Regulatory Impact Analysis
(RIA) in OECD countries: a
policy tool to manage the
flow of regulation
Building capacity for RIA in South Africa Presentation to Officials 26 May 2009
Mr Gregory Bounds
Administrator & Policy Analyst
Regulatory Policy Division
Directorate for Public Governance and Territorial Development
Regulatory Impact Analysis (RIA) : a policy tool to
manage the flow of regulation
Presentation outline
I. The context for RIA:
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–
–
–
What is RIA?
Why is RIA important?
Constitutive elements of RIA
How does RIA fit into the policy-making process?
II. Making use of RIA – OECD good practices:
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Common challenges
Making use of RIA – OECD good practices
I. The context for RIA:
a. Definition
“RIA is a systematic policy tool used to examine and
measure the likely benefits, costs and effects of new or
existing regulation”
b. Why is RIA important?
 Why RIA? – A tool to control the quality of regulation
 Evidence based policy tool – Is regulation the best
available means to address the policy objective?
c. RIA: A process of evidence based decision making
Elements of RIA:
Identifying and defining the problem
• Spelling out the desired objective(s)
• Elaborating the different options, considering alternatives
• Consultation
• Analysing the options (assessment of the likely impacts)
• Recommending the policy option
• Communicating the results
• Monitoring (regulation) and reporting
•
I. The context for RIA:
c. Constitutive Elements of RIA
The process of Regulatory Impact Analysis
Definition
Policy objectives
Policy context
Consultation
Involving Stakeholders
Identification
Regulatory Options
Assessment
Costs
Benefits
Other impacts
Selection
Best Option
Design
Enforcement, Compliance and
monitoring mechanisms
After RIA is prepared: DECISION MAKING
I. The context for RIA:
d. How does RIA fit into the policy-making
process?
POLICY MAKING PROCESS
Information
RIA
Analysis
Consultation
Discussion
Agreement
Policy Implementation
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1979
1978
1977
1976
1975
1974
Adoption of RIA in OECD countries
30
25
20
15
10
5
0
RIA Requirements in OECD Countries
Formal requirement by law
Requirement for draft primary laws
Requirement for draft subordinate regulations
Requirement to identify the costs of new regulation
Requirement to identify the benefits of new regulation
1998
2005
2008
Requirement to demonstrate that benefits of regulation
justify the costs
0
5
10
15
Number of jurisdictions
20
25
30
31
Requirement to measure specific impacts
31
Number of jurisdictions
30
25
20
15
10
5
0
Always
Only for major regulations
In other selected cases
Common challenges in implementing RIA
Related to the tool:
• Problem identification
• Consultation and data
• Considering alternatives
•
•
•
“Proportionate analysis”
Quantification
Risk assessment
Related to the structure/process
• Scope of application / selection of proposals
• Quality control (oversight)
• Presentation / Communication
• Integrate RIA up-stream (early in decision-making)
• Integrate RIA down-stream (“closing the loop”)
• Training
• Multi-level context
Making use of RIA: OECD good practices (I)
1. Political commitment and endorsement at the highest levels
•
Legal basis for RIA
•
Clear ministerial accountability
2. Allocate responsibilities for the RIA programme
•
Operational responsibilities with the services
•
Inter-service coordination
•
Central quality oversight
3. Target and prioritise RIA efforts
•
Scope of application / thresholds for when to do RIAs
•
Sectoral impacts
Making use of RIA: OECD good practices (II)
4. Develop comprehensive guidelines
•
Mandatory
•
Both on process and on technical aspects
5. Carry out sound analysis
•
Strategies for data collection
•
Consistent but flexible methodologies
6. Consultation / Transparency / Communication
7. Training, training, training
8. Apply RIA to both new and existing regulation
Thank you
for your attention
Mr. Gregory Bounds
Administrator & Policy analyst
Regulatory Policy Division
Directorate for Public Governance and Territorial Development
[email protected]