Regulatory Policy and Governance – OECD Experience and Emerging Trends Faisal Naru Senior Economic Adviser, OECD

Regulatory Reform Policy Dialogue OECD SE Asia Forum, Bali, 25 March 2014

What is Regulatory Policy?

A key component for a successful system of regulatory quality management is the adoption of a clear political commitment to the established principles for regulatory reform.

Indicators of Regulatory Management Systems, Regulatory Policy Committee, OECD (2009)

Economy

Society Environment

OECD Framework: Regulatory Policy & Governance

Core Policies

Systems, Processes &

Tools

Actors, Institutions & Capacity

Main motives for reform 2008

Source: Question 1 bi),bii),biii),biv),bv),bvi), 2008 OECD Indicators Questionnaire.

30 29

26

22

19

9

0

5

10

15

20

25

30

Need to boost competitiveness

and growth

Reduce the burden

on businesses

Domestic policy agenda

International commitment

(e.g. WTO, WHO, Codex or European

commitment)

Improve social welfare

Other

Num

ber o

f jur

isdi

ctio

ns

31

The Regulatory Policy Committee (RPC) was created by the OECD Council on 22 October 2009 to assist member and non-member economies in building and strengthening their regulatory reform efforts. It is a platform to help countries adapt regulatory policies, tools and institutions, learning from each other’s experience. The Regulatory Policy Committee is supported by staff within the Regulatory Policy Division of the Public Governance and Territorial Development Directorate. More information about OECD work on regulatory policy, including information about how governments can design, apply and enforce better rules can be found at www.oecd.org/regreform.

The OECD’s Public Governance and Territorial Development Directorate’s unique emphasis on institutional design and policy implementation supports mutual learning and diffusion of best practice in different societal and market conditions. The goal is to help countries build better government systems and implement policies at both national and regional levels that lead to sustainable economic and social development.

The OECD Regulatory Policy Committee

In 1995, OECD Ministers requested the OECD to examine the significance, direction and means of reform in regulatory regimes in member countries.

List of recommendations and guidelines produced since 1995:

• 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

• 1998 Recommendation of the Council concerning Effective Action Against Hard Core Cartels

• 1997 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

OECD Recommendations

OECD Recommendation 2012

OECD Trends

OECD Trends

Departments send IAs to RPC for scrutiny

IAs with RPC Opinions go to RRC for approval

1

3

Opinions issued to departments2

Departments Develop IA and submit to

RPC before a formal clearance is requested

from RRC

RRC

Makes final decision on regulations

RPC Scrutinises IAs:

Red (“Not Fit for Purpose”) or Amber/Green (“Fit for

Purpose”) flags given

OECD Trends

Economy

Society Environment

R R

Forthcoming OECD Publications

Forthcoming OECD Publications

Office of Best Practice Regulation, Government of Australia

Faisal Naru

Senior Economic Adviser, OECD,

2 Rue Andre-Pascal, 75775 Paris, CEDEX 16, France

Faisal.naru@oecd.org

Thank You!