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Overview of the impact assessment process in Montenegro

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This was the first event in a programme of work with the Republic of Montenegro to assist them improving the decision making capacities of their government through the better use of the Regulatory Impact Assessment process. In January 2012, Montenegro introduced a new requirement that all ministries must analyse whether a regulatory intervention is needed and, if so, which of the possible options is the best solution to the problem. The Regulatory Impact Assessment process (RIA) brings many benefits including government processes becoming more transparent and accountable to the public and greater likelihood of the proposed changes working, as stakeholders have been involved in the development of the solution from the outset.
The RIA process enables Governments and citizens to understand the costs and benefits of potential changes and make informed decisions about things that affect their lives. However, more could be done to improve the effectiveness of the RIA in Montenegro. At present, the quality of fiscal analysis is varied, how policies will be monitored and measured is not always explained in sufficient detail and stakeholders are sometimes unclear about how the consultation process actually influenced the development of a policy.
To support Montenegro in making the RIA system more effective this seminar enabled: 1) a review of the first year of implementation 2) the Ministry of Finance to share examples of good RIAs 3) hear practical solutions to the analytical challenges faced by Montenegro from EU Member States.

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Overview of the impact assessment process in Montenegro

  1. 1. principally financed by the EU A joint initiative of the OECD and the European Union, Welcome and Overview Bonjana Boskovic, Deputy Minister of Finance, Ministry of Finance & Rachel Holloway Senior Policy Adviser OECD SIGMA 24 June 2013 © OECD
  2. 2. Objectives • Review the first year of the new analytical processes within Montenegro, to enhance the use of the RIA system • Share learning from other EU Member States about practical solutions to overcome the challenges that Montenegro faces • Identify practical options to address these challenges 2
  3. 3. Aims of event • Improvements to RIA process in Montenegro through officials gaining more knowledge of how to:  Consider and build issues surrounding implementation of a policy into analysis;  Undertake comprehensive analysis with limited resources/expertise;  Undertake good fiscal analysis, even if not an economist. • Opportunity to share experiences and learn with other colleagues & the Ministry of Finance 3
  4. 4. Why focus on policy and law? • All societies set rules, or regulate, to govern behaviour • As societies become more complex, so does regulation • Overall level of regulation increases as people expect higher standards, such as: – – – – – – – Improved health and safety Enhanced employment rights Equality of opportunity Fair competition and open markets Protection for consumers Better public services Cleaner environment 4
  5. 5. RIA Is a framework for questions An RIA prompts key questions to be asked: • What is the problem? • Why do we need change? • Where do we want to be? • How could we get there? • What are the possible impacts of these options? • Which is the best route based on the evidence? • How will legislation be implemented, enforced and monitored? • Will the benefits justify the costs? 5
  6. 6. And the big picture? ECONOMIC GROWTH EMPLOYMENT OPEN MARKETS ENVIRONMENT EU COMPETITIVENESS FOREIGN DIRECTED & DOMESTIC INVESTMENT SOCIAL ISSUES INNOVATION WORLD BANK 6
  7. 7. Challenges every country faces • Most agree with the rationale of undertaking a RIA • The challenge is how to make the most use of this discipline:  ensure that it is done to a high standard  avoid an obsession with process and box ticking  develop the estimates of costs and benefits that are the best available at the time  the political decision makers are better equipped to take decisions on the basis of such evidence 7

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