The Splendours and Miseries of Regulatory reform in the Czech Republic

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Presentation transcript:

The Splendours and Miseries of Regulatory reform in the Czech Republic Daniel Trnka Regulatory Policy Division OECD Ljubljana, 13 December 2016

The early years Started with OECD Review of Regulatory Reform in the Czech Republic in 2001 Later followed by the Better Regulation agenda of the EU Doing Business got some prominence as well Lesson #1: External pressures and advice might help

Three main pillars Administrative burden reduction for businesses Stakeholder engagement Regulatory Impact Assessment (in the beginning, only business impacts were assessed) Lesson #2: Having a plan is crucial, gradual implementation might be useful

Reducing Administrative Burdens 20% reduction target set in 2005, later changed to 25 % One of the 4 countries with a full baseline measurement No funds for external consultants, used expert assessment Attracted a lot of attention Lesson #3: Start with something easy to understand. Lesson #4: Target your resources

Stakeholder engagement New methodology for public consultations, tested on 3 pilot projects Consultations obligatory for all draft regulations Strengthened by making consultations part of the RIA process Lesson #5: Pilot testing helps to persuade your colleagues

Regulatory Impact Assessment First introduced in in 2005, business impacts, 3 pilot full RIAs Full implementation in 2017 – obligatory for all legislative proposals and amendments of the Government Two stage RIA - Similar structure, difference mostly in scope, quantification, number of policy options In the beginning RIA mostly formal, lack of quality control Massive training, awareness raising seminars for senior officials

Main issues Insufficient teeth Civil servants’ reluctance Political pressure Efforts to avoid RIA Lack of data Losing momentum – no immediate results Lesson #6: Find external supporters, political support

RIA Quality Oversight Originally, Ministry of Interior the co-ordinating institution Before 2007 – Legislative Council 2007 – 2011 - Board for Regulatory Reform consisting of deputy ministers and deputy heads of agencies + representatives of regions, municipalities, Chamber of Commerce As of 2012 – Government Office became the coordinating body; RIA Board (an independent watchdog) – a real game changer Lesson #7: Institutions matter!

Thank you! daniel.trnka@oecd.org