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Resilience Shift Policy Symposium - the role of public policy - Dr Svenja Keele

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The Resilience Shift Policy Symposium took place on Wed 15 May 2019 in Melbourne Australia. This presentation was by Dr Svenja Keele and Professor Lars Coenen, from the University of Melbourne, who talked about the role of policy and the ‘policy spectrum’ as captured in the published report. The Symposium explored ways to incentivise resilience - by understanding the key drivers, and exploring the use of different policy approaches to enhance critical infrastructure resilience.

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Resilience Shift Policy Symposium - the role of public policy - Dr Svenja Keele

  1. 1. Policy and critical infrastructure resilience Dr Svenja Keele & Professor Lars Coenen Melbourne Sustainable Society Institute
  2. 2. Public policy is a framework for action that is guided by decision-making principles, is undertaken by governments and has authority… • Builds and communicates shared expectations • Articulates how public resources will be deployed • Coordinates across sectors, systems and jurisdictions • Is an arena for deliberation and negotiation • Opens up pathways for driving change • Is a source of institutional resilience It shapes and constrains behavior all the way along the infrastructure value chain A role for public policy? 2© Sydney Morning Herald
  3. 3. Policymaking for critical infrastructure already complex… • Cross-sectoral policy integration • Coordination across levels of government • Making the case for long term investments • Optimal balance of public and private involvement • Integrating with existing infrastructure Additional challenges for driving resilience… • Allocation of risks • Correcting (new) market failures • Managing interdependencies • Making policy adaptive A complex policy arena 3© The Australian
  4. 4. 4 Levers for change - policy instruments More coercive instruments, less reliant on voluntary action, less discretion, more government involvement Instruments more reliant on voluntary action, more discretion, less coercion, less government involvement Direct provision Public assets Public land management National defence Social security Education Policing Emergency services Census, geological survey Compulsory acquisition Public enterprises State-owned corporations Regulatory instruments ‘Sticks’ Acts Regulation Executive orders Administrative decisions Zoning Mandatory standards Mandatory disclosure Fit for purpose obligations Voluntary actions by businesses Voluntary standards Codes of practice Rating tools Insurance Community-based actions and services Volunteering Remittances NGOs Charities Churches Information instruments ‘Sermons’ Public information Advertising Speeches and events Consultative boards Capacity-building activities Knowledge-sharing Voluntary disclosure Research Economic instruments ‘Carrots’ Taxes and user charges Levies and fines Market-based instruments Subsidies, grants, loans Government insurance Government bonds PPPs and contracting out Market-based regulation Co-operative regulation
  5. 5. Infrastructure policy operates within several complex systems Range of considerations… • Instruments have their own strengths and weaknesses • Speed, depth and certainty of change • Political-economic context • How roles allocated between public and private sectors • How roles allocated across levels of government • Feasibility and comparative merit Need to be aware of evidence for behaviour change, perverse consequences and equity issues Choosing policy mixes 5 © Nick Harmsen, ABC News
  6. 6. 6 Policy tools for critical infrastructure resilience Source: responses received from 25 countries to the OECD Survey in Critical Infrastructure (2018)
  7. 7. 7 Policy ecosystem for infrastructure resilience
  8. 8. 8 Policy innovations for resilient infrastructure Case study Key Resilience Challenge Stage(s) of Value Chain Policy Instrument(s) Diagnose& Conceive Design& Delivery Operate& Maintain 1. Public-Private Partnerships Allocation of risk   Economic Instruments (PPPs and Contracting Out) combined with Prescriptive (Regulation) and Voluntary (Insurance) elements 2. Transferable Development Rights Market failures   Economic Instruments (Market-based instrument) combined with Regulatory (Prescriptive Land Use Planning) and Information (Disclosure) instruments 3. Complex Systems Modelling Interdependencies    Information Instruments (Research, Knowledge-sharing and Public Information) 4. Rating Tools and Technical Standards Adaptive policy   Voluntary Instrument (Rating tools) aligned with Regulatory Instruments (e.g. Prescriptive or Performance legislation and Mandatory standards)
  9. 9. 9 Key messages Public policy matters for critical infrastructure resilience Resilience poses new challenges for this complex policy area There are a wide range of policy instruments available Critical infrastructure policy is already innovating for resilience
  10. 10. Thank you Dr Svenja Keele Professor Lars Coenen svenja.keele@unimelb.edu.au lars.coenen@unimelb.edu.au

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