Regulatory Impact Assessment
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Regulatory Impact Assessment for Better Standards International Best Practices from OECD. Manama, 20 January 2014. Charles-Henri Montin, Senior Regulatory Expert , Ministry of economy and finance, Paris OECD RPC delegate http://smartregulation.net. 1. Contents.

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Manama 20 january 2014

Regulatory Impact Assessment

for Better Standards

International Best Practices from OECD

Manama, 20 January 2014

Charles-Henri Montin, Senior Regulatory Expert,

Ministry of economy and finance, Paris

OECD RPC delegate

http://smartregulation.net

C.H. Montin, Manama

1


Contents

Contents

  • The policy-making cycle and how RIA fits into that cycle

  • Nature, purpose and functions of RIA

  • Typical methodology

  • Challenges for introducing RIA

  • The potential relevance of RIA to GCC standardisation agencies

C.H. Montin, Manama


3 sources for best practice

3 sources for best practice

United Kingdom

Better Regulation

Impact assessment

Regulatory Policy Committee

Publication

One-in, one-out

European Union

Smart Regulation

RIA

Impact assessment Board

France

Regulatory Quality

Evaluation préalable

Conseil d’Etat

Legistics

Constitutional basis for RIA

C.H. Montin, Manama


Manama 20 january 2014

C.H. Montin, Manama


How ria contributes to the policy cycle

How RIA contributes to the policy cycle

C.H. Montin, Manama


What is impact assessment

What is impact assessment?

  • Investigates and measures the likely benefits, costs and effects of new and changed regulation, throughout the regulatory process

    – A key decision making tool for governments

    – Underpins regulatory reform

    – Used in most OECD countries

    – No single model fits all situations

C.H. Montin, Manama


Purpose of ria

Purpose of RIA

  • Identifies all main potential impacts arising from proposed government regulations

    • Articulates the problem and explains why it needs to be addressed

    • Broadens the range of options

  • Promotes balanced decisions that trade off problems against wider economic / social goals

    • Ensures transparency and stakeholder input

    • Supports informed decision on policy and regulation

  • Informs political debate and supports communication on policy

C.H. Montin, Manama


Practical functions of ria

Practical functions of RIA

  • Provides factual data to make appropriate regulatory decisions

  • Exposes impacts and linkages among policies and gives decision-makers a capacity to weigh trade offs

  • Provides a public accounting of each regulation

  • Provides a clear explanation of the regulation, its purpose, the analysis substantiating it and expected impacts

  • Enables policy makers to understand and take personal responsibility for regulatory decisions

C.H. Montin, Manama


Components of ria

Components of RIA

  • Description: outlines the regulations, defines the issue and policy objectives and shows why action is necessary

  • Alternatives: lists options beside regulation and other types of intervention

  • Benefits & Costs: quantifies the impacts of each option

  • Consultation: lists stakeholders consulted and their feedback

  • Compliance and enforcement: explains the policy on conformity to the regulations and tools to ensure it is respected

C.H. Montin, Manama


The process of regulatory impact analysis

Definition

Policy context

Policy objectives

Consultation

Involving Stakeholders

Regulatory Options

Identification

Assessment

Costs

Benefits

Selection

Best Option

Design

Enforcement, Compliance and monitoring mechanisms

After RIA is prepared: DECISION MAKING

The process of Regulatory Impact Analysis

Other impacts

C.H. Montin, Manama


Making the best use of ria

Making the best use of RIA

Analytical tool

  • Provides a method to investigate policy and regulation

  • Cost-Benefits techniques to assess:

    • Effectiveness

    • Efficiency

      Communication tool

  • Provides a means of informing decision makers of alternatives in a rational manner free of ideology or bias

  • Enhances transparency, accountability, credibility, trust, legitimacy

    Learning tool

  • Sets a base line for ex post facto evaluations

  • Contributes to policy coherence

C.H. Montin, Manama


Common challenges for ria

Common challenges for RIA

Related to the tool

  • Problem identification (≠ objectives)

  • Availability of data (collection, validation, use)

  • “Proportionate analysis” (criteria, transparency)

  • Quantification (benefits)

  • Risk assessment

  • “Complex costs”

C.H. Montin, Manama


More challenges

More challenges

Related to the structure / process

  • Scope of application / selection of proposals

  • Need to fit RIA into all the stages of policy making and regulation

  • Governance of RIA, Quality control (oversight)

  • Presentation / Communication

  • Up-stream integration of RIA (early in decision-making)

  • Down-stream integration of RIA (“closing the loop”)

  • Administrative capacity to carry out RIAs

  • Multi-level requirements

  • Trade-off political discretion vs. technical expertise

C.H. Montin, Manama


Oecd good practices 1

OECD good practices (1)

  • 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

C.H. Montin, Manama


Oecd good practices 2

OECD good practices (2)

  • 3. Target and prioritise RIA efforts

    • Scope of application / thresholds for when to do RIAs

    • Sectoral impacts

  • 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

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Oecd good practices 3

OECD good practices (3)

6. Consultation / Transparency / Communication

7. Training, training, training

8. Apply RIA to both new and existing regulation

C.H. Montin, Manama


Relevance to gcc standardisation

Relevance to GCC standardisation

  • Better Regulation principles apply to standards:

    • Standards are an acknowledged “alternative” to regulation with specific advantages for certain types of issues

    • BR tools support more evidence based decisions in the production of standards (especially RIA)

    • Effective consultation of stakeholders, including co-production

    • Feed-back from enforcement and implementation (compliance assessment)

    • Can be developed internationally (IRC)

C.H. Montin, Manama


Developing ria practice in gcc bahrain

Developing RIA practice in GCC/Bahrain

  • The main steps for developing RIA practice:

    • Define national/regional methodology

    • Build capacities in regulating/standards agencies

    • Set up quality control mechanisms or structures

    • Create training programme for RIA drafters

    • Launch pilot studies

    • Monitor for continuous improvement with practice.

C.H. Montin, Manama


Conclusions

Conclusions

  • Impact assessment has developed over the last 20 years and is now a widely used tool; UK and EU currently have best practice models

  • It presents challenges to operate it meaningfully (influence on decision making) but also a lot of knowledge has been shared.

  • Policy-makers naturally address the costs and benefits of political choices. RIA offers rigour

  • Good potential for supporting the development of better standards in cooperation with regional partners

C.H. Montin, Manama


To learn more about ria

To learn more about RIA…

  • RIA methodology (UK)

    • BR framework

    • UK Government RIA site ; RIA template

  • RIA guidelines (EU)

    • European Commission RIA site

    • Guidelines

  • France: Guide de Légistique

  • About applying RIA to standards:

    • a Strategic vision for European standards (2011)

    • RIA on standards (academic article)

C.H. Montin, Manama


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