MEXICO
Enhancing trust in institutions for Regulatory
Policy
Virgilio Andrade
Head of The Federal Commission for Regulator...
Contents
I. Evolution of Regulators in Mexico
II. Mexican Map of Regulators
III. Institutional framework of the Regulatory...
I. Evolution of Regulators in Mexico
(Only Offices from
Ministries)
•Traditional Decrees
•Traditional
Bureaucratical
Decis...
II. Mexican Map of Regulators
Regulators outside the governmentIFE(soon to be INE), Electoral
BANXICO, Monetary policy
CND...
• Inside a Ministry (ocassionally
outside)
• Technical autonomy (ocassionally
financial autonomy)
III.Institutional framew...
IV. Principles for governance of the regulators
OECD: “Best practice principles for the governance of regulators”
Applicab...
V. How to ensure trust in regulators?
Clarity in Roles
Clarity in Specific Rules
Clarity in Principles
Continuity in body ...
VI. Regulatory Governance in Mexico
The OECD has played an important role in the development of the Regulatory Policy in M...
VII. Elements of the Regulatory Reform Policy
in Mexico
Explicit Policy
Oversight body
High Level Support
The Regulatory R...
VIII.Oversight of regulatory agencies
Executive
Branch
Ministries
Agencies
Units with
regulatory
functions
Ministry of
Eco...
IX. Main Lessons
Lessons Trust is an optimal value for good
regulators
Enhancing trust on regulators should
consider:
Type...
Thank you
March, 2014
Virgilio Andrade
virgilio.andrade@cofemer.gob.mx
www.cofemer.gob.mx
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Enhancing trust in institutions for Regulatory Policy - Virgilio Andrade

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Presentation by Virgilio Andrade, Head of The Federal Commission for Regulatory Improvement, Mexico, at the OECD Southeast Asia Forum, 25-26 March 2014, Bali, Indonesia. Further information is available at http://www.oecd.org/gov/regulatory-policy/southeast-asia-regional-forum.htm

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Enhancing trust in institutions for Regulatory Policy - Virgilio Andrade

  1. 1. MEXICO Enhancing trust in institutions for Regulatory Policy Virgilio Andrade Head of The Federal Commission for Regulatory Improvement Bali, Indonesia March 25, 2014 OECD Southeast Asia Regional Forum: Fostering Regional Competitiveness and Sharing the Benefits of Sustained Growth
  2. 2. Contents I. Evolution of Regulators in Mexico II. Mexican Map of Regulators III. Institutional framework of the Regulatory Agencies IV. Principles for governance of the regulators V. How to ensure trust in regulators? VI. Regulatory Governance in Mexico VII. Elements of the Regulatory Reform Policy in Mexico VIII. Oversight of regulatory agencies IX. Main Lessons
  3. 3. I. Evolution of Regulators in Mexico (Only Offices from Ministries) •Traditional Decrees •Traditional Bureaucratical Decisions (From Offices to Agencies) •Specialized bodies •Technical Resolutions •Specialized output rules •Continuity •Accountability (Telecommunications, competition, energy, healt, banking, pensions) (Implementation of OECD Principles) •COFEMER •RIA •Consultation •Transparency •Ex Post Evaluation •Administrative burden reduction •Regulatory reform across levels of government •Total Autonomy from Government •Highest level of authority •Checks & Balances Before 1990 1990-2000 2000-2013 2013 -> Old Regulators Specialized Regulators Regulatory Governance Constitutional Regulators Closed Economies Limited Democracy Opening the Economy More Democracy Globalization
  4. 4. II. Mexican Map of Regulators Regulators outside the governmentIFE(soon to be INE), Electoral BANXICO, Monetary policy CNDH, Human Rights INEGI, Statistics INEE, Evaluation of education COFECE, Competition IFT, Telecommunications CONEVAL, Evaluation of poverty Attorney General of the Republic (Today PGR), Law Enforcement IFAI, Transparency Anti-Corruption Body Autonomous Constitutional Organisms Executive Branch Ministries Offices (13) Agencies (40) Legislative Branch (Congress) Judicial Branch (Courts) Traditional Constitutional Powers
  5. 5. • Inside a Ministry (ocassionally outside) • Technical autonomy (ocassionally financial autonomy) III.Institutional framework of the Regulatory Agencies In Mexico there are three types of regulators: Agencies • Units inside a Ministry • No autonomy Administrative Offices Autonomous Constitutional Organisms • Outside the Federal Powers • Collegiate bodies with fixed period (named by Congress, involves other instances) Technical Trust Mixed confidence (Government/Body) Confidence in the body (independent from confidence in the government) Political /Technical Trust (Autonomy & Sovereignity) Inconsistent Trust (Depends on Confidence in Government) 13 (Transport) 40 (Health, Energy, Banking) 10 (Elections, Human Rights, Competition, Telecommunications,others)
  6. 6. IV. Principles for governance of the regulators OECD: “Best practice principles for the governance of regulators” Applicability of the principles in Mexico Principle Office Agency Constitutional Autonomous Clarity of Roles LOW MEDIUM - HIGH HIGH Decision-making and governing body structure for independent regulators NO NO / YES YES Accountability and transparency DEPENDS ON GOVERNMENT MEDIUM - HIGH HIGH Performance evaluation ACCORDING TO GOVERNMENT Funding DEPENDS ON GOVERNMENT MEDIUM - HIGH HIGH Preventing undue influence and maintaining trust RISKY RISKY RISKY Commitment ACCORDING TO GOVERNMENT TECHNICAL •TECHNICAL •SOCIETY & PUBLIC OPINON
  7. 7. V. How to ensure trust in regulators? Clarity in Roles Clarity in Specific Rules Clarity in Principles Continuity in body structure Consistency with principles Certainty Impartiality Regulatory Governance (RIA- Transparency-Consultation-Ex post Evaluation) Duplicated Roles Ambiguous Rules Lack of principles Continuous changes in body structure Inconsistency Ambiguity No Transparency Lack of Policy Evaluation Laws Structure (Mechanism of nomination) Decisions Strategies
  8. 8. VI. Regulatory Governance in Mexico The OECD has played an important role in the development of the Regulatory Policy in Mexico through its recommendations, country reviews and best practice principles. The 4 Cs Consultation Coordination Cooperation Communication 1. Development plan of policy and policy instrument choice. 2. Design of the new regulations and reviewing existing regulations. 3. Implementatio n of the regulation 4. Monitoring and evaluating the performance of the regulation Public policy issues for government action Regulatory Governance Cycle
  9. 9. VII. Elements of the Regulatory Reform Policy in Mexico Explicit Policy Oversight body High Level Support The Regulatory Reform Policy (RRP) is established in the Federal Law of Administrative Procedure The Federal Commisson for Regulatory Improvement (COFEMER) is in charge of the RRP The President of Mexico directly designates the Head of COFEMER Main Actors Regulatory Agencies + COFEMER + Stakeholders (citizens, chambers of commerce, entreprises, others) Tools  RIA (Risk Analysis, Competition Analysis, Cost-Benefit Analysis, RIA Ex post, etc)  Public Consultation (through: Internet, meetings with stakeholders, comments into the COFEMER´s opinions)  Transparency (Electronic files related to the Regulatory Process of each regulatoryproposal are made public via COFEMER website)  Regulatory Reform Programs (deregulation & administrative simplification)  Measurement of Administrative Burdens (Standard Cost Model)  Capacity building on Regulatory Reform Skills  Regulatory Reform at the Subnational Level
  10. 10. VIII.Oversight of regulatory agencies Executive Branch Ministries Agencies Units with regulatory functions Ministry of Economy COFEMER Legislative Branch Autonomous Constitutional Organisms Challenge: Universal application of the regulatory reform policy
  11. 11. IX. Main Lessons Lessons Trust is an optimal value for good regulators Enhancing trust on regulators should consider: Types of regulators Best practice principles (OECD) Regulators need technical and political trust Laws, body structure, decisions and strategies influence the level of trust in regulators Regulatory Governance / Reform is strategical for enhancing trust in regulators
  12. 12. Thank you March, 2014 Virgilio Andrade virgilio.andrade@cofemer.gob.mx www.cofemer.gob.mx

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