Integration of Regulatory Impact Assessment into the decision making process in the Czech Republic

Integration of Regulatory Impact Assessment into the decision making process in the Czech

Republic

Aleš PeckaDepartment of Regulatory Reform and Public Administration Quality

Ministry of Interior, Czech Republic

Aleš Pecka

Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic

Content

Integration of RIA into the decision-making process

Historical background

Introduction

Preconditions and challenges

Conclusion - lessons learned

Aleš Pecka


Introduction

Department of Regulatory Reform and Public Administration Quality, Ministry of Interior (since November 2006) Department’s Competencies:

• Regulatory Impact Assessment• Simplification of regulatory environment• Strategies and conceptions in Public

Administration

Aleš Pecka



What does Regulatory Reform mean? Puzzling term: at first, it does not give a clear

picture what the issue is about… Sometimes confusing ,e.g. terms Better

Regulation (EU) and Regulatory Reform and Regulatory management (OECD) used

Possible definition: according to given facts in each particular country its aim is to improve regulatory process…

Aleš Pecka



Regulation drafting in the Czech Republic: Traditional legal approach Primary focus on the quality of legal texts General requirements for drafting defined by

the Legislative Rules of Government (LRG) Review by the Legislative Council of the

Government

Aleš Pecka



Where the origins in the Czech Republic can be traced? OECD Regulatory review, the Report

published in 2001 Analysis of recommendations submitted to the

Government which took note of them by its Resolution No. 650 of June 2001

Among others, including the proposal “to elaborate draft guidelines and proposal of implementation of the Regulatory Impact Analysis (RIA)”

Aleš Pecka



In 2002, LRG partly amended by some elements arising from RIA: Assessment of alternative (regulatory)

solutions; Substantial intents as well as legislative

proposals shall contain the estimated economic and financial impacts on the state budget and other public budgets

However, followed only formally, absence of relevant control mechanisms...

Aleš Pecka


Implementation of RIA

Regulatory reform agenda New impetus: incorporation into the Central

State Administration Reform Strategy adopted by the Government in March 2004

Formal adoption of RIA as a tool: Government approval of the Plan for incorporation of RIA into the Czech legislative system (April 2005)

(Draft Guidelines for regulatory impact assessment)

Aleš Pecka


Implementation of RIA

Pilot phase (2005-2006): Application of the Draft Guidelines for

conducting the impact assessment on selected pilot projects

On the basis of the gained experience – completion of the Guidelines (by December 2006)

Guidelines are planned to be put on the Government agenda for approval by March 2007

Aleš Pecka



What elements should be taken into account?:Process rules Institutional arrangementsPeople – civil servantsConsultations – important phase in RIA

process

Aleš Pecka



Process rules (2007):Guidelines for regulatory impact assessmentFull impact assessment obligatory to all drafts of

primary and secondary lawsObligation to follow the guidelines =>

amendment of the Legislative Rules of Government to be approved together with Guidelines (alternatively considered option: enactment of the rules in a special law)

Aleš Pecka



Institutional arrangements Finding the balance between centralistic and

decentralized approach Concept based on the division of ‘roles’: Carrying the impact assessment of a

legislative proposal – the responsibility of the body elaborating such a proposal

Control of quality and methodological assistance - entrusted to a specialized unit (regarding its horizontal function, preferably located at the Centre of Government)

Aleš Pecka



Institutional arrangements (the reality): Quality review of RIAs accompanying

legislative drafts entrusted to the Department of Regulatory Reform and Public Administration Quality (DRR PAQ), Ministry of Interior

Elaboration of RIAs: Specialized units at each ministry (recommended, but not obligatory - up to the decision of each ministry), methodological assistance by DRR PAQ

Aleš Pecka



People – civil servants Providing an adequate training for officials Specialized training (3 days) to explain the

concept and introduce the methodology (the Guidelines) provided up to 50 civil servants from different ministries during 2006 by the central training unit (Institute of State Administration) – to be continued...

Aleš Pecka



Consultations Important phase in the RIA process Creation and management of the Database of

consulted organisations (so-called “DataKO”) on the special website

It contains contacts to the stakeholder’ organisations (structured according to the particular topics/areas/economic sectors)

Methodology of Public Consultations

Aleš Pecka


Lessons learned

What are the supportive elements?: Benefit of the outside international „pressure“

(OECD’s regulatory reviews and know-how, recently also influence of the EU membership – particularly Lisbon strategy agenda)

Necessary political support Implementation of the principles of Regulatory

Reform - a part of a wider policy package (Central State Administration Reform)

Aleš Pecka


Lessons learned

How to apply the RIA efficiently?: Avoid overload of desk officials E.g. exploitation of a “minor” and “major” RIAs

following the principles of a “two-stage” drafting legislative process in the Czech Republic

They differ in the scope of detail of the analysis:

• “minor” RIA: mostly qualitative analysis with possible estimate of financial impacts

• “major” RIA: detailed cost-benefit analysis with respect to a single or a few solution options

Aleš Pecka


Lessons learned

Implementation of RIA is not only about rules and institutions – it is a change of culture within the public administration

Therefore the change can only be gradual, the „snowball effect“ helps...

On the other hand, RIA does not replace political decision-making, it provides only well-founded information for decision-makers

More work for officials, yet the benefits outweigh the costs (avoiding “wrong”, costly decisions…)

Aleš Peckae-mail : [email protected]

Documents

Integration of Regulatory Impact Assessment into the decision making process in the Czech Republic