Better Rules of the Game: Introducing New Global Indicators on Regulatory Governance
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1 Better Rules of the Game: Introducing New Global Indicators on Regulatory Governance rulemaking.worldbank.org Global Indicators Group, Development Economics July 2016
2 Transparency + Accountability
3 METHODOLOGY We measure five aspects of good governance How citizens learn about new regulations being considered The extent to which they are able to engage with officials on content Whether governments assess the possible impact of new regulations The ability of stakeholders to challenge regulations The accessibility of laws and regulations after their enactment
4 50 countries do not notify the general public of a proposed new regulation
5 METHODOLOGY 185 countries covered Data collected November 2015 May 2016 for 185 countries Sub-Saharan Africa High income: OECD Latin America & Caribbean Europe & Central Asia East Asia & Pacific Middle East & North Africa South Asia High income 57 Upper middle income Lower middle income Low income 29
6 RESULTS Country profiles Example: United States Transparency of Rulemaking Each spring and fall the Unified Agenda of Federal Regulatory and Deregulatory Actions is published on and Then the entire text of proposed drafts are published on a unified website for all proposed regulations Public Consultation Public Consultation is required by law (The Administrative Procedure Act). The same unified website is used for collecting comments and reporting on the results of the consultation. The government prepares one consolidated response for all comments. In general, the comment period ranges between 30 and 60 days. Final rules are published in the Federal Register and on regulations.gov. The preamble of the final regulatory text responds to major criticisms raised in the proposed rule comments in the Supplementary Information section.
7 RESULTS Country profiles Example: United States Impact Assessment US policy is that all "significant rules" include an assessment of the costs and benefits of the regulatory action. There is a specialized government body the Office of Information and Regulatory Affairs that reviews draft impact assessments, which are prepared by regulatory agencies. The RIA are distributed on a unified website together with the proposed regulation Accessing Laws and Regulations All laws and regulations currently in effect are available on a unified website managed by the government Challenging Regulations The Administrative Procedure Act requires agencies to give interested persons the right to petition for the issuance, amendment, or repeal of a regulation. In addition, certain agencies are required to provide more extensive rights of reconsideration and rulemaking petitions, depending on the individual statute.
8 RESULTS Country profiles India has room to improve in all components Transparency of Rulemaking Texts of draft regulations are published on individual websites of the relevant regulator. Public Consultation Consultations are conducted through these websites. Impact Assessment There is a no specialized government body and results of the impact assessment are not published. Accessing Laws and Regulations All laws and regulations are available on a unified website managed by the government Challenging Regulations Stakeholders and affected parties can appeal to the administrative agencies for reconsideration. The agencies do not typically cede to these requests immediately and instead they take these representations in consideration while reviewing the effectiveness of the adopted regulations at a future date.
9 TRANSPARENCY OF RULEMAKING Poorer countries have less transparent rulemaking processes
10 GLOBAL SCORE Variation in regulatory transparency in all regions and income levels
11 RESULTS Middle East & North Africa is the least transparent region Countries that publicly share draft texts of proposed business regulations for stakeholders to view Tunisia Tunisia is the only North African country to conduct RIA. It is required by law (Prime ministerial circular N. 14 of 27 May 2011). Jordan For the third national action plan of the Open Government Partnership ( ), the government of Jordan has pledged to establish a robust consultation and monitoring process with civil society. Morocco The Moroccan General Secretariat of the Government is tasked with soliciting and receiving comments and reports on the results of the consultation on a unified website Consultations usually last for 2 weeks and can go for up to a month.
12 RESULTS Country profiles Russian Federation does not conduct public consultation Transparency of Rulemaking The full text of the draft regulation is published on a unified website Public Consultation Even though public consultations are set by law (15 days), they are not conducted in practice. Impact Assessment There is a specialized government body the Ministry of Economic Development that reviews draft impact assessments, which are prepared by regulatory agencies and publish them on a unified website Accessing Laws and Regulations All laws and regulations are available on a unified website managed by the government Challenging Regulations Laws and regulations may be challenged in court by an interested party to which respective law or regulation was applied or which considers that such law or regulation violates his/her rights.
13 TRANSPARENCY OF RULEMAKING The technology gap between regions
14 PUBLIC CONSULTATION IN RULEMAKING Collecting but not sharing feedback
15 60 More than countries publish and consult despite having no legal obligation to do so
16 RESULTS Country profiles Sweden Transparency of Rulemaking The full text of the draft regulation is published on a unified website Public Consultation The Government publishes the list of stakeholders it has approached for consultation. The actual inputs received are publicly accessible upon request and/or reviewed in the proposal from the Government. Impact Assessment The Swedish Better Regulation Council monitors RIA and the results are published on a unified website. The specific RIA guidelines are also available online. Accessing Laws and Regulations All laws and regulations are available on a unified website managed by the government Challenging Regulations Affected parties have no means to request reconsideration or appeal adopted regulations.
17 REGULATORY IMPACT ASSESSMENT More common in high-income countries Share of countries that conduct impact assessments
18 No free and easy access to laws in over 20 countries Argentina Belize Benin Burundi Cambodia Central African Republic China Côte d'ivoire Dominican Republic Ethiopia Gambia, The Grenada Guinea-Bissau Haiti Micronesia, Fed. Sts. Rwanda Saudi Arabia Senegal St. Kitts and Nevis Sudan Syrian Arab Republic Yemen, Rep.
19 ACCESSING LAWS AND REGULATIONS Laws are more easily accessible in rich countries Share of countries in which laws and regulations are publicly available in one consolidated, frequently updated place
20 GLOBAL SCORE Higher quality regulations lower corruption and stronger rule of law
21 Everything is on our website rulemaking.worldbank.org/
22 Thank you! rulemaking.worldbank.org
23 METHODOLOGY Global Indicators of Regulatory Governance score Publication of proposed regulations (/1) Unified website 1 Ministry website 0.8 Public meetings 0.6 Targeted outreach 0.2 None 0 Consultation on proposed regulations (/1) Unified website 1 Ministry website 0.8 Public meetings 0.6 Targeted outreach 0.2 None 0 Report back on the results of that consultation process (/1) Unified website 1 Ministry website 0.8 Public meetings 0.6 Targeted outreach 0.2 None 0 Conduct regulatory impact assessment (/1) Yes 1 No 0 Specialized body to review impact assessments (/1) Yes 1 No 0 Publish regulatory impact assessments (/1) Unified website 1 Ministry website 0.8 Public meetings 0.6 Targeted outreach 0.2 None 0
24 GLOBAL SCORE Many evident regional and income trends
25 GLOBAL SCORE Many evident regional and income trends
26 RESULTS Country profiles United Kingdom Transparency of Rulemaking There is no legal obligation to publish the drafts, but publication is done anyway on a unified website for all proposed regulations Public Consultation Similarly there is no set prescribed time but consultations are open for a period 8 to12 weeks on a unified website Impact Assessment The Regulatory Policy Committee is a specialized government body charged with verifying the costs and benefits of a proposed regulation, verifying the quality of evidence and verifying the costs to be scored against the Business Impact Target. Accessing Laws and Regulations Laws and regulations that are currently in effect are available on a unified website managed by the government Challenging Regulations Any proposed decision to regulate is appealable to a UK court.
27 RESULTS Scandinavian countries all perform above average for high income countries Sweden Anticipated regulatory proposals of the Swedish Government that needs to be decided by the Parliament (i.e. laws) are published online Norway All government bodies are required by law ("Reglement for økonomistyring i staten") to evaluate their activity, including relevant regulations. The frequency and scope of evaluations are dependent on the nature of the regulation, its associated risk and impact. Denmark The impact assessments are always distributed together with the proposed regulation that is submitted to public consultation before it eventually is adopted by the Danish Parliament. Finland Citizens can appeal against adverse regulatory decisions through petition and citizen initiative on the website:
28 RESULTS Country profiles China does not conduct any impact assessment Transparency of Rulemaking Full text of the draft regulation is published on a unified website Public Consultation Public consultations are also conducted using a unified website. The government however does not report on the results of the consultations Impact Assessment China does not conduct any impact assessment. Accessing Laws and Regulations Laws and regulations that are currently in effect are not available in a single place. Challenging Regulations Affected parties have no means to request reconsideration or appeal adopted regulations to the relevant administrative agency.
29 RESULTS Country profiles Pakistan has room to improve in all components Transparency of Rulemaking Full text of the draft regulation are not published on a unified website but only on the website of the relevant ministry or regulator. Public Consultation Similarly, consultations are not conducted on a unified website but on the website of the regulator or through public or private meetings. Moreover, the ministries do not report on the results of the consultation. Impact Assessment Pakistan does not conduct any impact assessment. Accessing Laws and Regulations Only the Securities and Exchange Commission of Pakistan publishes some laws and regulations on its website. Other laws and regulations are only published in an official gazette Part II Gazette Extra Ordinary.
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