Regulatory Policy and Governance: OECD Experience and Emerging Trends - Faisal Naru


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Presentation by Faisal Naru, Senior Economic Adviser, OECD, at the OECD Southeast Asia Forum, 25-26 March 2014, Bali, Indonesia. Further information is available at

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Regulatory Policy and Governance: OECD Experience and Emerging Trends - Faisal Naru

  1. 1. 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
  2. 2. 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)
  3. 3. Economy SocietyEnvironment OECD Framework: Regulatory Policy & Governance Core Policies Systems, Processes & Tools Actors, Institutions & Capacity
  4. 4. 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 Domesticpolicy agenda International commitment (e.g. WTO, WHO, Codex or European commitment) Improve social welfare Other Numberofjurisdictions 31
  5. 5. 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 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
  6. 6. 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
  7. 7. OECD Recommendation 2012
  8. 8. OECD Trends
  9. 9. 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
  10. 10. OECD Trends Economy SocietyEnvironment R R
  11. 11. Forthcoming OECD Publications
  12. 12. Forthcoming OECD Publications Office of Best Practice Regulation, Government of Australia
  13. 13. Faisal Naru Senior Economic Adviser, OECD, 2 Rue Andre-Pascal, 75775 Paris, CEDEX 16, France Thank You!