

5 Learning from failure (cont d) 2. Title RESEARCH QUESTIONS AND METHODOLOGY 1. Which non-oecd countries have (attempted to) introduce a RIA system? 2. What have been the role of international best practices in informing the introduction of RIA systems in developing countries? 3. Have the enacted processes of reform in developing countries led to functioning and sustainable RIA systems? Step 1 Pre-assessment Identification of RIA initiatives in non-oecd countries in the last 15 years. Did the initiatives observe international good practices? Coding of all RIA reforms. Step 2 Survival test Binary evaluation (alive or failed) of countries identified in Step 1: Do countries produce RIAs two years after RIA reform? 4. How can we explore the pathway of RIA failure (and consequentially adjust)? Step 3 Constructing and testing causal explanatory mechanisms of RIA reform failures Only countries having failed, after implementing good practice RIA reforms will be studied. Learning from failure (cont d) SOME PRELIMINARY FINDINGS 63 non-oecd countries have introduced RIA in the last 15 years: 29% RIA still systematically applied Reform Design >> Designed with minimum RIA best practice features 11 % Designed according to RIA best practice 89 % 29% RIA no longer systematically applied Reform Design >> Not designed according to RIA best practice 33 % Designed with minimum RIA best practice features 22 % Designed according to RIA best practice 44 % 38% RIA reform is still under implementation (or reform ended less than 2 years ago) Reform Design >> Not designed according to RIA best practice 21 % Designed with minimum RIA best practice features 21 % Designed according to RIA best practice 58 % (For about 4% of the countries the current RIA status is not known.) Source: World Bank 4

6 Learning from failure (cont d) HOW ARE DIFFERENT RIA EFFORTS ASSOCIATED WITH RIA SUSTAINABILITY AND FAILURE (INDICATIVE FINDINGS)? 100% 75% 50% 25% 93% 71% 78% 78% 83% 54% 37% 26% 70% 49% 83% 73% 0% Formal political Substantial political commitment (through commitment (RIA policy document) integrated in policy cycle through legal requirement) Oversight body Reforms that led to surviving RIA systems RIA coverage, guidelines, methodologies Consultation Capacity building Source: World Bank Reforms that led to failed RIA systems Learning 2. from Learning failure from (cont d) failure: Indicative findings SOME CONCLUSIONS FINDINGS SO FAR The first two steps of the research design confirmed the anecdotal insight about the limited success of RIA reforms in non-oecd countries. A surprisingly high number of non- OECD countries are still engaged in RIA reforms (some for the second or even third time). Adherence to international best practices is a necessary but not sufficient condition for the success of RIA reforms in non-oecd countries. Legal requirement to integrate RIA in policy making seems not be a strong differentiator between success and failure, Capacity building does not. FINANALIZAITON OF STUDY Case and field studies as well as collection of further evidence from secondary sources. Further process tracing of RIA reforms to empirically test the validity of the mechanisms of unsuccessful policy transfer. Empirically supported observations (and recommendations) on good and bad pathways of RIA reform. 5

7 3. Emerging frontier issues OVERSIGHT RIA best practice traditionally include oversight functions, often performed at the center of government. Growing number of RIA Units in non-oecd countries with limited durability and de-facto oversight Are there alternatives? Greater reliance on transparency and expost scrutiny of RIAs? Greater role to external actors such as NGOs and media? Emerging frontier issues (cont d) 2. Title LINKING RIA TO OTHER PUBLIC MANAGEMENT SYSTEMS RIA has to be an integrated function of government. Operating in synergy with other government tools and processes, such as civil service training, consultation and transparency are mutually beneficial. The more RIA becomes part of a larger ecosystem of tools, the more incentives there are to produce good assessments, while risks for RIA failures are reduced. Greater focus on integrating RIA efforts in strategic planning and performance budgeting (i.e. Austria) and through incentives through civil servants results agreements (i.e. Australia)? 6

8 Emerging frontier issues (cont d) LINKING RIA TO OTHER PUBLIC MANAGEMENT SYSTEMS Source: World Bank Emerging frontier issues (cont d) 2. Title FROM DESIGN TO DELIVERY? Some argue that the main regulatory failures are caused by problems in implementation and enforcement rather than in the design of the regulation. Need for better integration of implementation issues during the regulatory design (RIA) stage. Need to explore how and to what degree enforcement can be complemented by methods to promote compliance. However, design remains crucial for successful implementation. 7

9 4. The World Bank s Good Regulatory Practice Program A MULTI-YEAR PROGRAM TO IMPROVE REGULATORY QUALITY IN DEVELOPING COUNTRIES The Good Regulatory Practice (GRP) Program is a multi-year initiative supported by USAID and DfID to help governments in transition and developing countries enhance the quality of regulatory regimes and their outcomes and put in place effective, transparent, accountable, and consultative reform processes that assist in reform prioritization, design, and implementation. Key activities include: Diagnostic Exercises Global Indicators of Regulatory Governance Regulatory Policy and Delivery Review Tools for Evidence-Based Regulatory Policy Making Global RIA data-base org/ria-documents Guidance and implementation support Notice and Comment Systems Targeted approach for use of N&C in developing countries Guidance and implementation support Business-to-Government Feedback Mechanisms Feedback loops on implementation gap Systemic Investor Response Mechanism Guidance and implementation support Thank you For further information please contact Peter Ladegaard Pladegaard@worldbank.org or Petter Lundkvist Plundkvist@worldbank.org, or visit 8