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C.H. Montin, Granada, 20 May 2014 11
Granada, 20 May 2014
International Cooperation for building economic institutions
in the MENA region
Charles-Henri Montin, Smart Regulation Consultant
Former Senior Regulatory Expert,
Ministry of economy and finance, Paris
http://smartregulation.net
For the full presentation (28 slides) please write to
speaker
C.H. Montin, Granada, 20 May 2014 2
Approach and contents
Approach and sources (“practitioner”)– Personal participation in actions to build
capacities in the MENA and other regions– Policy making in the OECD MENA
Governance Initiative Steering Group Two parts (for discussion)
– What is “institution-building” in the governance context and what are the challenges
– International cooperation: how to make the best use of them for national results
C.H. Montin, Granada, 20 May 2014 3
INSTITUTIONS FOR REGULATORY REFORM
Institutions Policies Tools
Which “ institutions” are we addressing
– Drafting new or amended rules and regulations (line ministries, other regulators, parliament)
– Regulating and ensuring compliance and enforcement of rules (inspections, audit offices, judiciary)
– Oversight of regulatory processes (formulating policy, monitoring, evaluating, reporting)
C.H. Montin, Granada, 20 May 2014 4
The functions of regulatory institutions
“The right set of institutions and mechanisms are required to actively provide oversight of regulatory policy procedures and goals (2012 OECD recommendation n°3)”:
• Regulatory oversight bodies (OB) with whole of government responsibility
• Ministerial accountability for regulatory policy• Efficient whole-of-government coordination of policy-
making• Measureable programs such as reduction of
administrative burdens• Careful design of independent (economic) regulators
C.H. Montin, Granada, 20 May 2014 6
Options for setting up the oversight function
OB within the executive branch driving and managing regulatory reform across gvt
High-level committees for regulatory reform (leading at political level)
Advisory and/or advocacy bodies: challenge and advising on the government’s regulatory reform
Ad-hoc institutions established for specific tasks and regulatory reviews
C.H. Montin, Granada, 20 May 2014 8
Examples of authorities in MENA region
Bahrain: Legislative and Legal Opinion Commission, an independent (judiciary) institution (http://www.legalaffairs.gov.bh/)
Egypt 2008-2012: ERRADA http://www.errada.gov.eg/index_en.php
Tunisia: central steering committee in Présidence du gouvernement + guillotine project with specific inst. setting
Lebanon: Legislation and Consultation Department in MJ and Council of State http://www.statecouncil.gov.lb/tarikh_fr.htm
C.H. Montin, Granada, 20 May 2014 9
Success factors
OB located close to core executive functions Credibility of the core unit builds on technical
expertise and political support Transparency and accountability, Checks and
balances, limited opt-out exemptions and time limits
Networked approaches: a core body, with suitable powers, coordinates a network of units in ministries.
Stability of the structures: gradual or big bang approaches; quick-wins and real outcomes
C.H. Montin, Granada, 20 May 2014 11
New trends (2014)
growing demand from MENA countries for comprehensive country projects based on an overall country strategy
core governance reforms to strengthen accountability, transparency and public service delivery, leading to greater trust in government
focus on public service delivery: – Better use of ICT, – stronger civil society engagement and
consultation processes to incorporate youth in the decision-making
– territorial development to address regional disparities
C.H. Montin, Granada, 20 May 2014 12
Building institutional capacities in MENA region
Audits, reviews (ex OECD regional review) Bilateral and multilateral projects such as
improvement of business regulations (Tunisia) or creating BR units, for capacity building
Regional dialogue and tools:– Charter for regulatory quality; publications– Training centres
Thematic conferences example legislative drafting in Morocco funded by EuroMed.
C.H. Montin, Granada, 20 May 2014 13
MULTI-FACETED INTERNATIONAL COOPERATION
Multiple actors– Bilateral or Multilateral– International or intergovernmental– G8/Deauville, Open Government Partnership– OECD MENA Initiative, EuroMed (Partnership
for Democracy and Shared Prosperity) Different approaches
– strategic commitment/delivery– Political or economic priority (governance or
investment)– Different procedures and requirements
C.H. Montin, Granada, 20 May 2014 14
Opportunities and challenges
After the Arab Spring Job creation is the top priority Emigration is expected to rise as a result of the
Arab Spring. Fighting corruption and strengthening the rule of
law are essential for economic growth and development.
A bloated public sector has distorted labour markets and crowded out the private sector
Entrepreneurship is very low in most MENA countries.
(source: O’Sullivan, Rey & Galvez Mendez)
C.H. Montin, Granada, 20 May 2014 15
EU Partnership for Democracy and Shared Prosperity
3 “key pillars:”
Known as EUROMED, instrument of the Union for the Mediterranean, f.k.a. Barcelona process. Managed by European External Action Service
C.H. Montin, Granada, 20 May 2014 16
EU Neighbourhood Instrument (2014) targets
(1) Promoting human rights , freedoms, the rule of law, equality, sustainable democracy, good governance and democracy,
(2) Achieving progressive integration into the EU internal market (3) Creating conditions for well managed mobility of people and
promotion of people-to-people contacts; (4) Encouraging development, poverty reduction, internal
economic, social and territorial cohesion, rural development; (5) Promoting confidence building, security and the prevention
and settlement of conflicts; (6) Enhancing sub-regional, regional and Neighbourhood wide
collaboration as well as Cross-Border Cooperation;
Implemented by EuropeAid. €11.2 bn 2014-2020
C.H. Montin, Granada, 20 May 2014 17
The Deauville Partnership (DP)
G8 May 2011 political process to support (3 pillars)
– (governance) the democratic transition and foster governance reforms (accountability, participation)
– (finance) Job creation for sustainable and inclusive growth
– (trade) Regional economic integration (ALECA) 12 donor countries (200m $ pledged) DP created MENA Transition Fund 4 thematic areas
– Investing in Sustainable Growth. – Inclusive Development and Job Creation. – Enhancing Economic Governance. – Competitiveness and Integration
C.H. Montin, Granada, 20 May 2014 18
Deauville Partners
G8 + International Organisations (see below) 5 Partners: SAU, UAE, KOW, QA, TUR 6 beneficiaries: MA, TU, LI, EG, JO, YE
C.H. Montin, Granada, 20 May 2014 19
Open Government Partnership
Launched by US in Sept 2011 to promote values:– Accountability– Technology and Innovation– Citizen participation– Transparency
Members undertake to work with civil society to develop and implement an OGP action plan, report on progress and participate in the independent reporting mechanism
See OGP Guiding Principles for Government Self-Assessment Reports
C.H. Montin, Granada, 20 May 2014 20
MENA-OECD: a solid platform for reform
PARTNERS– Anna Lindh
Foundation– ARADO– CAWTAR, – EC– IMF– UfM– UNDP– WB
REGIONAL NETWORKS (Governance)– Integrity and Anti-
Corruption– Open government and
innovation– Senior Budget Officials– Public Service
Delivery, PPP and regulatory reform
– Gender Focus Group– Territorial
Development Focus Group
Two ProgrammesGovernanceInvestment
C.H. Montin, Granada, 20 May 2014 21
Multi-disciplinary programme of work
Support to SME, within the Deauville Partnership Administrative simplification Public Procurement PPP: regulatory framework, inst. capacities Gender: see 2013 OECD-CAWTAR report on
gender, law and public policy: includes chapter on effective institutions and policy-making
Regulatory Reform: see 2013 report on RR in MENA: lists present achievements, challenges and good practices, recommends new tools and institutional development
C.H. Montin, Granada, 20 May 2014 22
Delivery: example OECD MENA
G8 Deauville Partnership Open Governance and Anti-corruption Action Plan: OECD lead organisation
Dissemination of open government principles and practices to promote innovative government
Assistance to accession to Open Government Partnership Combination of regional support and country specific projects:
– Access to international policy instruments– Capacity building activities– Assistance to implementation– Policy dialogue among peers– Tailored policy analyses and recommendations
C.H. Montin, Granada, 20 May 2014 23
Examples of OECD supported country projects
Tunisia– Has becomes OGP member in Jan 2014– Reinforcing budget transparency (GE support)– integrity and accountability
Morocco– OG policies: law on access to information– Integrity and part.: support to Médiateur and
ICPC Palestinian Authority
– Support since 2009 leading to institution building and technical documents
UAE, Jordan, Yemen, Libya
C.H. Montin, Granada, 20 May 2014 24
Issues for national officials
Are there any additional frameworks and mechanisms for better institution building, which you would like to discuss?
How could the OECD and other international organizations be made more efficient in support of individual Arab countries reform plans?
How could the mechanisms be better focused on economic institutional development?
What practical difficulties do you know of concerning interacting with international donors?
C.H. Montin, Granada, 20 May 2014 252525
To continue the study…
Two text-books– OECD: Strengthening the institutional setting for regulatory
reform– World Bank: Institutions for regulatory governance
Further questions contact:• montin @ smartregulation.net
File and URL of this presentationhttp://www.montin.com/documents/granada2014.ppt