1. ImPact Assessment: State of Play in OECD Countries
Nick Malyshev Head of the Regulatory Policy Division OECD

2. What is good law-making?
A sound rationale and clear objectives
Targets the main source of a problem
Proportionate to scale/risk
Avoids undue prescription
Complements other laws and regulations
Understandable and consistent
Can be effectively administered and enforced
(and remains ‘fit for purpose’)

3. OECD work on regulatory reform and regulatory improvement
2012 Recommendation of the Council of the OECD on Regulatory Policy and Governance
2005 OECD Guiding Principles for Regulatory Quality and Performance
2005 APEC-OECD Integrated Checklist on Regulatory Reform
OECD Report to Ministers , which set up a comprehensive plan for action on Regulatory Reform
1995 Recommendation of the Council on Improving the Quality of Government Regulation

4. The Regulatory Governance Cycle

5. The Elements of Regulatory Policy and Governance
Strategic Approach
Institutions
Management Tools
Governance
Policy Statement
Oversight Body
Regulatory Impact Assessment
Whole of Government
Political Leadership
Ministries
Stakeholder Engagement
International Regulatory Co-operation
Regulators
Ex-post Evaluation
National/Sub- national interface
Risked based approaches

6. RIA: General Trends
While specific systems vary, a well understood approach underpins RIA
Problem definition
Identification of alternative regulatory options
Data collection
Identification of the preferred policy option
Provisions for monitoring and evaluation
The underlying motivation for the introduction of RIA has proven important for the design of the RIA system itself.
Efficiency/burden reduction
Transparency
Accountability
Controlling bureaucracies
Effectiveness and policy coherence
Traditionally RIA covers an individual proposed regulatory measures but increasing system are looking at stock/flow linkages 6 6

7. RIA: governance is essential
Successful RIA critically depends on the level of commitment expressed by political leaders…
... coupled with adequate incentives for public officials.
Involving stakeholders is essential, especially through public consultation.
RIA must be seen as a key element of a broader “policy cycle”, which includes tools for the ex ante analysis and for the ex post evaluation.
Legal, administrative and cultural peculiarities and traditions must be taken into account for RIA to work successfully.
Regulatory Oversight Bodies (ROBs) play a key role in coordinating and supervising the effective realisation of the policy cycle.
Different roles, mandates and instruments call for different degrees of independence of the ROB. 7 7

8. RIA: Methodological frameworks
Undertaking RIA is a technically challenging exercise
Practitioners must have clear and useful methodological guidance and support
Relevant practical issues include:
the establishment of an appropriate threshold test
the identification of impacts both direct and indirect
the use of various qualitative and quantitative methods
the application of risk assessment tools
the emerging use of behavioural insights
the next frontier of RIA – how to account innovation, employment, inclusion 8 8

9. RIA: Adoption across OECD countries

10. LAC countries are at the early stages in the use of evidence through RIA
In most LAC countries, evidence is not yet systematically used through RIA to inform the development of subordinate regulations:
Amongst the countries covered in the analysis, only MEX has put in place a RIA system that covers all regulations put forward by the executive
Also C-R has established a RIA system but it only applies to regulations that create new administrative procedures and formalities
Also in other countries some encouraging initiatives and experiences through pilots or in specific institutions:
In BRA, some regulatory agencies have picked up this tool
COL has conducted a series of RIA pilots in the recent years ( ) and developed guidance with support of OECD
In Peru, the Min. of Economy and Finance is starting to conduct RIAs with the guidance of the OECD.
Source: OECD Indicators of Regulatory Policy and Governance (iREG) for Latin America OECD Indicators of Regulatory Policy and Governance (iREG)

11. Regulatory Impact Assessment for developing primary laws
Note: The results apply exclusively to processes for developing primary laws initiated by the executive. The vertical axis represents the total aggregate score across the four separate categories of the composite indicators. The maximum score for each category is one, and the maximum aggregate score for the composite indicator is four. This figure excludes the United States where all primary laws are initiated by Congress. In the majority of countries, most primary laws are initiated by the executive, except for Mexico and Korea, where a higher share of primary laws are initiated by parliament/congress (respectively 90.6% and 84%).

12. Challenges of governance and methodology
The late timing of impact assessments is an issue.
Many countries are pondering issue of proportionality.
Most RIA processes are not integrated but fragmented covering a range of issues.
The systematic quantification or monetisation of cost and benefits is not widespread.
Requirement to consult on RIA is widespread but, in practice, ministries go their own way.
Requirements to publish full RIA are rare.
The framework of central oversight varies considerably.
Overall, challenge function remains weak across OECD

13. Strategies for long term improvement
RIA is a fundamental element of regulatory improvement, but not the only one.
For most countries the implementation of RIA remains a work in progress.
The integration of RIA into the policy process should be seen as a long term policy goal.
All countries experience problems with the quality and timeliness of RIA process.
An on-going need to provide support for public officials responsible for RIA and to improve the way that RIA is prepared.
Close the policy cycle; do not forget about post implementation evaluation. 13 13

14. Thank you / Gracias
@OECDgov