Regulatory Strategies and Solutions Group, LLC Regulatory Design for Economic Growth: Tailoring Tools to the Colombian Context Nathan Frey Regulatory Strategies and Solutions Group, LLC May 16, 2016

Better Regulation Principles Coherence Openness Proportionality Participation Effectiveness Accountability

Better Regulation Practices A “whole of government” approach to regulatory coherence and culture of sustained improvement Transparent, evidence-based decision making (RIA) Public consultation and stakeholder participation in the regulatory development process

Better Regulation in Context Empirical evidence has shown how adoption of principles and practices of better regulation can promote economic growth and investment Principals of better regulation should guide reforms but no “one size fits all” model for implementation How to manage resource limitations? Begin with reforms that have the most immediate, impactful payoffs Stock of current regulations and flow of future regulations

Government wide approach to reform Blueprints for economic development help guide reform priorities Allows systematic evaluation of growth impediments and solutions Short, medium, long terms goals Timelines to track progress “Whole of Government” reforms promote sustained progress Accountability, consistency and credibility

RIA Light Use of “RIA light” principals and pilot projects are useful starting points for initiating reforms Many countries begin reforms by prioritizing simplification of business licensing procedures Information gathering to determine state of business climate Diagnosis of duplicative requirements, inefficiencies Dramatic improvements in “doing business index and competitiveness rankings

RIA Implementation Systematic use of RIA is sustained through legal mandates or policy statements Guidance to regulators on RIA methods is necessary for effective implementation Public consultation to inform RIAs is critical Allows best available information to inform policy Enhances transparency of regulatory decisions As Colombia develops new pilot projects, consider what types of regulations may be best suited to methodological considerations

Public Consultation Consultation can improve the efficiency, effectiveness of policies with helpful information for regulators Stakeholders are often more informed than governments about impacts of regulatory proposals Consultation options: Notification – publication in official gazette Consultation – select stakeholders on specific proposals Participation – active involvement of all interested parties

Public Consultation Systematic (legal or policy) incorporation of public consultation ensures consistency, predictability for stakeholders Mechanisms showing how government responds to stakeholder input enhances transparency, confidence in the regulatory system Capacity and resource constrains Notification at minimum the most important, impactful policy developments should be as consultative and participatory as possible

Understanding the Colombian Context: Government wide policy coordination As Colombia develops a national regulatory policy, what factors are most important to consider to develop and implement these policies on a government wide basis? In creating new institutions responsible for ensuring regulatory quality, which capacities are the most important to emphasize and why?

Understanding the Colombian Context: RIA Implementation What criteria should be considered in deciding which regulations to subject to RIA? RIA as a regulatory tool is only as effective as the data supporting it. What sources of data in Colombia can be used to help inform regulatory costs and benefits? What data needs can be identified as priorities as Colombia develops methodological capacities?

Understanding the Colombian Context: Public Consultation In an ideal world, lacking resource or institutional constraints what elements of a national public consultation policy should be considered in Colombia? In developing an online platform for public consultation, what features are most important to consider?