drs. Kees R. Jonkheer 16 May, 2019

1. Techniques in Delivering RIA Technical Support: how to use RIA guidelines and handbooks effectively drs. Kees R. Jonkheer 16 May, 2019

2. Agenda Discussion of available resources for RIA trainings: RIA guidelines developed in other countries How to use RIA guidelines and handbooks effectively Utilizing the BRRA handbook to reach a broader audience

3. Merits of RIA. Bosnia Herzegovina: Regulatory Simplification leads to Significant Results in Local Investment-Friendly Environment (LIFE) Project (December 2015 - January 2019) The LIFE Project is building on lessons learnt in previous World Bank Group engagement where synergetic effects of regulatory simplification lead to significant results, such as increased employment by 6,4% in targeted localities. Moreover, Regulatory Improvement has yielded in the following results so far: • Increased competitiveness of private sector by reducing costs for businesses (direct costs by $7 million, and 20% reduction in indirect costs) by project completion; • Distance to Frontier measure (as related to Doing Business report) improved by five (5) points at any point in time in each of the business start-up, registering property, getting electricity and construction permits before project completion; • $10 million in investment generated, facilitated and retained one year following the Project completion through the work of strengthening collaborative network of policymakers to resolve investor grievances and investor servicing; • Increased transparency of local level government regulatory delivery for businesses through creation of a 20 fully functional public electronic registers of administrative procedures, and 20 inventories of investment incentives by project completion to provide information on administrative procedures for businesses; • Transferred tools for continuation of regulatory reforms work to Federation of Bosnia and Herzegovina ministries.

4. Merits of RIA. The Netherlands: Better Regulation yields in a total of € 5 billion Administrative Burden Reduction in 10 years (2007-2017) Administrative burdens for SMEs are estimated at an annual € 8.2 billion at year-end 2012. SMEs includes companies with less than 250 workers. On average, the administrative burden per SME is more than € 5,700 for businesses with fewer than ten workers to more than € 150,000 for companies with 100 to 250 workers. This shows, administrative costs increase with company-size. Firstly, because the information requirements become heavier as a company is bigger. Secondly, the number of information obligations for companies is also higher as company-size increases. The average administrative burden per worker ranges from almost € 2,900 for businesses with fewer than ten workers to € 900 for companies with 100 to 250 workers. As companies employ more staff, the burden on the average larger number of workers are spread. Relatively speaking, the administrative burdens are more heavy on smaller companies (around 2% of operating costs) than on larger companies (0.5% of operating costs).

5. Merits of RIA. Uganda: Business Licensing Reforms 2012-2017

6. Merits of RIA. Uganda: Business Licensing Reforms (2012-2017) Local Government appears to have achieved the largest share of the compliance cost reductions (85%), through both a series of legal reforms and administrative reforms. Legal reforms resulting in substantial, if not huge, compliance cost reductions are the elimination of the Cess on Produce (36.1 billion per year), the Bicycle license (UGX 6.1 billion per year), and the Fishing license (UGX 4.1 billion per year), as part of the Local Governments (Amendment of Fifth Schedule) Instrument, 2014. The elimination of these three levies/licensing fees, totals UGX 46.3 billion, per year. Also, the introduction of two new low-cost Grades to the Trade License (Grade II & IV) has resulted in compliance cost reductions of an UGX 9.74 billion per year. In addition, administrative reforms in the trade licensing process, mainly through automation and decentralization, yield in an estimated UGX 1.93 billion per year. Other administrative reforms in local government have resulted in compliance cost reductions of in total UGX 14.7 billion.

7. Merits of RIA. Uganda: Business Licensing Reforms (2012-2017) The Companies (General) Regulations, 2016, the Companies (Powers of the Registrar) Regulations, 2016, the Companies (Single Member) Regulations, 2016, and the Partnership Regulations, 2016 in the Trade, Commerce & Cooperatives sector have yielded in substantial compliance cost reductions, of a total of UGX 6.8 billion. Improved administrative processes in the Trade, Commerce & Cooperatives sector have been responsible for UGX 979 million compliance cost reduction, annually. The Trade, Commerce & Cooperatives sector is responsible for 9.13% of the overall achieved compliance costs reductions. Through decentralization, capacity increase and automation, the Ministry of Education and Sports has achieved UGX 1.17 billion compliance cost reduction. And, the repeal of the Mining licenses in the Finance Act 2016 has been largely responsible for the substantial compliance cost reduction of UGX 955 million in the Energy, Mining, Oil & Gas sector.

8. The ‘archetypal’ RIA Specialist RIA Handbooks are important, a methodology must be followed. That said: RIA ultimately starts with the capacities of the RIA Specialist. Analytical skills: ask yourself why, try to distill and come to the heart of things, ask yourself how in comparable situations an issue would be solved, etc. Appetite for Research: be curious about all information/reports and the current available knowledge of your subject, in your country but also abroad, search the internet in a smart and persistent way, etc. Creative: think of out-of-the-box solutions to often far-reaching, pertinent problems, that may need to be regulated. Communicative: because of his/her subject, the RIA Specialist works in a high-level environment and should be able to listen and explain.

9. RIA Guidelinesaroundtheworld https://rulemaking.worldbank.org/en/ria-documents Global Database for Regulatory Impact Assessment (RIA) This database contains documents related to Regulatory Impact Assessment (RIA) issued by or for national governments, or publications studying RIA as it is applied by governments worldwide.

10. Building the Case RIA Steps in 3 Stages Results of RIA Assessment of Policy Options

11. Differentiated Implementation of RIA:Decision framework Sometimes a decision framework is applied to determine whether a RIA is needed or not, and to what extent, with elements for the government official to decide upon: • Checklist, containing of yes/no questions helping government officials to decide whether a form of RIA is required. • Description of when a Light RIA or Screening RIA is required (accompanied by a template for a Light RIA). • Description of when a Full RIA is required (accompanied by a template for a Full RIA).

12. Checklist Do a RIA when one of the following items is answered with ‘YES’: Uganda

13. Checklist Or: do a RIA when answered ‘YES’ to more than 3 of these questions:

14. If the Checklist results in a RIA to be conducted, a Light RIA suffices, and a Full RIA should be conducted when any of the following applies: Checklist

15. Ligth RIA Template (1)

16. Light RIA Template (2)

17. Regulatory Impact Assessment Report Form

18. 5

19. Feasibility Implementation Government 6 obligations Ugandan

20. The FOUR essentialevaluative RIA-questions: The essence of RIA-auditing are these four basic questions: • Are the expected cost and benefits/administrative burdens quantified and is the calculation appropriately based? • Have alternatives that achieve the similar results, but potentially mean costs/less administrative burdens sufficiently been addressed and considered? • Within the goal of the law/regulation/the project, has the least burdensome alternative been chosen? • Has been chosen for an execution modality with the minimal costs?

29. How toeffectivelyuse RIA Guidelines Policy Development Legislative process The Guide places the RIA process under policy development. However, a RIA is usually done as part of the Legislative Process.

30. Policy Analysis Units Source: Government of Uganda, Office of the President Cabinet Secretariat, Report on a Study of the Structures of Policy Analysis in the Government Ministries, Departments and Agencies, February 2014. How many positions?

31. Policy Analysis Units (2014) Office of President: 10 Office of Prime Minister: 6 Ministry of Land, Housing & Urban Development: 1 (2 vacancies) Ministry of Justice, 3 (1 vacant) Ministry of Tourism, 3 (5 vacant) Ministry of Agriculture, etc. 3, (2 vacant) Ministry of Public Service, 3 (3 vacant) Ministry of Energy, etc. 0 Ministry of Water & Environment, 8 Ministry of ICT, 4 Ministry of Local Government, 2 Ministry of EAC Affairs, 1 (1 vacant) Ministry of ForeignsAffiars, 6 Ministry of Gender, Labour, etc., 2 Authorities & Agencies, als Policy Analysis Units?

32. Policy Analysis Units Source: Government of Uganda, Office of the President Cabinet Secretariat, Report on a Study of the Structures of Policy Analysis in the Government Ministries, Departments and Agencies, February 2014. Ministry of internal Affairs, 2 Ministry of Education, Sports, etc., 2 (3 vacant) Ministry of Defence, 1 (1 vacant) Ministry of Works & Transport, 3 Ministry of Trade, Industry & Cooperatives, 1 (1 vacant) Ministry of Health, 2 Ministry of Finance, etc., 22 (10 vacant) National Planning Authority, 9 vacant Education Service Commission, 2 Judicial Service Commission, 1 (1 vacant) Local Government Finance Commission, 5 (1 vacant) Inspectorate of Government, 18 (11 vacant) Authorities & Agencies, also Policy Analysis Units?

33. Model Work Plan Policy Analysis Units

34. LegislativeProcess Legislation is the process of making laws. This is a key role of Parliament that is exercised when Parliament debates and enacts Bills tabled before it by the Executive and Bills originating from within Parliament. There are three types of Bills i.e.: Government Bill: Bill introduced/tabled in Parliament by the Executive Arm of Government. Private Members Bill: Bill introduced/tabled in Parliament by a Member of Parliament. When this happens, the Bill should conform to Article 93 of the Constitution – it should not have financial implications. Bill introduced by Committees under Rule 124: A Committee of the House may initiate any Bill within its area of competence.

35. Process of Handling a Bill The Ministry initiating a Bill prepares the Principles of the Bill for approval by Cabinet. Cabinet approves the Principles and authorizes the sponsoring Ministry to issue Drafting Instructions to the First Parliamentary Counsel. Drafting Instructions should comprise a clear and comprehensive statement of the nature of the problem by providing background information, the purposes of the proposed legislation, the means by which those purposes are to be achieved and the impact of the proposals on existing circumstances and law. They should include the Cabinet Minute and the Cabinet Memorandum relating to the Cabinet Policy on the drafting of the Bill. Once the draft Bill has been prepared by the First Parliamentary Counsel the Minister then submits the Bill to Cabinet for approval with a covering Cabinet Memorandum....

36. LegislativeProcess …(the Bill should be accompanied with a certificate issued by the First Parliamentary Counsel addressed to the Secretary to Cabinet stating that the Bill is consistent with the Principles approved by Cabinet). In exceptional circumstances, the Attorney General or in his or her absence, the Solicitor General, may waive the requirement of prior approval by Cabinet of the Principles of a Bill to allow a Ministry to request a Bill to be drafted for submission to Cabinet. The request for waiver should be made in writing by the Minister concerned and the Bill when being submitted to Cabinet should be accompanied by a certificate issued by the First Parliamentary Counsel addressed to the Secretary to Cabinet stating that the Bill was drafted on the basis of approval by the Attorney General or Solicitor General waiving the initial requirement of prior Cabinet approval of Principles.

37. LegislativeProcess The Minister obtains authorization to have the Bill gazetted and introduced in Parliament when Cabinet approval is granted. Attached to the Bill should be a letter from the Attorney General confirming that the Bill has been drafted according to the Principles approved by Cabinet and that it complies with the Law. The Certificate of Financial Implications from the Ministry of Finance, Planning and Economic Development should also be attached to the Bill. Then the First Parliamentary Counsel will instruct the Government Printer to publish the Bill in the Gazette on receipt of the Cabinet Minute authorizing publication.

38. Progress of Bills in Parliament A Minister moves that the Bill be read the first time and no question shall be put. The Clerk reads aloud the short title of the Bill, and then the Bill is taken as read the first time. The Bill is then referred to the appropriate Committee appointed under the provisions of Article 90 of the Constitution. The Committee examines the Bill in detail to ensure that all inquiries in relation to it are complete and report to the House within two months from the date the Bill is referred to the Committee. The Minister will be required to appear before the Committee to interact with the Committee and to answer any questions that the Committee may require him or her to answer on the Bill. Upon completion of the Committee’s report, a copy of the report will be submitted by the Chairperson of the Committee to the Minister for study. The Minister is expected to study the report and prepare the Government’s responses to the report. If necessary the Minister will consult Cabinet on any matter of importance raised by the Committee.

39. LegislativeProcess RIA should have a place in the Legislative Process. The RIA process should start at Principal stage upon after the finalization of drafting of the Bill. Actors in RIA drafting: civil servants, PAUs, First Legislative Counsel. Noticed here is that the reviewing of Laws is already a mandate of the ULRC. It is acknowledge that currently there is no role for Cabinet Secretariat in Legislative Process. The Uganda Law Reform Commission should be the auditor of RIAs, or adapt the role of Regulatory Oversight Body. There is a precedent for making the ULRC responsible for RIA audits, see Kenyan Law Reform Commission. The role of Policy Analysis Units in the regulatory process remains ambiguous. Half of the regulation issuing government institutions do not have a PAU (agencies, authorities, ministries).

40. Challenges RIA on Policies Policies A policy is a "set of decisions which are oriented towards a long-term purpose or to a particular problem. Question: How can you operationalize a policy as one of the Policy Options? Also: policy change recommendations not necessarily entail regulations (see NFP). Policies are drafted by policymakers and concerns the process that outlines what a government is going to do and what it can achieve for the society as a whole. Policies concern with guidelines of essentially large, fundamental decisions by governments and parliaments. Policies may vary due to changing political agendas. Policies are non-binding. A policy - compared to laws - often is a rather informal, non-comittant document that just lists and states what is intended to be done in the future. Policies are usually drafted with a motive of allocating budget. What impact do you measure when you take a Policy as a Policy Option? Policies are implemented.

41. Challenges RIA on Policies Regulations Laws are enacted by a legislature or the governing body of a country. It should be done by a technical body. Regulations are drafted by legislators, NOT policy makers. It deals with the process of making the law, etc. Delicate task, setting down the framework of the practical rules for everyday working. Regulations are meant to be a stable, regardless of changing political agendas. Regulations are binding in nature. Rules determine what the regulatory target group must adhere to, to comply with the regulation. The impact of a Regulatory Policy Option is the impact in terms of compliance requirements by the regulatory target group. Regulations are enforced.

42. Challenges RIA on Policies Essentially, a policy sets out the goals and planned activities of an entity, whereas a regulation may be needed to pass to enable government to put in place the necessary institutional and legal frameworks to achieve their aims as set out in the policy. Policies are a course of action that the government or an organization plans to take. Policies are decisions that set the floor for a long-term goal. However, it does not ensure that the policies will be successfully followed or they will successful in helping the government reach that long-term goal. Regulations are actual laws that are enforceable, which means they must happen and should be followed. Regulations also require a voting to ensure that they are passed, while policies can be decided by the government or the head of the organization.

43. Domain Regulatory Impact Assessment Domain RIA Government Regulatory Target Group • Government subject • Goals tobeachieved • Implemented • Guideline of intent • Internaloperation • Regulatory Target Group subject • Rules tobeadheredto • Enforced • Framework of practise • Regulatoryburden

44. ChallengestoEffectivelyUse RIA Guidelines Regulatory Impact Assessment (RIA) is a tool for improving the quality of new or modified government regulations. The absence of RIA can result in a regulation being unaccountable, non-transparent, or inconsistent.  Regulatory Impact Assessment (RIA) is a term used to describe the process of systematically assessing the benefits and costs of a new regulation or an existing regulation. RIA is an essential tool for regulatory quality. 

45. Six KeyElements of SuccessfulImplementation of RIA Presence of formal political commitment (for instance in a strategic/ policy document) Integration in rule-making process (integration of RIA in the policy cycle/policy formulation process through a legal provision) Establishment of a coordination/oversight body/authority Design of RIA guidelines and methodologies Presence of consultation mechanisms Capacity-building activities and early practice/piloting of RIA