C.H. Montin, Tbilisi 11 Tbilisi, 12 November 2014 Developing Regulatory Impact Assessment In Georgia Context and justification of a RIA scheme Charles-Henri

C.H. Montin, Tbilisi 11

Tbilisi, 12 November 2014

Developing Regulatory Impact AssessmentIn Georgia

Context and justification of a RIA scheme

Charles-Henri Montin, Smart Regulation Consultant

Former Senior Regulatory Expert, Ministry of finance, France

Adviser, Ministry for State Reform, Lebanon

http://smartregulation.net


1994

2004

2007

2010

2014

15/11/2014


How to act on regulatory quality

POLICIES

TOOLSINSTITUTIONS


The three ages of regulatory quality

Regulatory management

Due process

Consistent legally

Accessible

Inform stakeholders

RegulatoryReform (1995)

EffectiveEfficient

Competitive

Consult stakeholders

Regulatory governance

(2010)

Integrated objectives

Cycle approachIncl. M&E

Involve stakeholders

BR ≠ DeregulationBR = dynamic LT process acting on policies, institutions

and tools

GOOD BETTER SMART


RIA at the centre of regulatory policies

United Kingdom

Better Regulation

Impact assessment

Regulatory Policy Committee

Publication

One-in, two-out

European Union

Smart Regulation

RIA

Impact assessment Board

France

Regulatory Quality

Evaluation préalable

Conseil d’Etat

Legistics

Constitutional basis for RIA


RIA supports

better regulation:

within regulatory governanc

e


The OECD checklist for decision making


Trend in RIA adoption across OECD jurisdictions

source: OECD website


The definition of RIA

Definition: “RIA is a systematic policy tool used to examine and measure the likely benefits, costs and effects of new or existing regulation”

Why is RIA important?– It introduces the evidence base into

the policy decision making – It can help establish whether

regulation is the best available means to address the policy objective

– It is a tool at the service of the general objectives of the national regulatory policy


Benefits of RIA

Analytical tool– Provides a method to ask the right questions– Employs CBA and other quantification techniques to

check that proposed policy/regulation is• Effective• Efficient

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


RIA supports the policy-making process

(context of RIA)


Common challenges in implementing RIA

Related to the tool:– Problem identification (not the same as the

objectives)– Availability of data– “Proportionate analysis” (criteria, transparency)– Quantification (costs, and especially benefits)– Risk assessment

Related to the structure/process– Scope of application / selection of proposals– Governance of RIA, Quality control (oversight)– Presentation / Communication– Integrate RIA up-stream (early in decision-making)– Integrate RIA down-stream (“closing the loop”)– Administrative capacity, Training– Multi-level context– Trade-off political decision vs technical expertise


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



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



6. Consultation / Transparency / Communication : publish RIAs

7. Training officials to build the right skills to produce RIAs

8. Apply RIA to both new and existing regulation


Developing RIA practice step-by-step

The main steps for developing RIA practice:– Define national methodology using foreign

best practice– Build capacities in regulating agencies– Set up quality control mechanisms or

structures– Create training programme for RIA drafters– Launch pilot studies– Monitor for continuous improvement with

practice.


Mapping out a RIA system based on international good practices


Critical success factors for RIA structure

Clear objectives, legal basis, awareness Good process Training of RIA drafters Network of officials in ministries Review body for quality control Continuous learning (“learning by doing”,

iterative process)


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 (integrate into decision making) but also a lot of knowledge has been shared and this can help build a national scheme.

Policy-makers naturally address the costs and benefits of political choices. RIA offers rigour by adding the quantitative assessment of all options, including non-regulatory.


Relevance to Georgia

Do you perceive advantages to developing RIA in your country?

What could be the main obstacles to the introduction of RIA ?

Who would be likely to support the development of RIA in Georgia?


To learn more about RIA (systemic issues)…

OECD “text-books”– “Building an institutional framework for RIA”– “A tool for policy coherence”

RIA governance (UK)– BR framework– UK Government RIA site ;

RIA guidelines (EU)– European Commission RIA site– Guidelines

France: “New RIA in France” (ppt)

All presentations on http://montin.com/tbilisi

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/211981/bis-13-1038-better-regulation-framework-manual-guidance-for-officials.pdf

http://ec.europa.eu/smart-regulation/impact/index_en.htm

Documents

C.H. Montin, Tbilisi 11 Tbilisi, 12 November 2014 Developing Regulatory Impact Assessment In Georgia Context and justification of a RIA scheme Charles-Henri