1. Growth, Flexibility and Protection: The Results of Regulatory Reform in OECD Countries
Scott H. Jacobs
Jacobs and Associates,
An international firm specializing in regulatory reform
With partners in the Americas, Europe, and East Asia

2. OECD Regulatory Reform Principle
Regulatory quality, not deregulation, is the
driving principle behind reform today
Deregulation where markets work better than governments
Re-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

5. I. Benefits of Regulatory Reform
Boosts consumer benefits
reducing prices for services and products such as electricity, transport, and health care, and by increasing choice and service quality.
Improves competitiveness
Reducing the cost structure of exporting and upstream sectors in regional and global markets.
Fosters flexibility and innovation
Reduces risk of crisis due to external shocks
Increases job creation
by creating new job opportunities, and by doing so reducing fiscal demands on social security, particularly important in aging populations.
Maintains and increases regulatory protections
in areas such as health and safety, the environment, and consumer interests by introducing more flexible and efficient regulatory and non-regulatory instruments, such as market approaches.
Supports sustainable, non-inflationary growth

6. Sectoral effects of regulatory reforms
Price reductions in real terms (%)
Road transport
Germany 30 France 20
Mexico 25 United States 19
Airlines
United Kingdom 33 Spain 30
United States 33 Australia 20

7. Sectoral effects of regulatory reforms
Price reductions in real terms (%)
Electricity
Norway (spot market) United Kingdom
Financial services
United Kingdom United States
Telecommunications
Finland Japan
United Kingdom Mexico
Korea

8. I. Benefits of Regulatory Reform
Boosts consumer benefits
reducing prices for services and products such as electricity, transport, and health care, and by increasing choice and service quality.
Improves competitiveness
Reducing the cost structure of exporting and upstream sectors in regional and global markets.
Fosters flexibility and innovation
Reduces risk of crisis due to external shocks
Increases job creation
by creating new job opportunities, and by doing so reducing fiscal demands on social security, particularly important in aging populations.
Maintains and increases regulatory protections
in areas such as health and safety, the environment, and consumer interests by introducing more flexible and efficient regulatory and non-regulatory instruments, such as market approaches.
Supports sustainable, non-inflationary growth

9. Economy-wide effects of regulatory reform
GDP, long term effects (%)
USA 0.9
Japan 5.6
Korea 8.6
Germany 4.9
Netherlands 3.5
France 4.8
Greece 9-11
Sweden 3.1
UK 3.5
Spain 5.6
Source: OECD: various reports,

10. Product market regulation: inward oriented policies

11. Understanding regulatory reform
Reform, well co-ordinated and planned, is not an ideological act, nor simply a concession to stronger markets that accelerates painful structural change. Instead, it is a means of managing necessary change so as to ease disruption and develop new opportunities for economic and social progress.