1. Cesar Cordova-Novion Deputy Head of Programme Regulatory Reform, OECD
Simple, Effective, Transparent Regulation: Best Practices in OECD countries
Cesar Cordova-Novion
Deputy Head of Programme Regulatory Reform, OECD

2. Regulation and Regulatory Management
Regulation is the most widely used policy instrument of governments
Regulation creates benefits and costs for society
Ensuring high quality regulation has become a key priority for OECD governments

3. Development of the OECD regulatory quality concept
A decade of experience and analysis, in terms of
Economic structural adjustments
Social cohesion
Good governance

4. Three Stages of Regulatory Reform
Policy Objectives of Reform
Characteristics of Reform -
Managing aggregate -
REGULATORY
MANAGEMENT
System-based
regulatory effects -
Pro-active -
Setting frameworks -
Improving flexibility in
regulatory regimes -
Producing effective and -
Instrument-based
Low cost quality regulations
REGULATORY
QUALITY
IMPROVEMENT -
Pro-active, -
Improving regulatory -
Focus on quality, but one instrument at the time
processes -
Improving access to
regulations -
Elimination,
Reduction,
Simplification of
regulations -
Instrument-based
DEREGULATION -
Reactive

5. Strategies for Assuring Regulatory Quality
I. Building a regulatory management system
Regulate the regulators through transparency and accountability mechanisms
II. Improving the quality of new regulations
Control of the flow
III. Upgrading the quality of existing regulations
Control of the stock

6. I. Building a Regulatory Management System
1. Adopt regulatory reform policy at the highest political levels
22 countries have published a quality regulation policy
2. Establish explicit standards for regulatory quality and principles of regulatory decision-making
18 countries have explicit principles of good regulation
3. Build regulatory management capacities
20 countries have a dedicated body (or bodies) consulted when developing new regulation
12 of them assess RIAs
9 dedicated bodies annually report progress of individual ministries

7. The OECD Reference Checklist for Regulatory Decision Making
Is the problem correctly defined?
Is the government action justified?
Is regulation the best form of government action?
Is there a legal basis for regulation?
What is the appropriate level (or levels) of government for this action?
Do the benefits of regulation justify the costs?
Is the distribution of effects across society transparent?
Is the regulation clear, consistent, comprehensible and accessible to users?
Have all interested parties had the opportunity to present their views?
How will compliance be achieved?

8. II. Improving the Quality of New Regulations
4. Regulatory Impact Analysis
In 12 countries RIA is required before adopting a regulation
5. Systematic public consultation procedures with affected interests
In 14 countries consultation with affected parties when preparing subordinated regulations is mandatory
14 countries publish draft laws under a system of ´notice and comments´ (13 in the case of draft regulations)
8 countries (7 through the Internet) mandatory publish a list of draft subordinated regulations
6. Using alternatives to regulation
Specific guidance to assess alternatives has been implemented in 11 countries
7. Improving regulatory co-ordination
In 14 countries the competition authority is usually consulted

9. Aspects of RIAs Number of countries 14 13 12 11 11 11 11 11 1998 200010 9 8 8 7 7
Number of countries 6 4 4 4
(i.e for all types and cases of regulation) 2
RIA for draft bills
RIA for subordinated regulations
RIA quantifies costs
RIA quantifies benefits
RIA shows benefits higher than costs
RIA publicly consulted

10. III. Upgrading the Quality of Existing Regulations
(in addition to the strategies listed above)
8. Reviewing and updating exiting regulations
Automatic review requirements of specific laws are used in 18 countries.
Only in 5 countries a periodic evaluation of existing regulations is mandatory for all laws.
9. Reducing red tape and formalities
Initiatives to improve business licences and permits
‘silence is consent’ rule in 8 countries
one-stop shops in 13 countries
ongoing review programme in 13 countries

11. In sum Regulatory Reform means
Improving the quality regulation through a mix of regulation, deregulation and re-regulation
Implementing and enforcing a regulatory management and reform programme based on:
Principles and Policies
Institutions (i.e. budget and resources for control unit)
Incentives (i.e. positive and negative)
Tools (RIA, consultation, communication, alternatives, periodic reviews etc.)

12. To know more on OECD Regulatory Reform Programme